Equibles

8-K

ENTERGY ARKANSAS, LLC (EAI)

8-K 2020-07-29 For: 2020-07-29
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Added on April 04, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date earliest event reported) July 29, 2020

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

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

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:

Registrant Title of Class Trading<br><br>Symbol Name of Each Exchange<br><br>on Which Registered
Entergy Corporation Common Stock, $0.01 Par Value ETR New York Stock Exchange
Common Stock, $0.01 Par Value ETR NYSE Chicago, Inc.
Entergy Arkansas, LLC Mortgage Bonds, 4.90% Series due December 2052 EAB New York Stock Exchange
Mortgage Bonds, 4.75% Series due June 2063 EAE New York Stock Exchange
Mortgage Bonds, 4.875% Series due September 2066 EAI New York Stock Exchange
Entergy Louisiana, LLC Mortgage Bonds, 5.25% Series due July 2052 ELJ New York Stock Exchange
Mortgage Bonds, 4.70% Series due June 2063 ELU New York Stock Exchange
Mortgage Bonds, 4.875% Series due September 2066 ELC New York Stock Exchange
Entergy Mississippi, LLC Mortgage Bonds, 4.90% Series due October 2066 EMP New York Stock Exchange
Entergy New Orleans, LLC Mortgage Bonds, 5.0% Series due December 2052 ENJ New York Stock Exchange
Mortgage Bonds, 5.50% Series due April 2066 ENO New York Stock Exchange
Entergy Texas, Inc. Mortgage Bonds, 5.625% Series due June 2064 EZT New York Stock Exchange
5.375% Series A Preferred Stock, Cumulative, No Par Value (Liquidation Value $25 Per Share) ETI/PR New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

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

Item 2.02. Results of Operations and Financial Condition

On July 29, 2020, Entergy Corporation (the “Company”) issued a press release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the second quarter 2020 (the “Earnings Release”). The information in Exhibit 99.1 is being furnished, not filed, pursuant to this Item 2.02.

Item 7.01. Regulation FD Disclosure

On July 29, 2020, the Company issued the Earnings Release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the second quarter 2020. The information in Exhibit 99.1 is being furnished, not filed, pursuant to this Item 7.01.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

Exhibit No. Description
99.1 Release, dated July 29, 2020, issued by Entergy Corporation
104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURE

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

Entergy Corporation

Entergy Arkansas, LLC

Entergy Louisiana, LLC

Entergy Mississippi, LLC

Entergy New Orleans, LLC

Entergy Texas, Inc.

System Energy Resources, Inc.

By: /s/ Kimberly A. Fontan

Kimberly A. Fontan

Senior Vice President and

Chief Accounting Officer

Dated: July 29, 2020

		Exhibit

entergylogoa93.gif

Exhibit 99.1

Entergy

639 Loyola Avenue

New Orleans, LA 70113

Date: July 29, 2020
For Release: Immediately
Contact: Neal Kirby (Media)<br><br>(504) 576-4238<br><br>nkirby@entergy.com David Borde (Investor Relations)<br><br>(504) 576-5668<br><br>dborde@entergy.com

Entergy Reports Second Quarter Earnings

Company affirms guidance and financial outlooks

NEW ORLEANS - Entergy Corporation (NYSE: ETR) reported second quarter 2020 earnings of $1.79 per share on an as-reported basis and $1.37 per share on an adjusted basis (non-GAAP).

“We delivered another strong quarter and remain on track to achieve our full-year objectives. Sales were better than expected, we’re on pace to achieve our cost savings target for the year, and our capital plan is unchanged. With these results, we are affirming our full-year guidance, our longer-term outlooks, and our dividend growth aspirations,” said Entergy Chairman and Chief Executive Officer Leo Denault. “The COVID-19 pandemic has placed a burden on our customers, employees, and communities, and we continue to support our stakeholders as we all work to recover from its effects. The foundation of our business remains strong and sustainable. We are committed to our strategic, operational, and financial objectives and our resolve to be the premier utility.”

Business highlights included the following:

• Western Region Phase 2 economic transmission project was completed.
Table of Contents Page
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News Release1<br><br>Appendices7<br><br>A: Consolidated Results and Adjustments8<br><br>B: Earnings Variance Analysis11<br><br>C: Utility Financial and Operating Measures13<br><br>D: EWC Financial and Operating Measures14<br><br>E: Consolidated Financial Measures15<br><br>F: Definitions and Abbreviations and Acronyms16<br><br>G: Other GAAP to Non-GAAP Reconciliations19<br><br>Financial Statements22
• The New Orleans Power Station was placed in service.
• E-LA issued an RFP for up to 300 megawatts of new renewable resources.
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• The MPSC approved E-MS’s annual FRP filing.
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• E-LA and E-AR each submitted their annual FRP filings.
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• The PUCT finalized its generation rider rulemaking.
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• In 2019, Entergy provided power to customers at the second-lowest average price in the U.S., according to an S&P Global Market Intelligence study.
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• For the fifth consecutive year, Entergy was named to The Civic 50, a Points of Light initiative honoring the 50 most community-minded companies in the U.S.
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Consolidated Earnings (GAAP and Non-GAAP Measures)
--- --- --- --- --- ---
Second Quarter and Year-to-Date 2020 vs. 2019 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments)
Year-to-Date
2019 Change 2020 2019 Change
(After-tax, in millions)
As-reported earnings 236 124 479 491 (12)
Less adjustments (26) 111 (26) 71 (97)
Adjusted earnings (non-GAAP) 262 14 506 420 85
Estimated weather in billed sales 12 (16) (54) (12) (42)
(After-tax, per share in )
As-reported earnings 1.22 0.57 2.39 2.54 (0.15)
Less adjustments (0.13) 0.55 (0.13) 0.36 (0.49)
Adjusted earnings (non-GAAP) 1.35 0.02 2.52 2.18 0.34
Estimated weather in billed sales 0.06 (0.08) (0.27) (0.06) (0.21)

All values are in US Dollars.

Calculations may differ due to rounding

Consolidated Results

For second quarter 2020, the company reported earnings of $361 million, or $1.79 per share, on an as-reported basis, and earnings of $276 million, or $1.37 per share, on an adjusted basis. This compared to second quarter 2019 earnings of $236 million, or $1.22 per share, on an as-reported basis, and earnings of $262 million, or $1.35 per share, on an adjusted basis.

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

Business Segment Results

Utility

For second quarter 2020, the Utility business reported earnings attributable to Entergy Corporation of $345 million, or $1.71 per share, on both an as-reported and an adjusted basis. This compared to second quarter 2019 earnings of $331 million, or $1.70 per share, on both an as-reported basis and an adjusted basis. Drivers for the quarter included:

• regulatory actions at E-AR, E-LA, E-MS, and E-TX; and
• lower non-nuclear generation expenses, including a delay in planned outages in 2020 as a result of the COVID-19 pandemic, as well as lower nuclear generation expenses.
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These drivers were partially offset by:

• lower sales volume, including the effects of weather; and
• higher depreciation and interest expenses.
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On a per share basis, second quarter 2020 results reflected higher common shares outstanding.

Appendix C contains additional details on Utility financial and operating measures.

Parent & Other

For second quarter 2020, Parent & Other reported a loss attributable to Entergy Corporation of $(69 million), or (34) cents per share, on both an as-reported basis and an adjusted basis. This compared to a loss of $(69 million), or (35) cents per share, on both an as-reported and an adjusted basis in second quarter 2019.

On a per share basis, second quarter 2020 results reflected higher common shares outstanding.

Entergy Wholesale Commodities

For second quarter 2020, EWC reported earnings attributable to Entergy Corporation of

$85 million, or 42 cents per share, on an as-reported basis. This compared to a second quarter 2019 loss of $(26 million), or (13) cents per share, on an as-reported basis. Drivers for the quarter included:

• gains on decommissioning trust funds;
• lower other O&M expense due to the shutdown of Pilgrim and Indian Point 2, as well as lower severance and retention expense; and
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• lower decommissioning and depreciation expenses.
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These drivers were partially offset by lower revenue due to the shutdown of Pilgrim and Indian Point 2.

On a per share basis, second quarter 2020 results reflected higher common shares outstanding.

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

Earnings per Share Guidance

Entergy affirmed its 2020 adjusted EPS guidance range of $5.45 to $5.75. See webcast presentation slides for additional details.

The company has provided 2020 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measure 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 the period. 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 $(0.55) in 2020. These estimates are subject to

substantial uncertainty due to, among other things, the potential effects of exiting the EWC business.

Earnings Teleconference

A teleconference will be held at 10:00 a.m. Central Time on Wednesday, July 29, 2020, 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 5161259, 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 news 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 August 5, 2020, by dialing 855-859-2056, conference ID 5161259.

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 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.

Entergy Corporation’s common stock is listed on the New York Stock Exchange and NYSE Chicago 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.

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, which are generally numerical measures of a company’s performance, financial position, or cash flows that either exclude or include 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 news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Entergy reports 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 the company’s decision to exit the merchant power business.

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 results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.

Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide 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.

Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; net liquidity; net liquidity, including storm escrows; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and 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. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; ROIC; and ROE are included on both an adjusted and an as-reported basis. In each case, the metrics defined as “adjusted” (other than EWC’s adjusted EBITDA) excludes the effect of adjustments as defined above. EWC’s adjusted EBITDA represents EWC’s earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.

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. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy’s consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy’s performance to other companies in the utility sector, 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 2020 earnings guidance; its current financial and operational outlooks; 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; (i) the effects of technological changes and changes in commodity markets, capital markets, or economic conditions; (j) impacts from a terrorist attack, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy’s business or operations, and/or other catastrophic events; and (k) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers.

Second Quarter 2020 Earnings Release Appendices and Financial Statements

Appendices

A: Consolidated Results and Adjustments

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: Other GAAP to Non-GAAP Reconciliations

Financial Statements

Consolidating Balance Sheets

Consolidating Income Statements

Consolidated Cash Flow Statements

A: Consolidated Results and Adjustments

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

Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP MeasuresSecond Quarter and Year-to-Date 2020 vs. 2019 (See Appendix A-3 and Appendix A-4 for details on adjustments)
Year-to-Date
2019 Change 2020 2019 Change
(After-tax, in millions)
As-reported earnings (loss)
Utility 331 14 665 562 103
Parent & Other (69) — (159) (141) (18)
EWC (26) 111 (26) 71 (97)
Consolidated 236 124 479 491 (12)
Less adjustments
Utility — — — — —
Parent & Other — — — — —
EWC (26) 111 (26) 71 (97)
Consolidated (26) 111 (26) 71 (97)
Adjusted earnings (loss) (non-GAAP)
Utility 331 14 665 562 103
Parent & Other (69) — (159) (141) (18)
EWC — — — — —
Consolidated 262 14 506 420 85
Estimated weather in billed sales 12 (16) (54) (12) (42)
Diluted average number of common shares outstanding (in millions) 194 201 193
(After-tax, per share in ) (a)
As-reported earnings (loss)
Utility 1.70 0.01 3.31 2.91 0.40
Parent & Other (0.35) 0.01 (0.79) (0.73) (0.06)
EWC (0.13) 0.55 (0.13) 0.36 (0.49)
Consolidated 1.22 0.57 2.39 2.54 (0.15)
Less adjustments
Utility — — — — —
Parent & Other — — — — —
EWC (0.13) 0.55 (0.13) 0.36 (0.49)
Consolidated (0.13) 0.55 (0.13) 0.36 (0.49)
Adjusted earnings (loss) (non-GAAP)
Utility 1.70 0.01 3.31 2.91 0.40
Parent & Other (0.35) 0.01 (0.79) (0.73) (0.06)
EWC — — — — —
Consolidated 1.35 0.02 2.52 2.18 0.34
Estimated weather in billed sales 0.06 (0.08) (0.27) (0.06) (0.21)

All values are in US Dollars.

Calculations may differ due to rounding

(a) Per share amounts are calculated by dividing the corresponding 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
Second Quarter and Year-to-Date 2020 vs. 2019
( in millions)
Year-to-Date
2019 Change 2020 2019 Change
Utility 699 94 1,395 1,154 241
Parent & Other (45) (19) (144) (123) (22)
EWC (102) 163 198 22 176
Consolidated 552 237 1,448 1,053 395

All values are in US Dollars.

Calculations may differ due to rounding

OCF increased quarter-over-quarter due primarily to higher collections for fuel and purchased power cost recovery and a lower amount of unprotected excess ADIT returned to customers. Lower nuclear refueling outage spending and lower severance and retention payments at EWC also contributed. Lower collections from customers partially offset the increase. Intercompany income tax payments contributed to the line of business variances.

Appendix A-3 and Appendix A-4 list adjustments by business. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.

Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS)
Second Quarter and Year-to-Date 2020 vs. 2019
Year-to-Date
2019 Change 2020 2019 Change
(Pre-tax except for income taxes, preferred dividendrequirements, and totals; in millions)
EWC
Income before income taxes (35) 144 (31) 128 (160)
Income taxes 9 (34) 6 (57) 63
Preferred dividend requirements (1) — (1) (1) —
Total EWC (26) 111 (26) 71 (97)
Total adjustments (26) 111 (26) 71 (97)
(After-tax, per share in ) (b)
EWC
Total EWC (0.13) 0.55 (0.13) 0.36 (0.49)
Total adjustments (0.13) 0.55 (0.13) 0.36 (0.49)

All values are in US Dollars.

Calculations may differ due to rounding

(b) Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.
Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings)
Second Quarter and Year-to-Date 2020 vs. 2019
(Pre-tax except for income taxes, preferred dividend requirements, and totals; in millions)
Year-to-Date
2019 Change 2020 2019 Change
EWC
Operating revenues 290 (90) 532 723 (191)
Fuel and fuel-related expenses (26) 9 (37) (51) 14
Purchased power (15) 5 (21) (31) 10
Nuclear refueling outage expense (12) — (24) (24) —
Other O&M (188) 47 (271) (376) 105
Asset write-off and impairments (16) 10 (12) (90) 79
Decommissioning expense (64) 13 (102) (128) 26
Taxes other than income taxes (20) 6 (34) (33) (1)
Depreciation/amortization exp. (38) 13 (60) (76) 16
Other income (deductions)-other 64 130 10 232 (222)
Interest exp. and other charges (9) 2 (12) (18) 6
Income taxes 9 (34) 6 (57) 63
Preferred dividend requirements (1) — (1) (1) —
Total EWC (26) 111 (26) 71 (97)
Total adjustments (26) 111 (26) 71 (97)

All values are in US Dollars.

Calculations may differ due to rounding

B: Earnings Variance Analysis

Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2020 versus 2019 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.

Appendix B-1: As-Reported and Adjusted Earnings Variance Analysis (c), (d)
Second Quarter 2020 vs. 2019
(After-tax, per share in )
Parent & Other EWC Consolidated
Adjusted As-Reported Adjusted As-<br><br>Reported As-<br><br>Reported Adjusted
2019 earnings 1.70 (0.35) (0.35) (0.13) 1.22 1.35
Operating revenue less:  Fuel, fuel-related expenses and  gas purchased for resale,  Purchased power, and  Regulatory charges (credits) 0.14 (e) — — (0.31) (f) (0.17) 0.14
Nuclear refueling outage expense 0.02 — — — 0.02 0.02
Other O&M 0.23 (g) (0.01) (0.01) 0.19 (h) 0.41 0.22
Asset write-offs and impairments — — — 0.04 0.04 —
Decommissioning expense (0.01) — — 0.05 (i) 0.04 (0.01)
Taxes other than income taxes (0.01) — — 0.02 0.01 (0.01)
Depreciation/amortization exp. (0.20) (j) — — 0.05 (k) (0.15) (0.20)
Other income (deductions)-other (0.02) 0.03 0.03 0.53 (l) 0.54 0.01
Interest exp. and other charges (0.08) (m) (0.01) (0.01) 0.01 (0.08) (0.09)
Income taxes-other — (0.01) (0.01) (0.02) (0.03) (0.01)
Preferred dividend requirements — — — — — —
Share effect (0.06) (n) 0.01 0.01 (0.01) (0.06) (0.05)
2020 earnings 1.71 (0.34) (0.34) 0.42 1.79 1.37

All values are in US Dollars.

Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d)
Year-to-date 2020 vs. 2019
(After-tax, per share in )
Parent & Other EWC Consolidated
Adjusted As-Reported Adjusted As-<br><br>Reported As-<br><br>Reported Adjusted
2019 earnings 2.91 (0.73) (0.73) 0.36 2.54 2.18
Operating revenue less:  Fuel, fuel-related expenses and  gas purchased for resale,  Purchased power, and  Regulatory charges (credits) 0.41 (e) — — (0.68) (f) (0.27) 0.41
Nuclear refueling outage expense 0.02 — — — 0.02 0.02
Other O&M 0.31 (g) — — 0.43 (h) 0.74 0.31
Asset write-offs and impairments — — — 0.32 (o) 0.32 —
Decommissioning expense (0.03) — — 0.11 (i) 0.08 (0.03)
Taxes other than income taxes (0.02) — — (0.01) (0.03) (0.02)
Depreciation/amortization exp. (0.38) (j) — — 0.06 (k) (0.32) (0.38)
Other income (deductions)-other (0.04) 0.03 0.03 (0.91) (l) (0.92) (0.01)
Interest exp. and other charges (0.13) (m) — — 0.03 (0.10) (0.13)
Income taxes-other 0.39 (p) (0.12) (0.12) (q) 0.15 (r) 0.42 0.27
Preferred dividend requirements — — — — — —
Share effect (0.13) (n) 0.03 0.03 0.01 (0.09) (0.10)
2020 earnings 3.31 (0.79) (0.79) (0.13) 2.39 2.52

All values are in US Dollars.

Calculations may differ due to rounding

(c) Utility operating revenue / regulatory charges and Utility income taxes-other exclude $15 million in second quarter 2020 and $61 million in second quarter 2019 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). On a year-to-date basis, Utility operating revenue / regulatory charges and Utility income taxes-other exclude $45 million in 2020 and $122 million in 2019 (net effect is neutral to earnings).
(d) EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes-other represents income tax differences other than the tax effect of individual line items.
--- ---
Utility as-reported operating revenue less fuel, fuel-related expenses and gas purchased for resale; purchased power; and regulatory charges (credits) variance analysis2020 vs. 2019 ( EPS)
--- ---
YTD
Volume/weather (0.24)
Retail electric price 0.70
Reg. provision for E-AR FRP 0.05
Reg. liability for tax sharing (0.10)
Other —
Total 0.41

All values are in US Dollars.

(e) The second quarter and year-to-date earnings increases were primarily driven by E-AR’s FRP; E-LA’s FRP, including recovery of the J. Wayne Leonard Power Station and the Lake Charles Power Station; E-MS’s FRP; E-MS’s vegetation rider; recovery of E-MS’s Choctaw County Generating Station; and E-TX’s TCRF. Partially offsetting was volume/weather and E-NO’s rate case. The year-to date variance also reflected a first quarter 2019 regulatory reserve at E-AR and a regulatory liability for tax sharing with E-LA customers (this partially offsets the Hurricane Isaac Act 55 income tax item discussed in footnote p).
(f) The second quarter and year-to-date earnings decreases were due largely to lower revenues from the shutdown of Pilgrim (May 2019) and Indian Point 2 (April 2020). The year-to-date variance also reflected lower capacity and energy prices, partially offset by higher energy volume at Indian Point 3.
--- ---
(g) The second quarter and year-to-date earnings increases from lower Utility other O&M were due largely to lower non-nuclear generation expenses due to the timing and scope of outages including a delay in planned outages in 2020 as a result of the COVID-19 pandemic, lower nuclear generation expenses, and lower spending on initiatives to explore new customer products. The year-to-date variance also reflected higher nuclear insurance refunds, partially offset by higher pension and benefits expenses and higher E-MS storm damage provisions (offset in operating revenue).
(h) The second quarter and year-to-date earnings increases from lower EWC other O&M were due largely to the shutdown of Pilgrim in May 2019 and Indian Point 2 in April 2020, as well as a decrease in severance and retention expense.
--- ---
(i) The second quarter and year-to-date earnings increases from lower EWC decommissioning expense were due to the sale of Pilgrim in 2019.
--- ---
(j) The second quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including the J. Wayne Leonard Power Station, the Lake Charles Power Station, and the Choctaw County Generating Station, as well as higher depreciation rates at E-MS.
--- ---
(k) The second quarter and year-to-date earnings increases from lower EWC depreciation expense were due primarily to the shutdown of Pilgrim in May 2019 and Indian Point 2 in April 2020.
--- ---
(l) The second quarter earnings increase from higher EWC other income (deductions)-other was due largely to higher gains on decommissioning trust fund investments in 2020 as compared to 2019. The year-to-date earnings decrease was due largely to performance of nuclear decommissioning trust fund investments in 2020 as compared to 2019.
--- ---
(m) The second quarter and year-to-date earnings decreases from higher Utility interest expense were due primarily to higher debt balances at E-LA and E-TX. The year-to-date variance also reflected higher debt balances at E-AR.
--- ---
(n) The earnings per share impacts from share effect were due to settlement of the equity forward (8.4 million shares settled in May 2019).
--- ---
(o) The year-to-date earnings increase from lower EWC asset write-offs and impairments was due primarily to higher impairment charges in first quarter 2019, largely refueling outage costs at Indian Point. This was partially offset by a gain on the sale of a switchyard at Pilgrim in second quarter 2019.
--- ---
(p) The year-to-date earnings increase from Utility effective income tax rate reflected two first quarter 2020 items. A $55 million tax benefit was recorded as a result of an IRS settlement related to Act 55 financing of Hurricane Isaac costs (partly offset by customer sharing, recorded as a regulatory charge discussed in footnote e). In addition, an annual tax deduction related to stock-based compensation resulted in an income tax benefit of $22 million, $20 million greater than first quarter 2019.
--- ---
(q) The year-to-date earnings decrease from Parent & Other effective income tax rate was due to an increase in income tax expense of $23 million as a result of the IRS settlement related to the Hurricane Isaac Act 55 financing (discussed in footnote p).
--- ---
(r) The year-to-date earnings increase from EWC effective income tax rate is primarily due to a first quarter 2019 accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019.
--- ---

C: Utility Financial and Operating Measures

Appendix C-1 and Appendix C-2 provide comparative summaries of Utility operating and financial measures.

Appendix C-1: Utility Operating and Financial Measures
Second Quarter and Year-to-Date 2020 vs. 2019
Second Quarter Year-to-Date
2020 2019 %<br><br>Change % Weather Adjusted (s) 2020 2019 %<br><br>Change % Weather Adjusted (s)
GWh billed
Residential 7,759 7,652 1.4 5.1 15,885 16,123 (1.5) 3.1
Commercial 6,070 6,841 (11.3) (10.8) 12,315 13,264 (7.2) (6.8)
Governmental 570 626 (8.9) (9.5) 1,165 1,227 (5.1) (5.6)
Industrial 11,847 11,965 (1.0) (1.0) 23,662 23,648 0.1 0.1
Total retail sales 26,246 27,084 (3.1) (2.0) 53,027 54,262 (2.3) (0.8)
Wholesale 3,111 3,170 (1.9) 6,228 6,984 (10.8)
Total sales 29,357 30,254 (3.0) 59,255 61,246 (3.3)
Number of electric retail customers
Residential 2,517,718 2,489,842 1.1
Commercial 362,812 358,545 1.2
Governmental 17,940 17,906 0.2
Industrial 42,033 41,416 1.5
Total retail customers 2,940,503 2,907,709 1.1
Other O&M and refueling outage expense per MWh $21.19 $22.79 (7.0) $20.69 $21.44 (3.5)
Appendix C-2: Utility Operating Measures
--- --- --- --- ---
Twelve Months Ended June 30, 2020 vs. 2019
Twelve Months Ended June 30
2020 2019 %<br><br>Change % Weather Adjusted (s)
GWh billed
Residential 35,856 36,194 (0.9) 0.2
Commercial 27,806 29,015 (4.2) (4.7)
Governmental 2,517 2,588 (2.7) (3.2)
Industrial 48,497 48,408 0.2 0.2
Total retail sales 114,676 116,205 (1.3) (1.1)

Calculations may differ due to rounding

(s) 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.

On a weather-adjusted basis for second quarter 2020, billed retail sales decreased (2.0) percent. Residential billed sales increased 5.1 percent and commercial billed sales decreased (10.8) percent driven by impacts from the COVID-19 pandemic. Industrial billed sales volume decreased (1.0) percent primarily driven by lower sales to existing large and small customers, partially offset by continued growth from new/expansion customers.

D: EWC Financial and Operating Measures

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

Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2020 vs. 2019
($ in millions) Second Quarter Year-to-Date
2020 2019 Change 2020 2019 Change
Net income (loss) 85 (25) 110 (25) 72 (97)
Add back: interest expense 7 9 (2) 12 18 (6)
Add back: income taxes 24 (9) 34 (6) 57 (63)
Add back: depreciation and amortization 25 38 (13) 60 76 (16)
Subtract: interest and investment income 207 75 132 35 257 (222)
Add back: decommissioning expense 51 64 (13) 102 128 (26)
Adjusted EBITDA (non-GAAP) (15) 2 (17) 108 94 14

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
Second Quarter and Year-to-Date 2020 vs. 2019
Second Quarter Year-to-Date
2020 2019 % Change 2020 2019 % Change
Owned capacity (MW) (t) 2,246 3,274 (31.4) 2,246 3,274 (31.4)
GWh billed 4,958 7,258 (31.7) 11,714 14,461 (19.0)
EWC Nuclear Fleet
Capacity factor 96% 92% 4.3 98% 89% 10.1
GWh billed 4,580 6,703 (31.7) 10,839 13,392 (19.1)
Production cost per MWh $19.45 $19.93 (2.4) $17.13 $19.49 (12.1)
Average energy/capacity revenue per MWh $37.55 $37.85 (0.8) $43.84 $48.55 (9.7)
Refueling outage days
Indian Point 3 — 8 — 29

Calculations may differ due to rounding

(t) 2020 excludes IP2 (1,028MW) that was shut down April 30, 2020.

See the appendix in the webcast slide presentation for EWC hedging and price disclosures.

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
Second Quarter 2020 vs. 2019 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures)
For 12 months ending June 30 2019 Change
GAAP Measures
As-reported ROIC 5.5% 0.4%
As-reported ROE 10.8% 1.4%
Non-GAAP Financial Measures
Adjusted ROIC 5.5% 0.2%
Adjusted ROE 11.0% 0.4%
As of June 30 ( in millions, except where noted) 2019 Change
GAAP Measures
Cash and cash equivalents 636 300
Available revolver capacity 4,120 (10)
Commercial paper 1,635 311
Total debt 19,054 2439
Securitization debt 360 (128)
Debt to capital 65.5% 1.3%
Off-balance sheet liabilities:
Debt of joint ventures - Entergy’s share 58 (7)
Total off-balance sheet liabilities 58 (7)
Storm escrow balances 407 (34)
Non-GAAP Financial Measures ( in millions, except where noted)
Debt to capital, excluding securitization debt 65.1% 1.5%
Net debt to net capital, excluding securitization debt 64.3% 1.2%
Gross liquidity 4,756 289
Net liquidity 3,121 (22)
Net liquidity, including storm escrows 3,528 (56)
Parent debt to total debt, excluding securitization debt 19.4% 2.6%
FFO to debt, excluding securitization debt 11.8% 2.8%
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC 15.8% 0.2%

All values are in US Dollars.

Calculations may differ due to rounding

F: Definitions and Abbreviations and Acronyms

Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.

Appendix F-1: Definitions
Utility Financial and Operating Measures
GWh billed Total number of GWh billed to retail and wholesale customers
Other O&M and refueling outage expense per MWh Other operation and maintenance expense plus nuclear refueling outage expense per MWh of billed sales
Number of electric retail customers Average number of electric customers over the period
EWC Financial and Operating Measures
Adjusted EBITDA (non-GAAP) Earnings before interest, income taxes, and depreciation and amortization, and excluding decommissioning expense
Average revenue under contract per kW-month (applies to capacity contracts only) Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards
Average revenue per MWh on contracted volumes Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades. Revenue will fluctuate due to factors including positive or negative basis differentials and other risk management costs
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 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 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
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 Amount of installed capacity to generate power and/or sell capacity, reflecting the shutdown of Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022)
Planned TWh of generation Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, reflecting the shutdown of Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022)
Production cost per MWh Fuel and other O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation)
Refueling outage days Number of days lost for a scheduled refueling and maintenance outage during the period
Appendix F-1: Definitions (continued)
EWC Financial and Operating Measures (continued)
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
As-reported ROE 12-months rolling net income attributable to Entergy Corp. divided by avg. common equity
As-reported ROIC 12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
Debt of joint ventures - Entergy’s share Entergy’s share of debt issued by business joint ventures at EWC
Debt to capital Total debt divided by total capitalization
Available revolver capacity Amount of undrawn capacity remaining on corporate and subsidiary revolvers
Securitization debt Debt on the balance sheet associated with securitization bonds that is secured by certain future customer collections
Total debt Sum of short-term and long-term debt, notes payable and commercial paper, and finance leases on the balance sheet
Financial Measures - Non-GAAP
Adjusted EPS As-reported EPS excluding adjustments
Adjusted ROE 12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity
Adjusted ROIC 12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
Adjustments 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 results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items
Debt to capital, excluding securitization debt Total debt divided by total capitalization, excluding securitization debt
FFO OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, taxes accrued, interest accrued, and other working capital accounts), and securitization regulatory charges
FFO to debt, excluding securitization debt 12-months rolling FFO as a percentage of end of period total debt excluding securitization debt
FFO to debt, excl. securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with EWC exit 12-months rolling FFO excluding return of unprotected excess ADIT and severance and retention payments associated with exit of EWC as a percentage of end of period total debt excluding securitization debt
Gross liquidity Sum of cash and available revolver capacity
Net debt to net capital, excl. securitization debt Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
Net liquidity Sum of cash and available revolver capacity less commercial paper borrowing
Net liquidity, including storm escrows Sum of cash, available revolver capacity, and escrow accounts available for certain storm expenses, less commercial paper borrowing
Parent debt to total debt, excl. securitization debt End of period Entergy Corp. debt, incl. amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excl. securitization debt

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

Appendix F-2: Abbreviations and Acronyms
ADIT<br><br>AFUDC -<br><br>borrowed funds<br><br>ALJ<br><br>AMI<br><br>ANO<br><br><br><br>APSC<br><br>ARO<br><br>bps<br><br>CCGT<br><br>CCN<br><br>CCNO<br><br>Choctaw<br><br>COD<br><br>CT<br><br>CWIP<br><br>DCRF<br><br>DOE<br><br>E-AR<br><br>E-LA<br><br>E-MS<br><br>E-NO<br><br>E-TX<br><br>EBITDA<br><br><br><br>ENP<br><br>EPS<br><br>ETR<br><br>EWC<br><br>FERC<br><br>FFO<br><br>FIN 48<br><br><br><br>FRP<br><br>GAAP<br><br>GCRR<br><br>Grand Gulf or GGNS<br><br>IIRR-G<br><br>Indian Point 1<br><br><br><br>Indian Point 2<br><br>or IP2<br><br>Indian Point 3<br><br>or IP3<br><br>IPEC Accumulated deferred income taxes<br><br>Allowance for borrowed funds used during construction<br><br>Administrative law judge<br><br>Advanced metering infrastructure<br><br>Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear)<br><br>Arkansas Public Service Commission<br><br>Asset retirement obligation<br><br>Basis points<br><br>Combined cycle gas turbine<br><br>Certificate of convenience and necessity<br><br>Council of the City of New Orleans<br><br>Choctaw County Generating Station (CCGT)<br><br>Commercial operation date<br><br>Simple cycle combustion turbine<br><br>Construction work in progress<br><br>Distribution cost recovery factor<br><br>U.S. Department of Energy<br><br>Entergy Arkansas, LLC<br><br>Entergy Louisiana, LLC<br><br>Entergy Mississippi, LLC<br><br>Entergy New Orleans, LLC<br><br>Entergy Texas, Inc.<br><br>Earnings before interest, income taxes, and depreciation and amortization<br><br>Entergy Nuclear Palisades, LLC<br><br>Earnings per share<br><br>Entergy Corporation<br><br>Entergy Wholesale Commodities<br><br>Federal Energy Regulatory Commission<br><br>Funds from operations<br><br>FASB Interpretation No.48, “Accounting for Uncertainty in Income Taxes”<br><br>Formula rate plan<br><br>U.S. generally accepted accounting principles<br><br>Generation Cost Recovery Rider<br><br>Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI<br><br>Infrastructure investment recovery rider - gas<br><br>Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974)<br><br>Indian Point Energy Center Unit 2 (nuclear) (shut down 4/30/20)<br><br>Indian Point Energy Center Unit 3 (nuclear)<br><br><br><br>Indian Point Energy Center (nuclear) ISES 2<br><br><br><br>IRS<br><br>ISO<br><br>LCPS<br><br>LPSC<br><br>LTM<br><br>MCPS<br><br>MISO<br><br>Moody’s<br><br>MPSC<br><br>MTEP<br><br>Nelson 6<br><br>NDT<br><br>NOPS<br><br>NRC<br><br>NY PSC<br><br>NYISO<br><br>NYSE<br><br>OCF<br><br>OpCo<br><br>OPEB<br><br>Other O&M<br><br><br><br>P&O<br><br>Palisades<br><br>Pilgrim<br><br><br><br>PMR<br><br>PPA<br><br><br><br>PSC<br><br>PUCT<br><br>RICE<br><br>RFP<br><br>ROE<br><br>ROIC<br><br>RS Cogen<br><br>RSP<br><br>S&P<br><br>SEC<br><br>SERI<br><br>TCRF<br><br>UPSA<br><br>Vermont<br><br>Yankee<br><br>WACC<br><br>WPEC Unit 2 of Independence Steam Electric Station (coal)<br><br>Internal Revenue Service<br><br>Independent system operator<br><br>Lake Charles Power Station (CCGT)<br><br>Louisiana Public Service Commission<br><br>Last twelve months<br><br>Montgomery County Power Station (CCGT)<br><br>Midcontinent Independent System Operator, Inc.<br><br>Moody’s Investor Service<br><br>Mississippi Public Service Commission<br><br>MISO Transmission Expansion Plan<br><br>Unit 6 of Roy S. Nelson plant (coal)<br><br>Nuclear decommissioning trust<br><br>New Orleans Power Station<br><br>U.S. Nuclear Regulatory Commission<br><br>New York Public Service Commission<br><br>New York Independent System Operator, Inc.<br><br>New York Stock Exchange<br><br>Net cash flow provided by operating activities<br><br>Utility operating company<br><br>Other post-employment benefits<br><br>Other non-fuel operation and maintenance expense<br><br>Parent & Other<br><br>Palisades Power Plant (nuclear)<br><br>Pilgrim Nuclear Power Station (nuclear, sold August 26, 2019)<br><br>Performance Management Rider<br><br>Power purchase agreement or purchased power agreement<br><br>Public service commission<br><br>Public Utility Commission of Texas<br><br>Reciprocating internal combustion engine<br><br>Request for proposals<br><br>Return on equity<br><br>Return on invested capital<br><br>RS Cogen facility (CCGT cogeneration)<br><br>Rate Stabilization Plan (E-LA Gas)<br><br>Standard & Poor’s<br><br>U.S. Securities and Exchange Commission<br><br>System Energy Resources, Inc.<br><br>Transmission cost recovery factor<br><br>Unit Power Sales Agreement<br><br>Vermont Yankee Nuclear Power Station (nuclear, sold January 11, 2019)<br><br>Weighted-average cost of capital<br><br>Washington Parish Energy Center

G: Other 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 news release to their most comparable GAAP measure.

Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE
( in millions except where noted) Second Quarter
2020 2019
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months 1,230 961
Preferred dividends 18 15
Tax-effected interest expense 574 543
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax-effected interest expense 1,822 1,519
Adjustments in prior three quarters (5) 8
Adjustments in current quarter 85 (26)
Total adjustments, last 12 months 80 (18)
EWC preferred dividends and tax-effected interest expense, rolling 12 months 21 30
Total adjustments, adding back EWC preferred dividends and tax-effected interest expense (non-GAAP) 101 12
Adjusted earnings, rolling 12 months (non-GAAP) 1,150 979
Adjusted earnings, rolling 12 months including preferred dividends and tax- effected interest expense (non-GAAP) 1,720 1,507
Average invested capital 30,622 27,586
Average common equity 10,112 8,910
As-reported ROIC 5.9% 5.5%
Adjusted ROIC (non-GAAP) 5.6% 5.5%
As-reported ROE 12.2% 10.8%
Adjusted ROE (non-GAAP) 11.4% 11.0%

All values are in US Dollars.

Calculations may differ due to rounding

Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt ratios excluding securitization debt; gross liquidity; net liquidity; net liquidity, including storm escrow balances
( in millions except where noted) Second Quarter
2020 2019
Total debt 21,493 19,054
Less securitization debt 232 360
Total debt, excluding securitization debt 21,261 18,694
Less cash and cash equivalents 935 636
Net debt, excluding securitization debt 20,326 18,058
Commercial paper 1,946 1,635
Total capitalization 32,173 29,071
Less securitization debt 232 360
Total capitalization, excluding securitization debt 31,941 28,711
Less cash and cash equivalents 935 636
Net capital, excluding securitization debt 31,006 28,075
Debt to capital 66.8% 65.5%
Debt to capital, excluding securitization debt (non-GAAP) 66.6% 65.1%
Net debt to net capital, excluding securitization debt (non-GAAP) 65.6% 64.3%
Available revolver capacity 4,110 4,120
Storm escrows 373 407
Gross liquidity (non-GAAP) 5,045 4,756
Net liquidity (non-GAAP) 3,099 3,121
Net liquidity, including storm escrows (non-GAAP) 3,472 3,528
Entergy Corporation notes:
Due September 2020 — 450
Due July 2022 650 650
Due September 2026 750 750
Due June 2030 600 —
Due June 2050 600 —
Total parent long-term debt 2,600 1,850
Revolver draw 160 150
Unamortized debt issuance costs and discounts (32) (9)
Total parent debt 4,675 3,626
Parent debt to total debt, excluding securitization debt (non-GAAP) 22.0% 19.4%

All values are in US Dollars.

Calculations may differ due to rounding

Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - FFO to debt, excluding securitization debt; FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC
( in millions except where noted) Second Quarter
2020 2019
Total debt 21,493 19,054
Less securitization debt 232 360
Total debt, excluding securitization debt 21,261 18,694
Net cash flow provided by operating activities, rolling 12 months 3,212 2,358
AFUDC - borrowed funds, rolling 12 months (58) (67)
Working capital items in net cash flow provided by operating activities (rolling 12 months):
Receivables (5) 17
Fuel inventory (35) 24
Accounts payable (92) (19)
Taxes accrued 62 9
Interest accrued 5 7
Other working capital accounts (15) (81)
Securitization regulatory charges 123 121
Total 43 78
FFO, rolling 12 months (non-GAAP) 3,110 2,213
FFO to debt, excluding securitization debt (non-GAAP) 14.6% 11.8%
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax) 189 651
Severance and retention payments associated with exit of EWC (rolling 12 months pre-tax) 102 97
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP) 16.0% 15.8%

All values are in US Dollars.

Calculations may differ due to rounding

Financial Statements

Entergy Corporation
Consolidating Balance Sheet
June 30, 2020
(Dollars in thousands)
(Unaudited)
Utility Parent & Other Entergy Wholesale Commodities
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash 44,799 5,901 4,810 55,510
Temporary cash investments 626,373 9,169 244,416
Total cash and cash equivalents 671,172 15,070 249,226
Notes receivable — (75,000 75,000
Accounts receivable:
Customer 586,789 — 49,562
Allowance for doubtful accounts (43,281 — —
Associated companies 13,680 (14,713 1,033
Other 112,393 — 7,310
Accrued unbilled revenues 464,647 — —
Total accounts receivable 1,134,228 (14,713 57,905
Fuel inventory - at average cost 158,429 — 6,944
Materials and supplies - at average cost 839,951 — 30,984
Deferred nuclear refueling outage costs 135,918 — 18,861
Prepayments and other 183,766 (16,940 76,195
TOTAL 3,123,464 (91,583 515,115
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity 1,427,153 (1,427,239 86
Decommissioning trust funds 3,734,387 — 2,752,208
Non-utility property - at cost (less accumulated depreciation) 323,936 (10 13,923
Other 453,724 1,212 7,676
TOTAL 5,939,200 (1,426,037 2,773,893
PROPERTY, PLANT, AND EQUIPMENT
Electric 55,520,505 10,635 963,737
Natural gas 559,217 — —
Construction work in progress 2,129,376 274 14,259
Nuclear fuel 569,593 — 66,945
TOTAL PROPERTY, PLANT, AND EQUIPMENT 58,778,691 10,909 1,044,941
Less - accumulated depreciation and amortization 22,698,292 3,025 826,082
PROPERTY, PLANT, AND EQUIPMENT - NET 36,080,399 7,884 218,859
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets 5,217,445 — —
Deferred fuel costs 240,157 — —
Goodwill 374,099 — 3,073
Accumulated deferred income taxes 71,857 1,141 3,857
Other 158,645 9,657 144,177
TOTAL 6,062,203 10,798 151,107
TOTAL ASSETS 51,205,266 (1,498,938 3,658,974 53,365,302
*Totals may not foot due to rounding.

All values are in US Dollars.

Entergy Corporation
Consolidating Balance Sheet
June 30, 2020
(Dollars in thousands)
(Unaudited)
Parent & Other Entergy Wholesale Commodities Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt 1,205,015 — — 1,205,015
Notes payable and commercial paper:
Other 1,946,219 — 1,946,219
Account payable:
Associated companies (28,884 8,428 —
Other 1,348 234,857 1,509,355
Customer deposits — — 408,251
Taxes accrued 9,538 (51,997 277,924
Interest accrued 24,054 847 198,317
Deferred fuel costs — — 231,250
Pension and other postretirement liabilities — 13,733 60,538
Current portion of unprotected excess accumulated deferred
income taxes 62,818
Other 1,726 19,504 216,214
TOTAL 1,954,001 225,372 6,115,901
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued (387,983 (1,085,843 4,538,706
Accumulated deferred investment tax credits — — 202,981
Regulatory liability for income taxes - net — — 1,565,468
Other regulatory liabilities — — 1,878,177
Decommissioning and retirement cost liabilities — 2,535,830 6,318,786
Accumulated provisions — 399 496,060
Pension and other postretirement liabilities — 601,483 2,626,687
Long-term debt 2,728,393 139,000 18,278,358
Other (440,219 45,899 663,780
TOTAL 1,900,191 2,236,768 36,569,003
Subsidiaries' preferred stock without sinking fund — 24,249 219,410
EQUITY
Common stock, .01 par value, authorized 500,000,000 shares;
issued 270,035,180 shares in 2020 (2,172,151 201,103 2,700
Paid-in capital 745,554 1,527,896 6,524,330
Retained earnings 1,030,428 (243,469 9,364,523
Accumulated other comprehensive income loss — (312,945 (388,604
Less - treasury stock, at cost (69,824,801 shares in 2020) 4,956,961 — 5,076,961
TOTAL COMMON SHAREHOLDERS' EQUITY (5,353,130 1,172,585 10,425,988
Subsidiaries' preferred stock without sinking fund — — 35,000
TOTAL (5,353,130 1,172,585 10,460,988
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 51,205,266 (1,498,938 3,658,974 53,365,302
*Totals may not foot due to rounding.

All values are in US Dollars.

Entergy Corporation
Consolidating Balance Sheet
December 31, 2019
(Dollars in thousands)
(Unaudited)
Utility Parent & Other Entergy Wholesale Commodities
ASSETS
CURRENT ASSETS
Cash and cash equivalents:
Cash 28,010 4,858 1,374 34,242
Temporary cash investments 173,613 10,192 207,675
Total cash and cash equivalents 201,623 15,050 209,049
Notes receivable — (514,116 514,116
Accounts receivable:
Customer 512,228 — 83,281
Allowance for doubtful accounts (7,404 — —
Associated companies 20,481 (25,572 5,091
Other 210,452 817 8,601
Accrued unbilled revenues 400,617 — —
Total accounts receivable 1,136,374 (24,755 96,973
Fuel inventory - at average cost 140,010 — 5,466
Materials and supplies - at average cost 792,192 — 32,797
Deferred nuclear refueling outage costs 120,110 — 37,458
Prepayments and other 171,874 (16,346 128,117
TOTAL 2,562,183 (540,167 1,023,976
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates - at equity 1,468,991 (1,469,077 86
Decommissioning trust funds 3,719,193 — 2,684,837
Non-utility property - at cost (less accumulated depreciation) 319,504 (5 13,365
Other 492,245 — 4,207
TOTAL 5,999,933 (1,469,082 2,702,495
PROPERTY, PLANT, AND EQUIPMENT
Electric 53,298,795 10,633 962,039
Natural gas 547,110 — —
Construction work in progress 2,813,416 245 9,630
Nuclear fuel 612,900 — 64,281
TOTAL PROPERTY, PLANT, AND EQUIPMENT 57,272,221 10,878 1,035,950
Less - accumulated depreciation and amortization 22,364,188 2,044 770,124
PROPERTY, PLANT, AND EQUIPMENT - NET 34,908,033 8,834 265,826
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets 5,292,055 — —
Deferred fuel costs 239,892 — —
Goodwill 374,099 — 3,073
Accumulated deferred income taxes 59,425 1,022 4,014
Other 122,044 10,680 155,577
TOTAL 6,087,515 11,702 162,664
TOTAL ASSETS 49,557,664 (1,988,713 4,154,961 51,723,912
*Totals may not foot due to rounding.

All values are in US Dollars.

Entergy Corporation
Consolidating Balance Sheet
December 31, 2019
(Dollars in thousands)
(Unaudited)
Parent & Other Entergy Wholesale Commodities Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt 345,012 450,000 — 795,012
Notes payable and commercial paper:
Other 1,946,727 — 1,946,727
Account payable:
Associated companies (48,342 13,964 —
Other 60 196,096 1,499,861
Customer deposits — — 409,171
Taxes accrued (957 (26,713 233,455
Interest accrued 26,649 148 194,129
Deferred fuel costs — — 197,687
Pension and other postretirement liabilities — 16,836 66,184
Current portion of unprotected excess accumulated deferred
income taxes 76,457
Other 1,837 19,616 201,780
TOTAL 2,375,974 219,947 5,620,463
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued (374,582 (1,123,429 4,401,190
Accumulated deferred investment tax credits — — 207,113
Regulatory liability for income taxes - net — — 1,633,159
Other regulatory liabilities — — 1,961,005
Decommissioning and retirement cost liabilities — 2,466,638 6,159,212
Accumulated provisions — 322 534,028
Pension and other postretirement liabilities — 656,884 2,798,265
Long-term debt 1,832,047 139,000 17,078,643
Other (446,069 55,043 852,749
TOTAL 1,011,396 2,194,458 35,625,364
Subsidiaries' preferred stock without sinking fund — 24,249 219,410
EQUITY
Common stock, .01 par value, authorized 500,000,000 shares;
issued 270,035,180 shares in 2019 (2,172,151 201,103 2,700
Paid-in capital 882,286 1,564,423 6,564,436
Retained earnings 947,932 295,180 9,257,609
Accumulated other comprehensive income loss — (344,399 (446,920
Less - treasury stock, at cost (70,886,400 shares in 2019) 5,034,150 — 5,154,150
TOTAL COMMON SHAREHOLDERS' EQUITY (5,376,083 1,716,307 10,223,675
Subsidiaries' preferred stock without sinking fund — — 35,000
TOTAL (5,376,083 1,716,307 10,258,675
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 49,557,664 (1,988,713 4,154,961 51,723,912
*Totals may not foot due to rounding.

All values are in US Dollars.

Entergy Corporation
Consolidating Income Statement
Three Months Ended June 30, 2020
(Dollars in thousands)
(Unaudited)
Utility Parent & Other Entergy Wholesale Commodities Consolidated
OPERATING REVENUES
Electric )
Natural gas 22,495 — — 22,495
Competitive businesses — 27 199,709 199,736
Total 2,213,061 18 199,709 2,412,788
OPERATING EXPENSES
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 323,980 (1 ) 17,026 341,005
Purchased power 202,128 1 9,832 211,961
Nuclear refueling outage expenses 32,871 — 12,023 44,894
Other operation and maintenance 589,085 6,862 140,314 736,261
Asset write-offs, impairments, and related charges — — 6,775 6,775
Decommissioning 43,963 — 51,450 95,413
Taxes other than income taxes 143,979 301 14,366 158,646
Depreciation and amortization 377,776 738 25,255 403,769
Other regulatory credits (25,247 — — (25,247
Total 1,688,535 7,901 277,041 1,973,477
OPERATING INCOME 524,526 (7,883 ) (77,332 439,311
OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction 28,370 — — 28,370
Interest and investment income 114,625 (36,496 ) 206,694 284,823
Miscellaneous - net (78,349 (2,276 ) (12,995 (93,620
Total 64,646 (38,772 ) 193,699 219,573
INTEREST EXPENSE
Interest expense 178,703 31,374 6,722 216,799
Allowance for borrowed funds used during construction (12,143 — — (12,143
Total 166,560 31,374 6,722 204,656
INCOME BEFORE INCOME TAXES 422,612 (78,029 ) 109,645 454,228
Income taxes 73,710 (9,062 ) 24,467 89,115
CONSOLIDATED NET INCOME 348,902 (68,967 ) 85,178 365,113
Preferred dividend requirements of subsidiaries 4,033 — 547 4,580
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION )
EARNINGS PER AVERAGE COMMON SHARE:
BASIC 1.72 (0.34) 0.42 1.80
DILUTED 1.71 (0.34) 0.42 1.79
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 200,178,010
DILUTED 200,886,749
*Totals may not foot due to rounding.

All values are in US Dollars.

Entergy Corporation
Consolidating Income Statement
Three Months Ended June 30, 2019
(Dollars in thousands)
(Unaudited)
Utility Parent & Other Entergy Wholesale Commodities Consolidated
OPERATING REVENUES
Electric )
Natural gas 30,699 — — 30,699
Competitive businesses — — 289,783 289,783
Total 2,376,437 (11 ) 289,783 2,666,209
OPERATING EXPENSES
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 441,613 (13 ) 25,723 467,323
Purchased power 330,727 13 15,121 345,861
Nuclear refueling outage expenses 39,000 — 11,962 50,962
Other operation and maintenance 650,574 3,572 187,724 841,870
Asset write-offs, impairments and related charges — — 16,419 16,419
Decommissioning 40,402 — 64,225 104,627
Taxes other than income taxes 142,763 413 20,232 163,408
Depreciation and amortization 324,856 733 37,907 363,496
Other regulatory credits (26,532 — — (26,532
Total 1,943,403 4,718 379,313 2,327,434
OPERATING INCOME 433,034 (4,729 ) (89,530 338,775
OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction 37,169 — — 37,169
Interest and investment income 60,074 (39,249 ) 75,393 96,218
Miscellaneous - net (28,579 (5,638 ) (11,653 (45,870
Total 68,664 (44,887 ) 63,740 87,517
INTEREST EXPENSE
Interest expense 162,607 29,623 8,882 201,112
Allowance for borrowed funds used during construction (16,811 — — (16,811
Total 145,796 29,623 8,882 184,301
INCOME BEFORE INCOME TAXES 355,902 (79,239 ) (34,672 241,991
Income taxes 21,150 (10,402 ) (9,290 1,458
CONSOLIDATED NET INCOME 334,752 (68,837 ) (25,382 240,533
Preferred dividend requirements of subsidiaries 3,562 — 547 4,109
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION )
EARNINGS PER AVERAGE COMMON SHARE:
BASIC 1.71 (0.36) (0.13) 1.22
DILUTED 1.70 (0.35) (0.13) 1.22
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 193,019,269
DILUTED 194,238,315
*Totals may not foot due to rounding.

All values are in US Dollars.

Entergy Corporation
Consolidating Income Statement
Six Months Ended June 30, 2020
(Dollars in thousands)
(Unaudited)
Utility Parent & Other Entergy Wholesale Commodities Consolidated
OPERATING REVENUES
Electric )
Natural gas 66,471 — — 66,471
Competitive businesses — 42 532,258 532,300
Total 4,307,690 19 532,258 4,839,967
OPERATING EXPENSES
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 701,146 (11 ) 37,273 738,408
Purchased power 408,041 11 20,523 428,575
Nuclear refueling outage expenses 71,021 — 24,091 95,112
Other operation and maintenance 1,154,805 12,234 271,306 1,438,345
Asset write-offs, impairments and related charges — — 11,870 11,870
Decommissioning 87,363 — 101,734 189,097
Taxes other than income taxes 294,170 326 34,444 328,940
Depreciation and amortization 741,825 1,486 60,167 803,478
Other regulatory credits (32,925 — — (32,925
Total 3,425,446 14,046 561,408 4,000,900
OPERATING INCOME 882,244 (14,027 ) (29,150 839,067
OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction 64,324 — — 64,324
Interest and investment income 108,493 (75,371 ) 34,847 67,969
Miscellaneous - net (41,047 (4,322 ) (24,863 (70,232
Total 131,770 (79,693 ) 9,984 62,061
INTEREST EXPENSE
Interest expense 348,089 62,141 12,158 422,388
Allowance for borrowed funds used during construction (27,587 — — (27,587
Total 320,502 62,141 12,158 394,801
INCOME BEFORE INCOME TAXES 693,512 (155,861 ) (31,324 506,327
Income taxes 20,761 3,233 (6,073 17,921
CONSOLIDATED NET INCOME 672,751 (159,094 ) (25,251 488,406
Preferred dividend requirements of subsidiaries 8,066 — 1,093 9,159
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION )
EARNINGS PER AVERAGE COMMON SHARE:
BASIC 3.33 (0.80) (0.13) 2.40
DILUTED 3.31 (0.79) (0.13) 2.39
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 199,984,013
DILUTED 200,891,134
*Totals may not foot due to rounding.

All values are in US Dollars.

Entergy Corporation
Consolidating Income Statement
Six Months Ended June 30, 2019
(Dollars in thousands)
(Unaudited)
Utility Parent & Other Entergy Wholesale Commodities Consolidated
OPERATING REVENUES
Electric )
Natural gas 85,647 — — 85,647
Competitive businesses — — 723,394 723,394
Total 4,552,419 (21 ) 723,394 5,275,792
OPERATING EXPENSES
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 894,742 (23 ) 50,934 945,653
Purchased power 654,451 23 30,894 685,368
Nuclear refueling outage expenses 77,243 — 24,160 101,403
Other operation and maintenance 1,235,944 12,613 376,364 1,624,921
Asset write-offs, impairments and related charges — — 90,397 90,397
Decommissioning 79,126 — 127,620 206,746
Taxes other than income taxes 288,487 528 32,968 321,983
Depreciation and amortization 643,421 1,404 75,945 720,770
Other regulatory credits (43,478 — — (43,478
Total 3,829,936 14,545 809,282 4,653,763
OPERATING INCOME 722,483 (14,566 ) (85,888 622,029
OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction 75,385 — — 75,385
Interest and investment income 146,353 (79,023 ) 257,037 324,367
Miscellaneous - net (77,982 (7,776 ) (24,769 (110,527
Total 143,756 (86,799 ) 232,268 289,225
INTEREST EXPENSE
Interest expense 322,013 62,027 18,065 402,105
Allowance for borrowed funds used during construction (34,260 — — (34,260
Total 287,753 62,027 18,065 367,845
INCOME BEFORE INCOME TAXES 578,486 (163,392 ) 128,315 543,409
Income taxes 9,586 (21,975 ) 56,618 44,229
CONSOLIDATED NET INCOME 568,900 (141,417 ) 71,697 499,180
Preferred dividend requirements of subsidiaries 7,125 — 1,094 8,219
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION )
EARNINGS PER AVERAGE COMMON SHARE:
BASIC 2.94 (0.74) 0.37 2.57
DILUTED 2.91 (0.73) 0.36 2.54
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 191,306,742
DILUTED 193,243,287
*Totals may not foot due to rounding.

All values are in US Dollars.

Entergy Corporation
Consolidating Income Statement
Twelve Months Ended June 30, 2020
(Dollars in thousands)
(Unaudited)
Utility Parent & Other Entergy Wholesale Commodities Consolidated
OPERATING REVENUES
Electric )
Natural gas 134,778 — — 134,778
Competitive businesses — 62 1,103,582 1,103,644
Total 9,339,258 8 1,103,582 10,442,848
OPERATING EXPENSES
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 1,737,882 (40 ) 84,551 1,822,393
Purchased power 887,784 40 48,243 936,067
Nuclear refueling outage expenses 150,093 — 48,543 198,636
Other operation and maintenance 2,481,430 31,788 572,587 3,085,805
Asset write-offs, impairments and related charges — — 211,500 211,500
Decommissioning 172,503 — 210,649 383,152
Taxes other than income taxes 588,493 432 61,777 650,702
Depreciation and amortization 1,427,305 3,026 132,393 1,562,724
Other regulatory credits (15,667 — — (15,667
Total 7,429,823 35,246 1,370,243 8,835,312
OPERATING INCOME 1,909,435 (35,238 ) (266,661 1,607,536
OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction 133,912 — — 133,912
Interest and investment income 251,710 (152,642 ) 192,446 291,514
Miscellaneous - net (112,609 (25,328 ) (74,305 (212,242
Total 273,013 (177,970 ) 118,141 213,184
INTEREST EXPENSE
Interest expense 680,429 123,695 23,542 827,666
Allowance for borrowed funds used during construction (58,284 — — (58,284
Total 622,145 123,695 23,542 769,382
INCOME BEFORE INCOME TAXES 1,560,303 (336,903 ) (172,062 1,051,338
Income taxes 30,809 (2,956 ) (223,985 (196,132
CONSOLIDATED NET INCOME 1,529,494 (333,947 ) 51,923 1,247,470
Preferred dividend requirements of subsidiaries 15,771 — 2,187 17,958
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION )
EARNINGS PER AVERAGE COMMON SHARE:
BASIC 7.59 (1.68) 0.25 6.16
DILUTED 7.54 (1.67) 0.25 6.12
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 199,500,159
DILUTED 200,739,649
*Totals may not foot due to rounding.

All values are in US Dollars.

Entergy Corporation
Consolidating Income Statement
Twelve Months Ended June 30, 2019
(Dollars in thousands)
(Unaudited)
Utility Parent & Other Entergy Wholesale Commodities Consolidated
OPERATING REVENUES
Electric )
Natural gas 155,445 — — 155,445
Competitive businesses — — 1,464,773 1,464,773
Total 9,427,891 (70 ) 1,464,773 10,892,594
OPERATING EXPENSES
Operating and Maintenance:
Fuel, fuel related expenses, and gas purchased for resale 2,094,971 (72 ) 89,448 2,184,347
Purchased power 1,419,481 72 111,557 1,531,110
Nuclear refueling outage expenses 152,374 — 24,734 177,108
Other operation and maintenance 2,520,558 33,395 793,679 3,347,632
Asset write-offs, impairments and related charges — — 480,851 480,851
Decommissioning 155,201 — 248,049 403,250
Taxes other than income taxes 566,744 950 72,476 640,170
Depreciation and amortization 1,241,756 1,921 149,064 1,392,741
Other regulatory charges 71,252 — — 71,252
Total 8,222,337 36,266 1,969,858 10,228,461
OPERATING INCOME 1,205,554 (36,336 ) (505,085 664,133
OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction 144,973 — — 144,973
Interest and investment income 241,189 (156,351 ) 215,388 300,226
Miscellaneous - net (94,505 (14,641 ) (51,287 (160,433
Total 291,657 (170,992 ) 164,101 284,766
INTEREST EXPENSE
Interest expense 631,747 128,413 35,030 795,190
Allowance for borrowed funds used during construction (67,301 — — (67,301
Total 564,446 128,413 35,030 727,889
INCOME BEFORE INCOME TAXES 932,765 (335,741 ) (376,014 221,010
Income taxes (534,863 (39,617 ) (181,185 (755,665
CONSOLIDATED NET INCOME 1,467,628 (296,124 ) (194,829 976,675
Preferred dividend requirements of subsidiaries 13,047 — 2,188 15,235
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION )
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
BASIC 7.79 (1.59) (1.05) 5.15
DILUTED 7.69 (1.57) (1.04) 5.08
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
BASIC 186,636,795
DILUTED 189,184,138
*Totals may not foot due to rounding.

All values are in US Dollars.

Entergy Corporation
Consolidated Cash Flow Statement
Three Months Ended June 30, 2020 vs. 2019
(Dollars in thousands)
(Unaudited)
2020 2019 Variance
OPERATING ACTIVITIES
Consolidated net income
Adjustments to reconcile consolidated net income to net cash flow provided by operating activities:
flow provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization 562,616 538,583 24,033
Deferred income taxes, investment tax credits, and non-current taxes accrued 99,737 120,865 (21,128
Asset write-offs, impairments and related charges 6,773 1,222 5,551
Changes in working capital:
Receivables (101,347 (166,956 65,609
Fuel inventory (4,508 (8,945 4,437
Accounts payable 88,673 44,781 43,892
Taxes accrued 88,710 5,897 82,813
Interest accrued 8,979 20,402 (11,423
Deferred fuel costs 2,738 11,595 (8,857
Other working capital accounts (42,185 (9,766 (32,419
Changes in provisions for estimated losses (2,139 (9,001 6,862
Changes in other regulatory assets (24,665 26,256 (50,921
Changes in other regulatory liabilities 286,747 (23,042 309,789
Changes in pension and other postretirement liabilities (64,153 (58,320 (5,833
Other (481,842 (182,203 (299,639
Net cash flow provided by operating activities 789,247 551,901 237,346
INVESTING ACTIVITIES
Construction/capital expenditures (1,141,686 (1,143,891 2,205
Allowance for equity funds used during construction 28,371 37,285 (8,914
Nuclear fuel purchases (28,258 (16,078 (12,180
Proceeds from sale of assets — 19,801 (19,801
Insurance proceeds received for property damages — 7,040 (7,040
Changes in securitization account 12,595 13,118 (523
Payments to storm reserve escrow account (408 (2,338 1,930
Decrease (increase) in other investments (3 12,028 (12,031
Litigation proceeds for reimbursement of spent nuclear fuel storage costs 5,090 — 5,090
Proceeds from nuclear decommissioning trust fund sales 562,061 1,180,368 (618,307
Investment in nuclear decommissioning trust funds (590,468 (1,181,376 590,908
Net cash flow used in investing activities (1,152,706 (1,074,043 (78,663
FINANCING ACTIVITIES
Proceeds from the issuance of:
Long-term debt 2,005,665 1,947,317 58,348
Treasury stock 1,789 22,220 (20,431
Common stock — 607,650 (607,650
Retirement of long-term debt (1,978,341 (1,915,640 (62,701
Changes in credit borrowings and commercial paper - net 4,403 (306,860 311,263
Other (7,692 (3,161 (4,531
Dividends paid:
Common stock (186,151 (172,861 (13,290
Preferred stock (4,579 (4,110 (469
Net cash flow provided by (used in) financing activities (164,906 174,555 (339,461
Net decrease in cash and cash equivalents (528,365 (347,587 (180,778
Cash and cash equivalents at beginning of period 1,463,833 983,496 480,337
Cash and cash equivalents at end of period
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest - net of amount capitalized 201,782 173,631 28,151
Income taxes 13,056 6,877 6,179

All values are in US Dollars.

Entergy Corporation
Consolidated Cash Flow Statement
Six Months Ended June 30, 2020 vs. 2019
(Dollars in thousands)
(Unaudited)
2020 2019 Variance
OPERATING ACTIVITIES
Consolidated net income
Adjustments to reconcile consolidated net income to net cash
flow provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization 1,131,212 1,068,807 62,405
Deferred income taxes, investment tax credits, and non-current taxes accrued 68,332 225,749 (157,417
Asset write-offs, impairments and related charges 11,735 26,684 (14,949
Changes in working capital:
Receivables (30,990 (127,259 96,269
Fuel inventory (19,897 (13,346 (6,551
Accounts payable (39,054 (18,832 (20,222
Taxes accrued 44,469 (38,186 82,655
Interest accrued 4,188 (144 4,332
Deferred fuel costs 33,298 31,796 1,502
Other working capital accounts (63,943 (51,782 (12,161
Changes in provisions for estimated losses (37,968 4,719 (42,687
Changes in other regulatory assets 74,610 (135,936 210,546
Changes in other regulatory liabilities (164,158 107,882 (272,040
Changes in pension and other postretirement liabilities (177,224 (66,033 (111,191
Other 125,291 (460,209 585,500
Net cash flow provided by operating activities 1,448,307 1,053,090 395,217
INVESTING ACTIVITIES
Construction/capital expenditures (2,185,294 (2,095,520 (89,774
Allowance for equity funds used during construction 64,324 75,607 (11,283
Nuclear fuel purchases (113,592 (54,523 (59,069
Payment for purchase of assets (24,633 — (24,633
Proceeds from sale of assets — 19,801 (19,801
Insurance proceeds received for property damages — 7,040 (7,040
Changes in securitization account 12,525 12,034 491
Payments to storm reserve escrow account (1,965 (4,623 2,658
Receipts from storm reserve escrow account 40,589 — 40,589
Decrease in other investments 2,262 51,073 (48,811
Litigation proceeds for reimbursement of spent nuclear fuel storage costs 67,252 — 67,252
Proceeds from nuclear decommissioning trust fund sales 1,249,548 2,487,915 (1,238,367
Investment in nuclear decommissioning trust funds (1,309,209 (2,523,805 1,214,596
Net cash flow used in investing activities (2,198,193 (2,025,001 (173,192
FINANCING ACTIVITIES
Proceeds from the issuance of:
Long-term debt 5,201,010 5,391,547 (190,537
Treasury stock 41,753 57,797 (16,044
Common stock — 607,650 (607,650
Retirement of long-term debt (3,592,919 (4,214,495 621,576
Repurchase of preferred membership units — (50,000 50,000
Changes in credit borrowings and commercial paper - net (508 (306,877 306,369
Other (8,448 (5,106 (3,342
Dividends paid:
Common stock (371,914 (345,452 (26,462
Preferred stock (9,342 (8,219 (1,123
Net cash flow provided by financing activities 1,259,632 1,126,845 132,787
Net increase in cash and cash equivalents 509,746 154,934 354,812
Cash and cash equivalents at beginning of period 425,722 480,975 (55,253
Cash and cash equivalents at end of period
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest - net of amount capitalized 405,248 388,566 16,682
Income taxes (10,007) (6,967) (3,040)

All values are in US Dollars.

Entergy Corporation
Consolidated Cash Flow Statement
Twelve Months Ended June 30, 2020 vs. 2019
(Dollars in thousands)
(Unaudited)
2020 2019 Variance
OPERATING ACTIVITIES
Consolidated net income
Adjustments to reconcile consolidated net income to net cash
flow provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization 2,244,718 2,081,753 162,965
Deferred income taxes, investment tax credits, and non-current taxes accrued 36,533 (119,831 156,364
Asset write-offs, impairments and related charges 211,729 466,920 (255,191
Changes in working capital:
Receivables (4,958 16,802 (21,760
Fuel inventory (34,724 23,981 (58,705
Accounts payable (92,120 (18,984 (73,136
Taxes accrued 61,871 9,178 52,693
Interest accrued 5,269 7,132 (1,863
Deferred fuel costs 173,648 138,230 35,418
Other working capital accounts (15,269 (80,973 65,704
Changes in provisions for estimated losses (22,773 12,982 (35,755
Changes in other regulatory assets (335,013 (53,455 (281,558
Changes in other regulatory liabilities (286,821 (448,202 161,381
Changes in pension and other postretirement liabilities 75,933 (189,696 265,629
Other (53,649 (464,098 410,449
Net cash flow provided by operating activities 3,211,844 2,358,414 853,430
INVESTING ACTIVITIES
Construction/capital expenditures (4,287,441 (4,152,111 (135,330
Allowance for equity funds used during construction 133,579 145,467 (11,888
Nuclear fuel purchases (187,435 (266,786 79,351
Payment for purchase of plant or assets (349,906 (26,623 (323,283
Proceeds from sale of assets 28,932 35,540 (6,608
Insurance proceeds received for property damages — 14,787 (14,787
Changes in securitization account 3,789 1,436 2,353
Payments to storm reserve escrow account (5,380 (8,430 3,050
Receipts from storm reserve escrow account 40,589 — 40,589
Decrease (increase) in other investments (18,492 7,342 (25,834
Litigation proceeds for reimbursement of spent nuclear fuel storage costs 69,621 59,643 9,978
Proceeds from nuclear decommissioning trust fund sales 2,882,984 7,171,536 (4,288,552
Investment in nuclear decommissioning trust funds (2,994,274 (7,183,097 4,188,823
Net cash flow used in investing activities (4,683,434 (4,201,296 (482,138
FINANCING ACTIVITIES
Proceeds from the issuance of:
Long-term debt 9,113,859 10,067,890 (954,031
Preferred stock of subsidiary 33,188 73,330 (40,142
Treasury stock 77,818 157,421 (79,603
Common stock — 1,106,922 (1,106,922
Retirement of long-term debt (6,997,804 (8,611,102 1,613,298
Repurchase / redemption of preferred stock and preferred membership units — (103,868 103,868
Changes in credit borrowings and commercial paper - net 310,758 (348,641 659,399
Other (11,074 10,913 (21,987
Dividends paid:
Common stock (738,035 (671,335 (66,700
Preferred stock (17,561 (15,526 (2,035
Net cash flow provided by financing activities 1,771,149 1,666,004 105,145
Net increase (decrease) in cash and cash equivalents 299,559 (176,878 476,437
Cash and cash equivalents at beginning of period 635,909 812,787 (176,878
Cash and cash equivalents at end of period
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest - net of amount capitalized 794,891 760,782 34,109
Income taxes (43,475) (1,287) (42,188)

All values are in US Dollars.

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