EX-99.1 2 a00819991.htm EXHIBIT 99.1 Exhibit


entergylogoa65.gif
  
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 at www.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 $775 million, 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