8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date earliest event reported) February 20, 2019

Commission File Number	Registrant, State of Incorporation, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No.	Commission File Number	Registrant, State of Incorporation, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No.
1-11299	ENTERGY CORPORATION (a Delaware corporation) 639 Loyola Avenue New Orleans, Louisiana 70113 Telephone (504) 576-4000 72-1229752	1-35747	ENTERGY NEW ORLEANS, LLC (a Texas limited liability company) 1600 Perdido Street New Orleans, Louisiana 70112 Telephone (504) 670-3700 82-2212934
1-10764	ENTERGY ARKANSAS, LLC (a Texas limited liability company) 425 West Capitol Avenue Little Rock, Arkansas 72201 Telephone (501) 377-4000 83-1918668	1-34360	ENTERGY TEXAS, INC. (a Texas corporation) 10055 Grogans Mill Road The Woodlands, TX 77380 Telephone (409) 981-2000 61-1435798
1-32718	ENTERGY LOUISIANA, LLC (a Texas limited liability company) 4809 Jefferson Highway Jefferson, Louisiana 70121 Telephone (504) 576-4000 47-4469646	1-09067	SYSTEM ENERGY RESOURCES, INC. (an Arkansas corporation) 1340 Echelon Parkway Jackson, Mississippi 39213 Telephone (601) 368-5000 72-0752777
1-31508	ENTERGY MISSISSIPPI, LLC (a Texas limited liability company) 308 East Pearl Street Jackson, Mississippi 39201 Telephone (601) 368-5000 83-1950019

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02. Results of Operations and Financial Condition

On February 20, 2019, Entergy Corporation (the “Company”) issued a press release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the fourth quarter 2018 (the “Earnings Release”). The information in Exhibit 99.1 is being furnished, not filed, pursuant to this Item 2.02.

Item 7.01. Regulation FD Disclosure

On February 20, 2019, the Company issued the Earnings Release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the fourth quarter 2018. The information in Exhibit 99.1 is being furnished, not filed, pursuant to this Item 7.01.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.	Description
99.1	Release, dated February 20, 2019, issued by Entergy Corporation

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Entergy Corporation

Entergy Arkansas, LLC

Entergy Louisiana, LLC

Entergy Mississippi, LLC

Entergy New Orleans, LLC

Entergy Texas, Inc.

System Energy Resources, Inc.

By:/s/ Alyson M. Mount

Alyson M. Mount

Senior Vice President and

Chief Accounting Officer

Dated: February 20, 2019

EX-99.1

Exhibit 99.1

Entergy

639 Loyola Avenue

New Orleans, LA 70113

News

Release

Date:	February 20, 2019
For Release:	Immediately
Contact:	Neal Kirby (Media) (504) 576-4238 nkirby@entergy.com	David Borde (Investor Relations) (504) 576-5668 dborde@entergy.com

Entergy Reports Fourth Quarter and Full Year Financial Results;

Initiates 2019 Earnings Guidance Based on Single New Measure

NEW ORLEANS - Entergy Corporation (NYSE: ETR) reported a fourth quarter 2018 loss per share of (36) cents on an as-reported basis and earnings per share of 60 cents on an operational basis (non-GAAP), which excludes the effects of special items. For the full year, the company reported 2018 earnings per share of $4.63 on an as-reported basis and $7.31 on an operational basis. The as-reported results for the quarter and full year reflected asset impairments and other expenses related to the strategic decision to exit the EWC business.

“Today we are reporting strong results for another successful year, and we are firmly on track to achieve our long-term goals,” said Entergy Chairman and Chief Executive Officer Leo Denault. “In 2018 we executed on our strategy and met major milestones in our transition to a pure-play utility. We expect 2019 will be no different.”

Business highlights included the following:

• Entergy initiated 2019 guidance and 2020-2021 outlooks for its new ETR adjusted EPS measure.

• The APSC and PUCT issued orders approving settlements in E-AR’s and E-TX’s base rate proceedings.

Table of Contents Page

News Release1

Appendices10

A: Consolidated Results and Special Items11

B: Earnings Variance Analysis15

C: Utility Financial and Operating Measures18

D: EWC Financial and Operating Measures20

E: Consolidated Financial Measures21

F: Definitions and Abbreviations and Acronyms22

G: GAAP to Non-GAAP Reconciliations26

Financial Statements30

• In January 2019, Entergy completed the sale of VY to NorthStar.

• Entergy and Holtec filed Pilgrim’s license transfer application with the NRC.

• Entergy raised its dividend for the fourth consecutive year.

• The U.S. Chamber of Commerce Foundation named Entergy a finalist in its 2018 Corporate Citizenship Awards in the "Best Economic Empowerment Program" category.

Consolidated Earnings (GAAP and Non-GAAP Measures)
Fourth Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items)
	Fourth Quarter			Year-to-Date
	2018	2017	Change	2018	2017	Change
(After-tax, $ in millions)
As-reported earnings	(66)	(479)	413	849	412	437
Less special items	(176)	(617)	440	(493)	(889)	396
Operational earnings (non-GAAP)	110	138	(27)	1,341	1,300	41
Estimated weather in billed sales	25	11	14	67	(79)	146
(After-tax, per share in $)
As-reported earnings	(0.36)	(2.66)	2.30	4.63	2.28	2.35
Less special items	(0.96)	(3.42)	2.46	(2.68)	(4.92)	2.24
Operational earnings (non-GAAP)	0.60	0.76	(0.16)	7.31	7.20	0.11
Estimated weather in billed sales	0.13	0.06	0.07	0.37	(0.44)	0.80

Calculations may differ due to rounding

Consolidated Results

For fourth quarter 2018, the company reported a loss of $(66 million), or (36) cents per share, on an as-reported basis and earnings of $110 million, or 60 cents per share, on an operational basis. This compared to a fourth quarter 2017 loss of $(479 million), or $(2.66) per share, on an as-reported basis and earnings of $138 million, or 76 cents per share on an operational basis.

For the full year, the company reported 2018 earnings of $849 million, or $4.63 per share, on an as-reported basis and $1,341 million, or $7.31 per share, on an operational basis. This compared to 2017 earnings of $412 million, or $2.28 per share, on an as-reported basis and earnings of $1,300 million, or $7.20 per share, on an operational basis.

Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances by business is provided in Appendix B.

Utility, Parent & Other Results

For fourth quarter 2018, the Utility business reported earnings attributable to Entergy Corporation of $388 million, or $2.12 per share, on an as-reported basis, and earnings of $350 million, or $1.91 per share, on an operational basis. This compared to a fourth quarter 2017 loss of $(47 million), or (26) cents per share, on an as-reported basis, and earnings of $133 million, or 74 cents per share on an operational basis.

Drivers for the increase in quarterly earnings included:

• A fourth quarter 2017 revaluation of certain tax assets as a result of tax reform, net of adjustments for customer sharing, which decreased 2017 earnings by $181 million (considered a special item and excluded from operational earnings),

• In fourth quarter 2018, a $38 million reversal of a portion of the tax reform accrual recorded in 2017 (considered a special item and excluded from operational earnings),

• A fourth quarter 2018 favorable income tax item, net of a portion reserved for sharing with E-AR customers, which increased earnings by approximately $140 million,

• New base rate actions to recover investments that benefit customers and

• Non-fuel O&M expense decreased quarter-over-quarter.

The drivers above were partially offset by:

• Regulatory provisions in 2018 that lowered earnings into the allowed ranges at E-AR and E-MS as required by their FRPs,

• A regulatory charge in 2018 for amounts due to E-TX customers for the benefit of the lower federal tax rate retroactive to January 2018 and

• Higher depreciation expense and taxes other than income taxes.

The current period results also included a $215 million reduction in income taxes, with a corresponding reduction in net revenue, for the amortization of unprotected excess ADIT. This was neutral to earnings.

For fourth quarter 2018, Parent & Other reported a loss of $(81 million), or (44) cents per share, on both an as-reported and operational basis. This compared to a fourth quarter 2017 loss of $(6 million), or (4) cents per share, on an as-reported basis, and a loss of $(58 million), or (33) cents per share, on an operational basis.

As-reported results for 2017 reflected a reduction in income tax expense of $52 million for the revaluation of certain tax assets, which resulted from tax reform. This was considered a special item and excluded from operational earnings.

On a combined basis, Utility, Parent & Other (non-GAAP) contributed $1.68 to fourth quarter 2018 consolidated EPS compared to a loss of (30) cents in fourth quarter 2017. On an adjusted basis, excluding special items and normalizing weather and income taxes, Utility, Parent & Other contributed 51 cents in fourth quarter 2018 to consolidated EPS, compared to 48 cents in fourth quarter 2017.

For full year 2018, the Utility business earned net income attributable to Entergy Corporation of $1,483 million, or $8.09 per share, on an as-reported basis, and earnings of $1,445 million, or $7.88 per share, on an operational basis. This compared to full year 2017 earnings of $762 million, or $4.22 per share, on an as-reported basis, and $942 million, or $5.22 per share on an operational basis.

Drivers for the increase in annual earnings included:

• A fourth quarter 2017 revaluation of certain tax assets, net of customer sharing, discussed above (considered a special item and excluded from operational earnings),

• A fourth quarter 2018 reversal of a tax reform accrual discussed above (considered a special item and excluded from operational earnings),

• Second and fourth quarter 2018 favorable income tax items, net of customer sharing,

• New base rate actions to recover investments that benefit customers and

• Higher retail sales, attributable to weather.

The drivers above were partially offset by:

• Higher operating expenses (non-fuel O&M, taxes other than income taxes and depreciation expense) and

• 2018 regulatory provisions that lowered earnings into the allowed ranges at E-AR and E-MS as required by their FRPs.

Full year 2018 results also reflected the return of unprotected excess ADIT to customers, which affected several income statement line items but was neutral to earnings. Specifically, this reduced income taxes by $775 million, but was offset in net revenue and non-fuel O&M.

For 2018, Parent & Other reported a loss of $(292 million), or $(1.59) per share, on an as-reported and operational basis. This compared to a 2017 loss of $(175 million), or (97) cents per share, on an as-reported basis, and $(228 million), or $(1.26) per share, on an operational basis. As-reported results for 2017 included a decrease in income tax expense, which resulted from tax reform as described above. This was considered a special item and excluded from operational earnings. 2018 results also reflected higher interest expense.

On a combined basis, Utility, Parent & Other (non-GAAP) contributed $6.50 to 2018 consolidated EPS, compared to $3.25 in 2017. On an adjusted basis, normalizing weather and income taxes, Utility, Parent & Other contributed $4.71 to 2018 consolidated EPS, compared to $4.57 in 2017.

Appendix C contains additional details on Utility financial and operating measures, including a reconciliation for non-GAAP Utility, Parent & Other adjusted earnings and EPS.

Entergy Wholesale Commodities Results

For fourth quarter 2018, EWC recorded a loss attributable to Entergy Corporation of $(373 million), or $(2.04) per share, on an as-reported basis and loss $(158 million), or (87) cents per share, on an operational basis. This compared to fourth quarter 2017 loss of $(425 million), or $(2.36) per share, on an as-reported basis and earnings of $63 million, or 35 cents per share, on an operational basis.

As-reported results in both periods reflected impairments and other expenses recorded as a result of the strategic decision to exit the EWC business. In fourth quarter 2018, these items totaled $(214 million), or $(1.17) per share. This amount included a revision to Vermont Yankee’s asset retirement obligation as a result of its approved sale, which resulted in in a pre-tax asset impairment of $(173 million). In fourth quarter 2017, these items totaled $(92 million), or (51) cents per share. Fourth quarter 2017 results also reflected the write-down of certain tax assets totaling $(397 million) as a result of tax reform. All of these items were considered special items and excluded from operational earnings.

The current period results included losses on decommissioning trust fund investments, as well as lower net revenue as a result of lower nuclear energy volume. Partially offsetting these items were lower non-fuel O&M expense and lower income tax expense primarily due to lower pre-tax income.

For the full year, EWC reported a loss of $(343 million), or $(1.87) per share, on an as-reported basis, and earnings of $188 million, or $1.02 per share on an operational basis. In 2017, EWC realized a loss of $(175 million), or (97) cents per share, on an as-reported basis, and earnings of $586 million, or $3.24 per share on an operational basis. Both periods reflected the effects of the strategic decision to exit the EWC business as well as the 2017 tax reform item noted above. Other drivers included lower net revenue from the nuclear business, losses on decommissioning trust fund investments and lower depreciation and decommissioning expenses. Additionally, 2018 results included less favorable income tax items, excluding the 2017 tax reform item.

Appendix D contains additional details on EWC financial and operating measures, including a reconciliation for non-GAAP EWC operational adjusted EBITDA.

Earnings Guidance

Entergy initiated its 2019 adjusted earnings guidance range of $5.10 to $5.50 per share. See webcast presentation slides for additional details.

The company has provided 2019 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measures the effect of adjustments as described below under “Non-GAAP Financial Measures.” The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during 2019. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy’s as-reported EPS will be approximately $(1.25) per share in 2019. This estimate is subject to substantial uncertainty due to, among other things, the potential effects of the strategic decision to exit the EWC business.

Earnings Teleconference

A teleconference will be held at 10:00 a.m. Central Time on Wednesday, February 20, 2019, to discuss Entergy’s quarterly earnings announcement and the company’s financial performance. The teleconference may be accessed by visiting Entergy’s website atwww.entergy.com or by dialing 844-309-6569, conference ID 6799533, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to 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 on Entergy’s website at www.entergy.com and by telephone. The telephone replay will be available through February 27, 2019, by dialing 855-859-2056, conference ID 6799533. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.

Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana,

Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and nearly 13,700 employees.

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

Details regarding Entergy’s results of operations, regulatory proceedings and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast slide presentation. Both documents are available on Entergy’s Investor Relations website at www.entergy.com/investor_relations and on Entergy’s Investor Relations mobile web app at iretr.com.

Entergy maintains a web page as part of its Investor Relations website, entitled “Regulatory and Other Information,” which provides investors with key updates of certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.

For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.

Non-GAAP Financial Measures

This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Certain non-GAAP financial measures in this news release could differ from GAAP in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of “special items.” Special items are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairments, and certain gains or losses including those that may occur as a result of strategic decisions such as Entergy’s decision to exit the EWC business. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; net revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as “operational” would exclude the effect of special items as defined above.

Entergy reports the combination of the Utility segment with Parent & Other as Utility, Parent & Other, which is all of Entergy excluding the EWC segment, since management uses this combination in making decisions about its ongoing business in light of its decision to exit the merchant power business. Entergy also reports Utility, Parent & Other adjusted earnings, which combines the Utility segment with Parent & Other, excludes applicable special items and normalizes weather and income tax expense for the periods presented, because it believes that these financial metrics provide useful information to investors in evaluating the ongoing results of Entergy’s businesses and assist investors in comparing Entergy’s financial performance to the financial performance of

other companies in the Utility sector. The methodologies employed to determine the normalized weather and income tax expense adjustments, each of which is further described in this release, involve estimations and the judgement of management.

Beginning with first quarter 2019 financial results, Entergy intends to report earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain “adjustments,” including the removal of the Entergy Wholesale Commodities segment in light of its decision to exit the merchant power business. Beginning with this release, Entergy is also providing guidance and outlooks using adjusted earnings on a per share basis. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the EWC segment given its strategic decision to exit the EWC business, and items such as certain costs, expenses, significant tax items, or other specified items. Entergy believes that this financial measure provides useful information to investors in evaluating the ongoing results of Entergy’s business, comparing period to period results, and comparing Entergy’s financial performance to the financial performance of other companies in the utility sector.

In addition to reporting earnings per share on a consolidated basis, Entergy reports on a per share basis the earnings or loss of each of its segments, together with the combination of the Utility segment and Parent & Other. These per share measures represent the net income or loss of such segment or segments divided by the diluted average number of common shares outstanding for the period. Beginning with Entergy’s first quarter 2019 financial results, Entergy intends to report its adjusted earnings on a per share basis. Entergy believes such per share measures provide useful information to investors in understanding the results of operations of those businesses and their contribution to Entergy’s consolidated results of operations.

Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; operational FFO to debt ratio, excluding securitization debt and operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT are measures Entergy uses internally for management and board discussions and performance monitoring activities to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy’s ongoing financial results and flexibility and assists investors in comparing Entergy’s credit and liquidity to the credit and liquidity of others in the Utility sector.

The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy’s operations that, when viewed with Entergy’s GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy’s business. Investors are strongly encouraged to review Entergy’s consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. Non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

Cautionary Note Regarding Forward-Looking Statements

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. Such forward-looking statements include, among other things, Entergy’s 2019 earnings guidance; its current financial and operational outlook; and other statements of Entergy’s plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. 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 are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy’s nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy’s business or operations, and other catastrophic events.

Fourth Quarter 2018 Earnings Release Appendices and Financial Statements

Appendices

Appendices are presented in this section as follows:

• A: Consolidated Results and Special Items

• B: Earnings Variance Analysis

• C: Utility Financial and Operating Measures

• D: EWC Financial and Operating Measures

• E: Consolidated Financial Measures

• F: Definitions and Abbreviations and Acronyms

• G: GAAP to Non-GAAP Reconciliations

Financial Statements

Financial statements are presented in this section.

A: Consolidated Results and Special Items

Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to operational earnings (non-GAAP).

Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Fourth Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A-3 and Appendix A-4 for details on special items, including income tax effects on adjustments)
	Fourth Quarter			Year-to-Date
	2018	2017	Change	2018	2017	Change
(After-tax, $ in millions)
Earnings (loss)
Utility	388	(47)	435	1,483	762	722
Parent & Other	(81)	(6)	(75)	(292)	(175)	(116)
EWC	(373)	(425)	53	(343)	(175)	(168)
Consolidated	(66)	(479)	413	849	412	437
Less special items
Utility	38	(181)	219	38	(181)	219
Parent & Other	—	52	(52)	—	52	(52)
EWC	(214)	(488)	274	(531)	(760)	229
Consolidated	(176)	(617)	440	(493)	(889)	396
Operational earnings (loss) (non-GAAP)
Utility	350	133	217	1,445	942	503
Parent & Other	(81)	(58)	(23)	(292)	(228)	(64)
EWC	(158)	63	(221)	188	586	(398)
Consolidated	110	138	(27)	1,341	1,300	41
Estimated weather in billed sales	25	11	14	67	(79)	146
Diluted average number of common shares outstanding (in millions)	183.1	180.3		183.4	180.5
(After-tax, per share in $) (a)
Earnings (loss)
Utility	2.12	(0.26)	2.38	8.09	4.22	3.87
Parent & Other	(0.44)	(0.04)	(0.40)	(1.59)	(0.97)	(0.62)
EWC	(2.04)	(2.36)	0.32	(1.87)	(0.97)	(0.90)
Consolidated	(0.36)	(2.66)	2.30	4.63	2.28	2.35
Less special items
Utility	0.21	(1.00)	1.21	0.21	(1.00)	1.21
Parent & Other	—	0.29	(0.29)	—	0.29	(0.29)
EWC	(1.17)	(2.71)	1.54	(2.89)	(4.21)	1.32
Consolidated	(0.96)	(3.42)	2.46	(2.68)	(4.92)	2.24
Operational earnings (loss) (non-GAAP)
Utility	1.91	0.74	1.17	7.88	5.22	2.66
Parent & Other	(0.44)	(0.33)	(0.11)	(1.59)	(1.26)	(0.33)
EWC	(0.87)	0.35	(1.22)	1.02	3.24	(2.22)
Consolidated	0.60	0.76	(0.16)	7.31	7.20	0.11
Estimated weather in billed sales	0.13	0.06	0.07	0.37	(0.44)	0.80

Calculations may differ due to rounding

(a) Per share amounts are calculated by dividing the earnings (loss) by the diluted average number of common shares outstanding for the period.

See Appendix B for detailed earnings variance analysis.

Appendix A-2 provides a comparative summary of OCF by business.

Appendix A-2: Consolidated Operating Cash Flow
Fourth Quarter and Year-to-Date 2018 vs. 2017
($ in millions)
	Fourth Quarter			Year-to-Date
	2018	2017	Change	2018	2017	Change
Utility	699	934	(235)	2,693	2,939	(246)
Parent & Other	(20)	(134)	114	(234)	(452)	218
EWC	(153)	111	(264)	(74)	137	(211)
Consolidated	526	911	(385)	2,385	2,624	(239)

Calculations may differ due to rounding

OCF decreased quarter-over-quarter due primarily to the return of the unprotected excess ADIT to customers, as well as lower net revenue at EWC, higher spending on nuclear refueling outages and higher severance and retention payments at EWC.

OCF decreased year-over-year, driven by the return of the unprotected excess ADIT to customers and lower net revenue at EWC. Favorable weather at the Utility and lower severance and retention payments at EWC, partially offset the decrease.

For both the quarter and the full year, intercompany income tax payments contributed to the line of business variances.

Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both an earnings and EPS basis. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational earnings is considered a non-GAAP measure.

Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on earnings or EPS)
Fourth Quarter and Year-to-Date 2018 vs. 2017
(Pre-tax except for income tax effects and total, $ in millions)
	Fourth Quarter			Year-to-Date
	2018	2017	Change	2018	2017	Change
Utility
Tax reform	38	(181)	219	38	(181)	219
Total Utility	38	(181)	219	38	(181)	219
Parent & Other
Tax reform	—	52	(52)	—	52	(52)
Total Parent & Other	—	52	(52)	—	52	(52)
EWC
Items associated with the strategic decision to exit the EWC business	(271)	(141)	(131)	(672)	(628)	(44)
Income tax effect on adjustments above (b)	57	49	8	141	220	(79)
Income tax benefit resulting from FitzPatrick transaction	—	—	—	—	45	(45)
Tax reform	—	(397)	397	—	(397)	397
Total EWC	(214)	(488)	274	(531)	(760)	229
Total special items	(176)	(617)	440	(493)	(889)	396
(After-tax, per share in $) (c)
Utility
Tax reform	0.21	(1.00)	1.21	0.21	(1.00)	1.21
Total Utility	0.21	(1.00)	1.21	0.21	(1.00)	1.21
Parent & Other
Tax reform	—	0.29	(0.29)	—	0.29	(0.29)
Total Parent & Other	—	0.29	(0.29)	—	0.29	(0.29)
EWC
Items associated with the strategic decision to exit the EWC business	(1.17)	(0.51)	(0.66)	(2.89)	(2.26)	(0.63)
Income tax benefit resulting from FitzPatrick transaction	—	—	—	—	0.25	(0.25)
Tax reform	—	(2.20)	2.20	—	(2.20)	2.20
Total EWC	(1.17)	(2.71)	1.54	(2.89)	(4.21)	1.32
Total special items	(0.96)	(3.42)	2.46	(2.68)	(4.92)	2.24

Calculations may differ due to rounding

(b) Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply.

(c) EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the diluted average number of common shares outstanding for the period.

Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings)
Fourth Quarter and Year-to-Date 2018 vs. 2017
(Pre-tax except for Income taxes and Total, $ in millions)
	Fourth Quarter			Year-to-Date
	2018	2017	Change	2018	2017	Change
Utility
Net revenue	—	56	(56)	—	56	(56)
Income taxes (d)	38	(236)	274	38	(236)	274
Total Utility	38	(181)	219	38	(181)	219
Parent & Other
Income taxes (d)	—	52	(52)	—	52	(52)
Total Parent & Other	—	52	(52)	—	52	(52)
EWC
Net revenue	—	—	—	—	91	(91)
Non-fuel O&M	(34)	(22)	(11)	(131)	(201)	70
Asset write-off and impairments	(235)	(117)	(118)	(532)	(538)	6
Taxes other than income taxes	(3)	(2)	(1)	(8)	(10)	1
Gain on sale of assets	—	—	—	—	16	(16)
Miscellaneous net (other income)	—	—	—	—	15	(15)
Income taxes (d)	57	(347)	404	141	(133)	274
Total EWC	(214)	(488)	274	(531)	(760)	229
Total special items (after-tax)	(176)	(617)	440	(493)	(889)	396

Calculations may differ due to rounding

(d) Income taxes included the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item. The year-to-date 2017 period also included the income tax benefit which resulted from the FitzPatrick transaction.

B: Earnings Variance Analysis

Appendix B provides details of current quarter 2018 versus 2017 as-reported and operational earnings variance analysis for Utility, Parent & Other and EWC.

Appendix B-1: As-Reported and Operational Earnings Variance Analysis
Fourth Quarter 2018 vs. 2017
(Pre-tax except for Income taxes, $ in millions)
	Utility			Parent & Other			EWC			Consolidated
	As-Reported	Opera-tional		As-Reported	Opera-tional		As- Reported	Opera-tional		As- Reported	Opera- tional
2017 earnings	(47)	133		(6)	(58)		(425)	63		(479)	138
Net revenue	(315)	(259)	(e)	—	—		(52)	(52)	(f)	(367)	(311)
Non-fuel O&M	33	33	(g)	(2)	(2)		12	23	(h)	43	54
Asset write-offs and impairments	—	—		—	—		(118)	—	(i)	(118)	—
Decommissioning expense	(2)	(2)		—	—		(5)	(5)		(7)	(7)
Taxes other than income taxes	(7)	(7)		—	—		(1)	—		(8)	(7)
Depreciation/amortization exp.	(13)	(13)		—	—		3	3		(10)	(10)
Other income (deductions)	(7)	(7)		(4)	(4)		(247)	(247)	(j)	(258)	(258)
Interest exp. and other charges	4	4		(11)	(11)		(2)	(2)		(9)	(9)
Income taxes	742	468	(k)	(58)	(6)	(l)	463	58	(m)	1,147	520
2018 earnings	388	350		(81)	(81)		(373)	(158)		(66)	110

Appendix B-2: As-Reported and Operational Earnings Variance Analysis
Year-to-Date 2018 vs. 2017
(Pre-tax except for Income taxes, $ in millions)
	Utility			Parent & Other			EWC			Consolidated
	As-Reported	Opera-tional		As-Reported	Opera-tional		As- Reported	Opera-tional		As- Reported	Opera- tional
2017 earnings	762	942		(175)	(228)		(175)	586		412	1,300
Net revenue	(693)	(637)	(e)	—	—		(192)	(101)	(f)	(885)	(738)
Non-fuel O&M	(81)	(81)	(g)	(10)	(10)		67	13	(h)	(25)	(78)
Asset write-offs and impairments	—	—		—	—		6	—		6	—
Decommissioning expense	1	1		—	—		16	16	(n)	17	17
Taxes other than income taxes	(26)	(26)	(o)	—	—		1	—		(24)	(25)
Depreciation/amortization exp.	(23)	(23)	(p)	—	—		43	43	(q)	20	20
Other income (deductions)	22	22	(r)	(7)	(7)		(222)	(207)	(j)	(206)	(192)
Interest exp. and other charges	(6)	(6)		(29)	(29)	(s)	(10)	(10)		(45)	(45)
Income taxes	1,527	1,253	(k)	(70)	(18)	(l)	123	(151)	(m)	1,579	1,083
2018 earnings	1,483	1,445		(292)	(292)		(343)	188		849	1,341

Calculations may differ due to rounding

Utility Net Revenue As-reported Variance Analysis 2018 vs. 2017 (Pre-tax, $ in millions)
	Fourth Quarter	Year-to-Date
Estimated weather	15	218
Volume/unbilled	(7)	(8)
Retail electric price	33	106
Regulatory credit for tax reform	(56)	(56)
Regulatory charge for lower tax rate	(25)	(102)
Reg. provisions for E-AR and E-MS FRPs	(44)	(44)
Regulatory liability for tax sharing	(40)	(40)
Unprotected excess ADIT	(215)	(770)
Other, including Grand Gulf recovery	24	3
Total	(315)	(693)

(e) The fourth quarter and year-to-date earnings decreases from lower Utility net revenue were driven by the return of unprotected excess ADIT to customers (offset in income taxes), as well as a regulatory credit of $56 million in fourth quarter 2017 as a result of tax reform (classified as a special item). Regulatory charges at E-LA, E-TX, and E-NO to return the benefit of the lower federal tax rate to customers, regulatory provisions that lowered earnings into the allowed ranges at E-AR and E-MS as required by their FRPs, and a regulatory liability for tax sharing with E-AR customers (this partially offsets the income tax item discussed in footnote k) contributed to the variances. These decreases were partially offset by the effects of weather. In the fourth quarter, weather-adjusted billed sales volume decreased. However year-to-date weather-adjusted billed sales volume increased, but this was more than offset by lower volume in the unbilled period. 2018 results also included rate changes from E-AR’s and E-LA’s FRP and E-TX’s base rate case.

(f) The fourth quarter and year-to-date earnings decreases from lower EWC net revenue reflected lower prices as well as lower volume from EWC’s merchant nuclear plants. The year-to-date as-reported variance reflected cost reimbursements from the buyer related to the FitzPatrick sale in first quarter 2017 (classified as a special item and offset in non-fuel O&M).

(g) The fourth quarter earnings increase from lower Utility non-fuel O&M was due primarily to lower nuclear costs, lower benefits costs and a gain on the sale of an asset. The year-to-date earnings decrease from higher Utility non-fuel O&M was due primarily to higher spending on fossil and distribution operations, as well as higher transmission and IT costs. Energy efficiency spending and storm reserves were also higher (largely offset in net revenue). This was partially offset by higher nuclear insurance refunds in 2018 compared to 2017, as well as the gain on the sale of an asset in fourth quarter 2018.

(h) The fourth quarter earnings increase from lower EWC non-fuel O&M was due primarily to lower labor and contract costs. The year-to-date as-reported earnings increase reflected costs incurred in first quarter 2017 related to the agreement to sell FitzPatrick (classified as a special item and offset in net revenue). This was partially offset by higher severance and retention costs related to the strategic decision to exit the EWC business compared to 2017, as well as the gain on the sale of FitzPatrick in first quarter 2017 (both classified as a special items).

(i) The fourth quarter as-reported earnings decrease from higher EWC asset write-offs and impairments resulted from a revision of Vermont Yankee's ARO, partially offset by a gain on proceeds from the settlement of spent fuel litigation at Pilgrim (both classified as special items).

(j) The fourth quarter and year-to-date earnings decreases from lower EWC other income (deductions) were due largely to losses on decommissioning trust fund investments, including unrealized losses on equity investments that were previously recorded as other comprehensive income on the balance sheet, now recorded to the income statement. The year-to-date as-reported earnings decrease also reflected the absence of gains on the receipt of the Indian Point 3 and FitzPatrick decommissioning trust funds from NYPA in first quarter 2017 (classified as a special item).

(k) The fourth quarter and year-to-date earnings increases from lower Utility income taxes were primarily due to the amortization of the unprotected excess ADIT (offset in net revenue) and an income tax item in fourth quarter 2018 of approximately $170 million resulting from the restructuring of E-AR (this was partly offset by customer sharing recorded as a regulatory charge, included in net revenue). The change in the federal income tax rate also contributed to the increases. The fourth quarter and year-to-date as-reported earnings increases also reflected the write-down of certain tax assets totaling $236 million as a result of tax reform in fourth quarter 2017 (classified as a special item and a portion offset in net revenue) and $38 million in fourth quarter 2018 related to the reversal of a tax accrual (classified as special item). The year-to-date variance also reflected income tax benefits from the settlement of the 2012‒2013 IRS audit in second quarter 2018.

(l) The fourth quarter and year-to-date earnings decreases reflected a fourth quarter 2017 reduction of income tax totaling $52 million as a result of tax reform (classified as a special item). The change in the federal income tax rate also contributed to the variances.

(m) The fourth quarter and year-to-date as-reported earnings increases from lower EWC income taxes reflected the write-down of certain tax assets totaling $397 million as a result of tax reform in fourth quarter 2017 (classified as a special item). The year-to-date as-reported variance also reflected additional income tax expense due to the lower level of special items and a tax benefit in first quarter 2017, which resulted from the sale of FitzPatrick (classified as a special item). The year-to-date operational earnings decrease reflected a $373 million reduction in tax expense in second quarter 2017. The increase was partially offset by $13 million in tax benefits from the settlement of the 2012‒2013 IRS audit in second quarter 2018, a reduction in income tax expense of $107 million for a restructuring of its interest in an EWC decommissioning trust fund in third quarter 2018 and a benefit of $23 million from the conclusion of a state income tax audit also in third quarter 2018. Changes in pre-tax income and the federal income tax rate also contributed to the fourth quarter and year-to-date variances.

(n) The year-to-date earnings increase from lower EWC decommissioning expense was due primarily to the sale of FitzPatrick in first quarter 2017.

(o) The year-to-date earnings decrease from higher Utility taxes other than income taxes was due to higher ad valorem and payroll taxes.

(p) The year-to-date earnings decrease from higher Utility depreciation expense was due to higher plant in service, partially offset by updated depreciation rates at SERI (offset in net revenue).

(q) The year-to-date earnings increase from lower EWC depreciation expense was due primarily to the decision to operate Palisades until May 2022, thereby extending the period in which the plant is depreciated.

(r) The year-to-date earnings increase from higher Utility other income (deductions) was due primarily to higher AFUDC - equity funds due to higher CWIP balances, partially offset by losses on the decommissioning trust fund investments (largely offset in net revenue).

(s) The year-to-date earnings decrease from higher Parent & Other interest expense was due to higher borrowings, combined with higher variable interest rates.

C: Utility Financial and Operating Measures

Appendix C-1 provides a comparative summary of Utility, Parent & Other adjusted earnings and EPS contribution, each of which excludes the effects of special items and normalizes weather and income tax expense.

Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS - Reconciliation of GAAP to Non-GAAP Measures
Fourth Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A for details on special items)
	Fourth Quarter			Year-to-Date
	2018	2017	Change	2018	2017	Change
($ in millions)
Utility as-reported earnings (loss)	388	(47)	435	1,483	762	722
Parent & Other as-reported (loss)	(81)	(6)	(75)	(292)	(175)	(116)
UP&O as-reported earnings	307	(54)	360	1,191	586	605
Less:
Special items	38	(129)	167	38	(129)	167
Estimated weather (t)	34	18	15	90	(128)	218
Tax effect of estimated weather (u)	(9)	(7)	(2)	(23)	49	(72)
Portion of E-AR and E-MS weather reserved for customers	(15)	—	(15)	(15)	—	(15)
Tax effect on E-AR and E-MS customer reserve (u)	4	—	4	4	—	4
Estimated weather, net of customer reserve (after-tax)	14	11	3	56	(79)	135
Difference between effective and statutory income tax rates (v)	160	(22)	183	233	(31)	264
UP&O adjusted earnings	94	86	8	864	824	40
(After-tax, per share in $) (w)
Utility as-reported earnings	2.12	(0.26)	2.38	8.09	4.22	3.87
Parent & Other as-reported (loss)	(0.44)	(0.04)	(0.40)	(1.59)	(0.97)	(0.62)
UP&O as-reported earnings	1.68	(0.30)	1.98	6.50	3.25	3.25
Less:
Special items	0.21	(0.71)	0.92	0.21	(0.71)	0.92
Estimated weather, net of customer reserve	0.08	0.06	0.01	0.31	(0.44)	0.75
Difference between effective and statutory income tax rates (v)	0.88	(0.12)	1.00	1.27	(0.17)	1.44
UP&O adjusted earnings	0.51	0.48	0.04	4.71	4.57	0.14

Calculations may differ due to rounding

(t) The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change.

(u) Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply.

(v) Other income tax items represent the adjustment made to income tax expense to reflect a statutory tax rate estimated to be 25.5% in 2018 and 38.5% in 2017. The fourth quarter and year-to-date 2018 periods exclude reductions of $215 million and $775million, respectively, for the return of unprotected excess ADIT (no earnings impact).

(w) EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the diluted average number of common shares outstanding for the period.

Appendix C-2 provides comparative summaries of Utility operating and financial measures.

Appendix C-2: Utility Operating and Financial Measures
Fourth Quarter and Year-to-Date 2018 vs. 2017
	Fourth Quarter				Year-to-Date
	2018	2017	% Change	% Weather Adjusted (x)	2018	2017	% Change	% Weather Adjusted (x)
GWh billed
Residential	8,250	8,024	2.8%	(0.1%)	37,107	33,834	9.7%	0.5%
Commercial	7,026	7,150	(1.7%)	(1.8%)	29,426	28,745	2.4%	0.1%
Governmental	646	627	3.0%	3.1%	2,581	2,511	2.8%	1.9%
Industrial	11,882	11,940	(0.5%)	(0.5%)	48,384	47,769	1.3%	1.3%
Total retail sales	27,804	27,741	0.2%	(0.6%)	117,498	112,859	4.1%	0.8%
Wholesale	2,927	3,295	(11.2%)		11,715	11,550	1.4%
Total sales	30,731	31,036	(1.0%)		129,213	124,409	3.9%
Number of electric retail customers
Residential					2,481,027	2,466,671	0.6%
Commercial					356,618	354,189	0.7%
Governmental					17,839	17,828	0.1%
Industrial					45,790	46,193	(0.9%)
Total retail customers					2,901,274	2,884,881	0.6%
Net revenue ($ in millions)	1,238	1,553	(20.3%)		5,626	6,318	(11.0%)
Non-fuel O&M (per MWh in $)	22.36	23.21	(3.7%)		20.52	20.66	(0.7%)

Calculations may differ due to rounding

Certain prior year data has been reclassified to conform with current year presentation

(x) The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change.

D: EWC Financial and Operating Measures

Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA (non-GAAP).

Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures
Fourth Quarter and Year-to-Date 2018 vs. 2017
($ in millions)	Fourth Quarter			Year-to-Date
	2018	2017	Change	2018	2017	Change
Net income (loss)	(372)	(425)	53	(341)	(172)	(169)
Add back: interest expense	8	6	2	34	24	10
Add back: income taxes	(102)	361	(463)	(269)	(146)	(123)
Add back: depreciation and amortization	34	36	(2)	150	193	(43)
Subtract: interest and investment income	(169)	81	(250)	15	224	(209)
Add back: decommissioning expense	64	60	4	239	255	(16)
Adjusted EBITDA (non-GAAP)	(199)	(43)	(156)	(202)	(71)	(131)
Add back pre-tax special items for:
Items associated with the strategic decision to exit the EWC business	271	141	130	672	644	28
Gain on the sale of FitzPatrick	—	—	—	—	(16)	16
Operational adjusted EBITDA (non-GAAP)	72	98	(26)	470	557	(87)

Calculations may differ due to rounding

Appendix D-2 provides a comparative summary of EWC operating and financial measures.

Appendix D-2: EWC Operating and Financial Measures
Fourth Quarter and Year-to-Date 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP measures)
	Fourth Quarter			Year-to-Date
	2018	2017	% Change	2018	2017	% Change
Owned capacity (MW)	3,962	3,962	—	3,962	3,962	—
GWh billed	8,022	7,885	1.7	29,875	30,501	(2.1)
As-reported net revenue ($ in millions)	281	333	(15.6)	1,276	1,469	(13.1)
Operational net revenue (non-GAAP) ($ in millions)	281	333	(15.6)	1,276	1,378	(7.4)
EWC Nuclear Fleet
Capacity factor	78%	93%	(16.1)	84%	83%	1.2
GWh billed	7,520	7,317	2.8	27,617	28,178	(2.0)
Production cost per MWh	$18.79	$18.73	0.3	$17.68	$18.70	(5.5)
Average energy/capacity revenue per MWh (y)	$48.97	$48.82	0.3	$49.13	$51.82	(5.2)
As-reported net revenue ($ in millions)	274	327	(16.2)	1,258	1,456	(13.6)
Operational net revenue (non-GAAP) ($ in millions)	274	327	(16.2)	1,258	1,365	(7.8)
Refueling outage days
FitzPatrick	—	—		—	42
Indian Point 2	—	—		33	—
Indian Point 3	—	—		—	66
Palisades	61	—		61	27
Pilgrim	—	—		—	43

Calculations may differ due to rounding

(y) Average energy/capacity revenue per MWh excluding FitzPatrick was $50.05 in year-to-date 2017.

See appendix in the webcast slide presentation for EWC nuclear capacity and generation disclosure.

E: Consolidated Financial Measures

Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.

Appendix E: GAAP and Non-GAAP Financial Measures
Fourth Quarter 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures)
For 12 months ending December 31	2018	2017	Change
GAAP Measures
ROIC - as-reported	5.3%	3.4%	1.9%
ROE - as-reported	10.1%	5.1%	5.0%
Non-GAAP Measures
ROIC - operational	7.2%	7.1%	0.1%
ROE - operational	15.9%	16.2%	(0.3%)
As of December 31 ($ in millions)	2018	2017	Change
GAAP Measures
Cash and cash equivalents	481	781	(300)
Revolver capacity	4,056	4,174	(118)
Commercial paper	1,942	1,467	475
Total debt	18,133	16,677	1456
Securitization debt	424	545	(121)
Debt to capital ratio	66.7%	67.1%	(0.4%)
Off-balance sheet liabilities:
Debt of joint ventures - Entergy’s share	61	67	(6)
Leases - Entergy’s share	448	429	19
Power purchase agreements accounted for as leases	106	136	(30)
Total off-balance sheet liabilities	615	632	(17)
Non-GAAP Measures
Debt to capital ratio, excluding securitization debt	66.1%	66.3%	(0.1%)
Gross liquidity	4,537	4,955	(418)
Net debt to net capital ratio, excluding securitization debt	65.5%	65.2%	0.4%
Parent debt to total debt ratio, excluding securitization debt	22.6%	21.8%	0.8%
Operational FFO to debt ratio, excluding securitization debt	12.0%	15.9%	(3.9%)
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT	15.3%	15.9%	(0.6%)

F: Definitions and Abbreviations and Acronyms

Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures. Non-GAAP financial measures remove the effects of financial events that are not routine from commonly used financial measures.

Appendix F-1: Definitions
Utility Operating and Financial Measures
GWh billed	Total number of GWh billed to retail and wholesale customers
Net revenue	Operating revenues less fuel, fuel related expenses and gas purchased for resale; purchased power and other regulatory charges (credits) - net
Non-fuel O&M	Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power
Non-fuel O&M per MWh	Non-fuel O&M per MWh of billed sales
Number of electric retail customers	Number of electric customers at the end of the period
EWC Operating and Financial Measures
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 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 positive or negative basis differentials and other risk management costs
Average revenue under contract (applies to capacity contracts only) (in $/kW-month)	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
Bundled capacity and energy contracts	A contract for the sale of installed capacity and related energy, priced per MWh sold
Capacity contracts	A contract for the sale of the installed capacity product in regional markets managed by ISO New England, NYISO and MISO
Capacity factor	Normalized percentage of the period that the nuclear plants generate power
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 positive or negative basis differentials 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
GWh billed	Total number of GWh billed to customers and financially-settled instruments
Net revenue	Operating revenues less fuel, fuel-related expenses and purchased power
Owned capacity (MW)	Installed capacity owned by EWC
Percent of capacity sold forward	Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions
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
Planned net MW in operation (average)	Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022)

Appendix F-1: Definitions
EWC Operating and Financial Measures (continued)
Planned TWh of generation		Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022)
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), excluding special items
Refueling outage days		Number of days lost for a scheduled refueling and maintenance outage during the period
Unit-contingent		Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee
Financial Measures - GAAP
Debt of joint ventures - Entergy’s share	Entergy’s share of debt issued by business joint ventures at EWC
Debt to capital ratio	Total debt divided by total capitalization
Leases - Entergy’s share	Operating leases held by subsidiaries capitalized at implicit interest rate
Revolver capacity	Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee
ROE - as-reported	12-months rolling net income attributable to Entergy Corporation divided by average common equity
ROIC - as-reported	12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
Securitization debt	Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at E-TX and Hurricane Isaac at E-NO; the 2009 ice storm at E-AR and investment recovery of costs associated with the cancelled Little Gypsy repowering project at E-LA
Total debt	Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet

Appendix F-1: Definitions
Financial Measures - Non-GAAP
Adjusted EBITDA	Earnings before interest, depreciation and amortization and income taxes and excluding decommissioning expense
Debt to capital ratio, excluding securitization debt	Total debt divided by total capitalization, excluding securitization debt
ETR adjusted earnings	As-reported earnings with certain adjustments, which are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the EWC segment given its strategic decision to exit the EWC business, and items such as certain costs, expenses, significant tax items, or other specified items
FFO	OCF less AFUDC - borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges
Gross liquidity	Sum of cash and revolver capacity
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
Operational adjusted EBITDA	Adjusted EBITDA excluding effects of special items
Operational EPS	As-reported EPS excluding special items
Operational FFO	FFO excluding the effects of special items
Operational FFO to debt ratio, excluding securitization debt	12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT	12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt and return of unprotected excess ADIT
Parent debt to total debt ratio, excluding securitization debt	End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt
ROE - operational	12-months rolling operational net income attributable to Entergy Corporation divided by average common equity
ROIC - operational	12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
UP&O adjusted earnings	As-reported earnings excluding special items and normalizing weather and income taxes
Utility, Parent & Other	Combines the Utility segment with Parent & Other, which is all of Entergy excluding the EWC segment

Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.

Appendix F-2: Abbreviations and Acronyms
ADIT AFUDC - borrowed funds AFUDC - equity funds ALJ AMI ANO APSC ARO bps CCGT CCN CCNO COD CT CWIP DCRF E-AR E-LA E-MS E-NO E-TX EBITDA ENGC ENP EPS ETR EWC FERC FFO FitzPatrick FRP GAAP Grand Gulf or GGNS Indian Point 1 or IP1 Indian Point 2 or IP2 Indian Point 3 or IP3 IPEC ISES 2 IRS	Accumulated deferred income taxes Allowance for borrowed funds used during construction Allowance for equity funds used during construction Administrative law judge Advanced metering infrastructure Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) Arkansas Public Service Commission Asset retirement obligation Basis points Combined cycle gas turbine Certificate of convenience & necessity Council of the City of New Orleans, Louisiana Commercial operation date Simple cycle combustion turbine Construction work in progress Distribution cost recovery factor Entergy Arkansas, LLC Entergy Louisiana, LLC Entergy Mississippi, LLC Entergy New Orleans, LLC Entergy Texas, Inc. Earnings before interest, income taxes, depreciation and amortization Entergy Nuclear Generation Company Entergy Nuclear Palisades, LLC Earnings per share Entergy Corporation Entergy Wholesale Commodities Federal Energy Regulatory Commission Funds from operations James A. FitzPatrick Nuclear Power Plant (nuclear, sold March 31, 2017) Formula rate plan U.S. generally accepted accounting principles Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974) Indian Point Energy Center Unit 2 (nuclear) Indian Point Energy Center Unit 3 (nuclear) Indian Point Energy Center (nuclear) Unit 2 of Independence Steam Electric Station (coal) Internal Revenue Service	ISO IT LPSC LTM LTSA MISO Moody’s MPSC MTEP Nelson 6 NEPOOL Ninemile 6 Non-fuel O&M NDT NOPS NorthStar NRC NYISO NYPA NYSE O&M OCF OpCo OPEB P&O Palisades Pilgrim PPA PUCT RICE RFP ROE ROIC RS Cogen RSP S&P SCPS SEC SERI TCRF Union UPSA UP&O VPUC VY or Vermont Yankee WACC WPEC	Independent system operator Information technology Louisiana Public Service Commission Last twelve months Long-term service agreement Midcontinent Independent System Operator, Inc. Moody’s Investor Service Mississippi Public Service Commission MISO Transmission Expansion Planning Unit 6 of Roy S. Nelson plant (coal) New England Power Pool Ninemile Point Unit 6 (CCGT) Non-fuel operation and maintenance expense Nuclear decommissioning trust New Orleans Power Station (RICE/natural gas) NorthStar Decommissioning Holdings, LLC Nuclear Regulatory Commission New York Independent System Operator, Inc. New York Power Authority New York Stock Exchange Operation and maintenance expense Net cash flow provided by operating activities Operating Company Other post-employment benefits Parent & other Palisades Power Plant (nuclear) Pilgrim Nuclear Power Station (nuclear) Power purchase agreement or purchased power agreement Public Utility Commission of Texas Reciprocating Internal Combustion Engine Request for proposals Return on equity Return on invested capital RS Cogen facility (CCGT cogeneration) Rate Stabilization Plan (E-LA Gas) Standard & Poor’s St. Charles Power Station (CCGT) U.S. Securities and Exchange Commission System Energy Resources, Inc. Transmission cost recovery factor Union Power Station (CCGT) Unit Power Sales Agreement Utility, Parent & Other Vermont Public Utility Commission Vermont Yankee Nuclear Power Station (nuclear) Weighted-average cost of capital Washington Parish Energy Center (CT/natural gas)

G: GAAP to Non-GAAP Reconciliations

Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.

Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - EWC Operational Net Revenue
($ in millions except where noted)		Fourth Quarter				Year-to-Date
		2018		2017	2018		2017
EWC
As-reported net revenue	(A)	281	333		1,276		1,469
Special items included in net revenue:
EWC Nuclear costs associated with the strategic decision to exit the EWC business		—	—		—		91
Total special items included in net revenue	(B)	—	—		—		91
Operational net revenue	(A-B)	281	333		1,276		1,378
EWC Nuclear
As-reported EWC Nuclear net revenue	(C)	274	327		1,258		1,456
Special items included in EWC Nuclear net revenue:
EWC Nuclear costs associated with the strategic decision to exit the EWC business		—	—		—		91
Total special items included in EWC Nuclear net revenue	(D)	—	—		—		91
Operational EWC Nuclear net revenue	(C-D)	274	327		1,258		1,365

Calculations may differ due to rounding

Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE
($ in millions except where noted)		Fourth Quarter
		2018	2017
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months	(A)	849	412
Preferred dividends		14	14
Tax-effected interest expense		527	407
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax-effected interest expense	(B)	1,390	833
Special items in prior quarters		(317)	(272)
Items associated with the strategic decision to exit the EWC business		(214)	(91)
Tax reform		38	(525)
Total special items, rolling 12 months	(C)	(493)	(889)
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense (non-GAAP)	(B-C)	1,882	1,721
Operational earnings, rolling 12 months (non-GAAP)	(A-C)	1,341	1,300
Average invested capital	(D)	26,032	24,213
Average common equity	(E)	8,418	8,037
ROIC - as-reported	(B/D)	5.3%	3.4%
ROIC - operational	[(B-C)/D]	7.2%	7.1%
ROE - as-reported	(A/E)	10.1%	5.1%
ROE - operational	[(A-C)/E]	15.9%	16.2%

Calculations may differ due to rounding

Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt and Return of Unprotected Excess ADIT
($ in millions except where noted)		Fourth Quarter
		2018	2017
Total debt	(A)	18,133	16,677
Less securitization debt	(B)	424	545
Total debt, excluding securitization debt	(C)	17,709	16,132
Less cash and cash equivalents	(D)	481	781
Net debt, excluding securitization debt	(E)	17,228	15,351
Total capitalization	(F)	27,196	24,867
Less securitization debt	(B)	424	545
Total capitalization, excluding securitization debt	(G)	26,772	24,322
Less cash and cash equivalents	(D)	481	781
Net capital, excluding securitization debt	(H)	26,291	23,541
Debt to capital ratio	(A/F)	66.7%	67.1%
Debt to capital ratio, excluding securitization debt	(C/G)	66.1%	66.3%
Net debt to net capital ratio, excluding securitization debt	(E/H)	65.5%	65.2%
Revolver capacity	(I)	4,056	4,174
Gross liquidity	(D+I)	4,537	4,955
Entergy Corporation notes:
Due September 2020		450	450
Due July 2022		650	650
Due September 2026		750	750
Total parent long-term debt	(J)	1,850	1,850
Revolver draw	(K)	220	210
Commercial paper	(L)	1,942	1,467
Unamortized debt issuance and discounts	(M)	(10)	(11)
Total parent debt	(J+K+L+M)	4,002	3,516
Parent debt to total debt ratio, excluding securitization debt	[(J+K+L+M)/C]	22.6%	21.8%

Calculations may differ due to rounding

Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt and Return of Unprotected Excess ADIT (continued)
($ in millions except where noted)		Fourth Quarter
		2018	2017
Total debt	(A)	18,133	16,677
Less securitization debt	(B)	424	545
Total debt, excluding securitization debt	(C)	17,709	16,132
Net cash flow provided by operating activities, rolling 12 months	(D)	2,385	2,624
AFUDC - borrowed funds, rolling 12 months	(E)	(61)	(45)
Working capital items in net cash flow provided by operating activities (rolling 12 months):
Receivables		99	(98)
Fuel inventory		46	(3)
Accounts payable		97	102
Taxes accrued		39	34
Interest accrued		5	1
Other working capital accounts		(164)	(4)
Securitization regulatory charges		124	116
Total	(F)	246	148
FFO, rolling 12 months	(G)=(D+E-F)	2,079	2,431
Add back special items (rolling 12 months pre-tax):
Items associated with the strategic decision to exit the EWC business		43	126
Operational FFO, rolling 12 months	(H)	2,122	2,557
Operational FFO to debt ratio, excluding securitization debt	(H/C)	12.0%	15.9%
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax)	(I)	592	0
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT	[(H)+(I)/(C)]	15.3%	15.9%

Calculations may differ due to rounding

Financial Statements

Entergy Corporation
Consolidating Balance Sheet
December 31, 2018
(Dollars in thousands)
(Unaudited)
	Utility			Parent & Other			Entergy Wholesale Commodities		Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash		$52,362			$4,096			$232		$56,690
Temporary cash investments	207,590			3,792			212,903		424,285
Total cash and cash equivalents	259,952			7,888			213,135		480,975
Notes receivable	—			(511,786		)	511,786		—
Accounts receivable:
Customer	481,059			—			77,435		558,494
Allowance for doubtful accounts	(7,322		)	—			—		(7,322		)
Associated companies	28,949			(32,855		)	3,906		—
Other	157,656			—			10,066		167,722
Accrued unbilled revenues	395,511			—			—		395,511
Total accounts receivable	1,055,853			(32,855		)	91,407		1,114,405
Deferred fuel costs	27,251			—			—		27,251
Fuel inventory - at average cost	113,698			—			3,606		117,304
Materials and supplies - at average cost	719,438			—			33,405		752,843
Deferred nuclear refueling outage costs	147,796			—			83,164		230,960
Prepayments and other	171,199			(16,113		)	79,240		234,326
TOTAL	2,495,187			(552,866		)	1,015,743		2,958,064
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity	1,430,792			(1,430,878		)	86		—
Decommissioning trust funds	3,066,588			—			3,853,576		6,920,164
Non-utility property - at cost (less accumulated depreciation)	293,182			(14		)	11,214		304,382
Other	436,981			—			284		437,265
TOTAL	5,227,543			(1,430,892		)	3,865,160		7,661,811
PROPERTY, PLANT, AND EQUIPMENT
Electric	48,275,159			9,585			911,834		49,196,578
Property under capital lease	634,908			—			—		634,908
Natural gas	496,150			—			—		496,150
Construction work in progress	2,815,214			270			73,155		2,888,639
Nuclear fuel	753,513			—			107,759		861,272
TOTAL PROPERTY, PLANT AND EQUIPMENT	52,974,944			9,855			1,092,748		54,077,547
Less - accumulated depreciation and amortization	21,430,017			198			672,886		22,103,101
PROPERTY, PLANT AND EQUIPMENT - NET	31,544,927			9,657			419,862		31,974,446
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets	4,746,496			—			—		4,746,496
Deferred fuel costs	239,496			—			—		239,496
Goodwill	374,099			—			3,073		377,172
Accumulated deferred income taxes	41,969			2,677			9,947		54,593
Other	107,450			10,048			145,490		262,988
TOTAL	5,509,510			12,725			158,510		5,680,745
TOTAL ASSETS		$44,777,167			($1,961,376	)		$5,459,275		$48,275,066
*Totals may not foot due to rounding.

Entergy Corporation
Consolidating Balance Sheet
December 31, 2018
(Dollars in thousands)
(Unaudited)
	Utility			Parent & Other			Entergy Wholesale Commodities			Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt		$650,009			$—			$—			$650,009
Notes payable and commercial paper:
Associated companies	—			(227,298		)	227,298			—
Other	—			1,942,339			—			1,942,339
Account payable:
Associated companies	29,135			(51,435		)	22,300			—
Other	1,174,309			45			321,704			1,496,058
Customer deposits	411,505			—			—			411,505
Taxes accrued	267,678			(18,490		)	5,053			254,241
Interest accrued	166,592			26,401			199			193,192
Deferred fuel costs	52,396			—			—			52,396
Obligations under capital leases	1,617			—			—			1,617
Pension and other postretirement liabilities	49,104			—			12,136			61,240
Current portion of unprotected excess accumulated deferred
income taxes	248,127			—			—			248,127
Other	92,168			1,638			39,014			132,820
TOTAL	3,142,640			1,673,200			627,704			5,443,544
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	5,458,667			(317,012		)	(1,034,503		)	4,107,152
Accumulated deferred investment tax credits	213,101			—			—			213,101
Obligations under capital leases	20,378			—			—			20,378
Regulatory liability for income taxes - net	1,817,021			—			—			1,817,021
Other regulatory liabilities	1,620,254			—			—			1,620,254
Decommissioning and retirement cost liabilities	3,244,419			—			3,111,124			6,355,543
Accumulated provisions	513,489			—			618			514,107
Pension and other postretirement liabilities	1,937,884			—			678,201			2,616,085
Long-term debt	13,319,111			2,060,192			139,000			15,518,303
Other	740,865			(397,003		)	642,009			985,871
TOTAL	28,885,189			1,346,177			3,536,449			33,767,815
Subsidiaries' preferred stock without sinking fund	195,153			—			24,249			219,402
COMMON EQUITY
Common stock, $.01 par value, authorized 500,000,000 shares;
issued 261,587,009 shares in 2018	1,973,748			(2,172,235		)	201,103			2,616
Paid-in capital	3,864,764			767,625			1,319,042			5,951,431
Retained earnings	6,931,882			1,577,576			211,692			8,721,150
Accumulated other comprehensive income (loss)	(96,209		)	—			(460,964		)	(557,173		)
Less - treasury stock, at cost (72,530,866 shares in 2018)	120,000			5,153,719			—			5,273,719
TOTAL	12,554,185			(4,980,753		)	1,270,873			8,844,305
TOTAL LIABILITIES AND EQUITY		$44,777,167			($1,961,376	)		$5,459,275			$48,275,066
*Totals may not foot due to rounding.

Entergy Corporation
Consolidating Balance Sheet
December 31, 2017
(Dollars in thousands)
(Unaudited)
	Utility			Parent & Other			Entergy Wholesale Commodities		Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash		$50,270			$971			$5,388		$56,629
Temporary cash investments	494,158			3,663			226,822		724,644
Total cash and cash equivalents	544,428			4,634			232,210		781,273
Notes receivable	—			(514,418		)	514,418		—
Accounts receivable:
Customer	561,751			—			111,596		673,347
Allowance for doubtful accounts	(13,587		)	—			—		(13,587		)
Associated companies	43,639			(55,019		)	11,381		—
Other	159,396			—			9,981		169,377
Accrued unbilled revenues	383,813			—			—		383,813
Total accounts receivable	1,135,012			(55,019		)	132,958		1,212,950
Deferred fuel costs	95,746			—			—		95,746
Fuel inventory - at average cost	178,813			—			3,830		182,643
Materials and supplies - at average cost	672,715			—			50,506		723,222
Deferred nuclear refueling outage costs	130,103			—			3,061		133,164
Prepayments and other	150,568			(8,677		)	14,442		156,333
TOTAL	2,907,385			(573,480		)	951,425		3,285,331
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity	1,390,785			(1,390,673		)	86		198
Decommissioning trust funds	3,162,649			—			4,049,344		7,211,993
Non-utility property - at cost (less accumulated depreciation)	251,904			(13		)	9,089		260,980
Other	439,264			—			2,598		441,862
TOTAL	5,244,602			(1,390,686		)	4,061,117		7,915,033
PROPERTY, PLANT, AND EQUIPMENT
Electric	46,332,630			4,406			950,333		47,287,370
Property under capital lease	620,544			—			—		620,544
Natural gas	453,162			—			—		453,162
Construction work in progress	1,949,769			253			30,487		1,980,508
Nuclear fuel	822,260			—			100,941		923,200
TOTAL PROPERTY, PLANT AND EQUIPMENT	50,178,365			4,659			1,081,761		51,264,784
Less - accumulated depreciation and amortization	21,003,295			198			596,931		21,600,424
PROPERTY, PLANT AND EQUIPMENT - NET	29,175,070			4,461			484,830		29,664,360
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets	4,935,689			—			—		4,935,689
Deferred fuel costs	239,298			—			—		239,298
Goodwill	374,099			—			3,073		377,172
Accumulated deferred income taxes	32,238			40,541			105,425		178,204
Other	70,288			9,635			32,139		112,062
TOTAL	5,651,612			50,176			140,637		5,842,425
TOTAL ASSETS		$42,978,669			($1,909,529	)		$5,638,009		$46,707,149
*Totals may not foot due to rounding.

Entergy Corporation
Consolidating Balance Sheet
December 31, 2017
(Dollars in thousands)
(Unaudited)
	Utility			Parent & Other			Entergy Wholesale Commodities			Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt		$760,007			$—			$—			$760,007
Notes payable and commercial paper:
Associated companies	—			(6,433		)	6,433			—
Other	111,345			1,466,963			—			1,578,308
Account payable:
Associated companies	31,970			(67,310		)	35,340			—
Other	1,211,661			109			240,446			1,452,216
Customer deposits	401,330			—			—			401,330
Taxes accrued	241,877			(12,298		)	(14,612		)	214,967
Interest accrued	161,077			26,603			292			187,972
Deferred fuel costs	146,522			—			—			146,522
Obligations under capital leases	1,502			—			—			1,502
Pension and other postretirement liabilities	59,378			—			12,234			71,612
Other	129,001			1,958			90,812			221,771
TOTAL	3,255,670			1,409,592			370,945			5,036,207
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	5,288,573			(151,174		)	(670,896		)	4,466,503
Accumulated deferred investment tax credits	219,634			—			—			219,634
Obligations under capital leases	22,015			—			—			22,015
Regulatory liability for income taxes - net	2,900,204			—			—			2,900,204
Other regulatory liabilities	1,588,520			—			—			1,588,520
Decommissioning and retirement cost liabilities	3,002,469			—			3,183,345			6,185,814
Accumulated provisions	477,742			—			531			478,273
Pension and other postretirement liabilities	2,170,518			—			740,136			2,910,654
Long-term debt	12,163,671			2,048,518			103,070			14,315,259
Other	714,509			(393,075		)	72,314			393,748
TOTAL	28,547,855			1,504,269			3,428,500			33,480,624
Subsidiaries' preferred stock without sinking fund	173,554			—			24,249			197,803
COMMON EQUITY
Common stock, $.01 par value, authorized 500,000,000 shares;
issued 254,752,788 shares in 2017	2,030,268			(2,228,823		)	201,103			2,548
Paid-in capital	2,934,943			1,006,941			1,491,549			5,433,433
Retained earnings	6,304,977			1,676,129			(3,404		)	7,977,702
Accumulated other comprehensive income (loss)	(148,598		)	—			125,067			(23,531		)
Less - treasury stock, at cost (74,235,135 shares in 2017)	120,000			5,277,637			—			5,397,637
TOTAL	11,001,590			(4,823,390		)	1,814,315			7,992,515
TOTAL LIABILITIES AND EQUITY		$42,978,669			($1,909,529	)		$5,638,009			$46,707,149
*Totals may not foot due to rounding.

Entergy Corporation
Consolidating Income Statement
Three Months Ended December 31, 2018
(Dollars in thousands)
(Unaudited)
	Utility			Parent & Other			Entergy Wholesale Commodities			Consolidated
OPERATING REVENUES
Electric		$2,107,747			($9	)		$—			$2,107,738
Natural gas	43,446			—			—			43,446
Competitive businesses	—			—			361,298			361,298
Total	2,151,193			(9		)	361,298			2,512,482
OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale	490,031			(9		)	19,404			509,426
Purchased power	345,515			9			60,838			406,362
Nuclear refueling outage expenses	37,194			—			574			37,768
Other operation and maintenance	649,808			10,702			208,187			868,697
Asset write-offs, impairments and related charges				—			235,239			235,239
Decommissioning	38,279			—			64,396			102,675
Taxes other than income taxes	135,755			(18		)	20,533			156,270
Depreciation and amortization	313,479			265			33,599			347,343
Other regulatory charges	77,633			—			—			77,633
Total	2,087,694			10,949			642,770			2,741,413
OPERATING INCOME (LOSS)	63,499			(10,958		)	(281,472		)	(228,931		)
OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction	37,235			—			—			37,235
Interest and investment income	6,021			(38,436		)	(168,808		)	(201,223		)
Miscellaneous - net	13,818			(4,422		)	(15,710		)	(6,314		)
Total	57,074			(42,858		)	(184,518		)	(170,302		)
INTEREST EXPENSE
Interest expense	154,801			34,723			8,251			197,775
Allowance for borrowed funds used during construction	(17,797		)	—			—			(17,797		)
Total	137,004			34,723			8,251			179,978
INCOME (LOSS) BEFORE INCOME TAXES	(16,431		)	(88,539		)	(474,241		)	(579,211		)
Income taxes	(407,413		)	(7,332		)	(102,144		)	(516,889		)
NET INCOME (LOSS)	390,982			(81,207		)	(372,097		)	(62,322		)
Preferred dividend requirements of subsidiaries	3,030			—			547			3,577
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION		$387,952			($81,207	)		($372,644	)		($65,899	)
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC	$2.12			($0.44)			($2.04)			($0.36)
DILUTED	$2.12			($0.44)			($2.04)			($0.36)
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC										183,083,673
DILUTED										183,083,673
*Totals may not foot due to rounding.

Entergy Corporation
Consolidating Income Statement
Three Months Ended December 31, 2017
(Dollars in thousands)
(Unaudited)
	Utility			Parent & Other			Entergy Wholesale Commodities			Consolidated
OPERATING REVENUES
Electric		$2,222,156			($19	)					$2,222,137
Natural gas	38,845			—			—			38,845
Competitive businesses	—			—			362,863			362,863
Total	2,261,001			(19		)	362,863			2,623,845
OPERATING EXPENSES
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale	546,000			(115		)	19,242			565,127
Purchased power	234,489			115			10,942			245,546
Nuclear refueling outage expenses	41,907			—			2,117			44,023
Other operation and maintenance	678,580			8,944			218,615			906,139
Asset write-offs, impairments and related charges	—			—			116,788			116,788
Decommissioning	35,790			—			59,833			95,623
Taxes other than income taxes	128,653			170			19,643			148,466
Depreciation and amortization	300,998			416			36,232			337,647
Other regulatory charges (credits) - net	(72,586		)	—			—			(72,586		)
Total	1,893,831			9,530			483,412			2,386,773
OPERATING INCOME	367,170			(9,549		)	(120,549		)	237,072
OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction	29,366			—			—			29,366
Interest and investment income	50,726			(38,440		)	80,933			93,219
Miscellaneous - net	(16,392		)	(259		)	(18,048		)	(34,699		)
Total	63,700			(38,699		)	62,885			87,886
INTEREST EXPENSE
Interest expense	154,646			23,823			5,887			184,356
Allowance for borrowed funds used during construction	(13,812		)	—			—			(13,812		)
Total	140,834			23,823			5,887			170,544
INCOME BEFORE INCOME TAXES	290,036			(72,071		)	(63,551		)	154,414
Income taxes	334,625			(65,739		)	361,239			630,125
NET INCOME (LOSS)	(44,589		)	(6,332		)	(424,790		)	(475,711		)
Preferred dividend requirements of subsidiaries	2,856			—			547			3,403
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION		($47,445	)		($6,332	)		($425,337	)		($479,114	)
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC	($0.26)			($0.04)			($2.36)			($2.66)
DILUTED	($0.26)			($0.04)			($2.36)			($2.66)
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC										180,303,505
DILUTED										180,303,505
*Totals may not foot due to rounding.

Entergy Corporation
Consolidating Income Statement
Year to Date December 31, 2018
(Dollars in thousands)
(Unaudited)
	Utility			Parent & Other			Entergy Wholesale Commodities			Consolidated
OPERATING REVENUES
Electric		$9,384,234			($123	)		$—			$9,384,111
Natural gas	156,436			—			—			156,436
Competitive businesses	—			—			1,468,905			1,468,905
Total	9,540,670			(123		)	1,468,905			11,009,452
OPERATING EXPENSES
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale	2,070,678			(123		)	77,238			2,147,793
Purchased power	1,543,470			119			115,210			1,658,799
Nuclear refueling outage expenses	150,255			—			3,571			153,826
Other operation and maintenance	2,501,369			37,328			807,700			3,346,397
Asset write-offs, impairments and related charges	—			—			532,321			532,321
Decommissioning	149,624			—			238,884			388,508
Taxes other than income taxes	561,985			1,796			78,171			641,952
Depreciation and amortization	1,218,320			1,274			149,848			1,369,442
Other regulatory charges (credits) - net	301,049			—			—			301,049
Total	8,496,750			40,394			2,002,943			10,540,087
OPERATING INCOME	1,043,920			(40,517		)	(534,038		)	469,365
OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction	129,602			—			—			129,602
Interest and investment income	203,936			(154,615		)	14,543			63,864
Miscellaneous - net	(62,026		)	(11,251		)	(56,477		)	(129,754		)
Total	271,512			(165,866		)	(41,934		)	63,712
INTEREST EXPENSE
Interest expense	613,893			120,735			33,694			768,322
Allowance for borrowed funds used during construction	(60,974		)	—			—			(60,974		)
Total	552,919			120,735			33,694			707,348
INCOME (LOSS) BEFORE INCOME TAXES	762,513			(327,118		)	(609,666		)	(174,271		)
Income taxes	(732,548		)	(35,253		)	(269,025		)	(1,036,826		)
NET INCOME (LOSS)	1,495,061			(291,865		)	(340,641		)	862,555
Preferred dividend requirements of subsidiaries	11,706			—			2,188			13,894
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION		$1,483,355			($291,865	)		($342,829	)		$848,661
EARNINGS PER AVERAGE COMMON SHARE:
BASIC	$8.18			($1.61)			($1.89)			$4.68
DILUTED	$8.09			($1.59)			($1.87)			$4.63
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC										181,409,597
DILUTED										183,378,513
*Totals may not foot due to rounding.

Entergy Corporation
Consolidating Income Statement
Year to Date December 31, 2017
(Dollars in thousands)
(Unaudited)
	Utility			Parent & Other			Entergy Wholesale Commodities			Consolidated
OPERATING REVENUES
Electric		$9,279,010			($115	)		$—			$9,278,895
Natural gas	138,856			—			—			138,856
Competitive businesses	—			—			1,656,730			1,656,730
Total	9,417,866			(115		)	1,656,730			11,074,481
OPERATING EXPENSES
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale	1,908,576			(115		)	83,128			1,991,589
Purchased power	1,323,161			115			104,674			1,427,950
Nuclear refueling outage expenses	154,010			—			14,141			168,151
Other operation and maintenance	2,416,130			27,128			863,436			3,306,694
Asset write-offs, impairments and related charges	—			—			538,372			538,372
Decommissioning	150,727			—			254,958			405,685
Taxes other than income taxes	536,407			1,532			79,617			617,556
Depreciation and amortization	1,195,179			1,678			193,121			1,389,978
Other regulatory charges (credits) - net	(131,901		)	—			—			(131,901		)
Total	7,552,289			30,338			2,131,447			9,714,074
OPERATING INCOME	1,865,577			(30,453		)	(474,717		)	1,360,407
OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction	95,088			—			—			95,088
Interest and investment income	218,317			(154,241		)	224,121			288,197
Miscellaneous - net	(63,917		)	(5,004		)	(44,505		)	(113,426		)
Total	249,488			(159,245		)	179,616			269,859
INTEREST EXPENSE
Interest expense	592,170			91,328			23,714			707,212
Allowance for borrowed funds used during construction	(44,869		)	—			—			(44,869		)
Total	547,301			91,328			23,714			662,343
INCOME BEFORE INCOME TAXES	1,567,764			(281,026		)	(318,815		)	967,923
Income taxes	794,616			(105,566		)	(146,480		)	542,570
NET INCOME (LOSS)	773,148			(175,460		)	(172,335		)	425,353
Preferred dividend requirements of subsidiaries	11,553			—			2,188			13,741
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION		$761,595			($175,460	)		($174,523	)		$411,612
EARNINGS PER AVERAGE COMMON SHARE:
BASIC	$4.24			($0.98)			($0.97)			$2.29
DILUTED	$4.22			($0.97)			($0.97)			$2.28
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC										179,671,797
DILUTED										180,535,893
*Totals may not foot due to rounding.

Entergy Corporation
Consolidated Cash Flow Statement
Year to Date December 31, 2018 vs. 2017
(Dollars in thousands)
(Unaudited)
	2018			2017			Variance
OPERATING ACTIVITIES
Consolidated net income		$862,555			$425,353			$437,202
Adjustments to reconcile consolidated net income to net cash
flow provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization	2,040,555			2,078,578			(38,023		)
Deferred income taxes, investment tax credits, and non-current taxes accrued	(256,848		)	529,053			(785,901		)
Asset write-offs, impairments and related charges	491,739			357,251			134,488
Changes in working capital:
Receivables	98,546			(97,637		)	196,183
Fuel inventory	45,839			(3,043		)	48,882
Accounts payable	97,312			101,802			(4,490		)
Prepaid taxes and taxes accrued	39,272			33,853			5,419
Interest accrued	5,220			742			4,478
Deferred fuel costs	(25,829		)	56,290			(82,119		)
Other working capital accounts	(164,173		)	(4,331		)	(159,842		)
Changes in provisions for estimated losses	35,706			(3,279		)	38,985
Changes in other regulatory assets	189,193			595,504			(406,311		)
Changes in other regulatory liabilities	(803,323		)	2,915,795			(3,719,118		)
Deferred tax rate change recognized as regulatory liability / asset	—			(3,665,498		)	3,665,498
Changes in pensions and other postretirement liabilities	(304,941		)	(130,686		)	(174,255		)
Other	34,424			(566,247		)	600,671
Net cash flow provided by operating activities	2,385,247			2,623,500			(238,253		)
INVESTING ACTIVITIES
Construction/capital expenditures	(3,942,010		)	(3,607,532		)	(334,478		)
Allowance for equity funds used during construction	130,195			96,000			34,195
Nuclear fuel purchases	(302,584		)	(377,324		)	74,740
Payment for purchase of plant or assets	(26,623		)	(16,762		)	(9,861		)
Proceeds from sale of assets	24,902			100,000			(75,098		)
Insurance proceeds received for property damages	18,270			26,157			(7,887		)
Changes in securitization account	(5,844		)	1,323			(7,167		)
Payments to storm reserve escrow account	(6,551		)	(2,878		)	(3,673		)
Receipts from storm reserve escrow account	—			11,323			(11,323		)
Decrease (increase) in other investments	(54,500		)	1,078			(55,578		)
Litigation proceeds for reimbursement of spent nuclear fuel storage costs	59,643			25,493			34,150
Proceeds from nuclear decommissioning trust fund sales	6,484,791			3,162,747			3,322,044
Investment in nuclear decommissioning trust funds	(6,485,676		)	(3,260,674		)	(3,225,002		)
Net cash flow used in investing activities	(4,105,987		)	(3,841,049		)	(264,938		)
FINANCING ACTIVITIES
Proceeds from the issuance of:
Long-term debt	8,035,536			1,809,390			6,226,146
Preferred stock of subsidiary	73,330			14,399			58,931
Treasury stock	103,315			80,729			22,586
Common stock	499,272			—			499,272
Retirement of long-term debt	(6,965,738		)	(1,585,681		)	(5,380,057		)
Repurchase / redemption of preferred stock	(53,868		)	(20,599		)	(33,269		)
Changes in credit borrowings and commercial paper - net	364,031			1,163,296			(799,265		)
Other	26,453			(7,731		)	34,184
Dividends paid:
Common stock	(647,704		)	(628,885		)	(18,819		)
Preferred stock	(14,185		)	(13,940		)	(245		)
Net cash flow provided by financing activities	1,420,442			810,978			609,464
Net decrease in cash and cash equivalents	(300,298		)	(406,571		)	106,273
Cash and cash equivalents at beginning of period	781,273			1,187,844			(406,571		)
Cash and cash equivalents at end of period		$480,975			$781,273			($300,298	)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest - net of amount capitalized		$734,845			$678,371			$56,474
Income taxes		$19,825			($13,375	)		$33,200

Entergy Corporation
Consolidated Cash Flow Statement
Three Months Ended December 31, 2018 vs. 2017
(Dollars in thousands)
(Unaudited)
	2018			2017			Variance
OPERATING ACTIVITIES
Consolidated net income (loss)		($62,322	)		($475,711	)		$413,389
Adjustments to reconcile consolidated net income (loss) to net cash
flow provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization	523,211			517,013			6,198
Deferred income taxes, investment tax credits, and non-current taxes accrued	(339,489		)	619,660			(959,149		)
Asset write-offs, impairments and related charges	281,476			115,413			166,063
Changes in working capital:
Receivables	252,249			100,392			151,857
Fuel inventory	(3,889		)	(23,789		)	19,900
Accounts payable	17,363			177,764			(160,401		)
Prepaid taxes and taxes accrued	(4,238		)	(33,042		)	28,804
Interest accrued	14,618			6,853			7,765
Deferred fuel costs	(545		)	173,926			(174,471		)
Other working capital accounts	(78,110		)	77,448			(155,558		)
Changes in provisions for estimated losses	7,107			6,794			313
Changes in other regulatory assets	(17,942		)	478,074			(496,016		)
Changes in other regulatory liabilities	(389,639		)	2,893,671			(3,283,310		)
Deferred tax rate change recognized as regulatory liability / asset	—			(3,665,498		)	3,665,498
Changes in pensions and other postretirement liabilities	40,585			223,611			(183,026		)
Other	285,308			(281,830		)	567,138
Net cash flow provided by operating activities	525,743			910,749			(385,006		)
INVESTING ACTIVITIES
Construction/capital expenditures	(1,058,963		)	(985,428		)	(73,535		)
Allowance for equity funds used during construction	37,366			29,563			7,803
Nuclear fuel purchases	(131,765		)	(151,270		)	19,505
Payment for purchase of plant or assets	(26,623		)	(16,762		)	(9,861		)
Proceeds from sale of assets	11,987			—			11,987
Insurance proceeds received for property damages	7,747			—			7,747
Changes in securitization account	7,141			7,817			(676		)
Payments to storm reserve escrow account	(2,036		)	(953		)	(1,083		)
Receipts from storm reserve escrow account	—			2,487			(2,487		)
Decrease (increase) in other investments	(18,360		)	113,295			(131,655		)
Litigation proceeds for reimbursement of spent nuclear fuel storage costs	59,643			—			59,643
Proceeds from nuclear decommissioning trust fund sales	2,306,872			1,259,964			1,046,908
Investment in nuclear decommissioning trust funds	(2,298,515		)	(1,272,040		)	(1,026,475		)
Net cash flow used in investing activities	(1,105,506		)	(1,013,327		)	(92,179		)
FINANCING ACTIVITIES
Proceeds from the issuance of:
Long-term debt	2,431,405			586,784			1,844,621
Preferred stock of subsidiary	73,330			14,399			58,931
Treasury stock	78,669			65,608			13,061
Common stock	499,272			—			499,272
Retirement of long-term debt	(2,783,918		)	(362,766		)	(2,421,152		)
Repurchase / redemption of preferred stock	(53,868		)	(20,599		)	(33,269		)
Changes in credit borrowings and commercial paper - net	(4,339		)	225,619			(229,958		)
Other	913			(7,394		)	8,307
Dividends paid:
Common stock	(164,839		)	(160,489		)	(4,350		)
Preferred stock	(3,868		)	(3,602		)	(266		)
Net cash flow provided by financing activities	72,757			337,560			(264,803		)
Net increase (decrease) in cash and cash equivalents	(507,006		)	234,982			(741,988		)
Cash and cash equivalents at beginning of period	987,981			546,291			441,690
Cash and cash equivalents at end of period		$480,975			$781,273			($300,298	)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest - net of amount capitalized		$176,464			$170,459			$6,005
Income taxes		$1,085			($1,492	)		$2,577