8-K
ENTERGY ARKANSAS, LLC (EAI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date earliest event reported) February 24, 2021
| 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>Symbol | Name of Each Exchange<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, 4.875% Series due September 2066 | EAI | New York Stock Exchange |
| Entergy Louisiana, LLC | 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. | 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 February 24, 2021, Entergy Corporation (the “Company”) issued a press release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the fourth quarter 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 February 24, 2021, the Company issued the Earnings Release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the fourth quarter 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 February 24, 2021, 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: February 24, 2021
Document
Exhibit 99.1
News
Release
| Date: | February 24, 2021 | |
|---|---|---|
| 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 2020 Financial Results, Initiates 2021 Earnings Guidance
2020 results in top half of guidance range
NEW ORLEANS – Entergy Corporation (NYSE: ETR) reported fourth quarter 2020 earnings per share of $1.93 on an as-reported basis and 71 cents on an adjusted basis (non-GAAP). For the full year, the company reported 2020 earnings per share of $6.90 on an as-reported basis and $5.66 on an adjusted basis.
“We are reporting strong results for another very successful year. Our adjusted earnings per share were in the top half of our guidance range as we exceeded our $100 million cost savings target for the year,” said Entergy Chairman and Chief Executive Officer Leo Denault. “We’ve built a culture of resiliency, and we couldn’t be prouder of our employees who successfully delivered on our commitments in the face of extraordinary challenges. Our strong 2020 results reinforce our confidence in our continued success in the future.”
Business highlights included the following:
•Montgomery County Power Station was placed in service on January 1, 2021, ahead of schedule.
•The 20 MW New Orleans Solar Station was placed in service.
•Entergy Louisiana completed the purchase of the Washington Parish Energy Center.
| Table of Contents Page |
|---|
| News Release 1<br>Appendices 8<br>A: Consolidated Results and Adjustments 9<br>B: Earnings Variance Analysis 13<br>C: Utility Financial and Operating Measures 16<br>D: EWC Financial and Operating Measures 17<br>E: Consolidated Financial Measures 18<br>F: Definitions and Abbreviations and Acronyms 19<br>G: Other GAAP to Non-GAAP Reconciliations 22<br>Financial Statements 25 |
•The NRC approved the license transfer of Indian Point to Holtec.
•Edison Electric Institute awarded five emergency response awards to Entergy.
•Entergy was named to one of the Dow Jones Sustainability Indices for the 19th consecutive year.
•Entergy raised its dividend for the sixth consecutive year.
| Consolidated Earnings (GAAP and Non-GAAP Measures) | |||||
|---|---|---|---|---|---|
| Fourth Quarter and Full Year 2020 vs. 2019 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | |||||
| Full Year | |||||
| 2019 | Change | 2020 | 2019 | Change | |
| (After-tax, in millions) | |||||
| As-reported earnings | 385 | 3 | 1,388 | 1,241 | 147 |
| Less adjustments | 248 | (1) | 250 | 177 | 73 |
| Adjusted earnings (non-GAAP) | 137 | 4 | 1,138 | 1,064 | 74 |
| Estimated weather in billed sales | 45 | (66) | (75) | 46 | (120) |
| (After-tax, per share in ) | |||||
| As-reported earnings | 1.92 | 0.01 | 6.90 | 6.30 | 0.60 |
| Less adjustments | 1.24 | (0.02) | 1.24 | 0.90 | 0.34 |
| Adjusted earnings (non-GAAP) | 0.68 | 0.03 | 5.66 | 5.40 | 0.26 |
| Estimated weather in billed sales | 0.22 | (0.33) | (0.37) | 0.23 | (0.60) |
All values are in US Dollars.
Calculations may differ due to rounding
Consolidated Results
For fourth quarter 2020, the company reported earnings of $388 million, or $1.93 per share, on an as-reported basis, and earnings of $142 million, or 71 cents per share, on an adjusted basis. This compared to fourth quarter 2019 earnings of $385 million, or $1.92 per share, on an as-reported basis, and earnings of $137 million, or 68 cents per share, on an adjusted basis.
For full year 2020, the company reported earnings of $1,388 million, or $6.90 per share, on an as-reported basis, and earnings of $1,138 million, or $5.66 per share, on an adjusted
basis. This compared to 2019 earnings of $1,241 million, or $6.30 per share, on an as-reported basis, and earnings of $1,064 million, or $5.40 per share, on an adjusted basis.
Summary discussions of full year results by business are below. Additional details, including information on OCF by business, are provided in Appendix A. An analysis of quarterly and full year variances by business is provided in Appendix B.
Full Year Business Segment Results
Utility
For full year 2020, the Utility business reported earnings attributable to Entergy Corporation of $1,800 million, or $8.95 per share, on an as-reported basis, and earnings of $1,424 million, or $7.08 per share, on an adjusted basis. This compared to full year 2019 earnings of $1,411 million, or $7.16 per share, on an as-reported basis, and $1,369 million, or $6.95 per share, on an adjusted basis. Drivers for the full year included:
•net effect of regulatory actions across the operating companies;
•lower other O&M; and
•a lower effective income tax rate, net of customer sharing (some items considered adjustments and excluded from adjusted earnings).
These drivers were partially offset by:
•lower retail sales volume, including the effects of COVID-19, weather, and storms;
•higher depreciation and interest expenses;
•lower AFUDC due to completion of major construction projects; and
•regulatory provisions at E-AR and SERI (the provision at SERI was considered an adjustment and excluded from adjusted earnings).
On a per share basis, full year 2020 results reflected higher common shares outstanding.
Appendix C contains additional details on Utility financial and operating measures.
Parent & Other
For full year 2020, Parent & Other reported a loss attributable to Entergy Corporation of $(347 million), or $(1.73) per share, on an as-reported basis, and a loss of $(286 million), or $(1.42) per share, on an adjusted basis. This compared to a full year 2019 loss of $(316 million), or $(1.60) per share, on an as-reported basis, and a loss of $(305 million), or $(1.55) per share on an adjusted basis. A primary driver for the full year was income tax expense (some items considered adjustments and excluded from adjusted earnings). This was partially offset by the timing of a charitable contribution and interest expense.
On a per share basis, full year 2020 results reflected higher common shares outstanding.
Entergy Wholesale Commodities
For full year 2020, EWC reported a loss attributable to Entergy Corporation of $(65 million), or (32) cents per share, on an as-reported basis. This compared to full year 2019 earnings attributable to Entergy Corporation of $147 million, or 74 cents per share, on an as-reported basis. Drivers for the year included:
•lower revenue primarily due to the shutdown of Indian Point 2 and Pilgrim;
•unfavorable income tax items in 2020 as compared to 2019; and
•lower gains on decommissioning trust funds.
These drivers were partially offset by:
•lower asset write-offs, impairments, and related charges as compared to a year ago; and
•lower operating expenses due to the shutdown of Indian Point 2 and Pilgrim.
On a per share basis, full year 2020 results reflected higher common shares outstanding.
Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC adjusted EBITDA.
Earnings Per Share Guidance
Entergy initiated its 2021 adjusted EPS guidance range of $5.80 to $6.10. See webcast presentation for additional details.
The company has provided 2021 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 $(1.45) in 2021. 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, February 24, 2021, 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 6726389, 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 March 3, 2021, by dialing 855-859-2056, conference ID 6726389.
Entergy Corporation is an integrated energy company engaged in electric power production, transmission and retail distribution operations. Entergy delivers electricity to 3
million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy owns and operates one of the cleanest large-scale U.S. power generating fleets with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Headquartered in New Orleans, Louisiana, Entergy has annual revenues of $10 billion and 13,400 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 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 ROE, excluding affiliate preferred; 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 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 and FFO 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) exclude 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, statements regarding Entergy’s 2021 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 executing on business strategies, including strategic transactions that Entergy or its subsidiaries may undertake and 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 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; (k) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers; and (l) the effects of technological change, including the costs, pace of development and commercialization of new and emerging technologies.
Fourth 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 MeasuresFourth Quarter and Full Year 2020 vs. 2019 (See Appendix A-3 and Appendix A-4 for details on adjustments) | |||||
|---|---|---|---|---|---|
| Full Year | |||||
| 2019 | Change | 2020 | 2019 | Change | |
| (After-tax, in millions) | |||||
| As-reported earnings (loss) | |||||
| Utility | 271 | 313 | 1,800 | 1,411 | 389 |
| Parent & Other | (103) | (24) | (347) | (316) | (31) |
| EWC | 217 | (286) | (65) | 147 | (212) |
| Consolidated | 385 | 3 | 1,388 | 1,241 | 147 |
| Less adjustments | |||||
| Utility | 41 | 335 | 377 | 41 | 335 |
| Parent & Other | (11) | (51) | (61) | (11) | (51) |
| EWC | 217 | (286) | (65) | 147 | (212) |
| Consolidated | 248 | (1) | 250 | 177 | 73 |
| Adjusted earnings (loss) (non-GAAP) | |||||
| Utility | 229 | (22) | 1,424 | 1,369 | 54 |
| Parent & Other | (92) | 26 | (286) | (305) | 20 |
| EWC | - | - | - | - | - |
| Consolidated | 137 | 4 | 1,138 | 1,064 | 74 |
| Estimated weather in billed sales | 45 | (66) | (75) | 46 | (120) |
| Diluted average number of common shares outstanding (in millions) | 201 | 201 | 197 | ||
| (After-tax, per share in ) (a) | |||||
| As-reported earnings (loss) | |||||
| Utility | 1.35 | 1.55 | 8.95 | 7.16 | 1.79 |
| Parent & Other | (0.51) | (0.12) | (1.73) | (1.60) | (0.13) |
| EWC | 1.08 | (1.42) | (0.32) | 0.74 | (1.06) |
| Consolidated | 1.92 | 0.01 | 6.90 | 6.30 | 0.60 |
| Less adjustments | |||||
| Utility | 0.21 | 1.66 | 1.87 | 0.21 | 1.66 |
| Parent & Other | (0.05) | (0.26) | (0.31) | (0.05) | (0.26) |
| EWC | 1.08 | (1.42) | (0.32) | 0.74 | (1.06) |
| Consolidated | 1.24 | (0.02) | 1.24 | 0.90 | 0.34 |
| Adjusted earnings (loss) (non-GAAP) | |||||
| Utility | 1.14 | (0.11) | 7.08 | 6.95 | 0.13 |
| Parent & Other | (0.46) | 0.14 | (1.42) | (1.55) | 0.13 |
| EWC | - | - | - | - | - |
| Consolidated | 0.68 | 0.03 | 5.66 | 5.40 | 0.26 |
| Estimated weather in billed sales | 0.22 | (0.33) | (0.37) | 0.23 | (0.60) |
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 | |||||
|---|---|---|---|---|---|
| Fourth Quarter and Full Year 2020 vs. 2019 | |||||
| ( in millions) | |||||
| Full Year | |||||
| 2019 | Change | 2020 | 2019 | Change | |
| Utility | 677 | (772) | 2,276 | 2,974 | (698) |
| Parent & Other | (21) | 529 | 296 | (237) | 534 |
| EWC | 43 | (136) | 118 | 80 | 37 |
| Consolidated | 699 | (379) | 2,690 | 2,817 | (127) |
All values are in US Dollars.
Calculations may differ due to rounding
OCF decreased quarter-over-quarter due primarily to non-capital storm costs, lower collections due to COVID-19, unfavorable weather, and decreased collections for fuel and purchased power cost recovery at the Utility. Higher severance and retention payments and higher nuclear refueling outage spending at EWC also contributed. Lower pension funding partially offset the quarterly decrease.
OCF decreased year-over-year due primarily to non-capital storm costs, decreased collections for fuel and purchased power cost recovery, lower collections due to COVID-19, and unfavorable weather. The decrease was partially offset by a lower amount of unprotected excess ADIT returned to customers, lower severance and retention payments at EWC, lower pension funding, and higher DOE proceeds.
For both the quarter and the full year, intercompany income tax payments contributed to the line of business variances but were immaterial at the consolidated level.
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) | |||||
|---|---|---|---|---|---|
| Fourth Quarter and Full Year 2020 vs. 2019 | |||||
| Full Year | |||||
| 2019 | Change | 2020 | 2019 | Change | |
| (Pre-tax except for income taxes, preferred dividendrequirements, and totals; in millions) | |||||
| Utility | |||||
| SERI regulatory liability for potential refund for rate base reduction retroactive to 2015 | - | (25) | (25) | - | (25) |
| Income tax effect on Utility adjustment above | - | 6 | 6 | - | 6 |
| 2014 / 2015 IRS settlement – E-LA business combination | - | 396 | 396 | - | 396 |
| Reversal of income tax valuation allowance | 41 | (41) | - | 41 | (41) |
| Total Utility | 41 | 335 | 377 | 41 | 335 |
| Parent & Other | |||||
| 2014 / 2015 IRS settlement – E-LA business combination | - | (61) | (61) | - | (61) |
| Income tax valuation allowance for interest deductibility | (11) | 11 | - | (11) | 11 |
| Total Parent & Other | (11) | (51) | (61) | (11) | (51) |
| EWC | |||||
| Income before income taxes | 31 | (0) | 42 | (12) | 55 |
| Income taxes | 187 | (286) | (105) | 161 | (266) |
| Preferred dividend requirements | (1) | - | (2) | (2) | - |
| Total EWC | 217 | (286) | (65) | 147 | (212) |
| Total adjustments | 248 | (1) | 250 | 177 | 73 |
| (After-tax, per share in ) (b) | |||||
| Utility | |||||
| SERI regulatory liability for potential refund for rate base reduction retroactive to 2015 | - | (0.09) | (0.09) | - | (0.09) |
| 2014 / 2015 IRS settlement – E-LA business combination | - | 1.96 | 1.96 | - | 1.96 |
| Reversal of income tax valuation allowance | 0.21 | (0.21) | - | 0.21 | (0.21) |
| Total Utility | 0.21 | 1.66 | 1.87 | 0.21 | 1.66 |
| Parent & Other | |||||
| 2014 / 2015 IRS settlement – E-LA business combination | - | (0.31) | (0.31) | - | (0.31) |
| Income tax valuation allowance for interest deductibility | (0.05) | 0.05 | - | (0.05) | 0.05 |
| Total Parent & Other | (0.05) | (0.26) | (0.31) | (0.05) | (0.26) |
| EWC | |||||
| Total EWC | 1.08 | (1.42) | (0.32) | 0.74 | (1.06) |
| Total adjustments | 1.24 | (0.02) | 1.24 | 0.9 | 0.34 |
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) | |||||
|---|---|---|---|---|---|
| Fourth Quarter and Full Year 2020 vs. 2019 | |||||
| (Pre-tax except for income taxes, preferred dividend requirements, and totals; in millions) | |||||
| Full Year | |||||
| 2019 | Change | 2020 | 2019 | Change | |
| Utility | |||||
| Other regulatory charges | - | (25) | (25) | - | (25) |
| Income taxes | 41 | 361 | 402 | 41 | 361 |
| Total Utility | 41 | 335 | 377 | 41 | 335 |
| Parent & Other | |||||
| Income taxes | (11) | (51) | (61) | (11) | (51) |
| Total Parent & Other | (11) | (51) | (61) | (11) | (51) |
| EWC | |||||
| Operating revenues | 271 | (75) | 943 | 1,295 | (352) |
| Fuel and fuel-related expenses | (22) | 6 | (67) | (98) | 31 |
| Purchased power | (10) | (8) | (68) | (59) | (9) |
| Nuclear refueling outage expense | (12) | 2 | (45) | (49) | 3 |
| Other O&M | (165) | 50 | (500) | (678) | 178 |
| Asset write-off and impairments | (2) | (9) | (27) | (290) | 263 |
| Decommissioning expense | (49) | (3) | (205) | (237) | 32 |
| Taxes other than income taxes | (15) | 6 | (53) | (60) | 7 |
| Depreciation/amortization exp. | (34) | 13 | (102) | (148) | 46 |
| Other income (deductions)–other | 74 | 18 | 189 | 340 | (152) |
| Interest exp. and other charges | (5) | - | (22) | (29) | 7 |
| Income taxes | 187 | (286) | (105) | 161 | (266) |
| Preferred dividend requirements | (1) | - | (2) | (2) | - |
| Total EWC | 217 | (286) | (65) | 147 | (212) |
| Total adjustments | 248 | (1) | 250 | 177 | 73 |
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 full year 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) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Fourth 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 (loss) | 1.14 | (0.51) | (0.46) | 1.08 | 1.92 | 0.68 | ||
| Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | (0.11) | (e) | - | - | (0.31) | (f) | (0.51) | (0.11) |
| Nuclear refueling outage expense | 0.02 | - | - | 0.01 | 0.03 | 0.02 | ||
| Other O&M | (0.10) | (g) | 0.01 | 0.01 | 0.20 | (h) | 0.11 | (0.09) |
| Asset write-offs and impairments | - | - | - | (0.03) | (0.03) | - | ||
| Decommissioning expense | (0.01) | - | - | (0.01) | (0.02) | (0.01) | ||
| Taxes other than income taxes | (0.01) | - | - | 0.02 | 0.01 | (0.01) | ||
| Depreciation/amortization exp. | (0.15) | (i) | - | - | 0.05 | (j) | (0.10) | (0.15) |
| Other income (deductions)–other | 0.07 | (k) | 0.09 | 0.09 | 0.07 | (m) | 0.23 | 0.16 |
| Interest exp. and other charges | (0.04) | 0.02 | 0.02 | - | (0.02) | (0.02) | ||
| Income taxes–other | 0.23 | (k) | (0.24) | 0.02 | (1.42) | (p) | 0.32 | 0.25 |
| Preferred dividend requirements | - | - | - | - | - | - | ||
| Share effect | (0.01) | - | - | - | (0.01) | (0.01) | ||
| 2020 earnings (loss) | 1.03 | (0.63) | (0.32) | (0.34) | 1.93 | 0.71 |
All values are in US Dollars.
h
| Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Full Year 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 (loss) | 6.95 | (1.60) | (1.55) | 0.74 | 6.30 | 5.40 | |||
| Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 0.40 | (e) | - | - | (1.32) | (f) | (1.01) | 0.40 | |
| Nuclear refueling outage expense | 0.07 | (q) | - | - | 0.01 | 0.08 | 0.07 | ||
| Other O&M | 0.30 | (g) | 0.03 | 0.03 | 0.71 | (h) | 1.04 | 0.33 | |
| Asset write-offs and impairments | - | - | - | 1.06 | (r) | 1.06 | - | ||
| Decommissioning expense | (0.04) | - | - | 0.12 | (s) | 0.08 | (0.04) | ||
| Taxes other than income taxes | (0.06) | (t) | - | - | 0.03 | (0.03) | (0.06) | ||
| Depreciation/amortization exp. | (0.68) | (i) | - | - | 0.19 | (j) | (0.49) | (0.68) | |
| Other income (deductions)–other | (0.09) | (k) | 0.15 | 0.15 | (l) | (0.61) | (m) | (0.55) | 0.06 |
| Interest exp. and other charges | (0.22) | (u) | 0.03 | 0.03 | 0.03 | (0.16) | (0.19) | ||
| Income taxes–other | 0.65 | (n) | (0.37) | (0.11) | (o) | (1.29) | (p) | 0.74 | 0.54 |
| Preferred dividend requirements | (0.01) | - | - | - | (0.01) | (0.01) | |||
| Share effect | (0.19) | (v) | 0.03 | 0.03 | 0.01 | (0.15) | (0.16) | ||
| 2020 earnings (loss) | 7.08 | (1.73) | (1.42) | (0.32) | 6.90 | 5.66 |
All values are in US Dollars.
Calculations may differ due to rounding
(c)Utility operating revenue / regulatory charges, Utility other O&M, and Utility income taxes-other exclude $13 million, $- million, and $13 million respectively in fourth quarter 2020 and $52 million, $3 million, and $55 million respectively in fourth quarter 2019 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). On a full year basis, Utility operating revenue / regulatory charges, Utility other O&M, and Utility income taxes-other exclude $74 million, $- million, and $74 million respectively in 2020 and $268 million, $6 million, and $274 million respectively 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) | |
|---|---|
| FY | |
| Volume/weather | (0.61) |
| Retail electric price | 1.39 |
| Reg. provision at E-AR in 4Q20 | (0.16) |
| Reg. provision at E-AR in 1Q19 | 0.05 |
| Reg. provision at SERI (classified as an adjustment) | (0.09) |
| Reg. liability for tax sharing | (0.22) |
| Other | (0.05) |
| Total | 0.31 |
All values are in US Dollars.
(e)The fourth quarter and full year earnings variances were primarily driven by E-AR’s FRP; E-LA’s FRP, including recovery of LCPS; E-MS’s FRP, vegetation rider, and recovery of Choctaw; and E-TX’s TCRF and DCRF. The variance also reflected three regulatory charges: first, a regulatory provision for E-AR’s FRP to account for the December 2020 APSC order; second, a regulatory liability for tax sharing with E-LA customers (partially offsets the hurricanes Katrina and Rita Act 55 income tax item discussed in footnote n); and third, a regulatory provision for a potential refund to reflect lower rate base retroactive to 2015 at SERI (classified as an adjustment). The variances also reflected lower volume/weather, including the effects of COVID-19 and hurricanes, as well as E-NO’s rate case. The full year variance also reflected recovery of the J. Wayne Leonard Power Station, a first quarter 2019 regulatory reserve at E-AR, and a regulatory liability for tax sharing with E-LA customers (partially offsets the Hurricane Isaac Act 55 income tax item discussed in footnote n).
(f)The fourth quarter and full year earnings decreases were due largely to lower revenues from the shutdown of Indian Point 2 in April 2020. The full year variance also reflected lower revenues from the shutdown of Pilgrim in May 2019.
(g)The fourth quarter earnings decrease from higher Utility other O&M was due primarily to higher non-nuclear generation expenses related to timing and scope of outages and plant costs for LCPS and Choctaw, and higher transmission costs, partially offset by lower compensation and benefits costs and a write-off of scrubbers at White Bluff in 2019. In addition to the items mentioned above, the full year earnings increase was due primarily to lower nuclear generation expenses, lower contract costs related to new customer initiatives, lower non-nuclear generation expenses, higher nuclear insurance refunds, and a decrease in loss provisions. These were partially offset by higher compensation and benefits costs, primarily pension.
(h)The fourth quarter and full year earnings increases from lower EWC other O&M were due largely to the shutdown of Indian Point 2 in April 2020. The full year variance also reflected the shutdown of Pilgrim in May 2019, as well as a decrease in severance and retention expense.
(i)The fourth quarter and full year earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including LCPS and Choctaw. The full year variance also reflected the J. Wayne Leonard Power Station being placed in service in second quarter 2019, as well as higher depreciation rates at E-MS.
(j)The fourth quarter and full year earnings increases from lower EWC depreciation expense were due primarily to the shutdown of Indian Point 2 in April 2020. The full year variance also reflected the shutdown of Pilgrim in May 2019.
(k)The fourth quarter earnings increase from higher Utility other income (deductions)–other was due largely to changes in decommissioning trust fund returns (based on regulatory treatment, decommissioning-related variances are largely earnings neutral). The full year earnings decrease from lower Utility other income (deductions)–other was due primarily to lower AFUDC as a result of lower construction work in progress in 2020 and higher non-service pension and OPEB costs, partially offset by changes in decommissioning trust fund returns (based on regulatory treatment, decommissioning-related variances are largely earnings neutral).
(l)The fourth quarter and full year earnings increase from Parent & Other other income (deductions)–other was due primarily to the timing of a charitable contribution and intercompany interest.
(m)The fourth quarter earnings increase from higher EWC other income (deductions)–other was due largely to performance of nuclear decommissioning trust fund investments in 2020 as compared to 2019. The full year earnings decrease was due largely to performance of nuclear decommissioning trust fund investments in 2020 as compared to 2019, as well as the repayment of an intercompany loan, partially offset by a $16 million pension settlement charge in third quarter 2019 related to the exit of the EWC business.
(n)The fourth quarter and full year earnings increases from Utility income taxes-other reflected two fourth quarter 2020 items and one fourth quarter 2019 item. In fourth quarter 2020, a settlement of the 2014 / 2015 IRS audit resulted in a $396 million tax benefit (classified as an adjustment), as well as a $31 million tax benefit related to Act 55 financing of Hurricanes Katrina and Rita costs (partly offset by customer sharing, recorded as a regulatory charge discussed in footnote e). In fourth quarter 2019, a $41 million income tax item was generated through the reversal of a valuation allowance generated as part of the 2018 internal restructuring (classified as an adjustment). The full year earnings increase also reflected two first quarter 2020 items. First, 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); and second, an annual tax accrual related to stock-based compensation resulted in an income tax benefit of $22 million, $20 million greater than first quarter 2019. Additional annual true-ups totaling $19 million also contributed to the variance.
(o)The fourth quarter and full year earnings decreases from Parent & Other income taxes-other reflected one fourth quarter 2020 item and one fourth quarter 2019 item. In fourth quarter 2020, a settlement of the 2014 / 2015 IRS audit resulted in $61 million of tax expense (classified as an adjustment). In fourth quarter 2019, a valuation allowance recorded on the expected interest limitation carryover resulted in $11 million of tax expense related to tax year 2018 (classified as an adjustment) and approximately $11 million of tax expense related to tax year 2019. The full year variance also reflected $23 million of income tax expense recorded in first quarter 2020 as a result of the IRS settlement related to the Hurricane Isaac Act 55 financing (discussed in footnote n).
(p)The fourth quarter and full year earnings decreases from EWC income taxes-other reflected one fourth quarter 2020 item and three fourth quarter 2019 items. In fourth quarter 2020, a settlement of the 2014 / 2015 IRS audit resulted in $104 million of tax expense. In fourth quarter 2019, first, a restructuring within the EWC business resulted in a reduction in income tax expense of $156 million. Second, a donation to the State University of New York triggered the recognition of an associated tax deduction, resulting in a decrease to tax expense of $19 million. Third, an EWC subsidiary recognized a reduction in tax expense of $18 million. The full year earnings decrease was partly offset by a first quarter 2019 accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019.
(q)The full year earnings increase from lower Utility nuclear refueling outage expense was due to decreased amortization of ANO Unit 2 refueling outage costs.
(r)The full year earnings increase from lower EWC asset write-offs and impairments were due primarily to a $191 million loss (pre-tax) on the sale of Pilgrim in third quarter 2019 and higher impairment charges in first quarter 2019, largely refueling outage costs at Indian Point 3.
(s)The full year earnings increase from lower EWC decommissioning expense was due to the sale of Pilgrim in 2019.
(t)The full year earnings decrease from higher Utility taxes other than income taxes was due primarily to an increase in ad valorem taxes at E-LA and E-AR.
(u)The full year earnings decrease from higher Utility interest expense was due primarily to higher debt balances at E-TX, E-LA, E-AR, and E-MS.
(v)The earnings per share impacts from share effect were due to settlement of the equity forward (8.4 million shares settled in May 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 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Fourth Quarter and Full Year 2020 vs. 2019 | ||||||||
| Fourth Quarter | Full Year | |||||||
| 2020 | 2019 | % Change | % Weather Adjusted (w) | 2020 | 2019 | % Change | % Weather Adjusted (w) | |
| GWh billed | ||||||||
| Residential | 7,654 | 8,344 | (8.3) | 3.4 | 35,173 | 36,094 | (2.6) | 2.7 |
| Commercial | 6,359 | 6,991 | (9.0) | (4.6) | 26,466 | 28,755 | (8.0) | (6.5) |
| Governmental | 590 | 647 | (8.8) | (7.9) | 2,414 | 2,579 | (6.4) | (6.3) |
| Industrial | 11,461 | 11,974 | (4.3) | (4.3) | 47,117 | 48,483 | (2.8) | (2.8) |
| Total retail sales | 26,064 | 27,956 | (6.8) | (2.3) | 111,170 | 115,911 | (4.1) | (2.1) |
| Wholesale | 2,549 | 3,201 | (20.4) | 13,658 | 13,210 | 3.4 | ||
| Total sales | 28,613 | 31,157 | (8.2) | 124,828 | 129,121 | (3.3) | ||
| Number of electric retail customers | ||||||||
| Residential | 2,527,402 | 2,500,736 | 1.1 | |||||
| Commercial | 361,054 | 359,395 | 0.5 | |||||
| Governmental | 17,803 | 17,768 | 0.2 | |||||
| Industrial | 47,305 | 45,320 | 4.4 | |||||
| Total retail customers | 2,953,564 | 2,923,219 | 1.0 | |||||
| Other O&M and refueling outage expense per MWh | $25.34 | $22.70 | 11.6 | $20.96 | $21.06 | (0.5) |
Calculations may differ due to rounding
a.The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change.
On a weather-adjusted basis for fourth quarter 2020, billed retail sales decreased (2.3) percent, including the impacts from COVID-19 and hurricanes. Residential billed sales increased 3.4 percent and commercial billed sales decreased (4.6) percent. Industrial billed sales volume decreased (4.3) percent reflecting lower sales to existing small and large customers, partially offset by growth from new/expansion customers.
On a weather-adjusted basis for full year 2020, retail billed sales decreased (2.1) percent, including the impacts from COVID-19 and hurricanes. Residential billed sales increased 2.7 percent and commercial billed sales decreased (6.5). Industrial billed sales volume decreased (2.8) percent reflecting lower sales to existing large and small customers, partially offset by growth from new/expansion customers.
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).
| Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
|---|---|---|---|---|---|---|
| Fourth Quarter and Full Year 2020 vs. 2019 | ||||||
| ($ in millions) | Fourth Quarter | Full Year | ||||
| 2020 | 2019 | Change | 2020 | 2019 | Change | |
| Net income (loss) | (68) | 218 | (286) | (63) | 149 | (212) |
| Add back: interest expense | 5 | 5 | - | 22 | 29 | (7) |
| Add back: income taxes | 99 | (187) | 286 | 105 | (161) | 266 |
| Add back: depreciation and amortization | 21 | 34 | (13) | 102 | 148 | (46) |
| Subtract: interest and investment income | 104 | 99 | 5 | 234 | 415 | (180) |
| Add back: decommissioning expense | 53 | 49 | 3 | 205 | 237 | (32) |
| Adjusted EBITDA (non-GAAP) | 5 | 20 | (15) | 137 | (13) | 150 |
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 Full Year 2020 vs. 2019 | ||||||
| Fourth Quarter | Full Year | |||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | |
| Owned capacity (MW) (w) | 2,246 | 3,274 | (31.4) | 2,246 | 3,274 | (31.4) |
| GWh billed | 4,442 | 6,780 | (34.5) | 20,581 | 28,088 | (26.7) |
| EWC Nuclear Fleet | ||||||
| Capacity factor | 89% | 99% | (10.1) | 93% | 93% | - |
| GWh billed | 4,081 | 6,326 | (35.5) | 18,863 | 25,928 | (27.2) |
| Production cost per MWh | $19.87 | $17.71 | 12.2 | $18.58 | $18.29 | 1.6 |
| Average energy/capacity revenue per MWh | $49.71 | $35.73 | 39.1 | $44.34 | $43.88 | 1.0 |
| Refueling outage days | ||||||
| Indian Point 3 | - | - | - | 29 | ||
| Palisades | 20 | - | 52 | - |
Calculations may differ due to rounding
a.2020 excludes IP2 (1,028MW), 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 | ||
|---|---|---|
| Fourth Quarter 2020 vs. 2019 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | ||
| For 12 months ending December 31 | 2019 | Change |
| GAAP Measures | ||
| As-reported ROIC | 6.3% | (0.2)% |
| As-reported ROE | 13.0% | 0.1% |
| Non-GAAP Financial Measures | ||
| Adjusted ROIC | 5.6% | (0.3)% |
| Adjusted ROE | 11.2% | (0.4)% |
| As of December 31 ( in millions, except where noted) | 2019 | Change |
| GAAP Measures | ||
| Cash and cash equivalents | 426 | 1,333 |
| Available revolver capacity | 3,810 | 300 |
| Commercial paper | 1,947 | (319) |
| Total debt | 19,885 | 4,177 |
| Securitization debt | 298 | (123) |
| Debt to capital | 65.5% | 2.8% |
| Off-balance sheet liabilities: | ||
| Debt of joint ventures – Entergy’s share | 54 | (37) |
| Total off-balance sheet liabilities | 54 | (37) |
| Storm escrows | 412 | (295) |
| Non-GAAP Financial Measures ( in millions, except where noted) | ||
| Debt to capital, excluding securitization debt | 65.1% | 3.0% |
| Net debt to net capital, excluding securitization debt | 64.6% | 1.8% |
| Gross liquidity | 4,236 | 1,633 |
| Net liquidity | 2,289 | 1,952 |
| Net liquidity, including storm escrows | 2,701 | 1,657 |
| Parent debt to total debt, excluding securitization debt | 21.6% | - |
| FFO to debt, excluding securitization debt | 14.6% | (4.2)% |
| FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 16.8% | (6.0)% |
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 | |
| Number of electric retail customers | Average number of electric customers over the period | |
| Other O&M and refueling outage expense per MWh | Other operation and maintenance expense plus nuclear refueling outage expense per MWh of billed sales | |
| EWC Financial and Operating Measures | ||
| Adjusted EBITDA (non-GAAP) | Earnings before interest, income taxes, and depreciation and amortization, and excluding decommissioning expense | |
| 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) | |
| 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 | |
| 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 | |
| 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 (unit contingent) | Percent of planned generation output sold under contracts | |
| Planned net MW in operation (average) | Average 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 Corporation 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 exit of EWC | 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 | 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>AFUDC<br>AFUDC –<br>borrowed funds<br>ALJ<br>AMI<br>ANO<br>APSC<br>ARO<br>bps<br>CCGT<br>CCN<br>CCNO<br>Choctaw<br>COD<br>CT<br>CWIP<br>DCRF<br>DOE<br>E-AR<br>E-LA<br>E-MS<br>E-NO<br>E-TX<br>EBITDA<br>ENP<br>EPS<br>ETR<br>EWC<br>FERC<br>FFO<br>FIN 48<br>FRP<br>GAAP<br>GCRR<br>Grand Gulf or GGNS<br>IIRR-G<br>Indian Point 1<br>Indian Point 2 or IP2<br>Indian Point 3 or IP3<br>IPEC or Indian Point<br>IRP<br>IRS | Accumulated deferred income taxes<br>Allowance for funds used during construction<br>Allowance for borrowed funds used during construction<br>Administrative law judge<br>Advanced metering infrastructure<br>Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear)<br>Arkansas Public Service Commission<br>Asset retirement obligation<br>Basis points<br>Combined cycle gas turbine<br>Certificate of convenience and necessity<br>Council of the City of New Orleans<br>Choctaw County Generating Station (CCGT)<br>Commercial operation date<br>Simple cycle combustion turbine<br>Construction work in progress<br>Distribution cost recovery factor<br>U.S. Department of Energy<br>Entergy Arkansas, LLC<br>Entergy Louisiana, LLC<br>Entergy Mississippi, LLC<br>Entergy New Orleans, LLC<br>Entergy Texas, Inc.<br>Earnings before interest, income taxes, and depreciation and amortization<br>Entergy Nuclear Palisades, LLC<br>Earnings per share<br>Entergy Corporation<br>Entergy Wholesale Commodities<br>Federal Energy Regulatory Commission<br>Funds from operations<br>FASB Interpretation No.48, “Accounting for Uncertainty in Income Taxes”<br>Formula rate plan<br>U.S. generally accepted accounting principles<br>Generation Cost Recovery Rider<br>Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI<br>Infrastructure investment recovery rider - gas<br>Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974)<br>Indian Point Energy Center Unit 2 (nuclear) (shut down April 30, 2020)<br>Indian Point Energy Center Unit 3 (nuclear)<br>Indian Point Energy Center (nuclear)<br>Integrated resource plan<br>Internal Revenue Service | ISES 2<br><br><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>NOPA<br><br>NOPS<br><br>NOSS<br><br>NRC<br><br>NY PSC<br><br>NYISO<br><br>NYSE<br><br>OCF<br><br>OCPS<br><br>OpCo<br><br>OPEB<br><br>Other O&M<br><br>P&O<br><br>Palisades<br><br>Pilgrim<br><br><br><br>PMR<br><br>PPA<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 Yankee<br><br>WACC<br><br>WPEC | Unit 2 of Independence Steam Electric Station (coal)<br>Independent system operator<br>Lake Charles Power Station (CCGT)<br>Louisiana Public Service Commission<br>Last twelve months<br>Montgomery County Power Station (CCGT)<br>Midcontinent Independent System Operator, Inc.<br>Moody’s Investor Service<br>Mississippi Public Service Commission<br>MISO Transmission Expansion Plan<br>Unit 6 of Roy S. Nelson plant (coal)<br>Nuclear decommissioning trust<br>IRS Notice of Proposed Adjustment<br>New Orleans Power Station<br>New Orleans Solar Station<br>U.S. Nuclear Regulatory Commission<br>New York Public Service Commission<br>New York Independent System Operator, Inc.<br>New York Stock Exchange<br>Net cash flow provided by operating activities<br>Orange County Power Station<br>Utility operating company<br>Other post-employment benefits<br>Other non-fuel operation and maintenance expense<br>Parent & Other<br>Palisades Power Plant (nuclear)<br>Pilgrim Nuclear Power Station (nuclear, sold August 26, 2019)<br>Performance Management Rider<br>Power purchase agreement or purchased power agreement<br>Public service commission<br>Public Utility Commission of Texas<br>Reciprocating internal combustion engine<br>Request for proposals<br>Return on equity<br>Return on invested capital<br>RS Cogen facility (CCGT cogeneration)<br>Rate Stabilization Plan (E-LA Gas)<br>Standard & Poor’s<br>U.S. Securities and Exchange Commission<br>System Energy Resources, Inc.<br>Transmission cost recovery factor<br>Unit Power Sales Agreement<br>Vermont Yankee Nuclear Power Station (nuclear, sold January 11, 2019)<br>Weighted-average cost of capital<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 | ||
|---|---|---|
| (LTM in millions except where noted) | Fourth Quarter | |
| 2020 | 2019 | |
| As-reported net income (loss) attributable to Entergy Corporation | 1,388 | 1,241 |
| Preferred dividends | 18 | 17 |
| Tax-effected interest expense | 586 | 554 |
| As-reported net income (loss) attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense | 1,992 | 1,812 |
| Adjustments | 250 | 177 |
| EWC preferred dividends and tax-effected interest expense included in adjustments | 20 | 25 |
| Total adjustments, excluding EWC preferred dividends and tax-effected interest expense (non-GAAP) | 270 | 202 |
| Adjusted earnings (non-GAAP) | 1,138 | 1,064 |
| Adjusted earnings, excluding preferred dividends and tax- effected interest expense (non-GAAP) | 1,722 | 1,610 |
| Average invested capital (average of beginning and ending balances) | 32,803 | 28,780 |
| Average common equity (average of beginning and ending balances) | 10,575 | 9,534 |
| As-reported ROIC | 6.1% | 6.3% |
| Adjusted ROIC (non-GAAP) | 5.3% | 5.6% |
| As-reported ROE | 13.1% | 13.0% |
| Adjusted ROE (non-GAAP) | 10.8% | 11.2% |
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 escrows | ||
|---|---|---|
| ( in millions except where noted) | Fourth Quarter | |
| 2020 | 2019 | |
| Total debt | 24,062 | 19,885 |
| Less securitization debt | 175 | 298 |
| Total debt, excluding securitization debt | 23,887 | 19,587 |
| Less cash and cash equivalents | 1,759 | 426 |
| Net debt, excluding securitization debt | 22,128 | 19,161 |
| Commercial paper | 1,627 | 1,947 |
| Total capitalization | 35,243 | 30,363 |
| Less securitization debt | 175 | 298 |
| Total capitalization, excluding securitization debt | 35,068 | 30,065 |
| Less cash and cash equivalents | 1,759 | 426 |
| Net capital, excluding securitization debt | 33,309 | 29,639 |
| Debt to capital | 68.3% | 65.5% |
| Debt to capital, excluding securitization debt (non-GAAP) | 68.1% | 65.1% |
| Net debt to net capital, excluding securitization debt (non-GAAP) | 66.4% | 64.6% |
| Available revolver capacity | 4,110 | 3,810 |
| Storm escrows | 116 | 412 |
| Gross liquidity (non-GAAP) | 5,869 | 4,236 |
| Net liquidity (non-GAAP) | 4,241 | 2,289 |
| Net liquidity, including storm escrows (non-GAAP) | 4,357 | 2,701 |
| Entergy Corporation notes: | ||
| Due September 2020 | - | 450 |
| Due July 2022 | 650 | 650 |
| Due September 2025 | 800 | - |
| Due September 2026 | 750 | 750 |
| Due June 2030 | 600 | - |
| Due June 2050 | 600 | - |
| Total Entergy Corporation notes | 3,400 | 1,850 |
| Revolver draw | 165 | 440 |
| Unamortized debt issuance costs and discounts | (38) | (8) |
| Total parent debt | 5,154 | 4,229 |
| Parent debt to total debt, excluding securitization debt (non-GAAP) | 21.6% | 21.6% |
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) | Fourth Quarter | |
| 2020 | 2019 | |
| Total debt | 24,062 | 19,885 |
| Less securitization debt | 175 | 298 |
| Total debt, excluding securitization debt | 23,887 | 19,587 |
| Net cash flow provided by operating activities, LTM | 2,690 | 2,817 |
| AFUDC – borrowed funds, LTM | (52) | (65) |
| Working capital items in net cash flow provided by operating activities, LTM: | ||
| Receivables | (139) | (101) |
| Fuel inventory | (27) | (28) |
| Accounts payable | 137 | (72) |
| Taxes accrued | 208 | (21) |
| Interest accrued | 8 | 1 |
| Other working capital accounts | (143) | (3) |
| Securitization regulatory charges, LTM | 124 | 122 |
| Total | 168 | (102) |
| FFO, LTM (non-GAAP) | 2,470 | 2,854 |
| FFO to debt, excluding securitization debt (non-GAAP) | 10.3% | 14.6% |
| Estimated return of unprotected excess ADIT, LTM | 70 | 301 |
| Severance and retention payments associated with exit of EWC, LTM pre-tax | 55 | 141 |
| FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP) | 10.9% | 16.8% |
All values are in US Dollars.
Calculations may differ due to rounding
Financial Statements
| Entergy Corporation | ||||||||
|---|---|---|---|---|---|---|---|---|
| Consolidating Balance Sheet | ||||||||
| December 31, 2020 | ||||||||
| (Dollars in thousands) | ||||||||
| (Unaudited) | ||||||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents: | ||||||||
| Cash | 85,219 | 42,388 | 1,244 | 128,851 | ||||
| Temporary cash investments | 1,440,796 | 13,648 | 175,804 | 1,630,248 | ||||
| Total cash and cash equivalents | 1,526,015 | 56,036 | 177,048 | 1,759,099 | ||||
| Notes receivable | — | (75,000) | 75,000 | — | ||||
| Accounts receivable: | ||||||||
| Customer | 781,272 | — | 52,206 | 833,478 | ||||
| Allowance for doubtful accounts | (117,794) | — | — | (117,794) | ||||
| Associated companies | 16,999 | (19,008) | 2,009 | — | ||||
| Other | 109,725 | — | 25,483 | 135,208 | ||||
| Accrued unbilled revenues | 434,835 | — | — | 434,835 | ||||
| Total accounts receivable | 1,225,037 | (19,008) | 79,698 | 1,285,727 | ||||
| Deferred fuel costs | 4,380 | — | — | 4,380 | ||||
| Fuel inventory - at average cost | 167,117 | — | 5,817 | 172,934 | ||||
| Materials and supplies - at average cost | 930,895 | (2) | 31,292 | 962,185 | ||||
| Deferred nuclear refueling outage costs | 115,559 | — | 63,591 | 179,150 | ||||
| Prepayments and other | 162,405 | (16,306) | 50,325 | 196,424 | ||||
| TOTAL | 4,131,408 | (54,280) | 482,771 | 4,559,899 | ||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||
| Investment in affiliates | 1,465,626 | (1,465,712) | 21,993 | 21,907 | ||||
| Decommissioning trust funds | 4,283,831 | — | 2,969,384 | 7,253,215 | ||||
| Non-utility property - at cost (less accumulated depreciation) | 329,700 | (11) | 13,639 | 343,328 | ||||
| Other | 180,971 | 3,002 | 8,342 | 192,315 | ||||
| TOTAL | 6,260,128 | (1,462,721) | 3,013,358 | 7,810,765 | ||||
| PROPERTY, PLANT, AND EQUIPMENT | ||||||||
| Electric | 58,711,665 | 10,705 | 974,073 | 59,696,443 | ||||
| Natural gas | 610,768 | — | — | 610,768 | ||||
| Construction work in progress | 2,006,905 | 261 | 4,864 | 2,012,030 | ||||
| Nuclear fuel | 548,178 | — | 53,103 | 601,281 | ||||
| TOTAL PROPERTY, PLANT, AND EQUIPMENT | 61,877,516 | 10,966 | 1,032,040 | 62,920,522 | ||||
| Less - accumulated depreciation and amortization | 23,204,219 | 4,006 | 859,520 | 24,067,745 | ||||
| PROPERTY, PLANT, AND EQUIPMENT - NET | 38,673,297 | 6,960 | 172,520 | 38,852,777 | ||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||
| Regulatory assets: | ||||||||
| Other regulatory assets | 6,076,549 | — | — | 6,076,549 | ||||
| Deferred fuel costs | 240,422 | — | — | 240,422 | ||||
| Goodwill | 374,099 | — | 3,073 | 377,172 | ||||
| Accumulated deferred income taxes | 72,599 | 373 | 3,317 | 76,289 | ||||
| Other | 111,651 | 8,349 | 125,339 | 245,339 | ||||
| TOTAL | 6,875,320 | 8,722 | 131,729 | 7,015,771 | ||||
| TOTAL ASSETS | $ | 55,940,153 | $ | (1,501,319) | $ | 3,800,378 | $ | 58,239,212 |
| *Totals may not foot due to rounding. | ||||||||
| Entergy Corporation | ||||||||
| --- | --- | --- | --- | |||||
| Consolidating Balance Sheet | ||||||||
| December 31, 2020 | ||||||||
| (Dollars in thousands) | ||||||||
| (Unaudited) | ||||||||
| Parent & Other | Entergy Wholesale Commodities | Consolidated | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Currently maturing long-term debt | — | $1,164,015 | ||||||
| Notes payable and commercial paper: | ||||||||
| Other | 1,627,489 | — | 1,627,489 | |||||
| Account payable: | ||||||||
| Associated companies | (42,703) | 10,456 | — | |||||
| Other | 706 | 197,029 | 2,739,437 | |||||
| Customer deposits | — | — | 401,512 | |||||
| Taxes accrued | (9,028) | 29,529 | 441,011 | |||||
| Interest accrued | 23,708 | 526 | 201,791 | |||||
| Deferred fuel costs | — | — | 153,113 | |||||
| Pension and other postretirement liabilities | — | 13,058 | 61,815 | |||||
| Current portion of unprotected excess accumulated | ||||||||
| deferred income taxes | — | — | 63,683 | |||||
| Other | 1,892 | 22,653 | 206,640 | |||||
| TOTAL | 1,602,064 | 412,251 | 7,060,506 | |||||
| NON-CURRENT LIABILITIES | ||||||||
| Accumulated deferred income taxes and taxes accrued | (179,493) | (647,724) | 4,361,772 | |||||
| Accumulated deferred investment tax credits | — | — | 212,494 | |||||
| Regulatory liability for income taxes - net | — | — | 1,521,757 | |||||
| Other regulatory liabilities | — | — | 2,323,851 | |||||
| Decommissioning and retirement cost liabilities | — | 2,591,481 | 6,469,452 | |||||
| Accumulated provisions | — | 324 | 242,835 | |||||
| Pension and other postretirement liabilities | — | 628,988 | 2,853,013 | |||||
| Long-term debt | 3,526,555 | — | 21,205,761 | |||||
| Other | (448,834) | 55,683 | 807,219 | |||||
| TOTAL | 2,898,228 | 2,628,752 | 39,998,154 | |||||
| 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 | 651,574 | 1,175,395 | 6,549,923 | |||||
| Retained earnings | 473,422 | (282,077) | 9,897,182 | |||||
| Accumulated other comprehensive loss | — | (359,295) | (449,207) | |||||
| Less - treasury stock, at cost (69,790,346 shares in 2020) | 4,954,456 | — | 5,074,456 | |||||
| TOTAL COMMON SHAREHOLDERS' EQUITY | (6,001,611) | 735,126 | 10,926,142 | |||||
| Subsidiaries' preferred stock without sinking fund | — | — | 35,000 | |||||
| TOTAL | (6,001,611) | 735,126 | 10,961,142 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 3,800,378 | $58,239,212 | ||||||
| *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 | Consolidated | |
| 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 | 391,480 |
| Total cash and cash equivalents | 201,623 | 15,050 | 209,049 | 425,722 |
| Notes receivable | — | (514,116) | 514,116 | — |
| Accounts receivable: | ||||
| Customer | 512,228 | — | 83,281 | 595,509 |
| Allowance for doubtful accounts | (7,404) | — | — | (7,404) |
| Associated companies | 20,481 | (25,572) | 5,091 | — |
| Other | 210,452 | 817 | 8,601 | 219,870 |
| Accrued unbilled revenues | 400,617 | — | — | 400,617 |
| Total accounts receivable | 1,136,374 | (24,755) | 96,973 | 1,208,592 |
| Fuel inventory - at average cost | 140,010 | — | 5,466 | 145,476 |
| Materials and supplies - at average cost | 792,192 | — | 32,797 | 824,989 |
| Deferred nuclear refueling outage costs | 120,110 | — | 37,458 | 157,568 |
| Prepayments and other | 171,874 | (16,346) | 128,117 | 283,645 |
| TOTAL | 2,562,183 | (540,167) | 1,023,976 | 3,045,992 |
| 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 | 6,404,030 |
| Non-utility property - at cost (less accumulated depreciation) | 319,504 | (5) | 13,365 | 332,864 |
| Other | 492,245 | — | 4,207 | 496,452 |
| TOTAL | 5,999,933 | (1,469,082) | 2,702,495 | 7,233,346 |
| PROPERTY, PLANT, AND EQUIPMENT | ||||
| Electric | 53,298,795 | 10,633 | 962,039 | 54,271,467 |
| Natural gas | 547,110 | — | — | 547,110 |
| Construction work in progress | 2,813,416 | 245 | 9,630 | 2,823,291 |
| Nuclear fuel | 612,900 | — | 64,281 | 677,181 |
| TOTAL PROPERTY, PLANT, AND EQUIPMENT | 57,272,221 | 10,878 | 1,035,950 | 58,319,049 |
| Less - accumulated depreciation and amortization | 22,364,188 | 2,044 | 770,124 | 23,136,356 |
| PROPERTY, PLANT, AND EQUIPMENT - NET | 34,908,033 | 8,834 | 265,826 | 35,182,693 |
| DEFERRED DEBITS AND OTHER ASSETS | ||||
| Regulatory assets: | ||||
| Other regulatory assets | 5,292,055 | — | — | 5,292,055 |
| Deferred fuel costs | 239,892 | — | — | 239,892 |
| Goodwill | 374,099 | — | 3,073 | 377,172 |
| Accumulated deferred income taxes | 59,425 | 1,022 | 4,014 | 64,461 |
| Other | 122,044 | 10,680 | 155,577 | 288,301 |
| TOTAL | 6,087,515 | 11,702 | 162,664 | 6,261,881 |
| TOTAL ASSETS | $49,557,664 | ($1,988,713) | $4,154,961 | $51,723,912 |
| *Totals may not foot due to rounding. | ||||
| 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 | $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 | ($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 December 31, 2020 | ||||
| (Dollars in thousands) | ||||
| (Unaudited) | ||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |
| OPERATING REVENUES | ||||
| Electric | $2,138,658 | ($15) | $— | $2,138,643 |
| Natural gas | 35,180 | — | — | 35,180 |
| Competitive businesses | — | 38 | 196,240 | 196,278 |
| Total | 2,173,838 | 23 | 196,240 | 2,370,101 |
| OPERATING EXPENSES | ||||
| Operating and Maintenance: | ||||
| Fuel, fuel related expenses, and gas purchased for resale | 388,424 | — | 15,871 | 404,295 |
| Purchased power | 192,393 | — | 18,376 | 210,769 |
| Nuclear refueling outage expenses | 34,010 | — | 10,651 | 44,661 |
| Other operation and maintenance | 690,932 | 7,305 | 114,708 | 812,945 |
| Asset write-offs, impairments, and related charges | — | — | 10,291 | 10,291 |
| Decommissioning | 45,078 | — | 52,532 | 97,610 |
| Taxes other than income taxes | 143,101 | 415 | 8,960 | 152,476 |
| Depreciation and amortization | 386,153 | 657 | 21,219 | 408,029 |
| Other regulatory credits | 76,914 | — | — | 76,914 |
| Total | 1,957,005 | 8,377 | 252,608 | 2,217,990 |
| OPERATING INCOME | 216,833 | (8,354) | (56,368) | 152,111 |
| OTHER INCOME (DEDUCTIONS) | ||||
| Allowance for equity funds used during construction | 30,192 | — | — | 30,192 |
| Interest and investment income | 125,288 | (32,279) | 103,982 | 196,991 |
| Miscellaneous - net | (67,414) | (1,829) | (12,245) | (81,488) |
| Total | 88,066 | (34,108) | 91,737 | 145,695 |
| INTEREST EXPENSE | ||||
| Interest expense | 177,223 | 25,592 | 4,966 | 207,781 |
| Allowance for borrowed funds used during construction | (13,651) | — | — | (13,651) |
| Total | 163,572 | 25,592 | 4,966 | 194,130 |
| INCOME BEFORE INCOME TAXES | 141,327 | (68,054) | 30,403 | 103,676 |
| Income taxes | (446,694) | 59,134 | 98,689 | (288,871) |
| CONSOLIDATED NET INCOME | 588,021 | (127,188) | (68,286) | 392,547 |
| Preferred dividend requirements of subsidiaries | 4,033 | — | 547 | 4,580 |
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $583,988 | ($127,188) | ($68,833) | $387,967 |
| EARNINGS PER AVERAGE COMMON SHARE: | ||||
| BASIC | $2.92 | ($0.64) | ($0.34) | $1.94 |
| DILUTED | $2.90 | ($0.63) | ($0.34) | $1.93 |
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||
| BASIC | 200,237,064 | |||
| DILUTED | 201,443,736 | |||
| *Totals may not foot due to rounding. | ||||
| Entergy Corporation | ||||
| --- | --- | --- | --- | --- |
| Consolidating Income Statement | ||||
| Three Months Ended December 31, 2019 | ||||
| (Dollars in thousands) | ||||
| (Unaudited) | ||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |
| OPERATING REVENUES | ||||
| Electric | $2,150,307 | ($11) | $— | $2,150,296 |
| Natural gas | 41,037 | - | - | 41,037 |
| Competitive businesses | - | 11 | 270,962 | 270,973 |
| Total | 2,191,344 | - | 270,962 | 2,462,306 |
| OPERATING EXPENSES | ||||
| Operating and Maintenance: | ||||
| Fuel, fuel related expenses, and gas purchased for resale | 465,236 | (10) | 21,820 | 487,046 |
| Purchased power | 181,177 | 10 | 9,966 | 191,153 |
| Nuclear refueling outage expenses | 39,254 | - | 12,226 | 51,480 |
| Other operation and maintenance | 668,148 | 8,670 | 164,946 | 841,764 |
| Asset write-offs, impairments and related charges | - | - | 1,544 | 1,544 |
| Decommissioning | 42,844 | - | 49,400 | 92,244 |
| Taxes other than income taxes | 141,443 | (39) | 14,627 | 156,031 |
| Depreciation and amortization | 344,837 | 766 | 34,423 | 380,026 |
| Other regulatory charges | 12,478 | - | - | 12,478 |
| Total | 1,895,417 | 9,397 | 308,952 | 2,213,766 |
| OPERATING INCOME | 295,927 | (9,397) | (37,990) | 248,540 |
| OTHER INCOME (DEDUCTIONS) | ||||
| Allowance for equity funds used during construction | 36,428 | - | - | 36,428 |
| Interest and investment income | 80,803 | (38,617) | 99,063 | 141,249 |
| Miscellaneous - net | (48,348) | (18,557) | (25,020) | (91,925) |
| Total | 68,883 | (57,174) | 74,043 | 85,752 |
| INTEREST EXPENSE | ||||
| Interest expense | 167,603 | 30,826 | 5,436 | 203,865 |
| Allowance for borrowed funds used during construction | (15,923) | - | - | (15,923) |
| Total | 151,680 | 30,826 | 5,436 | 187,942 |
| INCOME BEFORE INCOME TAXES | 213,130 | (97,397) | 30,617 | 146,350 |
| Income taxes | (61,650) | 5,452 | (187,057) | (243,255) |
| CONSOLIDATED NET INCOME | 274,780 | (102,849) | 217,674 | 389,605 |
| Preferred dividend requirements of subsidiaries | 4,033 | - | 547 | 4,580 |
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $270,747 | $(102,849) | $217,127 | $385,025 |
| EARNINGS PER AVERAGE COMMON SHARE: | ||||
| BASIC | $1.36 | ($0.52) | $1.09 | $1.93 |
| DILUTED | $1.35 | ($0.51) | $1.08 | $1.92 |
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||
| BASIC | 199,110,740 | |||
| DILUTED | 200,909,656 | |||
| *Totals may not foot due to rounding. | ||||
| Entergy Corporation | ||||
| --- | --- | --- | --- | --- |
| Consolidating Income Statement | ||||
| Year to Date December 31, 2020 | ||||
| (Dollars in thousands) | ||||
| (Unaudited) | ||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |
| OPERATING REVENUES | ||||
| Electric | $9,046,706 | $(63) | $- | $9,046,643 |
| Natural gas | 124,008 | - | - | 124,008 |
| Competitive businesses | - | 116 | 942,869 | 942,985 |
| Total | 9,170,714 | 53 | 942,869 | 10,113,636 |
| OPERATING EXPENSES | ||||
| Operating and Maintenance: | ||||
| Fuel, fuel related expenses, and gas purchased for resale | 1,497,084 | (25) | 67,312 | 1,564,371 |
| Purchased power | 836,689 | 25 | 67,554 | 904,268 |
| Nuclear refueling outage expenses | 138,779 | - | 45,378 | 184,157 |
| Other operation and maintenance | 2,478,020 | 24,905 | 499,701 | 3,002,626 |
| Asset write-offs, impairments and related charges | - | - | 26,623 | 26,623 |
| Decommissioning | 176,940 | - | 204,921 | 381,861 |
| Taxes other than income taxes | 598,554 | 972 | 53,314 | 652,840 |
| Depreciation and amortization | 1,508,198 | 2,835 | 102,053 | 1,613,086 |
| Other regulatory credits | 14,609 | - | - | 14,609 |
| Total | 7,248,873 | 28,712 | 1,066,856 | 8,344,441 |
| OPERATING INCOME | 1,921,841 | (28,659) | (123,987) | 1,769,195 |
| OTHER INCOME | ||||
| Allowance for equity funds used during construction | 119,430 | - | - | 119,430 |
| Interest and investment income | 299,004 | (140,380) | 234,194 | 392,818 |
| Miscellaneous - net | (157,381) | (7,651) | (45,601) | (210,633) |
| Total | 261,053 | (148,031) | 188,593 | 301,615 |
| INTEREST EXPENSE | ||||
| Interest expense | 701,169 | 114,380 | 22,432 | 837,981 |
| Allowance for borrowed funds used during construction | (52,318) | - | - | (52,318) |
| Total | 648,851 | 114,380 | 22,432 | 785,663 |
| INCOME BEFORE INCOME TAXES | 1,534,043 | (291,070) | 42,174 | 1,285,147 |
| Income taxes | (282,311) | 55,868 | 104,937 | (121,506) |
| CONSOLIDATED NET INCOME | 1,816,354 | (346,938) | (62,763) | 1,406,653 |
| Preferred dividend requirements of subsidiaries | 16,131 | - | 2,188 | 18,319 |
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $1,800,223 | $(346,938) | $(64,951) | $1,388,334 |
| EARNINGS PER AVERAGE COMMON SHARE: | ||||
| BASIC | $9.00 | ($1.74) | ($0.32) | $6.94 |
| DILUTED | $8.95 | ($1.73) | ($0.32) | $6.90 |
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||
| BASIC | 200,106,945 | |||
| DILUTED | 201,102,220 | |||
| *Totals may not foot due to rounding. | ||||
| Entergy Corporation | ||||
| --- | --- | --- | --- | --- |
| Consolidating Income Statement | ||||
| Year to Date December 31, 2019 | ||||
| (Dollars in thousands) | ||||
| (Unaudited) | ||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |
| OPERATING REVENUES | ||||
| Electric | 9,430,031 | $(53) | $- | $9,429,978 |
| Natural gas | 153,954 | - | - | 153,954 |
| Competitive businesses | - | 22 | 1,294,719 | 1,294,741 |
| Total | 9,583,985 | (31) | 1,294,719 | 10,878,673 |
| OPERATING EXPENSES | ||||
| Operating and Maintenance: | ||||
| Fuel, fuel related expenses, and gas purchased for resale | 1,931,478 | (52) | 98,212 | 2,029,638 |
| Purchased power | 1,134,194 | 52 | 58,614 | 1,192,860 |
| Nuclear refueling outage expenses | 156,315 | - | 48,612 | 204,927 |
| Other operation and maintenance | 2,562,568 | 32,167 | 677,646 | 3,272,381 |
| Asset write-offs, impairments and related charges | - | - | 290,027 | 290,027 |
| Decommissioning | 164,267 | - | 236,535 | 400,802 |
| Taxes other than income taxes | 582,811 | 633 | 60,301 | 643,745 |
| Depreciation and amortization | 1,328,900 | 2,944 | 148,172 | 1,480,016 |
| Other regulatory charges | (26,220) | - | - | (26,220) |
| Total | 7,834,313 | 35,744 | 1,618,119 | 9,488,176 |
| OPERATING INCOME | 1,749,672 | (35,775) | (323,400) | 1,390,497 |
| OTHER INCOME (DEDUCTIONS) | ||||
| Allowance for equity funds used during construction | 144,974 | - | - | 144,974 |
| Interest and investment income | 289,570 | (156,294) | 414,636 | 547,912 |
| Miscellaneous - net | (149,544) | (28,784) | (74,211) | (252,539) |
| Total | 285,000 | (185,078) | 340,425 | 440,347 |
| INTEREST EXPENSE | ||||
| Interest expense | 654,352 | 123,580 | 29,450 | 807,382 |
| Allowance for borrowed funds used during construction | (64,957) | - | - | (64,957) |
| Total | 589,395 | 123,580 | 29,450 | 742,425 |
| INCOME BEFORE INCOME TAXES | 1,445,277 | (344,433) | (12,425) | 1,088,419 |
| Income taxes | 19,634 | (28,164) | (161,295) | (169,825) |
| CONSOLIDATED NET INCOME | 1,425,643 | (316,269) | 148,870 | 1,258,244 |
| Preferred dividend requirements of subsidiaries | 14,830 | - | 2,188 | 17,018 |
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | 1,410,813 | $(316,269) | $146,682 | $1,241,226 |
| EARNINGS PER AVERAGE COMMON SHARE: | ||||
| BASIC | 7.23 | ($1.62) | $0.75 | $6.36 |
| DILUTED | 7.16 | ($1.60) | $0.74 | $6.30 |
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||
| BASIC | 195,195,858 | |||
| DILUTED | 196,999,284 | |||
| *Totals may not foot due to rounding. |
All values are in US Dollars.
| Entergy Corporation | |||
|---|---|---|---|
| Consolidated Cash Flow Statement | |||
| Year to Date December 31, 2020 vs. 2019 | |||
| (Dollars in thousands) | |||
| (Unaudited) | |||
| 2020 | 2019 | Variance | |
| OPERATING ACTIVITIES | |||
| Consolidated net income | $1,406,653 | $1,258,244 | $148,409 |
| Adjustments to reconcile consolidated net income to net cash | |||
| flow provided by operating activities: | |||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 2,257,750 | 2,182,313 | 75,437 |
| Deferred income taxes, investment tax credits, and non-current taxes accrued | (131,114) | 193,950 | (325,064) |
| Asset write-offs, impairments and related charges | 26,379 | 226,678 | (200,299) |
| Changes in working capital: | |||
| Receivables | (139,296) | (101,227) | (38,069) |
| Fuel inventory | (27,458) | (28,173) | 715 |
| Accounts payable | 137,457 | (71,898) | 209,355 |
| Taxes accrued | 207,556 | (20,784) | 228,340 |
| Interest accrued | 7,662 | 937 | 6,725 |
| Deferred fuel costs | (49,484) | 172,146 | (221,630) |
| Other working capital accounts | (143,451) | (3,108) | (140,343) |
| Changes in provisions for estimated losses | (291,193) | 19,914 | (311,107) |
| Changes in other regulatory assets | (784,494) | (545,559) | (238,935) |
| Changes in other regulatory liabilities | 238,669 | (14,781) | 253,450 |
| Changes in pension and other postretirement liabilities | 50,379 | 187,124 | (136,745) |
| Other | (76,149) | (639,149) | 563,000 |
| Net cash flow provided by operating activities | 2,689,866 | 2,816,627 | (126,761) |
| INVESTING ACTIVITIES | |||
| Construction/capital expenditures | (4,694,076) | (4,197,667) | (496,409) |
| Allowance for equity funds used during construction | 119,430 | 144,862 | (25,432) |
| Nuclear fuel purchases | (215,664) | (128,366) | (87,298) |
| Payment for purchase of plant or assets | (247,121) | (305,472) | 58,351 |
| Proceeds from sale of assets | - | 28,932 | (28,932) |
| Insurance proceeds received for property damages | - | 7,040 | (7,040) |
| Changes in securitization account | 5,099 | 3,298 | 1,801 |
| Payments to storm reserve escrow account | (2,273) | (8,038) | 5,765 |
| Receipts from storm reserve escrow account | 297,588 | - | 297,588 |
| Decrease (increase) in other investments | (12,755) | 30,319 | (43,074) |
| Litigation proceeds for reimbursement of spent nuclear fuel storage costs | 72,711 | 2,369 | 70,342 |
| Proceeds from nuclear decommissioning trust fund sales | 3,107,812 | 4,121,351 | (1,013,539) |
| Investment in nuclear decommissioning trust funds | (3,203,057) | (4,208,870) | 1,005,813 |
| Net cash flow used in investing activities | (4,772,306) | (4,510,242) | (262,064) |
| FINANCING ACTIVITIES | |||
| Proceeds from the issuance of: | |||
| Long-term debt | 12,619,201 | 9,304,396 | 3,314,805 |
| Preferred stock of subsidiary | - | 33,188 | (33,188) |
| Treasury stock | 42,600 | 93,862 | (51,262) |
| Common stock | - | 607,650 | (607,650) |
| Retirement of long-term debt | (8,152,378) | (7,619,380) | (532,998) |
| Repurchase of preferred membership units | - | (50,000) | 50,000 |
| Changes in credit borrowings and commercial paper - net | (319,238) | 4,389 | (323,627) |
| Other | (7,524) | (7,732) | 208 |
| Dividends paid: | |||
| Common stock | (748,342) | (711,573) | (36,769) |
| Preferred stock | (18,502) | (16,438) | (2,064) |
| Net cash flow provided by financing activities | 3,415,817 | 1,638,362 | 1,777,455 |
| Net increase in cash and cash equivalents | 1,333,377 | (55,253) | 1,388,630 |
| Cash and cash equivalents at beginning of period | 425,722 | 480,975 | (55,253) |
| Cash and cash equivalents at end of period | $1,759,099 | $425,722 | $1,333,377 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
| Cash paid (received) during the period for: | |||
| Interest - net of amount capitalized | $803,923 | $778,209 | $25,714 |
| Income taxes | ($31,228) | ($40,435) | $9,207 |
| --- | --- | --- | --- |
| Entergy Corporation | |||
| --- | --- | --- | --- |
| Consolidated Cash Flow Statement | |||
| Three Months Ended December 31, 2020 vs. 2019 | |||
| (Dollars in thousands) | |||
| (Unaudited) | |||
| 2020 | 2019 | Variance | |
| OPERATING ACTIVITIES | |||
| Consolidated net income | $392,547 | $389,605 | $2,942 |
| Adjustments to reconcile consolidated net income to net cash | |||
| flow provided by operating activities: | |||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 562,846 | 547,636 | 15,210 |
| Deferred income taxes, investment tax credits, and non-current taxes accrued | (451,841) | (179,773) | (272,068) |
| Asset write-offs, impairments and related charges | 10,262 | 1,503 | 8,759 |
| Changes in working capital: | |||
| Receivables | 61,694 | 129,778 | (68,084) |
| Fuel inventory | (26,850) | (13,774) | (13,076) |
| Accounts payable | (36,626) | 103,348 | (139,974) |
| Taxes accrued | 787 | (18,364) | 19,151 |
| Interest accrued | (3,204) | 3,251 | (6,455) |
| Deferred fuel costs | (1,322) | 81,827 | (83,149) |
| Other working capital accounts | (28,959) | 16,124 | (45,083) |
| Changes in provisions for estimated losses | (253,164) | 5,800 | (258,964) |
| Changes in other regulatory assets | (653,961) | (452,698) | (201,263) |
| Changes in other regulatory liabilities | 277,040 | 4,334 | 272,706 |
| Changes in pension and other postretirement liabilities | 320,523 | 319,168 | 1,355 |
| Other | 149,928 | (239,085) | 389,013 |
| Net cash flow provided by operating activities | 319,700 | 698,680 | (378,980) |
| INVESTING ACTIVITIES | |||
| Construction/capital expenditures | (1,518,517) | (1,117,941) | (400,576) |
| Allowance for equity funds used during construction | 30,192 | 35,995 | (5,803) |
| Nuclear fuel purchases | (38,279) | (73,190) | 34,911 |
| Payment for purchase of plant | (222,488) | (305,472) | 82,984 |
| Proceeds from sale of assets | - | 9,131 | (9,131) |
| Changes in securitization account | 4,308 | 7,511 | (3,203) |
| Payments to storm reserve escrow account | (29) | (1,854) | 1,825 |
| Receipts from storm reserve escrow account | 256,941 | - | 256,941 |
| Increase in other investments | (2,934) | (51) | (2,883) |
| Litigation proceeds for reimbursement of spent nuclear fuel storage costs | 5,459 | - | 5,459 |
| Proceeds from nuclear decommissioning trust fund sales | 1,510,320 | 602,735 | 907,585 |
| Investment in nuclear decommissioning trust funds | (1,541,397) | (642,180) | (899,217) |
| Net cash flow used in investing activities | (1,516,424) | (1,485,316) | (31,108) |
| FINANCING ACTIVITIES | |||
| Proceeds from the issuance of: | |||
| Long-term debt | 4,448,594 | 2,170,825 | 2,277,769 |
| Preferred stock of subsidiary | - | (298) | 298 |
| Treasury stock | 816 | 4,559 | (3,743) |
| Retirement of long-term debt | (2,766,151) | (1,759,666) | (1,006,485) |
| Changes in credit borrowings and commercial paper - net | 229,284 | 28,939 | 200,345 |
| Other | (1,583) | 1,443 | (3,026) |
| Dividends paid: | |||
| Common stock | (190,221) | (185,165) | (5,056) |
| Preferred stock | (4,580) | (4,110) | (470) |
| Net cash flow provided by financing activities | 1,716,159 | 256,527 | 1,459,632 |
| Net increase in cash and cash equivalents | 519,435 | (530,109) | 1,049,544 |
| Cash and cash equivalents at beginning of period | 1,239,664 | 955,831 | 283,833 |
| Cash and cash equivalents at end of period | $1,759,099 | $425,722 | $1,333,377 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
| Cash paid (received) during the period for: | |||
| Interest - net of amount capitalized | $204,240 | $193,587 | $10,653 |
| Income taxes | ($28,744) | ($31,786) | $3,042 |