EX-99.1 2 a02414991.htm a02414991.htm
 
 
Exhibit 99.1

 
For further information:
Paula Waters, VP, Investor Relations
504/576-4380
pwater1@entergy.com
INVESTOR NEWS
 
April 24, 2014
 
 
ENTERGY REPORTS FIRST QUARTER EARNINGS
Cold weather and Northeast infrastructure limitations drive revenue growth
 

NEW ORLEANS – Entergy Corporation (NYSE: ETR) today reported earnings per share of $2.24 on an as-reported basis and $2.29 on an operational basis for first quarter 2014, higher than the same quarter a year ago. See Table 1. More detail on quarterly results can be found beginning on page 2.

“The story for first quarter results was net revenue,” said Entergy Chairman and Chief Executive Officer Leo Denault. “The cold weather we experienced this past winter put stress on the power and gas systems, driving volatility and higher prices, and gave a glimpse of the longer term path these markets are on due to years of market design issues and regulatory intervention. The market prices realized this winter allowed us to capture significant value through our hedging strategy, and it highlighted the diversification value of our nuclear assets in that region.

“Utility revenue also benefitted from the cold weather,” he continued. “However, even on a weather-adjusted basis, sales growth was positive for residential, commercial and industrial customer classes and was consistent with our expectation for continued sales growth.”

Table 1: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
First Quarter 2014 vs. 2013
(Per share in U.S. $)
 
First Quarter
 
2014
2013
Change
As-Reported Earnings
2.24
0.90
1.34
Less Special Items
(0.05)
(0.04)
(0.01)
Operational Earnings
2.29
0.94
1.35
Weather Impact
0.18
(0.10)
0.28
       

Operational Earnings Highlights for First Quarter 2014
·  
EWC earnings increased, driven by higher net revenue; a lower effective income tax rate partially offset by higher depreciation also contributed.
·  
Utility earnings were higher due primarily to higher net revenue driven by higher sales volume including weather and lower non-fuel O&M expense.
·  
Parent & Other results were about the same as last year.

Other business highlights for the quarter included the following:
·  
ETI filed a unanimous rate case settlement agreement and the ALJ approved interim rates; PUCT approval is pending.
·  
APSC granted EAI’s rehearing request in its 2013 rate case.
·  
IP2 returned to service after a 24-day scheduled refueling outage, the site’s shortest ever.
·  
The Vermont PSB issued a certificate of public good for VY to operate through 2014.
·  
The EPA named ENOI a 2014 ENERGY STAR Partner of the Year Award recipient for its Energy Smart energy efficiency program.

A teleconference will be held at 10 a.m. CT on Thursday, April 24, 2014, to discuss Entergy’s first quarter 2014 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 Thursday, May 1, 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 first quarter 2014 versus 2013, 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
First Quarter 2014 vs. 2013 (see Appendix D for definitions of certain measures)
(Per share in U.S. $)
 
First Quarter
 
2014
2013
Change
As-Reported
      
Utility
1.12
0.69
0.43
Entergy Wholesale Commodities
1.35
0.46
0.89
Parent & Other
(0.23)
(0.25)
0.02
  Consolidated As-Reported Earnings
2.24
0.90
1.34
       
Less Special Items
      
Utility
(0.01)
(0.04)
0.03
Entergy Wholesale Commodities
(0.04)
-
(0.04)
Parent & Other
-
-
-
  Consolidated Special Items
(0.05)
(0.04)
(0.01)
       
Operational
      
Utility
1.13
0.73
0.40
Entergy Wholesale Commodities
1.39
0.46
0.93
Parent & Other
(0.23)
(0.25)
0.02
  Consolidated Operational Earnings
2.29
0.94
1.35
Weather Impact
0.18
(0.10)
0.28
       

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

Consolidated Operating Cash Flow

Entergy’s operating cash flow in first quarter 2014 was $767 million compared to $544 million in first quarter 2013. The overall quarterly increase was driven largely by higher cash flow from EWC and Utility net revenue. The increase in cash flow from Utility net revenue included the offsetting effect of decreased recovery of fuel costs. The increases were partially offset by higher pension funding.

Table 3 provides the components of operating cash flow contributed by each business with a current quarter comparison.

Table 3: Consolidated Operating Cash Flow
First Quarter 2014 vs. 2013
(U.S. $ in millions)
 
First Quarter
 
2014
2013
Change
Utility
405
369
36
Entergy Wholesale Commodities
424
235
189
Parent & Other
(62)
(60)
(2)
  Total Operating Cash Flow
767
544
223
       

 
 
II.  
Utility

In first quarter 2014, Utility earnings were $1.12 per share on an as-reported basis and $1.13 per share on an operational basis, compared to as-reported earnings per share of $0.69 and operational earnings per share of $0.73 in first quarter 2013. The quarter-over-quarter increase in operational earnings per share was due primarily to higher net revenue; lower non-fuel O&M expense also contributed. The decrease in non-fuel O&M was due partly to lower compensation and benefits expense.

Higher Utility net revenue was driven largely by colder-than-normal weather in the first quarter of the current year compared to unfavorable weather in the comparable period last year. Higher sales on a weather-adjusted basis also contributed to the increase in net revenue. These increases were partially offset by a quarter-over-quarter decrease in unbilled revenue.

Retail electric sales in billed gigawatt-hours by customer segment are summarized in Table 4. First quarter 2014 sales reflected the following:
·  
Residential sales, on a weather-adjusted basis, increased 1.9 percent compared to first quarter 2013.
·  
Weather-adjusted commercial and governmental sales increased 2.0 percent quarter over quarter.
·  
Industrial sales in the first quarter increased 2.5 percent compared to the same quarter of 2013.

Billed retail sales increased 2.1 percent on a weather-adjusted basis. The increase was from residential, commercial and industrial customer classes and reflected growth in both the number of customers as well as usage per customer. Industrial sales growth was attributable to expansions, recovery of a major refining customer from an unplanned outage last year and continued moderate growth in the manufacturing sector both domestically and internationally.

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

Table 4: Utility Operational Performance Measures
First Quarter 2014 vs. 2013 (see Appendix D for definitions of certain measures)
     
 
First Quarter
 
2014
2013
% Change
% Weather Adjusted
GWh billed
        
Residential
10,027
8,344
20.2%
1.9%
Commercial and governmental
7,384
7,005
5.4%
2.0%
Industrial
10,113
9,868
2.5%
2.5%
Total Retail Sales
27,524
25,217
9.2%
2.1%
Wholesale
2,234
630
254.6%
  
Total Sales
29,758
25,847
15.1%
  
Non-fuel O&M per MWh (a)
$17.53
$21.02
(16.6)%
  
Number of electric retail customers
        
Residential
2,403,321
2,388,522
0.6%
  
Commercial and governmental
359,595
356,809
0.8%
  
Industrial
40,044
38,744
3.4%
  
Total Retail Customers
2,802,960
2,784,075
0.7%
  
         
(a)
First quarter 2013 excludes the special item associated with the proposed spin-merge of the transmission business; first quarter 2014 excludes the special item for HCM implementation expenses.

Appendix B provides information on selected regulatory cases.


III.  
Entergy Wholesale Commodities

EWC operational adjusted EBITDA was $455 million in first quarter 2014, compared to $194 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
First Quarter 2014 vs. 2013 (see Appendix D for definitions of certain measures)
($ in millions)
 
First Quarter
 
2014
2013
Change
Net income
242
82
160
Add back: interest expense
5
3
2
Add back: income tax expense
119
57
62
Add back: depreciation and amortization
70
49
21
Subtract: interest and investment income
26
28
(2)
Add back: decommissioning expense
34
31
3
Adjusted EBITDA
444
194
250
Add back: special item for HCM implementation expenses (pre-tax)
1
-
1
Add back: special item resulting from the decision to close VY
10
-
10
Operational adjusted EBITDA
455
194
261
       
                                Totals may not foot due to rounding.

The quarter-over-quarter increase was driven by significantly higher realized wholesale energy prices. The realized price for EWC’s nuclear fleet was approximately $89 per MWh in the first quarter of this year – more than 50 percent higher than the $58 realized price from the comparable quarter a year ago. EWC’s hedging strategies routinely include financial instruments that manage operational and liquidity risk. These positions, in addition to a larger-than-normal unhedged position in 2014 due to VY being in its final year of operation, allowed EWC to benefit from increases in Northeast market power prices throughout the quarter. Net revenue also reflected mark-to-market activity, which was positive for the quarter.

Contribution to first quarter 2014 operational adjusted EBITDA from VY, scheduled to be closed later this year at the end of its current operating cycle, was approximately $110 million.

EWC as-reported earnings were $1.35 per share and operational earnings were $1.39 per share for first quarter 2014, compared to first quarter 2013 earnings of $0.46 per share on both an as-reported and an operational basis. The increase in operational earnings was driven by higher operational adjusted EBITDA. A lower effective income tax rate was another factor contributing to higher quarterly earnings. These items were partially offset by higher depreciation expense.

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

Table 6: Entergy Wholesale Commodities Operational Performance Measures
First Quarter 2014 vs. 2013 (see Appendix D for definitions of certain measures)
 
 
First Quarter
 
2014
2013
% Change
Owned capacity (MW) (b)
6,068
6,612
(8.2)%
GWh billed
10,014
10,387
(3.6)%
Net revenue ($ millions)
748
493
51.7%
Average realized revenue per MWh
$90.68
$58.66
54.6%
Non-fuel O&M per MWh (c)
$25.50
$25.22
1.1%
       
EWC Nuclear Fleet
      
Capacity factor
82%
83%
(1.2)%
GWh billed
9,079
9,246
(1.8)%
Average realized revenue per MWh
$88.86
$57.82
53.7%
Production cost per MWh (c)
$26.72
$25.94
3.0%
Refueling outage days
      
    IP2
24
-
  
    IP3
-
28
  
    Palisades
56
-
  
    VY
-
22
  
       
(b)
First quarter 2014 was reduced due to the retirement of R.E. Ritchie Unit 2 (gas/oil) plant in November 2013 (544 MW).
(c)
First quarter 2014 excluded the effect of the special items for HCM implementation expenses and costs resulting from the decision to close VY.

Table 7 provides information on current forward capacity and generation contracts for EWC’s fleet. Positions that are no longer classified as hedges are netted in the percent of planned generation under contract. It also provides total revenue projections using market prices as of March 31, 2014, adjusted for internal expectations for the new NYISO LHV capacity zone starting in May 2014. Since the new zone was put in production at the end of the first quarter, market quotes are not widely available beyond auctions held to date. EWC uses a combination of forward physical and financial contracts, including swaps, collars, put and/or call options to manage certain risks of that business including forward commodity price, operational and liquidity risks. 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 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
Second Quarter 2014 through 2018 (see Appendix D for definitions of certain measures)
(Based on market prices as of March 31, 2014) (d)
 
Balance of 2014
2015
2016
2017
2018
EWC Nuclear Portfolio
          
Energy
          
Planned TWh of generation
30
35
36
35
35
Percent of planned generation under contract
          
Unit-contingent
25%
17%
16%
14%
14%
Unit-contingent with availability guarantees
16%
15%
14%
15%
3%
Firm LD
58%
42%
10%
-
-
Offsetting positions
(24)%
-
-
-
-
Total
75%
74%
40%
29%
17%
Average revenue per MWh on contracted volumes
          
Minimum
$44
$43
$47
$51
$56
Expected based on current market prices
$48
$53
$50
$53
$56
Sensitivity: -/+ $10 per MWh market price change
$45-$51
$48-$58
$48-$52
$52-$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
15%
18%
18%
18%
18%
Capacity contracts
40%
15%
15%
16%
7%
Total
55%
33%
33%
34%
25%
Average revenue under contract per kW-month
  (applies to capacity contracts only)
$4.5
$3.2
$3.4
$5.6
$7.0
           
Total Nuclear Energy and Capacity Revenues (e)
          
Expected sold and market total revenue per MWh
$54
$53
$51
$52
$52
Sensitivity: -/+ $10 per MWh market price change
$49-$59
$46-$59
$44-$58
$45-$59
$44-$60
           
EWC Non-Nuclear Portfolio
          
Energy
          
Planned TWh of generation
5
5
6
6
6
Percent of planned generation under contract
          
Cost-based contracts
43%
38%
36%
33%
34%
Firm LD
8%
7%
7%
6%
7%
  Total (f)
51%
45%
43%
39%
41%
           
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
52%
53%
53%
56%
24%
  Total
84%
85%
85%
90%
58%
           
Total Non-Nuclear Net Revenue
          
Expected portfolio net revenue in $ millions
$66
$92
$99
$120
$133
           
(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)
Includes current expectations for the new NYISO LHV capacity zone starting in May 2014.
(f)
The percentage sold assumes completion of the necessary transmission upgrades required for the approved transmission rights.


 
 
 


IV.  
Parent & Other

Parent & Other reported a loss of $(0.23) per share on an as-reported and operational basis for first quarter 2014, compared to a first quarter 2013 as-reported and operational loss of $(0.25) per share. No item was individually significant.

V.  
2014 Earnings Guidance

Entergy affirmed its 2014 operational earnings guidance in the range of $5.55 to $6.75 per share. The guidance range, which was revised and widened on April 15, 2014, from $4.60 to $5.40 per share, is summarized in Table 8. The guidance range was widened to reflect increased volatility in the Northeast power markets year-to-date and the potential for that to continue through the rest of the year. The current range reflects strong first quarter 2014 results as well as other updates. Key assumptions on major drivers to the new guidance range versus original guidance are noted below. 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.

Table 8: 2014 Operational Earnings Per Share Guidance
(Per share in U.S. $) – Updated April 2014
Segment
Description of Drivers
Original
2014 Guidance Midpoint
Expected Change
Revised
2014 Guidance
Midpoint
Revised
2014 Guidance Range
           
Utility
Original 2014 Operational EPS Guidance Midpoint
5.20
      
 
Net revenue, including first quarter 2014 weather
  
0.05
    
 
Non-fuel O&M/other
  
(0.10)
    
 
Higher effective income tax rate
  
(0.15)
    
 
Subtotal
5.20
(0.20)
5.00
  
           
Entergy Wholesale Commodities
Original 2014 Operational EPS Guidance Midpoint
0.85
      
Net revenue driven by higher price for nuclear assets
  
1.35
    
Non-fuel O&M/other
  
(0.10)
    
 
Lower effective income tax rate
  
0.10
    
 
Subtotal
0.85
1.35
2.20
  
           
Parent & Other
Original 2014 Operational EPS Guidance Midpoint
(1.05)
-
(1.05)
  
           
Consolidated Operational
Revised 2014 Operational EPS Guidance Range
5.00
1.15
6.15
5.55 – 6.75
           

Key assumptions on the revisions follow.

Utility
·  
Expected change in Utility net revenue includes favorable weather effect through first quarter 2014, partially offset by the effects of an unplanned negative variance to unbilled revenue, and rate case outcomes different than planned
·  
Non-fuel O&M/other is higher due largely to consideration of opportunistic spending, net of lower-than-planned pension expense
·  
Higher effective income tax rate driven by timing of tax benefits now expected to be realized in a later period

Entergy Wholesale Commodities
·  
EWC net revenue driven by higher price for Northeast nuclear fleet
·  
For the balance of the year, approximately $54/MWh average price for EWC-nuclear fleet’s total energy and capacity revenues, based on published market prices at the end of March 2014
o  
$49/MWh average market price on approximately 25 percent unsold energy volumes
o  
$5.7/kW-month average capacity price on approximately 45 percent unsold capacity
·  
Non-fuel O&M/other is attributable to EWC performance and consideration of opportunistic spending, net of lower-than-planned pension expense
·  
Lower effective income tax rate due to first quarter 2014 tax benefit

Other
·  
Overall consolidated effective income tax rate of 37 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.

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. $) – Updated April 2014
Variable
2014 Revised 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
100 basis point 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 (g)
    
Nuclear capacity factor
90% capacity factor
1% change in capacity factor
- / + 0.06
EWC revenue (energy)
$54/MWh nuclear revenue;
Non-nuclear net revenue
$10/MWh market price change
(0.46) / + 0.51 (h)
EWC revenue (capacity)
$5.7/kW-month average capacity price on 45% unsold nuclear capacity (including VY)
$0.50/kW-month change in capacity price on nuclear capacity
- / + 0.03 (h)
Total non-fuel O&M
Lower due to HCM, compensation and benefits costs and the sale of District Energy, partially offset by other increases
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)
Discount rate of 4.36%
0.25% change
- / + 0.07
Effective income tax rate
37% effective income tax rate
1% change in overall effective income tax rate
+ / - 0.10
 
 
(g)
Assumes shutdown of VY in fourth quarter 2014 and uninterrupted normal operation at the remaining nuclear plants.
(h)
Reflects price sensitivity for the second through fourth quarters of 2014.

VI.  
Appendices

Five 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 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 definitions of the operational performance measures, GAAP and non-GAAP financial measures and abbreviations or acronyms that are used in this release.
·  
Appendix E provides a reconciliation of GAAP to non-GAAP financial measures used in this release.


 
 
 


A.  
Variance Analysis and Special Items

Appendix A-1 provides details of first quarter 2014 versus 2013 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
First Quarter 2014 vs. 2013
(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
2013 earnings
0.69
0.73
  
0.46
0.46
  
(0.25)
(0.25)
  
0.90
0.94
Net revenue
0.39
0.39
(i)
0.88
0.88
(j)
(0.01)
(0.01)
  
1.26
1.26
Income taxes - other
-
-
  
0.13
0.13
(k)
0.02
0.02
  
0.15
0.15
Other O&M
0.10
0.07
(l)
(0.02)
0.02
  
(0.01)
(0.01)
  
0.07
0.08
Other income (deductions) - other
0.01
0.01
  
(0.01)
(0.01)
  
-
-
  
-
-
Preferred dividend requirements
-
-
  
-
-
  
0.01
0.01
  
0.01
0.01
Taxes other than income taxes
(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
(0.03)
(0.03)
  
(0.01)
(0.01)
  
0.01
0.01
  
(0.03)
(0.03)
Depreciation / amortization expense
(0.02)
(0.02)
  
(0.07)
(0.07)
(m)
-
-
  
(0.09)
(0.09)
2014 earnings
1.12
1.13
  
1.35
1.39
  
(0.23)
(0.23)
  
2.24
2.29
                       

Utility Net Revenue Variance Analysis
2014 vs. 2013 ($ EPS)
 
First Quarter
Weather
0.28
Sales growth / pricing
0.07
Other
0.04
Total
0.39
 (i)
The quarter-over-quarter increase is due largely to favorable weather in the first quarter of 2014 compared to unfavorable weather in the comparable quarter last year. Higher sales on a weather-adjusted basis also contributed. These increases were partially offset by a quarter-over-quarter decrease in unbilled revenue. The net effect of pricing adjustments contributed to the net revenue increase, but were mostly for recovery of costs below net revenue.
(j)
The increase period-over-period was due largely to higher realized wholesale prices, mostly due to higher energy prices for EWC’s Northeast nuclear assets. The realized price also included the net effect of mark-to-market activity, which was positive in the current period including turnaround of negative mark-to-market in the fourth quarter of 2013.
(k)
The quarter-over-quarter increase was due primarily to a change in New York law which resulted in a reduction of deferred income taxes of approximately $21.5 million.
(l)
The increase compared to the first quarter last year is due largely to lower compensation and benefits expense which was attributable to several factors including fewer employees, higher pension discount rate effects and pension plan design changes. Fossil spending was also lower than the prior period due to lower outage expenses. A portion of the increase was partially offset by higher net revenue, including storm accruals and higher spending related to energy efficiency. New MISO RTO administration fees also provided a partial offset. The as-reported increase was driven by expenses in the prior period in connection with the planned spin-merge of the transmission business.
(m)
The quarter-over-quarter decrease is due primarily to the effects of a new depreciation study and an increase in depreciable plant.
 


 
 
 


Appendix A-2 lists special items by business with quarter-to-quarter 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-2: Special Items (shown as positive / (negative) impact on earnings)
First Quarter 2014 vs. 2013
(Per share in U.S. $)
 
First Quarter
 
2014
2013
Change
Utility
      
Transmission business spin-merge expenses
-
(0.04)
0.04
HCM implementation expenses
(0.01)
-
(0.01)
  Total Utility
(0.01)
(0.04)
0.03
       
Entergy Wholesale Commodities
      
Decision to close VY
(0.03)
-
(0.03)
HCM implementation expenses
(0.01)
-
(0.01)
  Total Entergy Wholesale Commodities
(0.04)
-
(0.04)
       
Parent & Other
-
-
-
       
Total Special Items
(0.05)
(0.04)
(0.01)
       
(U.S. $ in millions)
      
 
First Quarter
 
2014
2013
Change
Utility
      
Transmission business spin-merge expenses
-
(6.3)
6.3
HCM implementation expenses
(2.3)
-
(2.3)
Total Utility
(2.3)
(6.3)
4.0
       
Entergy Wholesale Commodities
      
Decision to close VY
(5.9)
-
(5.9)
HCM implementation expenses
(0.7)
-
(0.7)
  Total Entergy Wholesale Commodities
(6.6)
-
(6.6)
       
Parent & Other
-
-
-
       
Total Special Items
(8.9)
(6.3)
(2.6)
       


 
 
 


B.  
Regulatory Summary

Appendix B provides a summary of selected regulatory cases.

Appendix B: Regulatory Summary (see Appendix D 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 Feb. 26, 2014, the APSC granted rehearing for the purpose of considering additional evidence identified by EAI in its base rate case filed in March 2013 and established a procedural schedule for additional testimony, now complete. An APSC decision is pending.
Background: In its original Dec. 30, 2013 order, the APSC approved a base rate increase of $81 million effective Dec. 31, 2013, including a 9.3% ROE. Approximately $64 million of the base rate increase was the reclassification of riders to base rates and ANO2 wholesale to retail with no effect on earnings. The base rate increase also included $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.
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: A compliance FRP filing will be made on May 30, 2014.
Background: On Dec. 16, 2013, the LPSC approved a settlement resolving EGSL’s 2013 electric rate case. The settlement results in no change to the base rider FRP revenue related to test year 2013, except 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 recovery outside of the bandwidth for the Ninemile 6 new CCGT project and 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: A compliance FRP filing will be made on May 15, 2014.
Background: On Dec. 16, 2013, the LPSC approved a settlement resolving ELL’s 2013 rate case. 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 recovery outside of the bandwidth for the Ninemile 6 new CCGT project and a cumulative $30 million cap on cost of service increases over the three-year FRP 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 March 14, 2014, EMI made its FRP information-only submittal for the 2013 test year to the MPUS reporting an earned return which is within the FRP bandwidth. EMI is preparing a general rate case that could be filed next month pending discussions with the MPSC. No final decision has been made to file a rate case at this time.
Background: On Jan. 7, 2014, the MPSC suspended EMI’s 2013 test year FRP filing and requested EMI to make an abbreviated, information-only filing. 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 provided 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: The new Ninemile 6 CCGT project is expected to be complete by the first part of 2015 and is currently ahead of schedule. Although ENOI’s FRP expired with the 2011 test year, ENOI expects to recover the costs associated with its 20% participation in the resource through a rider until new base rates are established in the next base rate proceeding. The timing of ENOI’s next base rate case filing is currently under consideration and is expected to be determined in the coming months.
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
Baselines for riders for future use:
Transmission $93.6M
Distribution: $155.7M
Purchased power: $252.6M
Recent Activity/Next Steps: On April 4, 2014, ETI and other parties filed a unanimous “black box” settlement in the 2013 rate case, providing for an ROE of 9.8%, an $18.5 million base rate change effective April 1, 2014 and approval of riders for rate case expenses and RPCE payments. Other stipulated terms include approval of the as-filed $1.63 billion rate base and storm reserve accruals of $8.54 million per year. All remaining MISO transition expenses are deemed included in the agreed rate base, and there were no changes to depreciation rates and River Bend decommissioning funding. No special circumstances recovery of purchased power costs was allowed. Baselines were established for the transmission, distribution and capacity riders for future potential use. Interim rates reflecting this settlement went in effect April 1, subject to refund. A decision by the PUCT is expected in May.
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. ETI also requested rider recovery of rate case expenses and RPCE payments. Special circumstances recovery as fuel of approximately $22 million of historical purchased power capacity costs was reflected in the fuel reconciliation. On Jan. 17, 2014, the PUCT Staff filed direct testimony, recommending a retail rate reduction of $(0.3) million and a 9.2% ROE.
Wholesale Regulation
System Energy Resources
ROE and rate base, next column
Recent Activity: None.
Authorized ROE: 10.94%; Last calculated rate base: $1.3 billion for 3/31/14 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 and operating performance measures 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 E.

Appendix C-1: GAAP and Non-GAAP Financial Performance Measures
First Quarter 2014 vs. 2013 (see Appendix D for definitions of certain measures)
   
For 12 months ending March 31
2014
2013
  
Change
GAAP Measures
        
Return on average invested capital – as-reported
5.7%
6.9%
  
(1.2%)
Return on average common equity – as-reported
9.9%
12.8%
  
(2.9%)
Cash flow interest coverage
6.6
5.9
  
0.7
Book value per share
$55.53
$51.73
  
$3.80
End of period shares outstanding (millions)
179.1
178.1
  
1.0
         
Non-GAAP Measures
        
Return on average invested capital – operational
6.8%
7.0%
  
(0.2%)
Return on average common equity – operational
12.5%
13.2%
  
(0.7%)
         
As of March 31 ($ in millions)
2014
2013
  
Change
GAAP Measures
        
Cash and cash equivalents
908
263
  
645
Revolver capacity
4,077
3,542
  
535
Commercial paper outstanding
1,059
883
  
176
Total debt
13,860
13,471
  
389
Securitization debt
861
952
  
(91)
Debt to capital ratio
57.5%
58.7%
  
(1.2%)
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
55.9%
56.9%
  
(1.0%)
Gross liquidity
4,985
3,805
  
1,180
Net debt to net capital ratio, excluding securitization debt
54.1%
56.3%
  
(2.2%)
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt
55.2%
57.5%
  
(2.3%)
         


 
 
 


Appendix C-2: Historical Performance Measures (see Appendix D for definitions of certain measures)
     
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
14YTD
13YTD
Financial
                    
   
EPS – as-reported ($)
2.06
1.89
1.66
0.90
0.92
1.34
0.82
2.24
2.24
0.90
   
Less – special items ($)
(0.05)
(0.06)
(0.06)
(0.04)
(0.09)
(1.07)
(0.18)
(0.05)
(0.05)
(0.04)
   
EPS – operational ($)
2.11
1.95
1.72
0.94
1.01
2.41
1.00
2.29
2.29
0.94
 
Trailing twelve months
                    
   
ROIC – as-reported (%)
6.2
4.8
5.5
6.9
5.9
5.5
4.7
5.7
    
   
ROIC – operational (%)
7.4
6.0
6.6
7.0
6.1
6.4
5.8
6.8
    
   
ROE – as-reported (%)
11.3
7.8
9.3
12.8
10.5
9.3
7.6
9.9
    
   
ROE – operational (%)
14.2
10.7
12.2
13.2
10.9
11.7
10.2
12.5
    
   
Cash flow interest coverage
7.2
6.8
6.1
5.9
5.8
5.9
6.2
6.6
    
   
Debt to capital ratio (%)
57.4
57.7
58.7
58.7
59.0
58.4
57.9
57.5
    
   
Debt to capital ratio, excluding securitization debt (%)
55.3
55.7
56.9
56.9
57.3
56.7
56.3
55.9
    
   
Net debt to net capital ratio, excluding securitization debt (%)
54.7
54.1
55.8
56.3
56.7
56.0
54.8
54.1
    
Utility
   
GWh billed
                    
   
Residential
7,940
11,605
7,360
8,344
7,377
11,359
8,089
10,027
10,027
8,344
   
Commercial & Governmental
7,753
9,101
7,313
7,005
7,267
9,041
7,647
7,384
7,384
7,005
   
Industrial
10,408
10,748
10,067
9,868
10,357
11,038
10,389
10,113
10,113
9,868
   
Wholesale
836
833
798
630
590
667
1,133
2,234
2,234
630
   
Non-fuel O&M per
MWh (n)
$19.94
$16.66
$22.19
$21.02
$23.44
$18.15
$21.99
$17.53
$17.53
$21.02
Entergy Wholesale Commodities
   
Owned Capacity in MW (o)
6,612
6,612
6,612
6,612
6,612
6,612
6,068
6,068
6,068
6,612
   
GWh billed
11,674
12,002
11,221
10,387
11,172
11,630
11,938
10,014
10,014
10,387
   
Net revenue ($ millions)
444
495
463
493
383
494
432
748
748
493
   
Operational adjusted EBITDA
($ millions)
127
185
161
194
61
165
133
455
455
194
   
Avg realized revenue per MWh
$48.27
$51.88
$50.56
$58.66
$47.36
$53.22
$45.05
$90.68
$90.68
$58.66
   
Non-fuel O&M per
MWh (n)
$24.07
$23.15
$23.52
$25.22
$25.69
$25.28
$25.10
$25.50
$25.50
$25.22
   
EWC Nuclear Operational Measures
   
Capacity factor (%)
85
90
90
83
82
94
97
82
82
83
   
GWh billed
10,426
10,480
10,298
9,246
9,789
10,274
10,858
9,079
9,079
9,246
   
Avg realized revenue per MWh
$48.67
$52.27
$49.88
$57.82
$46.40
$53.16
$44.15
$88.86
$88.86
$57.82
   
Production cost per MWh (n)
$26.61
$26.14
$26.18
$25.94
$29.16
$25.32
$25.37
$26.72
$26.72
$25.94
                         
(n)
Excludes effect of special items: the proposed spin-merge of the transmission business at Utility (2012 and 2013 quarterly periods and 2013 year-to-date), HCM implementation expenses at Utility and EWC (2013 second, third and fourth quarters; 2014 first quarter and year-to-date) and expenses resulting from the decision to close VY at EWC (2013 third and fourth quarters; 2014 first quarter and year-to-date).
(o)
Fourth quarter 2013 and first quarter and year-to-date 2014 were reduced due to the retirement of R.E. Ritchie Unit 2 (gas/oil) plant in November 2013 (544 MWs).





D.  
Definitions

Appendix D 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 D: 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; positions that are no longer classified as hedges are netted in the planned generation under contract
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 D: 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 D: Definitions of Operational Performance Measures, GAAP and Non-GAAP Financial Measures and Abbreviations or Acronyms (continued)
Abbreviations or Acronyms
ALJ
Administrative law judge
ANO2
Unit 2 of Arkansas Nuclear One (nuclear)
APSC
Arkansas Public Service Commission
CCGT
Combined cycle gas turbine
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.
EPA
U.S. Environmental Protection Agency
ETI
Entergy Texas, Inc.
EWC
Entergy Wholesale Commodities
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)
ISO
Independent system operator
ISO-NE
ISO New England
LHV
Lower Hudson Valley
LPSC
Louisiana Public Service Commission
MISO
Midcontinent Independent System Operator, Inc.
MPSC
Mississippi Public Service Commission
MPUS
Mississippi Public Utilities Staff
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)
PPA
Power purchase agreement
PSB
Public Service Board
PUCT
Public Utility Commission of Texas
ROE
Return on equity
ROIC
Return on invested capital
RPCE
Rough production cost equalization
RTO
Regional transmission organization
VY
Vermont Yankee Nuclear Power Station (nuclear)
   


 
 
 


E.  
GAAP to Non-GAAP Reconciliations

Appendix E-1, Appendix E-2 and Appendix E-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
 
 
Appendix E-1: Reconciliation of GAAP to Non-GAAP Financial Measures – ROE, ROIC Metrics
($ in millions)
                
 
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
As-reported net income-rolling 12 months (A)
996
705
847
1,160
958
861
712
952
Preferred dividends
21
22
22
22
21
20
19
18
Tax effected interest expense
329
342
350
356
363
365
371
376
As-reported net income, rolling 12 months including preferred dividends and tax effected interest expense (B)
1,346
1,069
1,219
1,538
1,342
1,246
1,102
1,346
                 
Special items in prior quarters
(244)
(253)
(251)
(31)
(28)
(33)
(212)
(239)
                 
Special items in current quarter
                
Decision to close VY
-
-
-
-
-
(173)
(32)
(6)
Transmission business spin-merge expenses
(9)
(11)
(11)
(6)
(12)
(10)
25
-
HCM implementation expenses
-
-
-
-
(4)
(7)
(26)
(3)
   Total special items (C)
(253)
(264)
(262)
(37)
(44)
(224)
(245)
(248)
                 
Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C)
1,599
1,333
1,481
1,575
1,386
1,470
1,347
1,594
                 
Operational earnings, rolling 12 months (A-C)
1,249
969
1,109
1,197
1,002
1,085
957
1,200
                 
Average invested capital (D)
21,556
22,065
22,290
22,389
22,573
22,857
23,283
23,539
                 
Average common equity (E)
8,814
9,078
9,079
9,064
9,152
9,299
9,415
9,581
                 
ROIC – as-reported % (B/D)
6.2
4.8
5.5
6.9
5.9
5.5
4.7
5.7
                 
ROIC – operational % ((B-C)/D)
7.4
6.0
6.6
7.0
6.1
6.4
5.8
6.8
                 
ROE – as-reported % (A/E)
11.3
7.8
9.3
12.8
10.5
9.3
7.6
9.9
                 
ROE – operational % ((A-C)/E)
14.2
10.7
12.2
13.2
10.9
11.7
10.2
12.5
                 


 
 
 


Appendix E-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Credit and Liquidity Metrics
($ in millions)
                
 
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
Total debt (A)
12,533
12,931
13,473
13,471
13,747
13,623
13,678
13,860
Less securitization debt (B)
1,020
1,003
973
952
927
910
883
861
Total debt, excluding securitization debt (C)
11,513
11,928
12,500
12,519
12,820
12,713
12,795
12,999
Less cash and cash equivalents (D)
283
750
533
263
311
365
739
908
  Net debt, excluding securitization debt (E)
11,230
11,178
11,967
12,256
12,509
12,348
12,056
12,091
                 
Total capitalization (F)
21,844
22,402
22,951
22,965
23,302
23,312
23,615
24,113
Less securitization debt (B)
1,020
1,003
973
952
927
910
883
861
Total capitalization, excluding securitization debt (G)
20,824
21,399
21,978
22,013
22,375
22,402
22,732
23,252
Less cash and cash equivalents (D)
283
750
533
263
311
365
739
908
Net capital, excluding securitization debt (H)
20,541
20,649
21,445
21,750
22,064
22,037
21,993
22,344
                 
Debt to capital ratio % (A/F)
57.4
57.7
58.7
58.7
59.0
58.4
57.9
57.5
                 
Debt to capital ratio, excluding securitization debt % (C/G)
55.3
55.7
56.9
56.9
57.3
56.7
56.3
55.9
                 
Net debt to net capital ratio, excluding securitization debt % (E/H)
54.7
54.1
55.8
56.3
56.7
56.0
54.8
54.1
                 
Off-balance sheet liabilities (I)
600
599
595
595
594
592
542
542
                 
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt % ((E+I)/(H+I))
56.0
55.4
57.0
57.5
57.8
57.2
55.9
55.2
                 
Revolver capacity (J)
2,762
2,917
3,462
3,542
3,819
4,129
3,977
4,077
                 
Gross liquidity (D+J)
3,045
3,667
3,995
3,805
4,130
4,494
4,716
4,985
                 

Appendix E-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Entergy Wholesale Commodities Operational Adjusted EBITDA
($ in millions)
                
 
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
Net income
71
87
59
82
12
(93)
42
242
Add back: interest expense
5
3
3
3
4
4
5
5
Add back: income tax expense
47
57
50
57
(15)
(107)
(12)
119
Add back: depreciation and amortization
48
29
47
49
50
55
61
70
Subtract: interest and investment income
27
20
28
28
22
21
66
26
Add back: decommissioning expense
(17)
29
30
31
30
32
33
34
Adjusted EBITDA
127
185
161
194
59
(130)
63
444
Add back: special item for HCM implementation expenses (pre-tax)
-
-
-
-
2
3
19
1
Add back: special item resulting from the decision to close VY (pre-tax)
 
-
 
-
 
-
 
-
 
-
 
292
 
52
 
10
Operational adjusted EBITDA
127
185
161
194
61
165
133
455
         
                   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
  
March 31, 2014
  
(Dollars in thousands)
  
(Unaudited)
  
                     
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
ASSETS
                        
                         
CURRENT ASSETS
                        
                         
 Cash and cash equivalents:
                        
    Cash
   $ 99,185     $ 7,350     $ 1,518     $ 108,053  
    Temporary cash investments
     511,529       279,239       9,662       800,430  
     Total cash and cash equivalents
     610,714       286,589       11,180       908,483  
Notes receivable
     -       527,350       (527,350 )     -  
Accounts receivable:
                                
   Customer
     556,377       145,157       -       701,534  
   Allowance for doubtful accounts
     (34,064 )     -       -       (34,064 )
   Associated companies
     27,618       5,534       (33,152 )     -  
   Other
     165,968       18,359       296       184,623  
   Accrued unbilled revenues
     276,099       -       -       276,099  
     Total accounts receivable
     991,998       169,050       (32,856 )     1,128,192  
Deferred fuel costs
     241,372       -       -       241,372  
Accumulated deferred income taxes
     36,997       3,395       24,497       64,889  
Fuel inventory - at average cost
     182,394       10,624       -       193,018  
Materials and supplies - at average cost
     612,176       314,080       -       926,256  
Deferred nuclear refueling outage costs
     105,644       200,711       -       306,355  
Prepayments and other
     475,369       113,784       (179,855 )     409,298  
TOTAL
     3,256,664       1,625,583       (704,384 )     4,177,863  
                                 
OTHER PROPERTY AND INVESTMENTS
                                
                                 
Investment in affiliates - at equity
     1,097,270       39,258       (1,097,158 )     39,370  
Decommissioning trust funds
     2,280,685       2,710,377       -       4,991,062  
Non-utility property - at cost (less accumulated depreciation)
     183,299       7,841       8,111       199,251  
Other
     150,591       16,978       -       167,569  
TOTAL
     3,711,845       2,774,454       (1,089,047 )     5,397,252  
                                 
PROPERTY, PLANT, AND EQUIPMENT
                                
                                 
Electric
     38,265,538       4,912,032       3,392       43,180,962  
Property under capital lease
     940,996       -       -       940,996  
Natural gas
     368,094       -       -       368,094  
Construction work in progress
     1,301,776       343,535       269       1,645,580  
Nuclear fuel
     891,396       672,455       -       1,563,851  
TOTAL PROPERTY, PLANT AND EQUIPMENT
     41,767,800       5,928,022       3,661       47,699,483  
Less - accumulated depreciation and amortization
     18,383,702       1,306,930       194       19,690,826  
PROPERTY, PLANT AND EQUIPMENT - NET
     23,384,098       4,621,092       3,467       28,008,657  
                                 
DEFERRED DEBITS AND OTHER ASSETS
                                
                                 
Regulatory assets:
                                
    Regulatory asset for income taxes - net
     847,868       -       -       847,868  
    Other regulatory assets
     3,876,586       -       -       3,876,586  
    Deferred fuel costs
     172,202       -       -       172,202  
Goodwill
     374,099       3,073       -       377,172  
Accumulated deferred income taxes
     7,957       34,543       -       42,500  
Other
     243,276       721,359       (3,419 )     961,216  
TOTAL
     5,521,988       758,975       (3,419 )     6,277,544  
              -                  
TOTAL ASSETS
   $ 35,874,595     $ 9,780,104     $ (1,793,383 )   $ 43,861,316  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
March 31, 2014
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
                         
CURRENT LIABILITIES
                        
                         
Currently maturing long-term debt
   $ 404,455     $ 18,211     $ -     $ 422,666  
Notes payable and commercial paper:
                                
  Associated companies
     -       -       -       -  
  Other
     146,892       -       1,057,954       1,204,846  
Account payable:
                                
  Associated companies
     5,773       9,342       (15,115 )     -  
  Other
     836,749       308,257       585       1,145,591  
Customer deposits
     372,723       -       -       372,723  
Taxes accrued
     -       6,505       104,759       111,264  
Accumulated deferred income taxes
     27,056       44,482       (43,156 )     28,382  
Interest accrued
     148,453       641       7,101       156,195  
Deferred fuel costs
     21,435       -       -       21,435  
Obligations under capital leases
     2,368       -       -       2,368  
Pension and other postretirement liabilities
     48,190       8,919       -       57,109  
Other
     236,223       141,002       2,204       379,429  
TOTAL
     2,250,317       537,359       1,114,332       3,902,008  
                                 
NON-CURRENT LIABILITIES
                                
                                 
Accumulated deferred income taxes and taxes accrued
     7,396,800       1,307,032       172,293       8,876,125  
Accumulated deferred investment tax credits
     260,714       -       -       260,714  
Obligations under capital leases
     31,608       -       -       31,608  
Other regulatory liabilities
     1,315,589       -       -       1,315,589  
Decommissioning and retirement cost liabilities
     2,312,138       1,727,961       -       4,040,099  
Accumulated provisions
     115,211       2,482       1,048       118,741  
Pension and other postretirement liabilities
     1,675,249       609,591       -       2,284,840  
Long-term debt
     10,506,619       77,509       1,614,513       12,198,641  
Other
     757,234       575,279       (752,750 )     579,763  
TOTAL
     24,371,162       4,299,854       1,035,104       29,706,120  
                                 
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 2014
     2,161,268       201,094       (2,359,814 )     2,548  
  Paid-in capital
     2,417,670       1,632,851       1,300,111       5,350,632  
  Retained earnings
     4,588,099       3,015,467       2,474,386       10,077,952  
  Accumulated other comprehensive income (loss)
     (74,432 )     69,230       -       (5,202 )
  Less - treasury stock, at cost (75,608,773 shares in 2014)
     120,000       -       5,357,502       5,477,502  
  Total common shareholders' equity
     8,972,605       4,918,642       (3,942,819 )     9,948,428  
Subsidiaries' preferred stock without sinking fund
     94,000       -       -       94,000  
TOTAL
     9,066,605       4,918,642       (3,942,819 )     10,042,428  
                                 
TOTAL LIABILITIES AND EQUITY
   $ 35,874,595     $ 9,780,104     $ (1,793,383 )   $ 43,861,316  
                                 
*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
  
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  
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  
Prepayments and other
     362,832       180,477       (132,820 )     410,489  
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  
Other
     202,465       282,045       -       484,510  
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
  
March 31, 2014 vs December 31, 2013
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
ASSETS
                        
                         
CURRENT ASSETS
                        
                         
 Cash and cash equivalents:
                        
    Cash
   $ (20,596 )   $ (1,842 )   $ 512     $ (21,926 )
    Temporary cash investments
     80,093       111,973       (783 )     191,283  
     Total cash and cash equivalents
     59,497       110,131       (271 )     169,357  
Notes receivable
     -       (3,039 )     3,039       -  
Accounts receivable:
                                
   Customer
     47,201       (16,308 )     -       30,893  
   Allowance for doubtful accounts
     247       -       -       247  
   Associated companies
     (20,269 )     2,758       17,511       -  
   Other
     (18,672 )     8,006       261       (10,405 )
   Accrued unbilled revenues
     (64,729 )     -       -       (64,729 )
     Total accounts receivable
     (56,222 )     (5,544 )     17,772       (43,994 )
Deferred fuel costs
     124,993       -       -       124,993  
Accumulated deferred income taxes
     (158,033 )     (10,520 )     58,369       (110,184 )
Fuel inventory - at average cost
     (16,210 )     270       -       (15,940 )
Materials and supplies - at average cost
     8,619       2,631       -       11,250  
Deferred nuclear refueling outage costs
     27,011       86,870       -       113,881  
Prepayments and other
     112,537       (66,693 )     (47,035 )     (1,191 )
TOTAL
     102,192       114,106       31,874       248,172  
                                 
OTHER PROPERTY AND INVESTMENTS
                                
                                 
Investment in affiliates - at equity
     -       (980 )     -       (980 )
Decommissioning trust funds
     44,859       43,059       -       87,918  
Non-utility property - at cost (less accumulated depreciation)
     834       (348 )     (610 )     (124 )
Other
     576       (43,623 )     -       (43,047 )
TOTAL
     46,269       (1,892 )     (610 )     43,767  
                                 
PROPERTY, PLANT, AND EQUIPMENT
                                
                                 
Electric
     222,024       23,225       1       245,250  
Property under capital lease
     (303 )     -       -       (303 )
Natural gas
     1,729       -       -       1,729  
Construction work in progress
     84,638       46,084       1       130,723  
Nuclear fuel
     36,779       (39,832 )     -       (3,053 )
TOTAL PROPERTY, PLANT AND EQUIPMENT
     344,867       29,477       2       374,346  
Less - accumulated depreciation and amortization
     184,190       63,139       4       247,333  
PROPERTY, PLANT AND EQUIPMENT - NET
     160,677       (33,662 )     (2 )     127,013  
                                 
DEFERRED DEBITS AND OTHER ASSETS
                                
                                 
Regulatory assets:
                                
    Regulatory asset for income taxes - net
     (1,850 )     -       -       (1,850 )
    Other regulatory assets
     (16,777 )     -       -       (16,777 )
    Deferred fuel costs
     -       -       -       -  
Goodwill
     -       -       -       -  
Accumulated deferred income taxes
     (1,160 )     (18,351 )     -       (19,511 )
Other
     45,659       23,198       5,199       74,056  
TOTAL
     25,872       4,847       5,199       35,918  
                                 
TOTAL ASSETS
   $ 335,010     $ 83,399     $ 36,461     $ 454,870  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
 
Consolidating Balance Sheet
March 31, 2014 vs 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
   $ (34,429 )   $ -     $ -     $ (34,429 )
Notes payable and commercial paper:
                                
  Associated companies
     -       (103,739 )     103,739       -  
  Other
     143,952       -       14,007       157,959  
Account payable:
                                
  Associated companies
     (10,063 )     (18,874 )     28,937       -  
  Other
     (79,867 )     52,239       (94 )     (27,722 )
Customer deposits
     1,726       -       -       1,726  
Taxes accrued
     -       6,505       (86,334 )     (79,829 )
Accumulated deferred income taxes
     (70,407 )     44,485       25,997       75  
Interest accrued
     (8,515 )     447       (16,734 )     (24,802 )
Deferred fuel costs
     (36,196 )     -       -       (36,196 )
Obligations under capital leases
     45       -       -       45  
Pension and other postretirement liabilities
     (10,530 )     220       -       (10,310 )
Other
     33,758       (141,043 )     2,204       (105,081 )
TOTAL
     (70,526 )     (159,760 )     71,722       (158,564 )
                                 
NON-CURRENT LIABILITIES
                                
                                 
Accumulated deferred income taxes and taxes accrued
     56,533       40,119       54,838       151,490  
Accumulated deferred investment tax credits
     (3,051 )     -       -       (3,051 )
Obligations under capital leases
     (610 )     -       -       (610 )
Other regulatory liabilities
     19,634       -       -       19,634  
Decommissioning and retirement cost liabilities
     76,944       29,739       -       106,683  
Accumulated provisions
     4,312       (709 )     (1 )     3,602  
Pension and other postretirement liabilities
     (33,390 )     (2,474 )     -       (35,864 )
Long-term debt
     198,731       709       (139,948 )     59,492  
Other
     15,858       (18,046 )     (1,716 )     (3,904 )
TOTAL
     334,961       49,338       (86,827 )     297,472  
                                 
Subsidiaries' preferred stock without sinking fund
     -       -       -       -  
                                 
EQUITY
                                
                                 
Common Shareholders' Equity:
                                
Common stock, $.01 par value, authorized 500,000,000 shares;
                          
      issued 254,752,788 shares in 2014 and in 2013
     -       -       -       -  
  Paid-in capital
     -       4,995       (22,494 )     (17,499 )
  Retained earnings
     69,358       165,921       17,620       252,899  
  Accumulated other comprehensive income (loss)
     1,217       22,905       -       24,122  
  Less - treasury stock, at cost
     -       -       (56,440 )     (56,440 )
  Total common shareholders' equity
     70,575       193,821       51,566       315,962  
Subsidiaries' preferred stock without sinking fund
     -       -       -       -  
TOTAL
     70,575       193,821       51,566       315,962  
                                 
TOTAL LIABILITIES AND EQUITY
   $ 335,010     $ 83,399     $ 36,461     $ 454,870  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended March 31, 2014
  
(Dollars in thousands)
  
(Unaudited)
  
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 2,226,484     $ -     $ (21 )   $ 2,226,463  
     Natural gas
     78,220       -       -       78,220  
     Competitive businesses
     -       912,122       (7,962 )     904,160  
                         Total
     2,304,704       912,122       (7,983 )     3,208,843  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     415,686       128,163       (20 )     543,829  
          Purchased power
     547,660       35,835       (8,868 )     574,627  
          Nuclear refueling outage expenses
     29,010       30,534       -       59,544  
          Other operation and maintenance
     497,238       234,896       5,846       737,980  
     Decommissioning
     31,743       34,056       -       65,799  
     Taxes other than income taxes
     121,284       32,836       348       154,468  
     Depreciation and amortization
     257,556       70,147       1,021       328,724  
     Other regulatory charges (credits) - net
     3,995       -       -       3,995  
                         Total
     1,904,172       566,467       (1,673 )     2,468,966  
                                 
                                 
OPERATING INCOME
     400,532       345,655       (6,310 )     739,877  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     15,129       -       -       15,129  
     Interest and investment income
     40,320       26,359       (31,431 )     35,248  
     Miscellaneous - net
     (4,008 )     (5,606 )     (2,090 )     (11,704 )
                          Total
     51,441       20,753       (33,521 )     38,673  
                                 
INTEREST EXPENSE
                                
     Interest expense
     138,489       5,061       19,001       162,551  
     Allowance for borrowed funds used during construction
     (7,020 )     -       -       (7,020 )
                         Total
     131,469       5,061       19,001       155,531  
                                 
INCOME BEFORE INCOME TAXES
     320,504       361,347       (58,832 )     623,019  
                                 
Income taxes
     115,064       118,877       (16,975 )     216,966  
                                 
CONSOLIDATED NET INCOME
     205,440       242,470       (41,857 )     406,053  
                                 
Preferred dividend requirements of subsidiaries
     4,332       547       -       4,879  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 201,108     $ 241,923     $ (41,857 )   $ 401,174  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 1.12     $ 1.35     $ (0.23 )   $ 2.24  
   DILUTED
   $ 1.12     $ 1.35     $ (0.23 )   $ 2.24  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             178,797,829  
   DILUTED
                             179,055,967  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended March 31, 2013
  
(Dollars in thousands)
  
(Unaudited)
  
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 1,950,120     $ -     $ (840 )   $ 1,949,280  
     Natural gas
     53,321       -       -       53,321  
     Competitive businesses
     -       613,733       (7,460 )     606,273  
                         Total
     2,003,441       613,733       (8,300 )     2,608,874  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     411,320       99,411       (398 )     510,333  
          Purchased power
     363,532       21,221       (11,624 )     373,129  
          Nuclear refueling outage expenses
     30,076       30,643       -       60,719  
          Other operation and maintenance
     519,756       231,359       3,143       754,258  
     Decommissioning
     28,527       30,577       -       59,104  
     Taxes other than income taxes
     118,063       32,748       284       151,095  
     Depreciation and amortization
     250,531       49,243       1,102       300,876  
     Other regulatory charges (credits) - net
     5,315       -       -       5,315  
                         Total
     1,727,120       495,202       (7,493 )     2,214,829  
                                 
                                 
OPERATING INCOME
     276,321       118,531       (807 )     394,045  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     12,751       -       -       12,751  
     Interest and investment income
     41,578       28,199       (31,471 )     38,306  
     Miscellaneous - net
     (6,865 )     (4,612 )     (2,146 )     (13,623 )
                          Total
     47,464       23,587       (33,617 )     37,434  
                                 
INTEREST EXPENSE
                                
     Interest expense
     130,063       3,068       20,018       153,149  
     Allowance for borrowed funds used during construction
     (5,188 )     -       -       (5,188 )
                         Total
     124,875       3,068       20,018       147,961  
                                 
INCOME BEFORE INCOME TAXES
     198,910       139,050       (54,442 )     283,518  
                                 
Income taxes
     71,075       56,936       (11,475 )     116,536  
                                 
CONSOLIDATED NET INCOME
     127,835       82,114       (42,967 )     166,982  
                                 
Preferred dividend requirements of subsidiaries
     4,332       -       1,250       5,582  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 123,503     $ 82,114     $ (44,217 )   $ 161,400  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 0.70     $ 0.46     $ (0.25 )   $ 0.91  
   DILUTED
   $ 0.69     $ 0.46     $ (0.25 )   $ 0.90  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             178,027,961  
   DILUTED
                             178,413,287  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended March 31, 2014 vs. 2013
  
(Dollars in thousands)
  
(Unaudited)
  
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 276,364     $ -     $ 819     $ 277,183  
     Natural gas
     24,899       -       -       24,899  
     Competitive businesses
     -       298,389       (502 )     297,887  
                         Total
     301,263       298,389       317       599,969  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     4,366       28,752       378       33,496  
          Purchased power
     184,128       14,614       2,756       201,498  
          Nuclear refueling outage expenses
     (1,066 )     (109 )     -       (1,175 )
          Other operation and maintenance
     (22,518 )     3,537       2,703       (16,278 )
     Decommissioning
     3,216       3,479       -       6,695  
     Taxes other than income taxes
     3,221       88       64       3,373  
     Depreciation and amortization
     7,025       20,904       (81 )     27,848  
     Other regulatory charges (credits )- net
     (1,320 )     -       -       (1,320 )
                         Total
     177,052       71,265       5,820       254,137  
                                 
                                 
OPERATING INCOME
     124,211       227,124       (5,503 )     345,832  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     2,378       -       -       2,378  
     Interest and investment income
     (1,258 )     (1,840 )     40       (3,058 )
     Miscellaneous - net
     2,857       (994 )     56       1,919  
                          Total
     3,977       (2,834 )     96       1,239  
                                 
INTEREST EXPENSE
                                
     Interest expense
     8,426       1,993       (1,017 )     9,402  
     Allowance for borrowed funds used during construction
     (1,832 )     -       -       (1,832 )
                         Total
     6,594       1,993       (1,017 )     7,570  
                                 
INCOME BEFORE INCOME TAXES
     121,594       222,297       (4,390 )     339,501  
                                 
Income taxes
     43,989       61,941       (5,500 )     100,430  
                                 
CONSOLIDATED NET INCOME
     77,605       160,356       1,110       239,071  
                                 
Preferred dividend requirements of subsidiaries
     -       547       (1,250 )     (703 )
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 77,605     $ 159,809     $ 2,360     $ 239,774  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 0.42     $ 0.89     $ 0.02     $ 1.33  
   DILUTED
   $ 0.43     $ 0.89     $ 0.02     $ 1.34  
                                 
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Twelve Months Ended March 31, 2014
  
(Dollars in thousands)
  
(Unaudited)
  
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 9,223,797     $ -     $ (4,254 )   $ 9,219,543  
     Natural gas
     179,253       -       -       179,253  
     Competitive businesses
     -       2,611,147       (19,027 )     2,592,120  
                         Total
     9,403,050       2,611,147       (23,281 )     11,990,916  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     2,041,114       439,985       (1,784 )     2,479,315  
          Purchased power
     1,679,771       114,074       (38,014 )     1,755,831  
          Nuclear refueling outage expenses
     123,895       131,732       -       255,627  
          Asset impairment and related charges
     9,411       329,336       2,790       341,537  
          Other operation and maintenance
     2,241,358       1,051,598       22,681       3,315,637  
     Decommissioning
     120,028       128,771       -       248,799  
     Taxes other than income taxes
     473,190       129,107       1,425       603,722  
     Depreciation and amortization
     1,048,056       236,774       4,061       1,288,891  
     Other regulatory charges (credits) - net
     44,276       -       -       44,276  
                         Total
     7,781,099       2,561,377       (8,841 )     10,333,635  
                                 
     Gain on sale of business
     -       43,569       -       43,569  
                                 
OPERATING INCOME
     1,621,951       93,339       (14,440 )     1,700,850  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     68,431       -       -       68,431  
     Interest and investment income
     185,466       135,886       (125,109 )     196,243  
     Miscellaneous - net
     (26,354 )     (23,107 )     (8,403 )     (57,864 )
                          Total
     227,543       112,779       (133,512 )     206,810  
                                 
INTEREST EXPENSE
                                
     Interest expense
     543,100       18,316       77,521       638,937  
     Allowance for borrowed funds used during construction
     (27,332 )     -       -       (27,332 )
                         Total
     515,768       18,316       77,521       611,605  
                                 
INCOME BEFORE INCOME TAXES
     1,333,726       187,802       (225,473 )     1,296,055  
                                 
Income taxes
     409,906       (15,530 )     (67,964 )     326,412  
                                 
CONSOLIDATED NET INCOME
     923,820       203,332       (157,509 )     969,643  
                                 
Preferred dividend requirements of subsidiaries
     17,329       638       -       17,967  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 906,491     $ 202,694     $ (157,509 )   $ 951,676  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 5.08     $ 1.14     $ (0.89 )   $ 5.33  
   DILUTED
   $ 5.07     $ 1.13     $ (0.88 )   $ 5.32  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             178,401,013  
   DILUTED
                             178,799,026  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Twelve Months Ended March 31, 2013
  
(Dollars in thousands)
  
(Unaudited)
  
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 8,038,743     $ -     $ (3,656 )   $ 8,035,087  
     Natural gas
     138,148       -       -       138,148  
     Competitive businesses
     -       2,379,791       (25,733 )     2,354,059  
                         Total
     8,176,891       2,379,791       (29,389 )     10,527,294  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     1,642,901       367,116       (1,685 )     2,008,332  
          Purchased power
     1,267,746       117,673       (41,457 )     1,343,962  
          Nuclear refueling outage expenses
     114,210       128,225       -       242,435  
          Asset impairment and related charges
     -       -       -       -  
          Other operation and maintenance
     2,109,049       956,441       12,525       3,078,016  
     Decommissioning
     112,961       73,001       -       185,962  
     Taxes other than income taxes
     443,386       126,619       1,219       571,223  
     Depreciation and amortization
     986,626       174,218       4,402       1,165,245  
     Other regulatory charges (credits) - net
     180,036       -       -       180,036  
                         Total
     6,856,915       1,943,293       (24,996 )     8,775,211  
                                 
     Gain on sale of business
     -       -       -       -  
                                 
OPERATING INCOME
     1,319,976       436,498       (4,393 )     1,752,083  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     81,202       -       -       81,202  
     Interest and investment income
     148,597       103,063       (126,570 )     125,090  
     Miscellaneous - net
     (24,846 )     (15,901 )     (8,099 )     (48,846 )
                          Total
     204,953       87,162       (134,669 )     157,446  
                                 
INTEREST EXPENSE
                                
     Interest expense
     516,385       14,764       81,850       613,001  
     Allowance for borrowed funds used during construction
     (33,109 )     -       -       (33,109 )
                         Total
     483,276       14,764       81,850       579,892  
                                 
INCOME BEFORE INCOME TAXES
     1,041,653       508,896       (220,912 )     1,329,637  
                                 
Income taxes
     20,708       210,406       (83,562 )     147,552  
                                 
CONSOLIDATED NET INCOME
     1,020,945       298,490       (137,350 )     1,182,085  
                                 
Preferred dividend requirements of subsidiaries
     17,329       -       5,000       22,329  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 1,003,616     $ 298,490     $ (142,350 )   $ 1,159,756  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 5.65     $ 1.68     $ (0.80 )   $ 6.53  
   DILUTED
   $ 5.63     $ 1.68     $ (0.80 )   $ 6.51  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             177,612,730  
   DILUTED
                             178,156,757  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Twelve Months Ended March 31, 2014 vs. 2013
  
(Dollars in thousands)
  
(Unaudited)
  
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 1,185,054     $ -     $ (598 )   $ 1,184,456  
     Natural gas
     41,105       -       -       41,105  
     Competitive businesses
     -       231,356       6,706       238,061  
                         Total
     1,226,159       231,356       6,108       1,463,622  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     398,213       72,869       (99 )     470,983  
          Purchased power
     412,025       (3,599 )     3,443       411,869  
          Nuclear refueling outage expenses
     9,685       3,507       -       13,192  
          Asset impairment and related charges
     9,411       329,336       2,790       341,537  
          Other operation and maintenance
     132,309       95,157       10,156       237,621  
     Decommissioning
     7,067       55,770       -       62,837  
     Taxes other than income taxes
     29,804       2,488       206       32,499  
     Depreciation and amortization
     61,430       62,556       (341 )     123,646  
     Other regulatory charges (credits )- net
     (135,760 )     -       -       (135,760 )
                         Total
     924,184       618,084       16,155       1,558,424  
                                 
     Gain on sale of business
     -       43,569       -       43,569  
                                 
OPERATING INCOME
     301,975       (343,159 )     (10,047 )     (51,233 )
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     (12,771 )     -       -       (12,771 )
     Interest and investment income
     36,869       32,823       1,461       71,153  
     Miscellaneous - net
     (1,508 )     (7,206 )     (304 )     (9,018 )
                          Total
     22,590       25,617       1,157       49,364  
                                 
INTEREST EXPENSE
                                
     Interest expense
     26,715       3,552       (4,329 )     25,936  
     Allowance for borrowed funds used during construction
     5,777       -       -       5,777  
                         Total
     32,492       3,552       (4,329 )     31,713  
                                 
INCOME BEFORE INCOME TAXES
     292,073       (321,094 )     (4,561 )     (33,582 )
                                 
Income taxes
     389,198       (225,936 )     15,598       178,860  
                                 
CONSOLIDATED NET INCOME
     (97,125 )     (95,158 )     (20,159 )     (212,442 )
                                 
Preferred dividend requirements of subsidiaries
     -       638       (5,000 )     (4,362 )
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ (97,125 )   $ (95,796 )   $ (15,159 )   $ (208,080 )
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ (0.57 )   $ (0.54 )   $ (0.09 )   $ (1.20 )
   DILUTED
   $ (0.56 )   $ (0.55 )   $ (0.08 )   $ (1.19 )
                                 
                                 
*Totals may not foot due to rounding.
                                
 
 
 
 
 
 
 
Entergy Corporation
  
   
Consolidated Cash Flow Statement
  
Three Months Ended March 31, 2014 vs. 2013
  
(Dollars in thousands)
  
(Unaudited)
  
                   
   
2014
    
2013
    
Variance
  
                   
OPERATING ACTIVITIES
                  
Consolidated net income
   $ 406,053     $ 166,982     $ 239,071  
Adjustments to reconcile consolidated net income to net cash
                        
flow provided by operating activities:
                        
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
     516,442       472,933       43,509  
  Deferred income taxes, investment tax credits, and non-current taxes accrued
     234,102       98,671       135,431  
  Changes in working capital:
                        
     Receivables
     49,107       (29,845 )     78,952  
     Fuel inventory
     15,940       (5,147 )     21,087  
     Accounts payable
     32,870       (40,861 )     73,731  
     Prepaid taxes and taxes accrued
     (79,829 )     (35,648 )     (44,181 )
     Interest accrued
     (24,802 )     (30,570 )     5,768  
     Deferred fuel costs
     (161,189 )     (2,149 )     (159,040 )
     Other working capital accounts
     (115,060 )     (151,958 )     36,898  
  Changes in provisions for estimated losses
     3,319       (245,972 )     249,291  
  Changes in other regulatory assets
     18,627       167,634       (149,007 )
  Changes in other regulatory liabilities
     19,634       147,492       (127,858 )
  Changes in pensions and other postretirement liabilities
     (46,174 )     32,696       (78,870 )
  Other
     (101,883 )     (269 )     (101,614 )
Net cash flow provided by operating activities
     767,157       543,989       223,168  
                         
  INVESTING ACTIVITIES
                        
Construction/capital expenditures
     (483,350 )     (631,857 )     148,507  
Allowance for equity funds used during construction
     15,883       13,672       2,211  
Nuclear fuel purchases
     (142,672 )     (145,168 )     2,496  
Proceeds from sale of assets
     10,100       -       10,100  
Insurance proceeds received for property damages
     28,226       -       28,226  
Changes in securitization account
     (2,219 )     1,601       (3,820 )
NYPA value sharing payment
     (72,000 )     (71,736 )     (264 )
Payments to storm reserve escrow account
     (1,897 )     (2,219 )     322  
Receipts from storm reserve escrow account
     -       252,482       (252,482 )
Decrease (increase) in other investments
     18,093       (44,298 )     62,391  
Proceeds from nuclear decommissioning trust fund sales
     536,515       398,010       138,505  
Investment in nuclear decommissioning trust funds
     (562,278 )     (432,247 )     (130,031 )
Net cash flow used in investing activities
     (655,599 )     (661,760 )     6,161  
                         
FINANCING ACTIVITIES
                        
  Proceeds from the issuance of:
                        
    Long-term debt
     753,244       564,717       188,527  
    Treasury stock
     35,538       8,102       27,436  
  Retirement of long-term debt
     (735,794 )     (849,860 )     114,066  
  Changes in credit borrowings and commercial paper - net
     157,959       277,886       (119,927 )
  Dividends paid:
                        
     Common stock
     (148,275 )     (147,902 )     (373 )
     Preferred stock
     (4,873 )     (5,582 )     709  
Net cash flow provided by (used in) financing activities
     57,799       (152,639 )     210,438  
                         
Effect of exchange rates on cash and cash equivalents
     -       772       (772 )
                         
Net increase (decrease) in cash and cash equivalents
     169,357       (269,638 )     438,995  
                         
Cash and cash equivalents at beginning of period
     739,126       532,569       206,557  
                         
Cash and cash equivalents at end of period
   $ 908,483     $ 262,931     $ 645,552  
                         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                        
  Cash paid (received) during the period for:
                        
     Interest - net of amount capitalized
   $ 181,112     $ 179,119     $ 1,993  
     Income taxes
   $ 4,196     $ 12,341     $ (8,145 )
                         


 
 
 

Entergy Corporation
  
   
Consolidated Cash Flow Statement
  
Twelve Months Ended March 31, 2014 vs. 2013
  
(Dollars in thousands)
  
(Unaudited)
  
                   
   
2014
    
2013
    
Variance
  
                   
OPERATING ACTIVITIES
                  
Consolidated net income
   $ 969,643     $ 1,182,085     $ (212,442 )
Adjustments to reconcile consolidated net income to net cash
                        
flow provided by operating activities:
                        
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
     2,055,585       1,794,573       261,012  
  Deferred income taxes, investment tax credits, and non-current taxes accrued
     447,220       33,334       413,886  
  Asset impairment and related charges
     341,537       -       341,537  
  Gain on sale of business
     (43,569 )     -       (43,569 )
  Changes in working capital:
                        
     Receivables
     (101,696 )     (200,249 )     98,553  
     Fuel inventory
     25,960       3,462       22,498  
     Accounts payable
     168,167       97,959       70,208  
     Prepaid taxes and taxes accrued
     (186,807 )     109,419       (296,226 )
     Interest accrued
     2,101       2,776       (675 )
     Deferred fuel costs
     (163,864 )     (179,541 )     15,677  
     Other working capital accounts
     (29,432 )     (269,194 )     239,762  
  Changes in provisions for estimated losses
     1,086       (255,750 )     256,836  
  Changes in other regulatory assets
     956,615       (291,651 )     1,248,266  
  Changes in other regulatory liabilities
     269,483       236,377       33,106  
  Changes in pensions and other postretirement liabilities
     (1,512,533 )     681,559       (2,194,092 )
  Other
     212,891       (61,385 )     274,276  
Net cash flow provided by operating activities
     3,412,387       2,883,774       528,613  
                         
  INVESTING ACTIVITIES
                        
Construction/capital expenditures
     (2,139,086 )     (2,742,968 )     603,882  
Allowance for equity funds used during construction
     71,900       84,355       (12,455 )
Nuclear fuel purchases
     (515,329 )     (502,069 )     (13,260 )
Payment for purchase of plant
     (17,300 )     (456,356 )     439,056  
Proceeds from sale of assets and businesses
     158,022       -       158,022  
Insurance proceeds received for property damages
     28,226       -       28,226  
Changes in securitization account
     (3,665 )     4,926       (8,591 )
NYPA value sharing payment
     (72,000 )     (71,736 )     (264 )
Payments to storm reserve escrow account
     (7,394 )     (9,693 )     2,299  
Receipts from storm reserve escrow account
     7,797       279,505       (271,708 )
Decrease (increase) in other investments
     (20,564 )     (122,909 )     102,345  
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
     21,034       109,105       (88,071 )
Proceeds from nuclear decommissioning trust fund sales
     2,170,057       1,936,514       233,543  
Investment in nuclear decommissioning trust funds
     (2,277,130 )     (2,060,956 )     (216,174 )
Net cash flow used in investing activities
     (2,595,432 )     (3,552,282 )     956,850  
                         
FINANCING ACTIVITIES
                        
  Proceeds from the issuance of:
                        
    Long-term debt
     3,934,543       3,008,133       926,410  
    Preferred stock of subsidiary
     24,249       -       24,249  
    Treasury stock
     51,963       38,162       13,801  
  Retirement of long-term debt
     (3,700,600 )     (3,120,445 )     (580,155 )
  Changes in credit borrowings and commercial paper - net
     130,962       932,779       (801,817 )
  Dividends paid:
                        
     Common stock
     (593,410 )     (590,437 )     (2,973 )
     Preferred stock
     (18,093 )     (22,329 )     4,236  
Net cash flow provided by (used in) financing activities
     (170,386 )     245,863       (416,249 )
                         
Effect of exchange rates on cash and cash equivalents
     (1,017 )     574       (1,591 )
                         
Net increase (decrease) in cash and cash equivalents
     645,552       (422,071 )     1,067,623  
                         
Cash and cash equivalents at beginning of period
     262,931       685,002       (422,071 )
                         
Cash and cash equivalents at end of period
   $ 908,483     $ 262,931     $ 645,552  
                         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                        
  Cash paid (received) during the period for:
                        
     Interest - net of amount capitalized
   $ 613,107     $ 590,589     $ 22,518  
     Income taxes
   $ 119,590     $ 25,563     $ 94,027