EX-99.1 2 a00214991.htm a00214991.htm
Exhibit 99.1

 
 
 

 
For further information:
Paula Waters, VP, Investor Relations
504/576-4380
pwater1@entergy.com
INVESTOR NEWS
 
Feb. 11, 2014
 
ENTERGY REPORTS FOURTH QUARTER AND FULL YEAR EARNINGS
 
Strong Utility Industrial Sales Growth, Rise in EWC 2014 Northeast Forward Power Prices Highlight the Quarter
 

NEW ORLEANS – Entergy Corporation (NYSE: ETR) reported earnings per share of $0.82 on an as-reported basis and $1.00 on an operational basis for fourth quarter 2013 and $3.99 on an as-reported basis and $5.36 on an operational basis for the full year 2013, as shown in Table 1 below. The period-over-period declines were due largely to income tax benefits recorded in 2012. A more detailed discussion of quarterly and full-year results begins on page 2 of this release.

Table 1: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
Fourth Quarter and Year-to-Date 2013 vs. 2012
(Per share in U.S. $)
            
 
Fourth Quarter
Year-to-Date
 
2013
2012
Change
2013
2012
Change
As-Reported Earnings
0.82
1.66
(0.84)
3.99
4.76
(0.77)
Less Special Items
(0.18)
(0.06)
(0.12)
(1.37)
(1.47)
0.10
Operational Earnings
1.00
1.72
(0.72)
5.36
6.23
(0.87)
Weather Impact
0.11
(0.07)
0.18
-
(0.09)
0.09
             

Operational Earnings Highlights for Fourth Quarter 2013
·  
Utility earnings were lower due primarily to higher income tax expense and higher expenses for non-fuel O&M, depreciation and other taxes, partially offset by an increase in net revenue.
·  
EWC earnings increased, driven by a gain on sale, higher other income and lower income tax expense, partially offset by lower net revenue and higher non-fuel O&M and depreciation.
·  
Parent & Other results decreased due primarily to higher income tax expense.

“In the fourth quarter, we saw encouraging top-line results at the Utility from continued strong industrial sales growth,” said Leo Denault, Entergy’s chairman and chief executive officer. “Growth was driven by increased production from existing customers tied to favorable global economic conditions. We expect to see continued load growth in the future as facility expansions come on line. During the quarter, EWC saw a surge in spot and 2014 forward power prices for the Northeast. The hedging strategy we’ve employed over the past several years positioned us to participate in this price run-up, which will largely be reflected in 2014 results.

“On a full year basis, we delivered solid 2013 operational results that reflected productive investments for Utility customers and a trend toward tightening supply/demand fundamentals in the Northeast as well as upward movement of energy spot prices. Moreover, we executed on several strategic initiatives, such as joining MISO, reducing our cost structure and improving productivity across our businesses, and making portfolio changes at EWC, consistent with our strategy.”
 
Entergy’s business highlights also included the following:
·  
Entergy operating companies successfully completed integration of their transmission systems into the MISO RTO.
·  
The LPSC approved a settlement resolving outstanding rate cases for ELL and EGSL.
·  
The APSC issued a decision on EAI’s rate case and EAI has requested rehearing of the Commission’s order.
·  
EGSL signed a six-year commercial agreement with Sasol North America Inc. to supply up to 200 megawatts to Sasol’s proposed ethane cracker and derivatives project.
·  
The sale of EWC’s District Energy business was completed in November 2013.
·  
Entergy VY and the state of Vermont announced a settlement agreement on the plant’s operations through 2014 and its later transition to decommissioning.
 
A teleconference will be held at 9 a.m. CT on Tuesday, Feb. 11, 2014, to discuss Entergy’s fourth quarter 2013 earnings announcement and the company’s financial performance. The teleconference may be accessed by dialing (719) 325-2115, confirmation code 6761108, no more than 15 minutes prior to the start of the call or by visiting Entergy’s website at www.entergy.com. The presentation slides are also available on Entergy’s website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available by telephone and on Entergy’s website at www.entergy.com. The telephone replay will be available through noon CT on Tuesday, Feb. 18, 2014, by dialing (719) 457-0820, confirmation code 6761108.

I.  
Consolidated Results

Consolidated Earnings

Table 2 provides a comparative summary of consolidated earnings per share for fourth quarter and year-to-date 2013 versus 2012, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings. A detailed discussion of the factors driving quarterly results at each business segment follows.

Table 2: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
Fourth Quarter and Year-to-Date 2013 vs. 2012 (see Appendix E for definitions of certain measures)
(Per share in U.S. $)
 
Fourth Quarter
Year-to-Date
 
2013
2012
Change
2013
2012
Change
As-Reported
            
Utility
0.90
1.57
(0.67)
4.64
5.30
(0.66)
Entergy Wholesale Commodities
0.24
0.33
(0.09)
0.24
0.23
0.01
Parent & Other
(0.32)
(0.24)
(0.08)
(0.89)
(0.77)
(0.12)
  Consolidated As-Reported Earnings
0.82
1.66
(0.84)
3.99
4.76
(0.77)
             
Less Special Items
            
Utility
0.04
(0.06)
0.10
(0.16)
(0.21)
0.05
Entergy Wholesale Commodities
(0.24)
-
(0.24)
(1.23)
(1.26)
0.03
Parent & Other
0.02
-
0.02
0.02
-
0.02
  Consolidated Special Items
(0.18)
(0.06)
(0.12)
(1.37)
(1.47)
0.10
             
Operational
            
Utility
0.86
1.63
(0.77)
4.80
5.51
(0.71)
Entergy Wholesale Commodities
0.48
0.33
0.15
1.47
1.49
(0.02)
Parent & Other
(0.34)
(0.24)
(0.10)
(0.91)
(0.77)
(0.14)
  Consolidated Operational Earnings
1.00
1.72
(0.72)
5.36
6.23
(0.87)
Weather Impact
0.11
(0.07)
0.18
-
(0.09)
0.09
             

Detailed earnings variance analyses are included in Appendix A-1 and Appendix A-2 to this release. In addition, Appendix A-3 provides details of special items shown in Table 2 above.

Consolidated Operating Cash Flow

Entergy’s operating cash flow in fourth quarter 2013 was $990 million compared to $720 million in fourth quarter 2012. The overall quarterly increase was due to several factors, including variations in cash flow from net revenue. Cash flow from utility net revenue, including cash effects from deferred fuel, increased while cash flow from EWC net revenue declined. Other drivers of the quarter-over-quarter increase included non-capital storm spending associated with Hurricane Isaac in 2012 and lower refueling outage spending. These increases were partially offset by higher pension funding. Income tax payments contributed to the line of business variances, but were largely offsetting between the segments.

For the year, Entergy’s operating cash flow was $3,189 million in 2013 versus $2,940 million in 2012. The year-over-year increase was due largely to variations in cash flow from higher Utility net revenue, including the effects from deferred fuel. Other items that contributed to the increase included the net effect of non-capital storm spending for Hurricane Isaac in 2012 and an ice storm in 2013 and receipt of proceeds from the DOE in second and third quarters 2013 resulting from litigation regarding storage of spent nuclear fuel.

The overall increase was partially offset by higher income tax payments and non-capital spending related to ANO recovery from the March 31 industrial incident. Income tax payments contributed to the line of business variances, but were largely offsetting between the segments.

 
 
 


Table 3 provides the components of operating cash flow contributed by each business with current quarter and year-to-date comparisons.

Table 3: Consolidated Operating Cash Flow
Fourth Quarter and Year-to-Date 2013 vs. 2012
(U.S. $ in millions)
 
Fourth Quarter
Year-to-Date
 
2013
2012
Change
2013
2012
Change
Utility
906
557
349
2,208
2,354
(146)
Entergy Wholesale Commodities
195
111
84
730
676
54
Parent & Other
(111)
52
(163)
251
(90)
341
  Total Operating Cash Flow
990
720
270
3,189
2,940
249
             

II.  
Utility

In fourth quarter 2013, Utility earnings were $0.90 per share on an as-reported basis and $0.86 per share on an operational basis, compared to as-reported earnings per share of $1.57 and operational earnings per share of $1.63 in fourth quarter 2012. The quarter-over-quarter decrease in operational earnings per share was due primarily to higher income tax expense as well as higher expenses for non-fuel O&M, depreciation and other taxes. These items were partially offset by an increase in net revenue.

Fourth quarter 2012 results included a reduction in income tax expense driven by a tax audit settlement. There were income tax items in fourth quarter 2013 which resulted in a net benefit to earnings. The benefit in fourth quarter 2012 was larger than the benefit recorded in fourth quarter 2013.

Non-fuel O&M was higher due partly to increased compensation and benefits costs. A portion of the higher non-fuel O&M as well as the depreciation expense increases was offset by higher net revenue.

Higher net revenue partially offset expense increases. Pricing adjustments contributed to the net revenue increase. Current quarter net revenue reflected regulatory actions from placing major generation investments in service. A portion of the net revenue increase was for recovery of costs below net revenue. Also contributing to the increase in net revenue was higher volume due to the effects of weather. Weather was favorable in fourth quarter 2013 while it was unfavorable in the comparable quarter one year ago.

Retail electric sales in billed gigawatt-hours by customer segment are summarized in Table 4. Fourth quarter 2013 sales reflected the following:
·  
Residential sales, on a weather-adjusted basis, decreased (0.3) percent compared to fourth quarter 2012.
·  
Commercial and governmental sales, on a weather-adjusted basis, increased 1.0 percent quarter over quarter.
·  
Industrial sales in the fourth quarter increased 3.2 percent compared to the same quarter of 2012.

Billed retail sales increased 1.5 percent on a weather-adjusted basis, driven largely by strong industrial sales growth. The industrial sales increase was due primarily to growth in the refining, chemicals and small industrial segments. Residential weather-adjusted sales reflected continued emphasis on energy efficiency and demand-side management programs.

For the year 2013, the Utility earned $4.64 per share on an as-reported basis and $4.80 per share on an operational basis, compared to $5.30 per share on an as-reported basis and $5.51 per share on an operational basis in 2012. The year-over-year decrease was due largely to higher income tax expense. Results in both years reflected tax items that resulted in decreases in income tax expense. The income tax expense benefit in 2012 exceeded the benefit in 2013. A portion of the benefits resulting from a second quarter 2012 IRS agreement included customer sharing, which reduced net revenue in the same period. Increased non-fuel O&M, depreciation expense and taxes other than income taxes also contributed to the decrease. Interest expense and nuclear refueling outage expense were also higher year-over-year.

The year-over-year decreases were partially offset by higher net revenue, which included the previously noted second quarter 2012 customer sharing. The net revenue increase also reflected the net effect of rate adjustments, including recovery for a portion of the expense increases noted above. Sales growth was also positive, including the effects of weather. Overall billed retail sales increased 0.7 percent year-over-year; excluding the effects of weather, billed retail sales increased 0.2 percent.


 
 
 


Table 4 provides a comparative summary of Utility operational performance measures.

Table 4: Utility Operational Performance Measures
Fourth Quarter and Year-to-Date 2013 vs. 2012 (see Appendix E for definitions of certain measures)
     
 
Fourth Quarter
Year-to-Date
 
2013
2012
% Change
% Weather Adjusted
2013
2012
% Change
% Weather Adjusted
GWh billed
                
Residential
8,089
7,360
9.9%
(0.3)%
35,169
34,664
1.5%
(0.6)%
Commercial and governmental
7,647
7,313
4.6%
1.0%
30,959
31,159
(0.6)%
(0.1)%
Industrial
10,389
10,067
3.2%
3.2%
41,653
41,181
1.1%
1.1%
Total Retail Sales
26,125
24,740
5.6%
1.5%
107,781
107,004
0.7%
0.2%
Wholesale
1,133
798
42.0%
  
3,020
3,200
(5.6)%
  
Total Sales
27,258
25,538
6.7%
  
110,801
110,204
0.5%
  
Non-fuel O&M per MWh (a)
$21.99
$22.19
(0.9)%
  
$20.98
$19.53
7.4%
  
Number of electric retail customers
                
Residential
        
2,395,267
2,379,955
0.6%
  
Commercial and governmental
        
359,140
355,870
0.9%
  
Industrial
        
45,789
42,230
8.4%
  
Total Retail Customers
        
2,800,196
2,778,055
0.8%
  
                 
 
(a)
Fourth quarter and year-to-date 2012 and 2013 exclude the special item associated with the proposed spin-merge of the transmission business; fourth quarter and year-to-date 2013 exclude the special item for HCM implementation expenses.

Appendix B provides information on selected regulatory cases.

III.  
Entergy Wholesale Commodities

EWC operational adjusted EBITDA was $133 million in fourth quarter 2013, compared to $161 million in the same period a year ago, as shown in Table 5.

Table 5: Entergy Wholesale Commodities Operational Adjusted EBITDA – Reconciliation of GAAP to Non-GAAP Measures
Fourth Quarter and Year-to-Date 2013 vs. 2012 (see Appendix E for definitions of certain measures)
($ in millions)
 
Fourth Quarter
Year-to-Date
 
2013
2012
Change
2013
2012
Change
Net income
42
59
(17)
43
40
3
Add back: interest expense
5
3
2
16
18
(2)
Add back: income tax expense
(12)
50
(62)
(77)
61
(138)
Add back: depreciation and amortization
61
47
14
216
176
40
Subtract: interest and investment income
66
28
38
138
105
33
Add back: decommissioning expense
33
30
3
125
72
53
Adjusted EBITDA
63
161
(98)
185
262
(77)
Add back: special item for HCM implementation expenses (pre-tax)
19
-
19
24
-
24
Add back: special item for VY asset impairments / related charges (pre-tax)
52
-
52
343
356
(13)
Operational adjusted EBITDA
133
161
(28)
553
618
(65)
             
Totals may not foot due to rounding            
 
 
The decline in EWC quarter-over-quarter operational adjusted EBITDA was due largely to increased non-fuel O&M and decreased net revenue. The gain on sale of the District Energy business provided a partial offset.

During fourth quarter 2013, EWC revenues were reduced by mark-to-market activity. As part of an asymmetric and protective risk management hedging strategy, additional financial power sales were conducted in fourth quarter 2013 to offset the exercise of in-the-money protective call options and to lock in margins. These additional sales did not qualify for hedge accounting treatment, and increases in forward prices after those sales were made accounted for the majority of the negative mark-to-market variance. It is expected that the underlying transactions will result in earnings in first quarter 2014 as these positions settle. Within net revenue, higher nuclear production due to 36 fewer refueling and unscheduled outage days provided a partial offset.

For the year, EWC operational adjusted EBITDA was $553 million compared to $618 million in 2012. The main drivers for the year-over-year decrease were the same as the quarterly drivers noted previously - lower net revenue and higher non-fuel O&M, partially offset by a gain on the sale of the District Energy business.

Contributions to 2013 operational adjusted EBITDA from VY, scheduled to be closed later this year at the end of its current operating cycle, were approximately $(2) million in the fourth quarter and $18 million for the full year.

EWC reported as-reported earnings of $0.24 per share and operational earnings of $0.48 per share for fourth quarter 2013, compared to fourth quarter 2012 earnings of $0.33 per share on both an as-reported and an operational basis. The increase in operational earnings was driven by higher other income and a decrease in income tax expense. The increase in other income was due primarily to higher realized decommissioning trust earnings in fourth quarter 2013, which are directly reinvested into the trust funds.

Partially offsetting the increase was higher depreciation expense and lower operational adjusted EBITDA. Depreciation expense increased due to the effects of the VY shutdown decision. In addition, fourth quarter 2012 results included an accrual for reimbursement of VY spent nuclear fuel storage costs from the DOE, which reduced depreciation expense as well as reduced non-fuel O&M and increased miscellaneous other income included in EBITDA.

For the year, EWC earnings per share were $0.24 on an as-reported basis and $1.47 on an operational basis, compared to as-reported earnings of $0.23 per share and operational earnings of $1.49 per share in 2012. Several drivers contributed to the slight decline in operational earnings. In addition to the operational adjusted EBITDA drivers noted above, decommissioning and depreciation expenses were higher due primarily to items recorded in 2012. The decrease was partially offset by higher other income and lower income tax expense.

Table 6 provides a comparative summary of EWC operational performance measures.

Table 6: Entergy Wholesale Commodities Operational Performance Measures
Fourth Quarter and Year-to-Date 2013 vs. 2012 (see Appendix E for definitions of certain measures)
 
 
Fourth Quarter
Year-to-Date
 
2013
2012
% Change
2013
2012
% Change
Owned capacity (MW) (b)
6,068
6,612
(8.2)%
6,068
6,612
(8.2)%
GWh billed
11,938
11,221
6.4%
45,127
46,178
(2.3)%
Net revenue ($ millions)
432
463
(6.7)%
1,802
1,854
(2.8)%
Average realized revenue per MWh
$45.05
$50.56
(10.9)%
$50.86
$50.02
1.7%
Non-fuel O&M per MWh (c)
$25.10
$23.52
6.7%
$25.32
$23.66
7.0%
             
EWC Nuclear Fleet
            
Capacity factor
97%
90%
7.8%
89%
89%
-
GWh billed
10,858
10,298
5.4%
40,167
41,042
(2.1)%
Average realized revenue per MWh
$44.15
$49.88
(11.5)%
$50.15
$50.29
(0.3)%
Production cost per MWh (c)
$25.37
$26.18
(3.1)%
$26.35
$26.19
0.6%
Refueling outage days
            
    FitzPatrick
-
19
  
-
34
  
    IP2
-
-
  
-
28
  
    IP3
-
-
  
28
-
  
    Palisades
-
-
  
-
34
  
    Pilgrim
-
-
  
45
-
  
    VY
-
-
  
27
-
  
             
(b)
Fourth quarter and year-to-date 2013 were reduced due to the retirement of R.E. Ritchie Unit 2 (gas/oil) plant in November 2013 (544 MWs)
(c)
Fourth quarter and year-to-date 2013 exclude the effect of the special item for HCM implementation expenses; year-to-date 2012 and fourth quarter and year-to-date 2013 exclude the effect of the special item for VY asset impairments / related charges.


 
 
 


Table 7 provides information on current forward capacity and generation contracts for EWC’s fleet. It also provides total revenue projections using market prices as of Dec. 31, 2013, adjusted for internal expectations for the new NYISO LHV capacity zone starting in May 2014. EWC uses a combination of forward physical and financial contracts, including swaps, collars, put and/or call options, to manage forward commodity price risk. Certain hedge volumes have price downside and upside relative to market price movements. The contracted minimum, current expected value and sensitivities are provided to show potential variations. The sensitivities may not reflect the total maximum upside potential from higher market prices. Information contained in Table 7 represents projections at a point in time and will vary over time based on numerous factors, such as future market prices, contracting activities and generation.

Table 7: Entergy Wholesale Commodities Capacity and Generation
2014 through 2018 (see Appendix E for definitions of certain measures)
(based on market prices as of Dec. 31, 2013) (d)
 
  
 
2014
2015
2016
2017
2018
EWC Nuclear Portfolio
          
Energy
          
Planned TWh of generation (e)
39
35
36
35
35
Percent of planned generation under contract
          
Unit-contingent
25%
15%
16%
14%
14%
Unit-contingent with availability guarantees
16%
15%
14%
15%
3%
Firm LD
59%
44%
10%
-
-
Offsetting positions
(26)%
-
-
-
-
Total (f)
74%
74%
40%
29%
17%
Average revenue per MWh on contracted volumes
          
Minimum
$47
$43
$47
$51
$56
Expected based on current market prices
$50
$49
$49
$52
$56
Sensitivity: -/+ $10 per MWh market price change
$48-$52
$45-$54
$47-$51
$51-$54
$56
           
Capacity
          
Planned net MW in operation
5,011
4,406
4,406
4,406
4,406
Percent of capacity sold forward
          
Bundled capacity and energy contracts
16%
18%
18%
18%
18%
Capacity contracts
28%
15%
15%
6%
-
Total
44%
33%
33%
24%
18%
Average revenue under contract per kW per month
  (applies to capacity contracts only)
$2.7
$3.2
$3.4
$3.6
-
           
Total Nuclear Energy and Capacity Revenues (g)
          
Expected sold and market total revenue per MWh
$55
$50
$49
$50
$51
Sensitivity: -/+ $10 per MWh market price change
$51-$59
$45-$56
$42-$56
$43-$57
$43-$59
           
EWC Non-Nuclear Portfolio
          
Energy
          
Planned TWh of generation
6
6
6
6
6
Percent of planned generation under contract
          
Cost-based contracts
33%
35%
34%
32%
33%
Firm LD
6%
6%
6%
6%
6%
  Total (h)
39%
41%
40%
38%
39%
           
Capacity
          
Planned net MW in operation
1,052
1,052
1,052
977
977
Percent of capacity sold forward
          
Cost-based contracts
24%
24%
24%
26%
26%
Bundled capacity and energy contracts
8%
8%
8%
8%
8%
Capacity contracts
53%
53%
53%
23%
0%
  Total
85%
85%
85%
57%
34%
           
Total Non-Nuclear Net Revenue
          
Expected portfolio net revenue in $ millions
$97
$98
$111
$125
$137
           
(d)
Assumes shutdown of VY in fourth quarter 2014 and uninterrupted normal operation at the remaining nuclear plants. NRC license renewal applications are in process for both Indian Point units; at midnight on 9/28/13, IP2 entered the period of extended operations under its current license and the current license for IP3 expires 12/12/15.
(e)
2014 planned generation updated to reflect changes in outage duration assumptions.
(f)
2014 percent of planned generation under contract declined due to out-of-the-money protective options which expired in fourth quarter 2013 and were not replaced.
(g)
Includes current expectations for the new NYISO LHV capacity zone starting in May 2014.
(h)
A portion of the planned generation sold is subject to approval of transmission rights.

IV.  
Parent & Other

Parent & Other reported a loss of $(0.32) per share on an as-reported basis and $(0.34) on an operational basis for fourth quarter 2013, compared to a fourth quarter 2012 as-reported and operational loss of $(0.24) per share. The period-over-period decline in operational results was due to income tax expense on the EWC District Energy sale noted previously. The sale of EWC’s District Energy business affected the earnings of both EWC and Parent & Other. The pre-tax gain was recorded at EWC while the associated income tax expense was included in Parent & Other results.

For the year 2013, Parent & Other reported a loss of $(0.89) per share on an as-reported basis and $(0.91) per share on an operational basis. This compares to a loss of $(0.77) per share on an as-reported and an operational basis in 2012. Higher income tax expense, including income tax on the District Energy gain, was the primary factor in the year-over-year operational earnings per share decrease.

V.  
2014 Earnings Guidance

Entergy affirmed its previously issued 2014 operational earnings guidance in the range of $4.60 to $5.40 per share and noted that indications are near the upper end of the guidance range, based on assumptions as of Dec. 31, 2013. Year-over-year changes are shown as point estimates and are applied to final 2013 operational earnings to compute the 2014 guidance midpoint. Drivers for the 2014 operational earnings guidance range are listed separately. Because there is a range of possible outcomes associated with each earnings driver, a range is applied to the guidance midpoint to produce Entergy’s guidance range. Entergy’s 2014 operational earnings guidance is detailed in Table 8 below.

Table 8: 2014 Operational Earnings Per Share Guidance
(Per share in U.S. $) – Prepared October 2013 (i)
Segment
Description of Drivers
2013
Operational Earnings
per Share
Expected
Change
2014
Guidance
Midpoint
2014
Guidance
Range
           
Utility
2013 Operational earnings per share
4.80
      
Adjustment to normalize weather
  
-
    
Increased net revenue due to retail sales growth and rate changes
  
0.35
    
Other decreases in net revenue, including rate changes associated with offsets in other line items
  
(0.25)
    
Decreased non-fuel O&M
  
0.35
    
Increased depreciation expense
  
(0.15)
    
Increased other income
  
0.15
    
Higher effective income tax rate
  
(0.05)
    
Subtotal
4.80
0.40
5.20
  
           
Entergy Wholesale Commodities
2013 Operational earnings per share
1.47
      
Increased net revenue due primarily to higher capacity pricing for nuclear assets
  
0.15
    
Decreased non-fuel O&M
  
0.15
    
Increased decommissioning expense
  
(0.05)
    
Increased depreciation expense
  
(0.25)
    
Gain on sale of District Energy business in 2013 (j)
  
(0.25)
    
Higher effective income tax rate
  
(0.25)
    
Other
  
(0.12)
    
Subtotal
1.47
(0.62)
0.85
  
           
Parent & Other
2013 Operational earnings per share
(0.91)
      
Higher Parent non-fuel O&M
  
(0.05)
    
Income tax expense (j)
  
-
    
Other
  
(0.09)
    
 
Subtotal
(0.91)
(0.14)
(1.05)
  
           
Consolidated Operational
2014 Operational EPS Guidance Range
5.36
(0.36)
5.00
4.60 – 5.40
           
(i)
Originally prepared October 2013 and updated February 2014 to reflect 2013 final results.
(j)
Gain on the sale of the District Energy business in fourth quarter 2013 was recognized at EWC on a pre-tax basis; tax effect was recognized in Parent & Other.



 
 
 


Key assumptions supporting 2014 operational earnings guidance, based on assumptions at the time guidance was initiated in October 2013, are as follows:

Utility
·  
Normal weather
·  
Retail sales growth of around 1.9 percent on a weather-adjusted basis, driven largely by growth in the industrial segment; retail sales growth excluding the effect of industrial expansions is around 0.6 percent
·  
Increased net revenue from rate changes, including EAI, EGSL, ELL and ETI rate case adjustments, net of lower net revenue for Grand Gulf recovery attributable to lower rate base
·  
Other decreases in net revenue, approximately half due to rate changes with offsets in other line items and approximately half due to other items, including items recorded in 2013
·  
Decreased non-fuel O&M due largely to HCM and lower compensation and benefits costs, largely post-employment benefits; also reflects increased expenses associated with joining MISO, largely offset in net revenue, as well as other general cost increases
·  
Utility O&M savings from HCM assumed to be approximately $125 million pre-tax in 2014, exclusive of any cost to achieve the expected savings
·  
Increased depreciation expense associated with capital spending at the Utility, partially offset by lower depreciation rates at EAI, offset in net revenue
·  
Increased other income due largely to higher allowance for equity funds used during construction including AFUDC from the Ninemile 6 new CCGT project and higher interest and investment income which reflects higher affiliate dividend income, offset at Parent & Other, assuming Hurricane Isaac financing is completed in early- to mid-2014
·  
Higher effective income tax rate; effective income tax rate estimated at approximately 33 percent in 2014

Entergy Wholesale Commodities
·  
46 TWh of output for the total fleet, reflecting an approximate 90 percent nuclear capacity factor compared to an 89 percent nuclear capacity factor in 2013; 2014 includes approximately 30- to 45-day scheduled refueling outages at Palisades in early 2014, IP2 in Spring 2014 and FitzPatrick in Fall 2014; outage days vary depending on the scope of the outage
·  
Assumes full year operations for all nuclear plants, including VY which is assumed to begin ramping down power production in fourth quarter 2014 for final shutdown by year-end
·  
$51/MWh average price for EWC-nuclear fleet’s total energy and capacity revenues, using published market prices at the end of September 2013 and adjusting capacity prices for expectations for the new LHV capacity zone expected to be in place starting in May 2014 (average price based on portfolio as of Dec. 31, 2013 is $55/MWh)
o  
$47/MWh average revenue per MWh on contracted energy volumes, representing 81 percent of planned generation
o  
$39/MWh average market price on 19 percent unsold energy volumes (average market price based on prices and open position as of Dec. 31, 2013 was $48/MWh)
o  
$2.4/kW-month average capacity revenue under contract on 19 percent capacity, excluding bundled capacity contracts, which are priced within the contracted energy volumes above
o  
$5.2/kW-month average capacity price on 65 percent unsold capacity (average market price based on prices and open position as of Dec. 31, 2013 was $4.7/kW-month)
o  
Capacity revenue forecast assumes uplift associated with the LHV capacity zone of approximately $3/kW-month on an annualized basis
·  
Nuclear fuel expense around $6.6/MWh for 2014 compared to $6.4/MWh for 2013; average nuclear fuel expense in both years affected by VY impairments
·  
Decreased purchased power expense reflected in net revenue
·  
Non-fuel O&M, including nuclear refueling outage expenses, around $24.3/MWh reflecting lower expense resulting from HCM and lower compensation and benefits costs, largely post-employment benefits, and lower expense resulting from the sale of the District Energy business in fourth quarter 2013; decreases were partially offset by higher refueling outage amortization as well as other general cost increases
·  
Excludes VY spending that would have been capital except for the shutdown decision, which will be reported as part of the Asset impairment and related charges line item, and any VY severance and retention expenses; these items will be reflected as special items
·  
EWC O&M savings from HCM assumed to be approximately $55 million pre-tax in 2014, exclusive of any cost to achieve the expected savings
·  
Increased decommissioning expense, reflecting accretion of asset retirement obligation largely at VY
·  
Increased depreciation expense due to higher depreciation expense for VY resulting from the shutdown decision in third quarter 2013 and higher depreciable plant balances; also reflects an estimated effect of revised depreciation rates based on a new depreciation rate study
·  
Higher effective income tax rate
·  
VY contribution to operational adjusted EBITDA approximately $50 million in 2014, based on market prices as of Sept. 30, 2013, compared to approximately $18 million in 2013

Parent & Other
·  
Increased Parent non-fuel O&M due partly to the elimination of intercompany expense, offset at other business segments

Other
·  
2014 average fully diluted shares outstanding of approximately 178 million
·  
Overall effective income tax rate of 36 percent in 2014
·  
HCM savings in 2014 projected to total approximately $200 million, including non-fuel O&M and capital; HCM savings estimate is exclusive of any cost to achieve the expected savings
·  
Pension discount rate of 4.75 percent in 2014, compared to a final average pension discount rate of 4.36 percent in 2013 (final average discount rate is 5.14 percent in 2014)

Operational earnings guidance for 2014 should be considered in association with earnings sensitivities as shown in Table 9. These sensitivities illustrate the estimated change in operational earnings per share resulting from changes in various revenue and expense drivers. Traditionally, the most significant variables for earnings drivers are retail sales for the Utility and energy prices for EWC. In addition, the operational earnings guidance range for 2014 takes into consideration a number of regulatory initiatives that were underway across the Utility jurisdictions and potential variations in the pension discount rate.

Estimated annual impacts shown in Table 9 are intended to be indicative rather than precise guidance.

Table 9: 2014 Earnings Sensitivities
(Per share in U.S. $) – Prepared October 2013
 
Variable
 
2014 Guidance Assumption
 
Description of Change
Estimated
Annual Impact
Utility
      
Retail sales growth
  Residential
  Commercial / Governmental
  Industrial
 
Around 1.9% retail sales growth on a weather adjusted basis, 0.6% excluding industrial expansions
 
1% change in Residential MWh sold
1% change in Comm / Govt MWh sold
1% change in Industrial MWh sold
 
- / + 0.05
- / + 0.04
- / + 0.02
Rate base
Growing rate base
$100 million change in rate base
- / + 0.03
Return on equity
Authorized regulatory ROEs
1% change in allowed ROE
- / + 0.44
Non-fuel O&M
Lower due to HCM and compensation and benefits costs, partially offset by other increases
1% change in expense
+ / - 0.08
Entergy Wholesale Commodities (k)
    
Nuclear capacity factor
90% capacity factor
1% change in capacity factor
- / + 0.06
EWC revenue (energy)
$51/MWh nuclear revenue;
Non-nuclear net revenue
$10/MWh market price change
 (0.49) / + 0.60
EWC revenue (capacity)
$5.2/kW-month average capacity price on 65% unsold nuclear capacity (including VY)
$0.50/kW-month change in capacity price on nuclear capacity
- / + 0.06
Total non-fuel O&M
$24.3/MWh non-fuel O&M
1% change in expense
+ / - 0.04
Nuclear Outage (lost revenue only)
90% capacity factor, including refueling outages for three EWC nuclear units
1,000 MW plant for 10 days at average portfolio energy price of $47/MWh for contracted volumes and $39/MWh for unsold volumes in 2014 (assuming no resupply option exercise)
(0.03) / n/a
Consolidated
      
Interest expense
Higher debt outstanding balances
1% change in interest rate on $1 billion debt
+ / - 0.03
 
Pension and other postretirement costs (expense portion only) (l)
Discount rate of 4.75%
0.25% change
- / + 0.07
Effective income tax rate
36% effective income tax rate
1% change in overall effective income tax rate
+ / - 0.08
 
 
(k)
Assumes shutdown of VY in fourth quarter 2014 and uninterrupted normal operation at the remaining nuclear plants.
(l)
Based on 2013 rules of thumb for pension and other post-retirement employee benefit costs.


 
 
 


VI.  
Appendices

Six appendices are presented in this section as follows:

·  
Appendix A includes earnings per share variance analysis and detail on special items that relate to the current quarter and year-to-date results.
·  
Appendix B provides information on selected Utility regulatory cases.
·  
Appendix C provides financial metrics for both current and historical periods. In addition, historical financial and operating performance metrics are included for the trailing eight quarters.
·  
Appendix D provides a summary of planned capital expenditures for 2014 through 2016.
·  
Appendix E provides definitions of the operational performance measures, GAAP and non-GAAP financial measures and abbreviations or acronyms that are used in this release.
·  
Appendix F provides a reconciliation of GAAP to non-GAAP financial measures used in this release.


 
 
 


A.  
Variance Analysis and Special Items

Appendix A-1 and Appendix A-2 provide details of fourth quarter and year-to-date 2013 versus 2012 as-reported and operational earnings variance analysis for Utility, Entergy Wholesale Commodities, Parent & Other and Consolidated.

Appendix A-1: As-Reported and Operational Earnings Per Share Variance Analysis
Fourth Quarter 2013 vs. 2012
(Per share in U.S. $, sorted in consolidated operational column, most to least favorable)
               
 
Utility
  
Entergy Wholesale Commodities
  
Parent & Other
  
Consolidated
 
As-
Reported
Opera-
tional
  
As-
Reported
Opera-
tional
  
As-
Reported
Opera-
tional
  
As-
Reported
Opera-
tional
2012 earnings
1.57
1.63
  
0.33
0.33
  
(0.24)
(0.24)
  
1.66
1.72
Net revenue
0.34
0.32
(m)
(0.11)
(0.11)
 (n)
0.01
0.01
  
0.24
0.22
Other income (deductions) - other
0.06
0.06
(o)
0.11
0.11
 (p)
-
-
  
0.17
0.17
Gain on sale of investment
-
-
  
0.25
0.25
(q)
(0.10)
(0.10)
(q)
0.15
0.15
Preferred dividend requirements
-
-
  
-
-
  
0.01
0.01
  
0.01
0.01
Asset impairment / related charges
(0.03)
-
  
(0.13)
-
(r)
(0.01)
-
  
(0.17)
-
Nuclear refueling outage expense
(0.01)
(0.01)
  
-
-
  
-
-
  
(0.01)
(0.01)
Decommissioning expense
(0.01)
(0.01)
  
(0.01)
(0.01)
  
-
-
  
(0.02)
(0.02)
Interest expense and other charges
(0.04)
(0.04)
  
(0.01)
(0.01)
  
0.01
0.01
  
(0.04)
(0.04)
Taxes other than income taxes
(0.06)
(0.05)
(s)
0.01
0.01
  
-
-
  
(0.05)
(0.04)
Depreciation / amortization expense
(0.05)
(0.05)
(t)
(0.05)
(0.05)
(u)
-
-
  
(0.10)
(0.10)
Other O&M
(0.12)
(0.10)
(v)
(0.23)
(0.12)
(w)
-
-
  
(0.35)
(0.22)
Income taxes - other
(0.75)
(0.89)
(x)
0.08
0.08
(y)
-
(0.03)
  
(0.67)
(0.84)
2013 earnings
0.90
0.86
  
0.24
0.48
  
(0.32)
(0.34)
  
0.82
1.00
                       
 

Appendix A-2: As-Reported and Operational Earnings Per Share Variance Analysis
Year-to-Date 2013 vs. 2012
(Per share in U.S. $, sorted in consolidated operational column, most to least favorable)
               
 
Utility
  
Entergy Wholesale Commodities
  
Parent & Other
  
Consolidated
 
As-
Reported
Opera-
tional
  
As-
Reported
Opera-
tional
  
As-
Reported
Opera-
tional
  
As-
Reported
Opera-
tional
2012 earnings
5.30
5.51
  
0.23
1.49
  
(0.77)
(0.77)
  
4.76
6.23
Net revenue
1.92
1.90
(m)
(0.18)
(0.18)
 (n)
0.03
0.03
  
1.77
1.75
Gain on sale of investment
-
-
  
0.25
0.25
(q)
(0.10)
(0.10)
(q)
0.15
0.15
Other income (deductions) - other
0.02
0.02
  
0.10
0.10
 (p)
0.01
0.01
  
0.13
0.13
Preferred dividend requirements
-
-
  
-
-
  
0.02
0.02
  
0.02
0.02
Asset impairment / related charges
(0.03)
-
  
0.16
-
(r)
(0.01)
-
  
0.12
-
Nuclear refueling outage expense
(0.05)
(0.05)
(z)
0.01
0.01
  
-
-
  
(0.04)
(0.04)
Interest expense and other charges
(0.12)
(0.12)
(aa)
0.01
0.01
  
(0.01)
(0.01)
  
(0.12)
(0.12)
Taxes other than income taxes
(0.13)
(0.12)
(s)
(0.02)
(0.02)
  
-
-
  
(0.15)
(0.14)
Decommissioning expense
(0.02)
(0.02)
  
(0.18)
(0.18)
(bb)
-
-
  
(0.20)
(0.20)
Depreciation / amortization expense
(0.26)
(0.26)
(t)
(0.14)
(0.14)
(u)
-
-
  
(0.40)
(0.40)
Other O&M
(0.62)
(0.55)
(v)
(0.31)
(0.18)
(w)
(0.04)
(0.04)
  
(0.97)
(0.77)
Income taxes – other
(1.37)
(1.51)
(x)
0.31
0.31
(y)
(0.02)
(0.05)
(cc)
(1.08)
(1.25)
2013 earnings
4.64
4.80
  
0.24
1.47
  
(0.89)
(0.91)
  
3.99
5.36
                       
 
 

 
 
 


 
(m)
The current quarter and year-to-date increases reflected the net effect of pricing adjustments from regulatory actions, primarily from placing the Waterford 3 steam generator and the Hinds and Hot Spring acquisitions in service in late 2012. EAI’s energy efficiency rider and EMI’s FRP change in September 2013 contributed as well to the price variance. Volume also contributed to the increases, including the effects of weather. The variances also reflected a regulatory offset from higher nuclear decommissioning trust earnings. In addition, on a year-to-date basis, the increase reflected higher Grand Gulf recovery (primarily from the uprate completed in mid-year 2012), the effect of the second quarter 2012 regulatory charge for sharing tax benefits from an IRS agreement (discussed in (x)) and the effect of prior year charges associated with the September 2012 ETI rate order. A portion of these items in the quarter and year-to-date periods were for recovery of costs below the net revenue line.
 
Utility Net Revenue Variance Analysis
2013 vs. 2012 ($ EPS)
 
Fourth Quarter
Year-to-Date
Weather
0.18
0.09
Sales growth / pricing
0.17
1.12
Regulatory agreement
-
0.57
Other
(0.01)
0.14
Total
0.34
1.92
 
(n)
The current quarter and year-to-date decreases were due largely to unfavorable mark-to-market activity. Higher nuclear production due to fewer refueling and unscheduled outage days partially offset the decreases in fourth quarter 2013. On a year-to-date basis, billed generation from EWC’s nuclear fleet was lower due to the exercise of resupply options in 2012 whereby, under these options, EWC elected to supply power from another source when a plant was not running; nuclear fuel costs were higher as well, contributing to the year-to-date decrease. Higher capacity revenues for the quarter and year-to-date provided partial offsets.
(o)
The increase in the current quarter was due largely to higher decommissioning trust earnings, offset in net revenue (discussed in (m)).
 
(p)
The current quarter and year-to-date increases were due primarily to higher decommissioning trust earnings.
 
(q)
In the current quarter and year-to-date periods, the effects from the sale of the District Energy business affected two segments. The total pre-tax gain of $0.25 per share was realized at EWC, while the $(0.10) per share income tax effect was realized at Parent & Other.
 
(r)
The as-reported decrease in the current quarter was primarily a result of the decision to shut down VY at the end of its current operating cycle in late 2014. Current period charges included expenses resulting from the settlement agreement reached with the State of Vermont in fourth quarter 2013. The year-to-date increase also reflected the net effect of the non-cash impairment recorded in third quarter 2013 compared to the impairment charge also recorded for VY in first quarter 2012.
 
(s)
The decreases in the quarterly and year-to-date periods was due primarily to an increase in ad valorem taxes resulting from 2013 higher assessments as well as an increase in local franchise taxes resulting from higher residential and commercial revenues compared to the prior periods.
 
(t)
The decreases in current quarter and year-to-date were due to additions to plant in service, including the Waterford 3 steam generator replacement, the Hinds and Hot Spring power plant acquisitions, and for year-to-date, the Grand Gulf uprate. Higher depreciation rates at ETI resulting from the 2012 rate case order also contributed to the decrease in the year-to-date period.
 
(u)
The current quarter and year-to-date decreases were driven by the decision to shut down VY and prior period items. In fourth quarter 2012, a reduction in depreciation expense was recorded as a result of an award for a claim by VY against the DOE for spent nuclear fuel storage costs. The year-to-date decrease also reflected a third quarter 2012 reduction in depreciation expense, which was recorded as a result of an award for a claim by IP2 against the DOE for spent nuclear fuel storage costs.
 
(v)
The current quarter and year-to-date decreases were driven by several factors, including higher compensation and benefits costs including post-employment benefits. In addition, higher fossil plant spending due primarily to the Hinds and Hot Spring acquisitions and energy efficiency spending at EAI, which are offset in net revenue as discussed in (m), contributed to the decreases. The year-to-date decrease also reflected a third quarter 2013 charge related to lump sum benefits out of the non-qualified pension plan, as well as higher nuclear spending, including costs related to the generator stator incident at ANO. 2012 results also included a deferral of MISO costs. The as-reported decreases also included HCM implementation expenses.
 
(w)
The current quarter and year-to-date decreases were due largely to higher compensation and benefits costs including post-employment benefits. In addition, fourth quarter 2012 included a partial offset to non-fuel O&M due to an accrual for reimbursement of VY spent nuclear fuel storage costs from the DOE. The as-reported decreases also included HCM implementation expenses as well as expenses resulting from the decision to shut down VY at the end of its current operating cycle in late 2014.
 
(x)
The decreases in the current quarter and year-to-date were due largely to items in prior periods. In fourth quarter 2012, income tax expense was reduced by approximately $155 million as a result of an IRS settlement. In addition, consolidated tax savings adjustments, which net to zero on a consolidated basis, were favorable in fourth quarter 2012 and were negligible in 2013. These decreases were partially offset by income tax expense adjustments in fourth quarter 2013, which netted to an approximately $14 million benefit. The year-to-date period also reflected items recorded in the prior year, including a decrease in income tax expense in second quarter 2012. The year-to-date decreases were partially offset by a favorable interest settlement for state income tax adjustments in third quarter 2013 and the first quarter 2012 write off of an EGSL regulatory asset. The as-reported decreases also included a tax benefit associated with the ITC transaction, because the costs became deductible with the termination of the transaction.
 
(y)
The current quarter increase was due primarily to consolidated tax savings adjustments, which were negligible in the current period and unfavorable in the prior period (consolidated tax savings adjustments net to zero on a consolidated basis). The year-to-date increase included resolution of a tax issue in third quarter 2013 as well as a state income tax benefit recorded in second quarter 2013.
 
(z)
The year-to-date decrease was due primarily to the amortization of higher expenses associated with refueling outages at Waterford 3 and Grand Gulf partially offset by lower amortization for ANO Unit 1 refueling outage costs.
 
(aa)
The year-to-date decrease was due primarily to higher debt balances as well as lower allowance for funds used during construction due to completion of several major projects in mid- to late-2012.
 
(bb) 
 The year-to-date decrease was largely attributable to reductions in the asset retirement obligation recorded in second quarter 2012, which factored in, among other things, an updated decommissioning cost study for Pilgrim.
 
(cc)
The decrease year-to-date was due to the net effect of several items, including the second quarter 2012 favorable decision affirming Entergy’s entitlement to claim foreign tax credits for the U.K. Windfall Tax. The decrease was partially offset by consolidated tax savings adjustments, which net to zero on a consolidated basis. The consolidated tax savings adjustment was negligible in 2013. Also partially offsetting was the third quarter 2013 reversal of a state valuation allowance of approximately $28 million. The as-reported decreases also included a tax benefit associated with the ITC transaction, because the costs became deductible with the termination of the transaction.


 
 
 


Appendix A-3 lists special items by business with quarter-to-quarter and year-to-year comparisons. Amounts are shown on both an earnings per share basis and a net income basis. Special items are those events that are not routine. Special items are included in as-reported earnings per share consistent with GAAP, but are excluded from operational earnings per share. As a result, operational earnings per share is considered a non-GAAP measure.

Appendix A-3: Special Items (shown as positive / (negative) impact on earnings)
Fourth Quarter and Year-to-Date 2013 vs. 2012
(Per share in U.S. $)
 
Fourth Quarter
Year-to-Date
 
2013
2012
Change
2013
2012
Change
Utility
            
Transmission business spin-merge expenses
0.11
(0.06)
0.17
(0.05)
(0.21)
0.16
HCM implementation expenses
(0.07)
-
(0.07)
(0.11)
-
(0.11)
  Total Utility
0.04
(0.06)
0.10
(0.16)
(0.21)
0.05
             
Entergy Wholesale Commodities
            
VY asset impairments / related charges
(0.18)
-
(0.18)
(1.15)
(1.26)
0.11
HCM implementation expenses
(0.06)
-
(0.06)
(0.08)
-
(0.08)
  Total Entergy Wholesale Commodities
(0.24)
-
(0.24)
(1.23)
(1.26)
0.03
             
Parent & Other
            
Transmission business spin-merge expenses
0.03
-
0.03
0.03
-
0.03
HCM implementation expenses
(0.01)
-
(0.01)
(0.01)
-
(0.01)
  Total Parent & Other
0.02
-
0.02
0.02
-
0.02
             
Total Special Items
(0.18)
(0.06)
(0.12)
(1.37)
(1.47)
0.10
             
(U.S. $ in millions)
 
Fourth Quarter
Year-to-Date
 
2013
2012
Change
2013
2012
Change
Utility
            
Transmission business spin-merge expenses
20.0
(10.7)
30.7
(8.7)
(37.1)
28.4
HCM implementation expenses
(12.5)
-
(12.5)
(20.3)
-
(20.3)
 Total Utility
7.5
(10.7)
18.2
(29.0)
(37.1)
8.1
             
Entergy Wholesale Commodities
            
VY asset impairments / related charges
(31.8)
-
(31.8)
(204.8)
(223.5)
18.7
HCM implementation expenses
(11.8)
-
(11.8)
(15.0)
-
(15.0)
 Total Entergy Wholesale Commodities
(43.6)
-
(43.6)
(219.8)
(223.5)
3.7
             
Parent & Other
            
Transmission business spin-merge expenses
5.5
-
5.5
5.5
(1.0)
6.5
HCM implementation expenses
(1.8)
-
(1.8)
(1.9)
-
(1.9)
  Total Parent & Other
3.7
-
3.7
3.6
(1.0)
4.6
             
Total Special Items
(32.4)
(10.7)
(21.7)
(245.2)
(261.6)
16.4
             


 
 
 


B.  
Regulatory Summary
 
Appendix B provides a summary of selected regulatory cases.
 
Appendix B: Regulatory Summary (see Appendix E for definitions of certain abbreviations or acronyms)
Company
Cases
Retail Regulation
  
Entergy Arkansas
Authorized ROE: 9.3%
Last filed rate base:
$4.8 billion filed 1/9/14 based on 12/31/12 test year, with known and measureable changes through 12/31/13
Recent Activity / Next Steps: On Dec. 30, 2013, the APSC issued its order on the base rate case filed by EAI on March 1, 2013. The APSC approved a base rate increase of $81 million effective Dec. 31, 2013, including a 4.29% overall after tax rate of return with a 9.3% ROE and a 28.98% equity ratio. The order allows EAI to amortize its HCM costs over a three-and-a-half year period. Approximately $64 million of the base rate increase was the reclassification of riders to base rate and ANO2 wholesale to retail with no effect on earnings. The base rate increase also includes $13.6 million for storm reserve increases and $4 million for depreciation changes (reflecting a reduction in depreciation rates and an increase in plant in service). The MISO rider and the capacity cost rider proposed by EAI were approved. On Jan. 29, 2014, EAI filed a petition for rehearing of the Dec. 30, 2013 order. The APSC has 30 days to act or the petition is deemed denied.
Entergy Gulf States Louisiana
Authorized ROE range:
9.15 - 10.75% (electric);
9.45 - 10.45% (gas)
Last filed rate base:
$2.7 billion (electric) filed 2/15/13 based on 6/30/12 test year
$0.05 billion (gas) filed 1/31/14 based on 9/30/13 test year
Recent Activity / Next Steps: On Dec. 16, 2013, the LPSC approved a settlement resolving the rate case filed by EGSL on Feb. 15, 2013. The settlement results in no change to the base rider FRP revenue related to test year 2013, except with respect to recovery of the non-fuel related MISO costs, including the recovery of the deferred MISO implementation costs, and any capacity cost changes effective with the first billing cycle in December 2014. The settlement also provides for a three-year FRP for the 2014 through 2016 test years with a 9.95% ROE and a +/- 80 basis point bandwidth. Earnings outside the bandwidth are allocated prospectively, 60% to customers and 40% to EGSL. Other provisions of the settlement include: (1) recovery outside of the bandwidth for extraordinary items, such as the Ninemile 6 new CCGT project and certain special recovery items; (2) amortization of costs associated with the HCM initiative over a three-year period, beginning in December 2014; (3) eight-year amortization of costs incurred in the potential development of a new nuclear unit at River Bend without carrying costs, beginning December 2014 and (4) no cost of service increase for the 2014 test year.
Entergy Louisiana
Authorized ROE range:
9.15 - 10.75%
Last filed rate base:
$4.5 billion filed 2/15/13 based on 6/30/12 test year
Recent Activity / Next Steps: On Dec. 16, 2013, the LPSC approved a settlement resolving the rate case filed by ELL on Feb. 15, 2013. The settlement provides for a $10 million cost of service increase and recovery of the non-fuel related MISO costs, including the recovery of the deferred MISO implementation costs, and any capacity cost changes effective with the first billing cycle in December 2014. The settlement also provides for a three-year FRP for the 2014 through 2016 test years with a 9.95% ROE and a +/- 80 basis point bandwidth. Earnings outside the bandwidth are allocated prospectively, 60% to customers and 40% to ELL. Other provisions of the settlement include: (1) recovery outside of the bandwidth for extraordinary items, such as the Ninemile 6 new CCGT project and certain special recovery items; (2) amortization of costs associated with the HCM initiative over a three-year period, beginning in December 2014; (3) eight-year amortization of costs incurred in the potential development of a new nuclear unit at River Bend without carrying costs, beginning December 2014 and (4) a cumulative $30 million cap on cost of service increases over the three-year formula rate plan cycle, exclusive of items outside of the sharing mechanism but inclusive of the initial $10 million base rate increase in December 2014.
Entergy Mississippi
Authorized ROE range:
9.76 - 11.83%
(per 4/30/13 filing based on 12/31/12 test year)
Last filed rate base:
$1.7 billion filed 4/30/13 based on 12/31/12 test year
Recent Activity / Next Steps: On Jan. 7, 2014, the MPSC suspended EMI’s 2013 test year FRP filing. EMI will still make an abbreviated, information-only filing by March 15, 2014. EMI is evaluating a potential rate case filing in 2014, although no decision has been made.
Background: EMI’s FRP includes an annual redetermination of the benchmark ROE based on a formula tied to interest rates and equity risk premiums, with an adjustment based upon performance ratings. Returns inside the bandwidth result in no change in rates while returns outside the bandwidth reset rates prospectively to or within the bandwidth depending on performance, subject to a 4% revenue limit. The annual filing occurs each March with rates effective in June (if no hearing) or July (if hearing). EMI’s FRP does not have an expiration date.
On Aug. 13, 2013, the MPSC approved a stipulation resolving EMI’s 2012 test year FRP. Without agreeing to any specific disallowances, the stipulation provides for a rate increase of approximately $22.3 million, which brings EMI up to the equity “point of adjustment” of 10.59% from an 8.96% earned ROE for 2012. The annualized change was effective with September 2013 bills.
Entergy New Orleans
Authorized ROE range:
10.7 - 11.5% (electric) and 10.25 - 11.25% (gas)
Last filed rate base:
$0.3 billion (electric) and $0.09 billion (gas) filed 5/12 based on 12/31/11 test year
Recent Activity / Next Steps: ENOI’s FRP expired with the 2011 test year. The anticipated completion in the first part of 2015 (currently ahead of schedule) of the Ninemile 6 new CCGT project has certain ratemaking implications. In the coming months, ENOI will be working to finalize the ratemaking for ENOI related to its Ninemile 6 new CCGT PPA.
 
Entergy Texas
Authorized ROE: 9.8%
Last filed rate base:
$1.6 billion filed 9/25/13 based on 3/31/13 adjusted test year
Recent Activity / Next Steps: On Jan. 17, 2014, the PUCT Staff filed direct testimony in ETI’s rate case, recommending a retail rate reduction of $(0.3) million and a 9.2% ROE. On Feb. 6, 2014, the ALJs approved a request to abate the procedural schedule indefinitely, including discovery and the hearing. ETI will file a report by Feb. 12, 2014, regarding the status of the settlement and settlement documents.
Background: On Sept. 25, 2013, ETI filed a rate case requesting a $38.6 million base rate increase and a 10.4% ROE based on a test year period ending March 31, 2013. With additional riders for rate case expenses and reserve equalization payments, the increase would be $53 million initially. Special circumstances recovery as fuel of approximately $22 million of historical purchased power capacity costs was reflected in the fuel reconciliation.
Wholesale Regulation
System Energy Resources
See next column for ROE and rate base
Recent Activity: None.
Authorized ROE: 10.94%
Last calculated rate base: $1.5 billion for 12/31/13 monthly cost of service
 
 
C.  
Financial and Historical Performance Measures

Appendix C-1 provides comparative financial performance measures for the current quarter. Appendix C-2 provides historical financial performance measures and operating performance metrics for the trailing eight quarters. Financial performance measures in both tables include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.

As-reported measures are computed in accordance with GAAP as they include all components of net income, including special items. Operational measures are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items. A reconciliation of operational measures to as-reported measures is provided in Appendix F.

Appendix C-1: GAAP and Non-GAAP Financial Performance Measures
Fourth Quarter 2013 vs. 2012 (see Appendix E for definitions of certain measures)
   
For 12 months ending Dec. 31
2013
2012
  
Change
GAAP Measures
        
Return on average invested capital – as-reported
4.8%
5.5%
  
(0.7)%
Return on average common equity – as-reported
7.6%
9.3%
  
(1.7)%
Cash flow interest coverage
6.2
6.1
  
0.1
Book value per share
$53.19
$51.72
  
$1.47
End of period shares outstanding (millions)
178.4
177.8
  
0.6
         
Non-GAAP Measures
        
Return on average invested capital – operational
5.8%
6.6%
  
(0.8)%
Return on average common equity – operational
10.2%
12.2%
  
(2.0)%
         
As of Dec. 31 ($ in millions)
2013
2012
  
Change
GAAP Measures
        
Cash and cash equivalents
739
533
  
206
Revolver capacity
3,977
3,462
  
515
Commercial paper outstanding
1,045
665
  
380
Total debt
13,678
13,473
  
205
Securitization debt
883
973
  
(90)
Debt to capital ratio
58.3%
58.7%
  
(0.4)%
Off-balance sheet liabilities:
        
Debt of joint ventures – Entergy’s share
86
90
  
(4)
Leases – Entergy’s share
456
505
  
(49)
Total off-balance sheet liabilities
542
595
  
(53)
         
Non-GAAP Measures
        
Debt to capital ratio, excluding securitization debt
56.6%
56.9%
  
(0.3)%
Gross liquidity
4,716
3,995
  
721
Net debt to net capital ratio, excluding securitization debt
55.2%
55.8%
  
(0.6)%
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt
56.3%
57.0%
  
(0.7)%
         


 
 
 


Appendix C-2: Historical Performance Measures (see Appendix E for definitions of certain measures)
     
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
13YTD
12YTD
Financial
                    
   
EPS – as-reported ($)
(0.86)
2.06
1.89
1.66
0.90
0.92
1.34
0.82
3.99
4.76
   
Less – special items ($)
(1.30)
(0.05)
(0.06)
(0.06)
(0.04)
(0.09)
(1.07)
(0.18)
(1.37)
(1.47)
   
EPS – operational ($)
0.44
2.11
1.95
1.72
0.94
1.01
2.41
1.00
5.36
6.23
 
Trailing twelve months
                    
   
ROIC – as-reported (%)
6.0
6.2
4.8
5.5
6.9
5.9
5.5
4.8
    
   
ROIC – operational (%)
7.2
7.4
6.0
6.6
7.0
6.1
6.4
5.8
    
   
ROE – as-reported (%)
10.8
11.3
7.8
9.3
12.8
10.5
9.3
7.6
    
   
ROE – operational (%)
13.6
14.2
10.7
12.2
13.2
10.9
11.7
10.2
    
   
Cash flow interest coverage
7.5
7.2
6.8
6.1
5.9
5.8
5.9
6.2
    
   
Debt to capital ratio (%)
57.9
57.4
57.7
58.7
58.7
59.0
58.4
58.3
    
   
Debt to capital ratio, excluding securitization debt (%)
55.7
55.3
55.7
56.9
56.9
57.3
56.7
56.6
    
   
Net debt to net capital ratio, excluding securitization debt (%)
54.2
54.7
54.1
55.8
56.3
56.7
56.0
55.2
    
Utility
   
GWh billed
                    
   
Residential
7,760
7,940
11,605
7,360
8,344
7,377
11,359
8,089
35,169
34,664
   
Commercial & Governmental
6,992
7,753
9,101
7,313
7,005
7,267
9,041
7,647
30,959
31,159
   
Industrial
9,958
10,408
10,748
10,067
9,868
10,357
11,038
10,389
41,653
41,181
   
Wholesale
732
836
833
798
630
590
667
1,133
3,020
3,200
   
Non-fuel O&M per
MWh (dd)
$20.08
$19.94
$16.66
$22.19
$21.02
$23.44
$18.15
$21.99
$20.98
$19.53
Entergy Wholesale Commodities
   
Owned Capacity in MW (ee)
6,612
6,612
6,612
6,612
6,612
6,612
6,612
6,068
6,068
6,612
   
GWh billed
11,281
11,674
12,002
11,221
10,387
11,172
11,630
11,938
45,127
46,178
   
Net revenue ($ millions)
452
444
495
463
493
383
494
432
1,802
1,854
   
Operational adjusted EBITDA
($ millions)
144
127
185
161
194
61
165
133
553
618
   
Avg realized revenue per MWh
$49.29
$48.27
$51.88
$50.56
$58.66
$47.36
$53.22
$45.05
$50.86
$50.02
   
Non-fuel O&M per
MWh (dd)
$23.93
$24.07
$23.15
$23.52
$25.22
$25.69
$25.28
$25.10
$25.32
$23.66
   
EWC Nuclear Operational Measures
   
Capacity factor (%)
88
85
90
90
83
82
94
97
89
89
   
GWh billed
9,838
10,426
10,480
10,298
9,246
9,789
10,274
10,858
40,167
41,042
   
Avg realized revenue per MWh
$50.32
$48.67
$52.27
$49.88
$57.82
$46.40
$53.16
$44.15
$50.15
$50.29
   
Production cost per MWh (dd)
$25.85
$26.61
$26.14
$26.18
$25.94
$29.16
$25.32
$25.37
$26.35
$26.19
                         
(dd)
Excludes effect of special items: the proposed spin-merge of the transmission business at Utility (2012 and 2013 quarterly and year-to-date periods), HCM implementation expenses (second, third and fourth quarters and year-to-date 2013) at Utility and EWC and the VY asset impairments / related charges at EWC (first quarter and year-to-date 2012 and third and fourth quarters and year-to-date 2013).
(ee)
Fourth quarter and year-to-date 2013 were reduced due to the retirement of R.E. Ritchie Unit 2 (gas/oil) plant in November 2013 (544 MWs).

 
 
 


D.  
Planned Capital Expenditures

As shown in Appendix D, Entergy currently anticipates $6.8 billion for investment, including $5.8 billion for Utility and $1.0 billion for EWC. Utility depreciation expense over the comparable period is expected to total approximately $3.2 billion. In addition to routine maintenance, the capital investment plan includes specific investments and initiatives such as:
·  
Utility: generation investments of $0.2 billion for ELL’s Ninemile 6 new CCGT project, $0.2 billion for post-Fukushima requirements for the Utility nuclear fleet, $0.4 billion for environmental spending (included in generation) for potential scrubbers at the White Bluff plant to meet pending Arkansas state requirements under the Clean Air Visibility Rule as well as compliance with the EPA’s MATS rule; transmission spending to support economic development projects, reliability and new compliance requirements.
·  
Entergy Wholesale Commodities: significant projects required to continue operation of the current generation fleet including component replacements, software and security; $0.14 billion for NYPA value sharing (the last estimated $72 million payment to be made in January 2015 for 2014 generation); dry cask storage and license renewal and $0.2 billion for post-Fukushima requirements for the EWC nuclear fleet. EWC’s capital plan does not include any amounts for VY.

Estimated capital expenditures are subject to periodic review and modification, and actual spending may vary based on a number of factors.

Appendix D: 2014 – 2016 Capital Expenditure Plan
($ in millions) – Prepared February 2014
         
 
2014
2015
2016
Total
Utility
        
Generation
650
640
590
1,880
Transmission
515
635
570
1,720
Distribution
575
545
565
1,685
Other
155
180
150
485
Utility Total
1,895
2,000
1,875
5,770
Entergy Wholesale Commodities
420
380
230
1,030
Total Planned Capital Expenditures
2,315
2,380
2,105
6,800
         


 
 
 



E.  
Definitions

Appendix E provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures, all of which are referenced in this release. Non-GAAP measures are included in this release to provide metrics that remove the effect of financial events that are not routine, from commonly used financial metrics.

Appendix E: Definitions of Operational Performance Measures, GAAP and Non-GAAP Financial Measures and Abbreviations or Acronyms
Utility Operational Performance Measures
GWh billed
Total number of GWh billed to all retail and wholesale customers
Non-fuel O&M per MWh
Operation, maintenance and refueling expenses per MWh of billed sales, excluding fuel, fuel-related expenses and purchased power
Number of retail customers
Number of customers at end of period
Entergy Wholesale Commodities Operational Performance Measures
Net revenue
Operating revenue less fuel, fuel related expenses and purchased power
Owned capacity
Installed capacity owned and operated by EWC, including investments in wind generation accounted for under the equity method of accounting; in November 2013, R.E. Ritchie Unit 2 (gas/oil) plant was retired (544 MWs)
GWh billed
Total number of GWh billed to customers, excluding investments in wind generation accounted for under the equity method of accounting and financially-settled instruments
Average realized revenue per MWh
As-reported revenue per MWh billed, excluding revenue from the amortization of the Palisades below-market PPA and/or investments in wind generation accounted for under the equity method of accounting
Non-fuel O&M per MWh
Operation, maintenance and refueling expenses per MWh billed, excluding fuel, fuel-related expenses and purchased power and investments in wind generation accounted for under the equity method of accounting
Capacity factor
Normalized percentage of the period that the nuclear plants generate power
Production cost per MWh
Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation)
Refueling outage days
Number of days lost for scheduled refueling outage during the period
Planned TWh of generation
Amount of output expected to be generated by EWC resources considering plant operating characteristics, outage schedules and expected market conditions which impact dispatch, assuming shutdown of VY in fourth quarter 2014, uninterrupted normal operation at the remaining nuclear plants and timely renewal of plant operating licenses; non-nuclear also includes purchases from affiliated and non-affiliated counterparties under long-term contracts and excludes energy and capacity from EWC’s wind investment accounted for under the equity method of accounting
Percent of planned generation under contract
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights, or other conditions precedent
Unit-contingent
Transaction under which power is supplied from a specific generation asset; if the asset is not operating, seller is generally not liable to buyer for any damages
Unit-contingent with availability guarantees
Transaction under which power is supplied from a specific generation asset; if the asset is not operating, seller is generally not liable to buyer for any damages, unless the actual availability over a specified period of time is below an availability threshold specified in the contract
Firm LD
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract; a portion of which may be capped through the use of risk management products
Offsetting positions
Transactions for the purchase of energy, generally to offset a Firm LD transaction
Cost-based contracts
Contracts priced in accordance with cost-based rates, a ratemaking concept used for the design and development of rate schedules to ensure that the filed rate schedules recover only the cost of providing the service; these contracts are on owned EWC resources located within Entergy’s utility service territory and were executed prior to EWC receiving market-based authority under MISO
Planned net MW in operation
Amount of installed capacity to generate power and/or sell capacity; non-nuclear also includes purchases from affiliated and non-affiliated counterparties under long-term contracts and excludes energy and capacity from EWC’s wind investment accounted for under the equity method of accounting
Percent of capacity sold forward
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions
Bundled capacity and energy contracts
A contract for the sale of installed capacity and related energy, priced per megawatt-hour sold
Capacity contracts
A contract for the sale of the installed capacity product in regional markets managed by ISO-NE, the NYISO and MISO
   


 
 
 


Appendix E: Definitions of Operational Performance Measures, GAAP and Non-GAAP Financial Measures and Abbreviations or Acronyms (continued)
Entergy Wholesale Commodities Operational Performance Measures (continued)
Average revenue per MWh on contracted volumes
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs; also, excludes payments owed under the value sharing agreements, if any
Average revenue under contract per kW per month (applies to capacity contracts only)
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards
Expected sold and market total revenue per MWh
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA; also excludes payments owed under value sharing agreements, if any
   
Financial Measures – GAAP
Return on average invested capital – as-reported
12-months rolling net income attributable to Entergy Corporation (Net Income) adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital
Return on average common equity – as-reported
12-months rolling Net Income divided by average common equity
Cash flow interest coverage
12-months cash flow from operating activities plus 12-months rolling interest paid, divided by interest expense
Book value per share
Common equity divided by end of period shares outstanding
Revolver capacity
Amount of undrawn capacity remaining on corporate and subsidiary revolvers
Total debt
Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet
Debt of joint ventures - Entergy’s share
Debt issued by business joint ventures at EWC
Leases - Entergy’s share
Operating leases held by subsidiaries capitalized at implicit interest rate
Debt to capital ratio
Total debt divided by total capitalization
Securitization debt
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL
Financial Measures – Non-GAAP
Operational earnings
As-reported Net Income adjusted to exclude the impact of special items
Adjusted EBITDA
Earnings before interest, income taxes, depreciation and amortization and interest and investment income excluding decommissioning expense and other than temporary impairment losses on decommissioning trust fund assets
Operational adjusted EBITDA
Adjusted EBITDA excluding effects of special items
Return on average invested capital – operational
12-months rolling operational Net Income adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital
Return on average common equity – operational
12-months rolling operational Net Income divided by average common equity
Gross liquidity
Sum of cash and revolver capacity
Debt to capital ratio, excluding securitization debt
Total debt divided by total capitalization, excluding securitization debt
Net debt to net capital ratio, excluding securitization debt
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
Net debt to net capital ratio, including off-balance sheet liabilities, excluding securitization debt
Sum of total debt and off-balance sheet debt less cash and cash equivalents divided by sum of total capitalization and off-balance sheet debt less cash and cash equivalents, excluding securitization debt
   


 
 
 


Appendix E: Definitions of Operational Performance Measures, GAAP and Non-GAAP Financial Measures and Abbreviations or Acronyms (continued)
Abbreviations or Acronyms
ANO
Arkansas Nuclear One (nuclear)
APSC
Arkansas Public Service Commission
CCGT
Combined cycle gas turbine
CCNO
Council of the City of New Orleans, La.
DOE
U.S. Department of Energy
EAI
Entergy Arkansas, Inc.
EGSL
Entergy Gulf States Louisiana, L.L.C.
ELL
Entergy Louisiana, LLC
EMI
Entergy Mississippi, Inc.
ENOI
Entergy New Orleans, Inc.
Entergy VY
Entergy Nuclear Vermont Yankee, LLC and Entergy Nuclear Operations, Inc.
EPA
U.S. Environmental Protection Agency
ETI
Entergy Texas, Inc.
EWC
Entergy Wholesale Commodities
FitzPatrick
James A. FitzPatrick Nuclear Power Plant (nuclear)
FRP
Formula rate plan
GAAP
Generally accepted accounting principles
HCM
Human Capital Management program
IP2
Indian Point Energy Center Unit 2 (nuclear)
IP3
Indian Point Energy Center Unit 3 (nuclear)
IRS
Internal Revenue Service
ISO
Independent system operator
ISO-NE
ISO New England
LHV
Lower Hudson Valley
LPSC
Louisiana Public Service Commission
MATS
Mercury and Air Toxics Standards
MISO
Midcontinent Independent System Operator, Inc.
MPSC
Mississippi Public Service Commission
MWh
Megawatt hour
NRC
Nuclear Regulatory Commission
NYISO
New York Independent System Operator, Inc.
NYPA
New York Power Authority
O&M
Operation and maintenance expense
Palisades
Palisades Power Plant (nuclear)
Pilgrim
Pilgrim Nuclear Power Station (nuclear)
PPA
Power purchase agreement
PUCT
Public Utility Commission of Texas
ROE
Return on equity
ROIC
Return on invested capital
RSP
EGSL Rate Stabilization Plan (gas LDC)
RTO
Regional transmission organization
VY
Vermont Yankee Nuclear Power Station (nuclear)
   


 
 
 


F.  
GAAP to Non-GAAP Reconciliations

Appendix F-1, Appendix F-2 and Appendix F-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
 
 
Appendix F-1: Reconciliation of GAAP to Non-GAAP Financial Measures – ROE, ROIC Metrics
($ in millions)
                
 
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
As-reported net income-rolling 12 months (A)
946
996
705
847
1,160
958
861
712
Preferred dividends
21
21
22
22
22
21
20
19
Tax effected interest expense
322
329
342
350
356
363
365
371
As-reported net income, rolling 12 months including preferred dividends and tax effected interest expense (B)
1,289
1,346
1,069
1,219
1,538
1,342
1,246
1,102
                 
Special items in prior quarters
(13)
(244)
(253)
(251)
(31)
(28)
(33)
(212)
                 
Special items in current quarter
                
VY asset impairments / related charges
(224)
-
-
-
-
-
(173)
(32)
Transmission business spin-merge expenses
(7)
(9)
(11)
(11)
(6)
(12)
(10)
25
HCM implementation expenses
-
-
-
-
-
(4)
(7)
(26)
   Total special items (C)
(244)
(253)
(264)
(262)
(37)
(44)
(224)
(245)
                 
Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C)
1,533
1,599
1,333
1,481
1,575
1,386
1,470
1,347
                 
Operational earnings, rolling 12 months (A-C)
1,190
1,249
969
1,109
1,197
1,002
1,085
957
                 
Average invested capital (D)
21,339
21,556
22,065
22,290
22,389
22,573
22,857
23,210
                 
Average common equity (E)
8,725
8,814
9,078
9,079
9,064
9,152
9,299
9,342
                 
ROIC – as-reported % (B/D)
6.0
6.2
4.8
5.5
6.9
5.9
5.5
4.8
                 
ROIC – operational % ((B-C)/D)
7.2
7.4
6.0
6.6
7.0
6.1
6.4
5.8
                 
ROE – as-reported % (A/E)
10.8
11.3
7.8
9.3
12.8
10.5
9.3
7.6
                 
ROE – operational % ((A-C)/E)
13.6
14.2
10.7
12.2
13.2
10.9
11.7
10.2
                 


 
 
 


Appendix F-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Credit and Liquidity Metrics
($ in millions)
                
 
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
Total debt (A)
12,619
12,533
12,931
13,473
13,471
13,747
13,623
13,678
Less securitization debt (B)
1,049
1,020
1,003
973
952
927
910
883
Total debt, excluding securitization debt (C)
11,570
11,513
11,928
12,500
12,519
12,820
12,713
12,795
Less cash and cash equivalents (D)
685
283
750
533
263
311
365
739
  Net debt, excluding securitization debt (E)
10,885
11,230
11,178
11,967
12,256
12,509
12,348
12,056
                 
Total capitalization (F)
21,813
21,844
22,402
22,951
22,965
23,302
23,312
23,470
Less securitization debt (B)
1,049
1,020
1,003
973
952
927
910
883
Total capitalization, excluding securitization debt (G)
20,764
20,824
21,399
21,978
22,013
22,375
22,402
22,587
Less cash and cash equivalents (D)
685
283
750
533
263
311
365
739
Net capital, excluding securitization debt (H)
20,079
20,541
20,649
21,445
21,750
22,064
22,037
21,848
                 
Debt to capital ratio % (A/F)
57.9
57.4
57.7
58.7
58.7
59.0
58.4
58.3
                 
Debt to capital ratio, excluding securitization debt % (C/G)
55.7
55.3
55.7
56.9
56.9
57.3
56.7
56.6
                 
Net debt to net capital ratio, excluding securitization debt % (E/H)
54.2
54.7
54.1
55.8
56.3
56.7
56.0
55.2
                 
Off-balance sheet liabilities (I)
601
600
599
595
595
594
592
542
                 
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt % ((E+I)/(H+I))
55.5
56.0
55.4
57.0
57.5
57.8
57.2
56.3
                 
Revolver capacity (J)
2,825
2,762
2,917
3,462
3,542
3,819
4,129
3,977
                 
Gross liquidity (D+J)
3,510
3,045
3,667
3,995
3,805
4,130
4,494
4,716
                 

Appendix F-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Entergy Wholesale Commodities Operational Adjusted EBITDA
($ in millions)
                
 
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
Net income
(176)
71
87
59
82
12
(93)
42
Add back: interest expense
6
5
3
3
3
4
4
5
Add back: income tax expense
(92)
47
57
50
57
(15)
(107)
(12)
Add back: depreciation and amortization
51
48
29
47
49
50
55
61
Subtract: interest and investment income
31
27
20
28
28
22
21
66
Add back: decommissioning expense
30
(17)
29
30
31
30
32
33
Adjusted EBITDA
(212)
127
185
161
194
59
(130)
63
Add back: special item for HCM implementation expenses (pre-tax)
-
-
-
-
-
2
3
19
Add back: VY asset impairments / related charges (pre-tax)
356
-
-
-
-
-
292
52
Operational adjusted EBITDA
144
127
185
161
194
61
165
133
Totals may not foot due to rounding


Entergy Corporation’s common stock is listed on the New York and Chicago exchanges under the symbol “ETR.”

Additional investor information can be accessed online at
www.entergy.com/investor_relations

*********************************************************************************************************************************
In this news release, and from time to time, Entergy Corporation makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Forward-looking statements involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed in this news release and in: (i) Entergy’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and (ii) Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami;
(e) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; and (f) economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements, in addition to other factors described elsewhere in this release and subsequent securities filings.

 
 
 



VII.  
Financial Statements

 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
December 31, 2013
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
ASSETS
                        
                         
CURRENT ASSETS
                        
                         
 Cash and cash equivalents:
                        
    Cash
   $ 119,781     $ 9,192     $ 1,006     $ 129,979  
    Temporary cash investments
     431,436       167,266       10,445       609,147  
     Total cash and cash equivalents
     551,217       176,458       11,451       739,126  
Securitization recovery trust account
     45,885       -       -       45,885  
Notes receivable
     -       530,389       (530,389 )     -  
Accounts receivable:
                                
   Customer
     509,176       161,465       -       670,641  
   Allowance for doubtful accounts
     (34,311 )     -       -       (34,311 )
   Associated companies
     47,887       2,776       (50,663 )     -  
   Other
     184,640       10,353       35       195,028  
   Accrued unbilled revenues
     340,828       -       -       340,828  
     Total accounts receivable
     1,048,220       174,594       (50,628 )     1,172,186  
Deferred fuel costs
     116,379       -       -       116,379  
Accumulated deferred income taxes
     195,030       13,915       (33,872 )     175,073  
Fuel inventory - at average cost
     198,604       10,354       -       208,958  
Materials and supplies - at average cost
     603,557       311,449       -       915,006  
Deferred nuclear refueling outage costs
     78,633       113,841       -       192,474  
System agreement cost equalization
     61,040       -       -       61,040  
Prepayments and other
     255,907       180,477       (132,820 )     303,564  
TOTAL
     3,154,472       1,511,477       (736,258 )     3,929,691  
                                 
OTHER PROPERTY AND INVESTMENTS
                                
                                 
Investment in affiliates - at equity
     1,097,270       40,238       (1,097,158 )     40,350  
Decommissioning trust funds
     2,235,826       2,667,318       -       4,903,144  
Non-utility property - at cost (less accumulated depreciation)
     182,465       8,189       8,721       199,375  
Other
     150,015       60,601       -       210,616  
TOTAL
     3,665,576       2,776,346       (1,088,437 )     5,353,485  
                                 
PROPERTY, PLANT, AND EQUIPMENT
                                
                                 
Electric
     38,043,514       4,888,807       3,391       42,935,712  
Property under capital lease
     941,299       -       -       941,299  
Natural gas
     366,365       -       -       366,365  
Construction work in progress
     1,217,138       297,451       268       1,514,857  
Nuclear fuel
     854,617       712,287       -       1,566,904  
TOTAL PROPERTY, PLANT AND EQUIPMENT
     41,422,933       5,898,545       3,659       47,325,137  
Less - accumulated depreciation and amortization
     18,199,512       1,243,791       190       19,443,493  
PROPERTY, PLANT AND EQUIPMENT - NET
     23,223,421       4,654,754       3,469       27,881,644  
                                 
DEFERRED DEBITS AND OTHER ASSETS
                                
                                 
Regulatory assets:
                                
    Regulatory asset for income taxes - net
     849,718       -       -       849,718  
    Other regulatory assets
     3,893,363       -       -       3,893,363  
    Deferred fuel costs
     172,202       -       -       172,202  
Goodwill
     374,099       3,073       -       377,172  
Accumulated deferred income taxes
     9,117       52,894       -       62,011  
Other
     197,617       698,161       (8,618 )     887,160  
TOTAL
     5,496,116       754,128       (8,618 )     6,241,626  
              -                  
TOTAL ASSETS
   $ 35,539,585     $ 9,696,705     $ (1,829,844 )   $ 43,406,446  
                                 
*Totals may not foot due to rounding.
                                


 
 
 
 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
December 31, 2013
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
                         
CURRENT LIABILITIES
                        
                         
Currently maturing long-term debt
   $ 438,884     $ 18,211     $ -     $ 457,095  
Notes payable and commercial paper:
                                
  Associated companies
     -       103,739       (103,739 )     -  
  Other
     2,940       -       1,043,947       1,046,887  
Account payable:
                                
  Associated companies
     15,836       28,216       (44,052 )     -  
  Other
     916,616       256,018       679       1,173,313  
Customer deposits
     370,997       -       -       370,997  
Taxes accrued
     -       -       191,093       191,093  
Accumulated deferred income taxes
     97,463       (3 )     (69,153 )     28,307  
Interest accrued
     156,968       194       23,835       180,997  
Deferred fuel costs
     57,631       -       -       57,631  
Obligations under capital leases
     2,323       -       -       2,323  
Pension and other postretirement liabilities
     58,720       8,699       -       67,419  
System agreement cost equalization
     61,040       -       -       61,040  
Other
     141,425       282,045       -       423,470  
TOTAL
     2,320,843       697,119       1,042,610       4,060,572  
                                 
NON-CURRENT LIABILITIES
                                
                                 
Accumulated deferred income taxes and taxes accrued
     7,340,267       1,266,913       117,455       8,724,635  
Accumulated deferred investment tax credits
     263,765       -       -       263,765  
Obligations under capital leases
     32,218       -       -       32,218  
Other regulatory liabilities
     1,295,955       -       -       1,295,955  
Decommissioning and retirement cost liabilities
     2,235,194       1,698,222       -       3,933,416  
Accumulated provisions
     110,899       3,191       1,049       115,139  
Pension and other postretirement liabilities
     1,708,639       612,065       -       2,320,704  
Long-term debt
     10,307,888       76,800       1,754,461       12,139,149  
Other
     741,376       593,325       (751,034 )     583,667  
TOTAL
     24,036,201       4,250,516       1,121,931       29,408,648  
                                 
Subsidiaries' preferred stock without sinking fund
     186,511       24,249       -       210,760  
                                 
EQUITY
                                
                                 
Common Shareholders' Equity:
                                
Common stock, $.01 par value, authorized 500,000,000 shares;
                          
      issued 254,752,788 shares in 2013
     2,161,268       201,094       (2,359,814 )     2,548  
  Paid-in capital
     2,417,670       1,627,856       1,322,605       5,368,131  
  Retained earnings
     4,518,741       2,849,546       2,456,766       9,825,053  
  Accumulated other comprehensive income (loss)
     (75,649 )     46,325       -       (29,324 )
  Less - treasury stock, at cost (76,381,936 shares in 2013)
     120,000       -       5,413,942       5,533,942  
  Total common shareholders' equity
     8,902,030       4,724,821       (3,994,385 )     9,632,466  
Subsidiaries' preferred stock without sinking fund
     94,000       -       -       94,000  
TOTAL
     8,996,030       4,724,821       (3,994,385 )     9,726,466  
                                 
TOTAL LIABILITIES AND EQUITY
   $ 35,539,585     $ 9,696,705     $ (1,829,844 )   $ 43,406,446  
                                 
*Totals may not foot due to rounding.
                                


 
 
 
 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
December 31, 2012
  
(Dollars in thousands)
  
(Unaudited)
  
                     
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
ASSETS
                        
                         
CURRENT ASSETS
                        
                         
 Cash and cash equivalents:
                        
    Cash
   $ 104,378     $ 8,224     $ 390     $ 112,992  
    Temporary cash investments
     275,755       132,697       11,125       419,577  
     Total cash and cash equivalents
     380,133       140,921       11,515       532,569  
Securitization recovery trust account
     46,040       -       -       46,040  
Notes receivable
     -       446,356       (446,356 )     -  
Accounts receivable:
                                
   Customer
     374,403       194,468       -       568,871  
   Allowance for doubtful accounts
     (31,956 )     -       -       (31,956 )
   Associated companies
     28,729       5,365       (34,094 )     -  
   Other
     149,681       10,984       743       161,408  
   Accrued unbilled revenues
     303,264       128       -       303,392  
     Total accounts receivable
     824,121       210,945       (33,351 )     1,001,715  
Deferred fuel costs
     150,363       -       -       150,363  
Accumulated deferred income taxes
     348,881       1,272       (43,251 )     306,902  
Fuel inventory - at average cost
     205,468       8,363       -       213,831  
Materials and supplies - at average cost
     588,657       339,873       -       928,530  
Deferred nuclear refueling outage costs
     123,975       119,399       -       243,374  
System agreement cost equalization
     16,880       -       -       16,880  
Prepayments and other
     70,777       413,333       (241,188 )     242,922  
TOTAL
     2,755,295       1,680,462       (752,631 )     3,683,126  
                                 
OTHER PROPERTY AND INVESTMENTS
                                
                                 
Investment in affiliates - at equity
     1,097,271       46,626       (1,097,159 )     46,738  
Decommissioning trust funds
     1,855,959       2,334,149       -       4,190,108  
Non-utility property - at cost (less accumulated depreciation)
     174,219       70,546       11,274       256,039  
Other
     422,139       14,095       -       436,234  
TOTAL
     3,549,588       2,465,416       (1,085,885 )     4,929,119  
                                 
PROPERTY, PLANT, AND EQUIPMENT
                                
                                 
Electric
     37,264,453       4,676,696       3,418       41,944,567  
Property under capital lease
     935,199       -       -       935,199  
Natural gas
     353,492       -       -       353,492  
Construction work in progress
     973,071       391,749       879       1,365,699  
Nuclear fuel
     907,293       691,137       -       1,598,430  
TOTAL PROPERTY, PLANT AND EQUIPMENT
     40,433,508       5,759,582       4,297       46,197,387  
Less - accumulated depreciation and amortization
     17,840,387       1,058,069       386       18,898,842  
PROPERTY, PLANT AND EQUIPMENT - NET
     22,593,121       4,701,513       3,911       27,298,545  
                                 
DEFERRED DEBITS AND OTHER ASSETS
                                
                                 
Regulatory assets:
                                
    Regulatory asset for income taxes - net
     742,030       -       -       742,030  
    Other regulatory assets
     5,025,912       -       -       5,025,912  
    Deferred fuel costs
     172,202       -       -       172,202  
Goodwill
     374,099       3,073       -       377,172  
Accumulated deferred income taxes
     10,461       20,749       6,538       37,748  
Other
     215,422       752,132       (30,906 )     936,648  
TOTAL
     6,540,126       775,954       (24,368 )     7,291,712  
              -                  
TOTAL ASSETS
   $ 35,438,130     $ 9,623,345     $ (1,858,973 )   $ 43,202,502  
                                 
*Totals may not foot due to rounding.
                                


 
 
 
 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
December 31, 2012
  
(Dollars in thousands)
  
(Unaudited)
  
                     
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
                         
CURRENT LIABILITIES
                        
                         
Currently maturing long-term debt
   $ 701,090     $ 17,426     $ -     $ 718,516  
Notes payable and commercial paper:
                                
  Associated companies
     28,000       1,437       (29,437 )     -  
  Other
     131,399       -       664,603       796,002  
Account payable:
                                
  Associated companies
     15,798       11,010       (26,808 )     -  
  Other
     957,193       259,462       525       1,217,180  
Customer deposits
     359,078       -       -       359,078  
Taxes accrued
     664,891       -       (331,172 )     333,719  
Accumulated deferred income taxes
     7,955       40,431       (35,277 )     13,109  
Interest accrued
     160,151       321       24,192       184,664  
Deferred fuel costs
     96,439       -       -       96,439  
Obligations under capital leases
     3,880       -       -       3,880  
Pension and other postretirement liabilities
     89,400       6,500       -       95,900  
System agreement cost equalization
     25,848       -       -       25,848  
Other
     106,052       154,019       1,915       261,986  
TOTAL
     3,347,174       490,606       268,541       4,106,321  
                                 
NON-CURRENT LIABILITIES
                                
                                 
Accumulated deferred income taxes and taxes accrued
     6,844,329       819,998       647,429       8,311,756  
Accumulated deferred investment tax credits
     273,696       -       -       273,696  
Obligations under capital leases
     34,541       -       -       34,541  
Other regulatory liabilities
     898,614       -       -       898,614  
Decommissioning and retirement cost liabilities
     1,970,362       1,543,272       -       3,513,634  
Accumulated provisions
     357,801       978       3,447       362,226  
Pension and other postretirement liabilities
     2,891,787       834,099       -       3,725,886  
Long-term debt
     9,533,760       92,304       2,294,254       11,920,318  
Other
     709,182       611,814       (743,086 )     577,910  
TOTAL
     23,514,072       3,902,465       2,202,044       29,618,581  
                                 
Subsidiaries' preferred stock without sinking fund
     186,511       -       -       186,511  
                                 
EQUITY
                                
                                 
Common Shareholders' Equity:
                                
Common stock, $.01 par value, authorized 500,000,000 shares;
                          
      issued 254,752,788 shares in 2012
     2,161,268       301,097       (2,459,817 )     2,548  
  Paid-in capital
     2,417,644       1,861,355       1,078,853       5,357,852  
  Retained earnings
     4,052,441       3,145,925       2,506,225       9,704,591  
  Accumulated other comprehensive income (loss)
     (214,980 )     (78,103 )     -       (293,083 )
  Less - treasury stock, at cost (76,945,239 shares in 2012)
     120,000       -       5,454,819       5,574,819  
  Total common shareholders' equity
     8,296,373       5,230,274       (4,329,558 )     9,197,089  
Subsidiaries' preferred stock without sinking fund
     94,000       -       -       94,000  
TOTAL
     8,390,373       5,230,274       (4,329,558 )     9,291,089  
                                 
TOTAL LIABILITIES AND EQUITY
   $ 35,438,130     $ 9,623,345     $ (1,858,973 )   $ 43,202,502  
                                 
*Totals may not foot due to rounding.
                                


 
 
 
 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
December 31, 2013 vs December 31, 2012
  
(Dollars in thousands)
  
(Unaudited)
  
                     
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
ASSETS
                        
                         
CURRENT ASSETS
                        
                         
 Cash and cash equivalents:
                        
    Cash
   $ 15,403     $ 968     $ 616     $ 16,987  
    Temporary cash investments
     155,681       34,569       (680 )     189,570  
     Total cash and cash equivalents
     171,084       35,537       (64 )     206,557  
Securitization recovery trust account
     (155 )     -       -       (155 )
Notes receivable
     -       84,033       (84,033 )     -  
Accounts receivable:
                                
   Customer
     134,773       (33,003 )     -       101,770  
   Allowance for doubtful accounts
     (2,355 )     -       -       (2,355 )
   Associated companies
     19,158       (2,589 )     (16,569 )     -  
   Other
     34,959       (631 )     (708 )     33,620  
   Accrued unbilled revenues
     37,564       (128 )     -       37,436  
     Total accounts receivable
     224,099       (36,351 )     (17,277 )     170,471  
Deferred fuel costs
     (33,984 )     -       -       (33,984 )
Accumulated deferred income taxes
     (153,851 )     12,643       9,379       (131,829 )
Fuel inventory - at average cost
     (6,864 )     1,991       -       (4,873 )
Materials and supplies - at average cost
     14,900       (28,424 )     -       (13,524 )
Deferred nuclear refueling outage costs
     (45,342 )     (5,558 )     -       (50,900 )
System agreement cost equalization
     44,160       -       -       44,160  
Prepayments and other
     185,130       (232,856 )     108,368       60,642  
TOTAL
     399,177       (168,985 )     16,373       246,565  
                                 
OTHER PROPERTY AND INVESTMENTS
                                
                                 
Investment in affiliates - at equity
     (1 )     (6,388 )     1       (6,388 )
Decommissioning trust funds
     379,867       333,169       -       713,036  
Non-utility property - at cost (less accumulated depreciation)
     8,246       (62,357 )     (2,553 )     (56,664 )
Other
     (272,124 )     46,506       -       (225,618 )
TOTAL
     115,988       310,930       (2,552 )     424,366  
                                 
PROPERTY, PLANT, AND EQUIPMENT
                                
                                 
Electric
     779,061       212,111       (27 )     991,145  
Property under capital lease
     6,100       -       -       6,100  
Natural gas
     12,873       -       -       12,873  
Construction work in progress
     244,067       (94,298 )     (611 )     149,158  
Nuclear fuel
     (52,676 )     21,150       -       (31,526 )
TOTAL PROPERTY, PLANT AND EQUIPMENT
     989,425       138,963       (638 )     1,127,750  
Less - accumulated depreciation and amortization
     359,125       185,722       (196 )     544,651  
PROPERTY, PLANT AND EQUIPMENT - NET
     630,300       (46,759 )     (442 )     583,099  
                                 
DEFERRED DEBITS AND OTHER ASSETS
                                
                                 
Regulatory assets:
                                
    Regulatory asset for income taxes - net
     107,688       -       -       107,688  
    Other regulatory assets
     (1,132,549 )     -       -       (1,132,549 )
    Deferred fuel costs
     -       -       -       -  
Goodwill
     -       -       -       -  
Accumulated deferred income taxes
     (1,344 )     32,145       (6,538 )     24,263  
Other
     (17,805 )     (53,971 )     22,288       (49,488 )
TOTAL
     (1,044,010 )     (21,826 )     15,750       (1,050,086 )
                                 
TOTAL ASSETS
   $ 101,455     $ 73,360     $ 29,129     $ 203,944  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
December 31, 2013 vs December 31, 2012
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
                         
CURRENT LIABILITIES
                        
                         
Currently maturing long-term debt
   $ (262,206 )   $ 785     $ -     $ (261,421 )
Notes payable and commercial paper:
                                
  Associated companies
     (28,000 )     102,302       (74,302 )     -  
  Other
     (128,459 )     -       379,344       250,885  
Account payable:
                                
  Associated companies
     38       17,206       (17,244 )     -  
  Other
     (40,577 )     (3,444 )     154       (43,867 )
Customer deposits
     11,919       -       -       11,919  
Taxes accrued
     (664,891 )     -       522,265       (142,626 )
Accumulated deferred income taxes
     89,508       (40,434 )     (33,876 )     15,198  
Interest accrued
     (3,183 )     (127 )     (357 )     (3,667 )
Deferred fuel costs
     (38,808 )     -       -       (38,808 )
Obligations under capital leases
     (1,557 )     -       -       (1,557 )
Pension and other postretirement liabilities
     (30,680 )     2,199       -       (28,481 )
System agreement cost equalization
     35,192       -       -       35,192  
Other
     35,373       128,026       (1,915 )     161,484  
TOTAL
     (1,026,331 )     206,513       774,069       (45,749 )
                                 
NON-CURRENT LIABILITIES
                                
                                 
Accumulated deferred income taxes and taxes accrued
     495,938       446,915       (529,974 )     412,879  
Accumulated deferred investment tax credits
     (9,931 )     -       -       (9,931 )
Obligations under capital leases
     (2,323 )     -       -       (2,323 )
Other regulatory liabilities
     397,341       -       -       397,341  
Decommissioning and retirement cost liabilities
     264,832       154,950       -       419,782  
Accumulated provisions
     (246,902 )     2,213       (2,398 )     (247,087 )
Pension and other postretirement liabilities
     (1,183,148 )     (222,034 )     -       (1,405,182 )
Long-term debt
     774,128       (15,504 )     (539,793 )     218,831  
Other
     32,194       (18,489 )     (7,948 )     5,757  
TOTAL
     522,129       348,051       (1,080,113 )     (209,933 )
                                 
Subsidiaries' preferred stock without sinking fund
     -       24,249       -       24,249  
                                 
EQUITY
                                
                                 
Common Shareholders' Equity:
                                
Common stock, $.01 par value, authorized 500,000,000 shares;
                          
      issued 254,752,788 shares in 2013 and in 2012
     -       (100,003 )     100,003       -  
  Paid-in capital
     26       (233,499 )     243,752       10,279  
  Retained earnings
     466,300       (296,379 )     (49,459 )     120,462  
  Accumulated other comprehensive income (loss)
     139,331       124,428       -       263,759  
  Less - treasury stock, at cost
     -       -       (40,877 )     (40,877 )
  Total common shareholders' equity
     605,657       (505,453 )     335,173       435,377  
Subsidiaries' preferred stock without sinking fund
     -       -       -       -  
TOTAL
     605,657       (505,453 )     335,173       435,377  
                                 
TOTAL LIABILITIES AND EQUITY
   $ 101,455     $ 73,360     $ 29,129     $ 203,944  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended December 31, 2013
  
(Dollars in thousands)
  
(Unaudited)
  
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 2,112,490     $ -     $ (1,420 )   $ 2,111,070  
     Natural gas
     41,039       -       -       41,039  
     Competitive businesses
     -       542,181       (2,384 )     539,797  
                         Total
     2,153,529       542,181       (3,804 )     2,691,906  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     527,485       100,672       (533 )     627,624  
          Purchased power
     301,461       9,642       (8,189 )     302,914  
          Nuclear refueling outage expenses
     33,594       31,267       -       64,861  
          Asset impairment and related charges
     9,411       37,831       2,790       50,032  
          Other operation and maintenance
     587,211       300,385       6,431       894,027  
     Decommissioning
     29,886       32,876       -       62,762  
     Taxes other than income taxes
     114,808       32,305       303       147,416  
     Depreciation and amortization
     275,304       61,199       1,000       337,503  
     Other regulatory charges (credits) - net
     22,683       -       -       22,683  
                         Total
     1,901,843       606,177       1,802       2,509,822  
                                 
     Gain on sale of investment
     -       43,569       -       43,569  
                                 
OPERATING INCOME
     251,686       (20,427 )     (5,606 )     225,653  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     19,378       -       -       19,378  
     Interest and investment income
     62,102       66,172       (31,251 )     97,023  
     Miscellaneous - net
     (10,535 )     (11,003 )     (1,338 )     (22,876 )
                          Total
     70,945       55,169       (32,589 )     93,525  
                                 
INTEREST EXPENSE
                                
     Interest expense
     139,078       5,087       18,949       163,114  
     Allowance for borrowed funds used during construction
     (7,068 )     -       -       (7,068 )
                         Total
     132,010       5,087       18,949       156,046  
                                 
INCOME BEFORE INCOME TAXES
     190,621       29,655       (57,144 )     163,132  
                                 
Income taxes
     25,100       (12,503 )     (817 )     11,780  
                                 
CONSOLIDATED NET INCOME
     165,521       42,158       (56,327 )     151,352  
                                 
Preferred dividend requirements of subsidiaries
     4,332       91       -       4,423  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 161,189     $ 42,067     $ (56,327 )   $ 146,929  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 0.90     $ 0.24     $ (0.32 )   $ 0.82  
   DILUTED
   $ 0.90     $ 0.24     $ (0.32 )   $ 0.82  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             178,332,416  
   DILUTED
                             178,751,436  
                                 
*Totals may not foot due to rounding.
                                
 

 
 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended December 31, 2012
  
(Dollars in thousands)
  
(Unaudited)
  
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 1,831,597     $ -     $ (700 )   $ 1,830,897  
     Natural gas
     37,392       -       -       37,392  
     Competitive businesses
     -       571,535       (3,564 )     567,971  
                         Total
     1,868,989       571,535       (4,264 )     2,436,260  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     371,573       93,181       (183 )     464,571  
          Purchased power
     281,427       15,349       (7,792 )     288,984  
          Nuclear refueling outage expenses
     29,324       31,987       -       61,311  
          Asset impairment and related charges
     -       -       -       -  
          Other operation and maintenance
     548,513       231,893       5,228       785,634  
     Decommissioning
     28,089       30,031       -       58,120  
     Taxes other than income taxes
     98,506       34,127       336       132,969  
     Depreciation and amortization
     259,440       47,318       1,116       307,874  
     Other regulatory charges (credits) - net
     12,595       -       -       12,595  
                         Total
     1,629,467       483,886       (1,295 )     2,112,058  
                                 
     Gain on sale of investment
     -       -       -       -  
                                 
OPERATING INCOME
     239,522       87,649       (2,969 )     324,202  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     21,773       -       -       21,773  
     Interest and investment income
     37,229       27,586       (31,805 )     33,010  
     Miscellaneous - net
     (6,619 )     (3,510 )     (1,292 )     (11,421 )
                          Total
     52,383       24,076       (33,097 )     43,362  
                                 
INTEREST EXPENSE
                                
     Interest expense
     130,836       2,976       20,622       154,434  
     Allowance for borrowed funds used during construction
     (9,435 )     -       -       (9,435 )
                         Total
     121,401       2,976       20,622       144,999  
                                 
INCOME BEFORE INCOME TAXES
     170,504       108,749       (56,688 )     222,565  
                                 
Income taxes
     (113,574 )     49,902       (15,613 )     (79,285 )
                                 
CONSOLIDATED NET INCOME
     284,078       58,847       (41,075 )     301,850  
                                 
Preferred dividend requirements of subsidiaries
     4,332       -       1,250       5,582  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 279,746     $ 58,847     $ (42,325 )   $ 296,268  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 1.58     $ 0.33     $ (0.24 )   $ 1.67  
   DILUTED
   $ 1.57     $ 0.33     $ (0.24 )   $ 1.66  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             177,742,807  
   DILUTED
                             178,042,364  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended December 31, 2013 vs. 2012
  
(Dollars in thousands)
  
(Unaudited)
  
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 280,893     $ -     $ (720 )   $ 280,173  
     Natural gas
     3,647       -       -       3,647  
     Competitive businesses
     -       (29,354 )     1,180       (28,174 )
                         Total
     284,540       (29,354 )     460       255,646  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     155,912       7,491       (350 )     163,053  
          Purchased power
     20,034       (5,707 )     (397 )     13,930  
          Nuclear refueling outage expenses
     4,270       (720 )     -       3,550  
          Asset impairment and related charges
     9,411       37,831       2,790       50,032  
          Other operation and maintenance
     38,698       68,492       1,203       108,393  
     Decommissioning
     1,797       2,845       -       4,642  
     Taxes other than income taxes
     16,302       (1,822 )     (33 )     14,447  
     Depreciation and amortization
     15,864       13,881       (116 )     29,629  
     Other regulatory charges (credits )- net
     10,088       -       -       10,088  
                         Total
     272,376       122,291       3,097       397,764  
                                 
     Gain on sale of investment
     -       43,569       -       43,569  
                                 
OPERATING INCOME
     12,164       (108,076 )     (2,637 )     (98,549 )
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     (2,395 )     -       -       (2,395 )
     Interest and investment income
     24,873       38,586       554       64,013  
     Miscellaneous - net
     (3,916 )     (7,493 )     (46 )     (11,455 )
                          Total
     18,562       31,093       508       50,163  
                                 
INTEREST EXPENSE
                                
     Interest expense
     8,242       2,111       (1,673 )     8,680  
     Allowance for borrowed funds used during construction
     2,367       -       -       2,367  
                         Total
     10,609       2,111       (1,673 )     11,047  
                                 
INCOME BEFORE INCOME TAXES
     20,117       (79,094 )     (456 )     (59,433 )
                                 
Income taxes
     138,674       (62,405 )     14,796       91,065  
                                 
CONSOLIDATED NET INCOME
     (118,557 )     (16,689 )     (15,252 )     (150,498 )
                                 
Preferred dividend requirements of subsidiaries
     -       91       (1,250 )     (1,159 )
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ (118,557 )   $ (16,780 )   $ (14,002 )   $ (149,339 )
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ (0.68 )   $ (0.09 )   $ (0.08 )   $ (0.85 )
   DILUTED
   $ (0.67 )   $ (0.09 )   $ (0.08 )   $ (0.84 )
                                 
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Year to Date December 31, 2013
  
(Dollars in thousands)
  
(Unaudited)
  
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 8,947,433     $ -     $ (5,073 )   $ 8,942,360  
     Natural gas
     154,353       -       -       154,353  
     Competitive businesses
     -       2,312,758       (18,524 )     2,294,234  
                         Total
     9,101,786       2,312,758       (23,597 )     11,390,947  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     2,036,749       411,233       (2,164 )     2,445,818  
          Purchased power
     1,495,643       99,460       (40,771 )     1,554,332  
          Nuclear refueling outage expenses
     124,960       131,841       -       256,801  
          Asset impairment and related charges
     9,411       329,336       2,790       341,537  
          Other operation and maintenance
     2,263,894       1,048,061       19,979       3,331,934  
     Decommissioning
     116,812       125,292       -       242,104  
     Taxes other than income taxes
     469,969       129,020       1,361       600,350  
     Depreciation and amortization
     1,041,031       215,871       4,142       1,261,044  
     Other regulatory charges (credits) - net
     45,597       -       -       45,597  
                         Total
     7,604,066       2,490,114       (14,663 )     10,079,517  
                                 
     Gain on sale of investment
     -       43,569       -       43,569  
                                 
OPERATING INCOME
     1,497,720       (133,787 )     (8,934 )     1,354,999  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     66,053       -       -       66,053  
     Interest and investment income
     186,724       137,727       (125,151 )     199,300  
     Miscellaneous - net
     (29,192 )     (22,112 )     (8,458 )     (59,762 )
                          Total
     223,585       115,615       (133,609 )     205,591  
                                 
INTEREST EXPENSE
                                
     Interest expense
     534,673       16,323       78,541       629,537  
     Allowance for borrowed funds used during construction
     (25,500 )     -       -       (25,500 )
                         Total
     509,173       16,323       78,541       604,037  
                                 
INCOME BEFORE INCOME TAXES
     1,212,132       (34,495 )     (221,084 )     956,553  
                                 
Income taxes
     365,917       (77,471 )     (62,465 )     225,981  
                                 
CONSOLIDATED NET INCOME
     846,215       42,976       (158,619 )     730,572  
                                 
Preferred dividend requirements of subsidiaries
     17,329       91       1,250       18,670  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 828,886     $ 42,885     $ (159,869 )   $ 711,902  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 4.65     $ 0.24     $ (0.90 )   $ 3.99  
   DILUTED
   $ 4.64     $ 0.24     $ (0.89 )   $ 3.99  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             178,211,192  
   DILUTED
                             178,570,400  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Year to Date December 31, 2012
  
(Dollars in thousands)
  
(Unaudited)
  
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 7,874,255     $ -     $ (3,606 )   $ 7,870,649  
     Natural gas
     130,836       -       -       130,836  
     Competitive businesses
     -       2,326,309       (25,715 )     2,300,594  
                         Total
     8,005,091       2,326,309       (29,321 )     10,302,079  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     1,676,019       362,406       (1,590 )     2,036,835  
          Purchased power
     1,185,404       110,328       (39,932 )     1,255,800  
          Nuclear refueling outage expenses
     110,837       134,763       -       245,600  
          Asset impairment and related charges
     -       355,524       -       355,524  
          Other operation and maintenance
     2,079,520       957,839       8,033       3,045,392  
     Decommissioning
     112,664       72,096       -       184,760  
     Taxes other than income taxes
     432,422       123,640       1,236       557,298  
     Depreciation and amortization
     964,181       176,047       4,357       1,144,585  
     Other regulatory charges (credits) - net
     175,104       -       -       175,104  
                         Total
     6,736,151       2,292,643       (27,896 )     9,000,898  
                                 
     Gain on sale of investment
     -       -       -       -  
                                 
OPERATING INCOME
     1,268,940       33,666       (1,425 )     1,301,181  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     92,759       -       -       92,759  
     Interest and investment income
     150,292       105,062       (127,578 )     127,776  
     Miscellaneous - net
     (25,844 )     (19,071 )     (8,299 )     (53,214 )
                          Total
     217,207       85,991       (135,877 )     167,321  
                                 
INTEREST EXPENSE
                                
     Interest expense
     513,797       17,900       74,899       606,596  
     Allowance for borrowed funds used during construction
     (37,312 )     -       -       (37,312 )
                         Total
     476,485       17,900       74,899       569,284  
                                 
INCOME BEFORE INCOME TAXES
     1,009,662       101,757       (212,201 )     899,218  
                                 
Income taxes
     49,340       61,330       (79,815 )     30,855  
                                 
CONSOLIDATED NET INCOME
     960,322       40,427       (132,386 )     868,363  
                                 
Preferred dividend requirements of subsidiaries
     17,329       -       4,361       21,690  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 942,993     $ 40,427     $ (136,747 )   $ 846,673  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 5.31     $ 0.23     $ (0.77 )   $ 4.77  
   DILUTED
   $ 5.30     $ 0.23     $ (0.77 )   $ 4.76  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             177,324,813  
   DILUTED
                             177,737,565  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Year to Date December 31, 2013 vs. 2012
  
(Dollars in thousands)
  
(Unaudited)
  
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 1,073,178     $ -     $ (1,467 )   $ 1,071,711  
     Natural gas
     23,517       -       -       23,517  
     Competitive businesses
     -       (13,551 )     7,191       (6,360 )
                         Total
     1,096,695       (13,551 )     5,724       1,088,868  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     360,730       48,827       (574 )     408,983  
          Purchased power
     310,239       (10,868 )     (839 )     298,532  
          Nuclear refueling outage expenses
     14,123       (2,922 )     -       11,201  
          Asset impairment and related charges
     9,411       (26,188 )     2,790       (13,987 )
          Other operation and maintenance
     184,374       90,222       11,946       286,542  
     Decommissioning
     4,148       53,196       -       57,344  
     Taxes other than income taxes
     37,547       5,380       125       43,052  
     Depreciation and amortization
     76,850       39,824       (215 )     116,459  
     Other regulatory charges (credits )- net
     (129,507 )     -       -       (129,507 )
                         Total
     867,915       197,471       13,233       1,078,619  
                                 
     Gain on sale of investment
     -       43,569       -       43,569  
                                 
OPERATING INCOME
     228,780       (167,453 )     (7,509 )     53,818  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     (26,706 )     -       -       (26,706 )
     Interest and investment income
     36,432       32,665       2,427       71,524  
     Miscellaneous - net
     (3,348 )     (3,041 )     (159 )     (6,548 )
                          Total
     6,378       29,624       2,268       38,270  
                                 
INTEREST EXPENSE
                                
     Interest expense
     20,876       (1,577 )     3,642       22,941  
     Allowance for borrowed funds used during construction
     11,812       -       -       11,812  
                         Total
     32,688       (1,577 )     3,642       34,753  
                                 
INCOME BEFORE INCOME TAXES
     202,470       (136,252 )     (8,883 )     57,335  
                                 
Income taxes
     316,577       (138,801 )     17,350       195,126  
                                 
CONSOLIDATED NET INCOME
     (114,107 )     2,549       (26,233 )     (137,791 )
                                 
Preferred dividend requirements of subsidiaries
     -       91       (3,111 )     (3,020 )
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ (114,107 )   $ 2,458     $ (23,122 )   $ (134,771 )
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ (0.66 )   $ 0.01     $ (0.13 )   $ (0.78 )
   DILUTED
   $ (0.66 )   $ 0.01     $ (0.12 )   $ (0.77 )
                                 
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidated Cash Flow Statement
  
Three Months Ended December 31, 2013 vs. 2012
  
(Dollars in thousands)
  
(Unaudited)
  
                   
   
2013
    
2012
    
Variance
  
                   
OPERATING ACTIVITIES
                  
Consolidated net income
   $ 151,352     $ 301,850     $ (150,498 )
Adjustments to reconcile consolidated net income to net cash
                        
flow provided by operating activities:
                        
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
     539,091       477,982       61,109  
  Deferred income taxes, investment tax credits, and non-current taxes accrued
     137,737       (137,707 )     275,444  
  Asset impairment and related charges
     50,032       -       50,032  
  Gain on sale of investment
     (43,569 )     -       (43,569 )
  Changes in working capital:
                        
     Receivables
     93,228       147,813       (54,585 )
     Fuel inventory
     (11,548 )     (2,541 )     (9,007 )
     Accounts payable
     175,062       (150,375 )     325,437  
     Prepaid taxes and taxes accrued
     (136,476 )     10,859       (147,335 )
     Interest accrued
     21,919       25,904       (3,985 )
     Deferred fuel
     38,595       (59,795 )     98,390  
     Other working capital accounts
     14,985       (20,615 )     35,600  
  Changes in provisions for estimated losses
     (645 )     (7,329 )     6,684  
  Changes in other regulatory assets
     932,458       (447,678 )     1,380,136  
  Changes in other regulatory liabilities
     106,376       (67,206 )     173,582  
  Changes in pensions and other postretirement liabilities
     (1,384,849 )     719,203       (2,104,052 )
  Other
     306,012       (69,868 )     375,880  
Net cash flow provided by operating activities
     989,760       720,497       269,263  
                         
  INVESTING ACTIVITIES
                        
Construction/capital expenditures
     (506,385 )     (805,960 )     299,575  
Allowance for equity funds used during construction
     20,278       22,634       (2,356 )
Nuclear fuel purchases
     (119,369 )     (145,048 )     25,679  
Payments for purchases of plants
     (17,300 )     (455,711 )     438,411  
Proceeds from sale of assets and businesses
     147,922       -       147,922  
Changes in transition charge account
     3,857       6,301       (2,444 )
Payments to storm reserve escrow account
     (1,834 )     (1,948 )     114  
Receipts from storm reserve escrow account
     -       10,000       (10,000 )
Decrease (increase) in other investments
     (39,299 )     85,170       (124,469 )
Proceeds from nuclear decommissioning trust fund sales
     967,841       657,358       310,483  
Investment in nuclear decommissioning trust funds
     (999,528 )     (689,366 )     (310,162 )
Net cash flow used in investing activities
     (543,817 )     (1,316,570 )     772,753  
                         
FINANCING ACTIVITIES
                        
  Proceeds from the issuance of:
                        
    Long-term debt
     820,019       1,188,867       (368,848 )
    Preferred stock of subsidiary
     24,249       -       24,249  
    Treasury stock
     3,807       6,284       (2,477 )
  Retirement of long-term debt
     (708,440 )     (1,101,217 )     392,777  
  Changes in credit borrowings and commercial paper - net
     (59,153 )     439,830       (498,983 )
  Dividends paid:
                        
     Common stock
     (148,006 )     (147,917 )     (89 )
     Preferred stock
     (4,333 )     (6,832 )     2,499  
Net cash flow provided by (used in) financing activities
     (71,857 )     379,015       (450,872 )
                         
Effect of exchange rates on cash and cash equivalents
     (292 )     (92 )     (200 )
                         
Net increase (decrease) in cash and cash equivalents
     373,794       (217,150 )     590,944  
                         
Cash and cash equivalents at beginning of period
     365,332       749,719       (384,387 )
                         
Cash and cash equivalents at end of period
   $ 739,126     $ 532,569     $ 206,557  
                         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                        
  Cash paid (received) during the period for:
                        
     Interest - net of amount capitalized
   $ 135,051     $ 123,983     $ 11,068  
     Income taxes
   $ 20,175     $ 6,742     $ 13,433  
                         


 
 
 

Entergy Corporation
  
   
Consolidated Cash Flow Statement
  
Year to Date December 31, 2013 vs. 2012
  
(Dollars in thousands)
  
(Unaudited)
  
                   
   
2013
    
2012
    
Variance
  
                   
OPERATING ACTIVITIES
                  
Consolidated net income
   $ 730,572     $ 868,363     $ (137,791 )
Adjustments to reconcile consolidated net income to net cash
                        
flow provided by operating activities:
                        
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
     2,012,076       1,771,649       240,427  
  Deferred income taxes, investment tax credits, and non-current taxes accrued
     311,789       (26,479 )     338,268  
  Asset impairment and related charges
     341,537       355,524       (13,987 )
  Gain on sale of investment
     (43,569 )     -       (43,569 )
  Changes in working capital:
                        
     Receivables
     (180,648 )     (14,202 )     (166,446 )
     Fuel inventory
     4,873       (11,604 )     16,477  
     Accounts payable
     94,436       (6,779 )     101,215  
     Prepaid taxes and taxes accrued
     (142,626 )     55,484       (198,110 )
     Interest accrued
     (3,667 )     1,152       (4,819 )
     Deferred fuel
     (4,824 )     (99,987 )     95,163  
     Other working capital accounts
     (66,330 )     (151,989 )     85,659  
  Changes in provisions for estimated losses
     (248,205 )     (24,808 )     (223,397 )
  Changes in other regulatory assets
     1,105,622       (398,428 )     1,504,050  
  Changes in other regulatory liabilities
     397,341       170,421       226,920  
  Changes in pensions and other postretirement liabilities
     (1,433,663 )     644,099       (2,077,762 )
  Other
     314,505       (192,131 )     506,636  
Net cash flow provided by operating activities
     3,189,219       2,940,285       248,934  
                         
  INVESTING ACTIVITIES
                        
Construction/capital expenditures
     (2,287,593 )     (2,674,650 )     387,057  
Allowance for equity funds used during construction
     69,689       96,131       (26,442 )
Nuclear fuel purchases
     (517,825 )     (557,960 )     40,135  
Payment for purchase of plant
     (17,300 )     (456,356 )     439,056  
Proceeds from sale of assets and businesses
     147,922       -       147,922  
Changes in transition charge account
     155       4,265       (4,110 )
NYPA value sharing payment
     (71,736 )     (72,000 )     264  
Payments to storm reserve escrow account
     (7,716 )     (8,957 )     1,241  
Receipts from storm reserve escrow account
     260,279       27,884       232,395  
Decrease (increase) in other investments
     (82,955 )     15,175       (98,130 )
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
     21,034       109,105       (88,071 )
Proceeds from nuclear decommissioning trust fund sales
     2,031,552       2,074,055       (42,503 )
Investment in nuclear decommissioning trust funds
     (2,147,099 )     (2,196,489 )     49,390  
Net cash flow used in investing activities
     (2,601,593 )     (3,639,797 )     1,038,204  
                         
FINANCING ACTIVITIES
                        
  Proceeds from the issuance of:
                        
    Long-term debt
     3,746,016       3,478,361       267,655  
    Preferred stock of subsidiary
     24,249       -       24,249  
    Mandatorily redeemable preferred membership units of subsidiary
     -       51,000       (51,000 )
    Treasury stock
     24,527       62,886       (38,359 )
  Retirement of long-term debt
     (3,814,666 )     (3,130,233 )     (684,433 )
  Changes in credit borrowings and commercial paper - net
     250,889       687,675       (436,786 )
  Dividends paid:
                        
     Common stock
     (593,037 )     (589,209 )     (3,828 )
     Preferred stock
     (18,802 )     (22,329 )     3,527  
Net cash flow provided by (used in) financing activities
     (380,824 )     538,151       (918,975 )
                         
Effect of exchange rates on cash and cash equivalents
     (245 )     (508 )     263  
                         
Net increase (decrease) in cash and cash equivalents
     206,557       (161,869 )     368,426  
                         
Cash and cash equivalents at beginning of period
     532,569       694,438       (161,869 )
                         
Cash and cash equivalents at end of period
   $ 739,126     $ 532,569     $ 206,557  
                         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                        
  Cash paid (received) during the period for:
                        
     Interest - net of amount capitalized
   $ 570,212     $ 546,125     $ 24,087  
     Income taxes
   $ 127,735     $ 49,214     $ 78,521