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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) October 28, 2020

Commission
File Number
Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No.

Commission
File Number
Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No.
1-11299ENTERGY CORPORATION1-35747ENTERGY NEW ORLEANS, LLC
(a Delaware corporation)
639 Loyola Avenue
New Orleans, Louisiana 70113
Telephone (504) 576-4000
(a Texas limited liability company)
1600 Perdido Street
New Orleans, Louisiana 70112
Telephone (504) 670-3700
72-122975282-2212934
1-10764ENTERGY ARKANSAS, LLC1-34360ENTERGY TEXAS, INC.
(a Texas limited liability company)
425 West Capitol Avenue
Little Rock, Arkansas 72201
Telephone (501) 377-4000
(a Texas corporation)
10055 Grogans Mill Road
The Woodlands, Texas 77380
Telephone (409) 981-2000
83-191866861-1435798
1-32718ENTERGY LOUISIANA, LLC1-09067SYSTEM ENERGY RESOURCES, INC.
(a Texas limited liability company)
4809 Jefferson Highway
Jefferson, Louisiana 70121
Telephone (504) 576-4000
(an Arkansas corporation)
1340 Echelon Parkway
Jackson, Mississippi 39213
Telephone (601) 368-5000
47-446964672-0752777
1-31508ENTERGY MISSISSIPPI, LLC
(a Texas limited liability company)
308 East Pearl Street
Jackson, Mississippi 39201
Telephone (601) 368-5000
83-1950019
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Securities registered pursuant to Section 12(b) of the Act:
RegistrantTitle of ClassTrading
Symbol
Name of Each Exchange
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, 5.25% Series due July 2052
ELJ
New York Stock Exchange
 
Mortgage Bonds, 4.70% Series due June 2063
ELU
New York Stock Exchange
Mortgage Bonds, 4.875% Series due September 2066
ELC
New York Stock Exchange
 
 
 
Entergy Mississippi, LLC
Mortgage Bonds, 4.90% Series due October 2066
EMP
New York Stock Exchange
 
 
 
Entergy New Orleans, LLC
Mortgage Bonds, 5.0% Series due December 2052
ENJ
New York Stock Exchange
Mortgage Bonds, 5.50% Series due April 2066
ENO
New York Stock Exchange
 
 
 
Entergy Texas, Inc.
Mortgage Bonds, 5.625% Series due June 2064
EZT
New York Stock Exchange
5.375% Series A Preferred Stock, Cumulative, No Par Value (Liquidation Value $25 Per Share)
ETI/PR
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     





Item 2.02. Results of Operations and Financial Condition

On October 28, 2020, Entergy Corporation (the “Company”) issued a press release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the third 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 October 28, 2020, the Company issued the Earnings Release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the third 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
104Cover 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: October 28, 2020


Document

Exhibit 99.1
https://cdn.kscope.io/2d33bd3e20b9f6a7a91390af6d39baf1-entergylogo1a.gif
News
Release

Date:
October 28, 2020
For Release:Immediately
Contact:
Neal Kirby (Media)
(504) 576-4238
nkirby@entergy.com
David Borde (Investor Relations)
(504) 576-5668
dborde@entergy.com

Entergy Reports Third Quarter Earnings
Company narrows 2020 guidance range and affirms financial outlooks

NEW ORLEANS – Entergy Corporation (NYSE: ETR) reported third quarter 2020 earnings of $2.59 per share on an as-reported basis and $2.44 per share on an adjusted basis (non-GAAP).

“We delivered another strong quarter. With the confidence and clarity we have for the remainder of the year, we are narrowing our 2020 adjusted earnings per share guidance range, and we are affirming our longer-term outlooks,” said Entergy Chairman and Chief Executive Officer Leo Denault. “This year has presented challenges for all of us and, at Entergy, we were well prepared. For the past several years, we’ve been building the culture, processes, and resources to successfully deliver on our commitments, even in the face of extraordinary times. It’s what our stakeholders expect of us. Our strong results demonstrate the progress we’ve made.”

Business highlights included the following:
E-LA customers began to receive power from Capital Region Solar, the largest solar facility in Louisiana.
E-AR selected Walnut Bend Solar from its renewable RFP, and E-TX selected Liberty County Solar and Umbriel Solar from its renewable RFP.



Table of Contents Page
News Release    1
Appendices    7
A: Consolidated Results and Adjustments    8
B: Earnings Variance Analysis    11
C: Utility Financial and Operating Measures    14
D: EWC Financial and Operating Measures    15
E: Consolidated Financial Measures    16
F: Definitions and Abbreviations and Acronyms    17
G: Other GAAP to Non-GAAP Reconciliations    20
Financial Statements    23
The PUCT approved E-TX’s DCRF filing.
The CCNO approved a settlement agreement, resolving E-NO’s rate case appeal and FRP delay.
Palisades completed its final refueling outage.
Entergy was named as one of the nation’s top utilities in economic development by Site Selection magazine for the 13th consecutive year.

Consolidated Earnings (GAAP and Non-GAAP Measures)
Third Quarter and Year-to-Date 2020 vs. 2019 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments)
Third QuarterYear-to-Date
20202019Change20202019Change
(After-tax, $ in millions)
As-reported earnings5213651561,000856144
Less adjustments30(141)1714(70)74
Adjusted earnings (non-GAAP)491506(15)99692770
Estimated weather in billed sales113(12)(53)1(54)
(After-tax, per share in $)
As-reported earnings2.591.820.774.984.380.60
Less adjustments0.15(0.70)0.850.02(0.36)0.38
Adjusted earnings (non-GAAP)2.442.52(0.08)4.964.740.22
Estimated weather in billed sales0.010.06(0.05)(0.26)0.01(0.27)
Calculations may differ due to rounding

Consolidated Results

For third quarter 2020, the company reported earnings of $521 million, or $2.59 per share, on an as-reported basis, and earnings of $491 million, or $2.44 per share, on an adjusted basis. This compared to third quarter 2019 earnings of $365 million, or $1.82 per share, on an as-reported basis, and earnings of $506 million, or $2.52 per share, on an adjusted basis.




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

Business Segment Results

Utility

For third quarter 2020, the Utility business reported earnings attributable to Entergy Corporation of $552 million, or $2.74 per share, on both an as-reported and an adjusted basis. This compared to third quarter 2019 earnings of $578 million, or $2.88 per share, on both an as-reported basis and an adjusted basis. Drivers for the quarter included:
lower sales volume, including the effects of COVID-19, Hurricane Laura, and weather; and
higher depreciation and interest expenses.

These drivers were partially offset by:
regulatory actions at E-AR, E-LA, E-MS, and E-TX; and
lower other O&M.

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

Parent & Other

For third quarter 2020, Parent & Other reported a loss attributable to Entergy Corporation of $(61 million), or (30) cents per share, on both an as-reported basis and an adjusted basis. This compared to a loss of $(72 million), or (36) cents per share, on both an as-reported and an adjusted basis in third quarter 2019.

Entergy Wholesale Commodities

For third quarter 2020, EWC reported earnings attributable to Entergy Corporation of $30 million, or 15 cents per share, on an as-reported basis. This compared to a third quarter 2019 loss of $(141 million), or (70) cents per share, on an as-reported basis. Drivers for the quarter included:
lower asset write-offs and impairments;
higher gains on decommissioning trust funds;
lower other O&M expense due to the shutdown of Indian Point 2; and
lower depreciation expenses.

These drivers were partially offset by lower revenue due to the shutdown of Indian Point 2.

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




Earnings Per Share Guidance

Entergy narrowed its 2020 adjusted EPS guidance to a range of $5.60 to $5.70 from $5.45 to $5.75. See webcast presentation slides for additional details.

The company has provided 2020 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under “Non-GAAP Financial Measures.” The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy’s as-reported EPS will be approximately (30) cents in 2020. These estimates are subject to substantial uncertainty due to, among other things, the potential effects of exiting the EWC business.

Earnings Teleconference

A teleconference will be held at 10:00 a.m. Central Time on Wednesday, October 28, 2020, to discuss Entergy’s quarterly earnings announcement and the company’s financial performance. The teleconference may be accessed by visiting Entergy’s website at www.entergy.com or by dialing 844-309-6569, conference ID 7684714, 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 November 4, 2020, by dialing 855-859-2056, conference ID 7684714.

Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
Entergy Corporation’s common stock is listed on the New York Stock Exchange and NYSE Chicago under the symbol “ETR.”

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

Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and Other Information, which provides investors with key updates of certain regulatory proceedings



and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.

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

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

Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain “adjustments,” including the removal of the Entergy Wholesale Commodities segment in light of the company’s decision to exit the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.

Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy’s business, comparing period to period results, and comparing Entergy’s financial performance to the financial performance of other companies in the utility sector.

Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; net liquidity; net liquidity, including storm escrows; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy’s ongoing financial results and flexibility, and assists investors in comparing Entergy’s credit and



liquidity to the credit and liquidity of others in the utility sector. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; ROIC; and ROE are included on both an adjusted and an as-reported basis. In each case, the metrics defined as “adjusted” (other than EWC’s adjusted EBITDA) excludes the effect of adjustments as defined above. EWC’s adjusted EBITDA represents EWC’s earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.

These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy’s operations that, when viewed with Entergy’s GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy’s business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy’s consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy’s performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

Cautionary Note Regarding Forward-Looking Statements

In this news release, and from time to time, Entergy Corporation makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, statements regarding Entergy’s 2020 earnings guidance; its current financial and operational outlooks; and other statements of Entergy’s plans, beliefs, or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q, and Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy’s nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties



associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with 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.

###




Third 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 Measures
Third Quarter and Year-to-Date 2020 vs. 2019 (See Appendix A-3 and Appendix A-4 for details on adjustments)
Third QuarterYear-to-Date
20202019Change20202019Change
(After-tax, $ in millions)
As-reported earnings (loss)
Utility552578(27)1,2161,14076
Parent & Other(61)(72)11(220)(213)(6)
EWC30(141)1714(70)74
Consolidated5213651561,000856144
Less adjustments
Utility------
Parent & Other------
EWC30(141)1714(70)74
Consolidated30(141)1714(70)74
Adjusted earnings (loss) (non-GAAP)
Utility552578(27)1,2161,14076
Parent & Other(61)(72)11(220)(213)(6)
EWC------
Consolidated491506(15)99692770
Estimated weather in billed sales113(12)(53)1(54)
Diluted average number of common shares outstanding (in millions)201200201196
(After-tax, per share in $) (a)
As-reported earnings (loss)
Utility2.742.88(0.14)6.055.830.22
Parent & Other(0.30)(0.36)0.06(1.09)(1.09)(0.00)
EWC0.15(0.70)0.850.02(0.36)0.38
Consolidated2.591.820.774.984.380.60
Less adjustments
Utility------
Parent & Other------
EWC0.15(0.70)0.850.02(0.36)0.38
Consolidated0.15(0.70)0.850.02(0.36)0.38
Adjusted earnings (loss) (non-GAAP)
Utility2.742.88(0.14)6.055.830.22
Parent & Other(0.30)(0.36)0.06(1.09)(1.09)(0.00)
EWC------
Consolidated2.442.52(0.08)4.964.740.22
Estimated weather in billed sales0.010.06(0.05)(0.26)0.01(0.27)
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
Third Quarter and Year-to-Date 2020 vs. 2019
($ in millions)
Third QuarterYear-to-Date
20202019Change20202019Change
Utility9761,143(168)2,3712,29773
Parent & Other(67)(93)26(211)(216)5
EWC1315(3)21137174
Consolidated9221,065(143)2,3702,118252
Calculations may differ due to rounding

OCF decreased quarter-over-quarter due primarily to lower collections from Utility customers, due in part to COVID-19, and higher pension funding, partially offset by a lower amount of unprotected excess ADIT returned to customers. Intercompany income tax payments contributed to the line of business variances.

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

Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS)
Third Quarter and Year-to-Date 2020 vs. 2019
Third QuarterYear-to-Date
20202019Change20202019Change
(Pre-tax except for income taxes, preferred dividend
requirements, and totals; $ in millions)
EWC
Income before income taxes43(171)21412(43)55
Income taxes(12)31(43)(6)(26)20
Preferred dividend requirements(1)(1)-(2)(2)-
Total EWC30(141)1714(70)74
Total adjustments30(141)1714(70)74
(After-tax, per share in $) (b)
EWC
Total EWC0.15(0.70)0.850.02(0.36)0.38
Total adjustments0.15(0.70)0.850.02(0.36)0.38



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)
Third Quarter and Year-to-Date 2020 vs. 2019
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)
Third QuarterYear-to-Date
20202019Change20202019Change
EWC
Operating revenues214300(86)7471,024(277)
Fuel and fuel-related expenses(14)(26)11(51)(76)25
Purchased power(29)(18)(11)(49)(49)(1)
Nuclear refueling outage expense(11)(12)2(35)(36)2
Other O&M(114)(136)23(385)(513)128
Asset write-off and impairments(4)(198)194(16)(289)272
Decommissioning expense(51)(60)9(152)(187)35
Taxes other than income taxes(10)(13)3(44)(46)1
Depreciation/amortization exp.(21)(38)17(81)(114)33
Other income (deductions)–other
87345397266(170)
Interest exp. and other charges(5)(6)1(17)(24)7
Income taxes(12)31(43)(6)(26)20
Preferred dividend requirements(1)(1)-(2)(2)-
Total EWC30(141)1714(70)74
Total adjustments30(141)1714(70)74
Calculations may differ due to rounding




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

Appendix B-1: As-Reported and Adjusted Earnings Variance Analysis (c), (d)
Third Quarter 2020 vs. 2019
(After-tax, per share in $)
UtilityParent & OtherEWCConsolidated
As-ReportedAdjustedAs-ReportedAdjusted
As-
Reported
As-
Reported
Adjusted
2019 earnings (loss)2.882.88(0.36)(0.36)(0.70)1.822.52
Operating revenue less:
  Fuel, fuel-related expenses and
  gas purchased for resale,
  Purchased power, and
  Regulatory charges (credits)
0.120.12
(e)
--(0.34)
(f)
(0.22)0.12
Nuclear refueling outage expense0.020.02--0.010.030.02
Other O&M0.090.09
(g)
0.020.020.09
(h)
0.200.11
Asset write-offs and impairments----0.76
(i)
0.76-
Decommissioning expense(0.01)(0.01)--0.040.03(0.01)
Taxes other than income taxes(0.03)(0.03)--0.01(0.02)(0.03)
Depreciation/amortization exp.(0.15)(0.15)
(j)
--0.07
(k)
(0.08)(0.15)
Other income (deductions)–other(0.12)(0.12)
(l)
0.030.030.20
(m)
0.11(0.09)
Interest exp. and other charges(0.05)(0.05)
(n)
0.020.02-(0.03)(0.03)
Income taxes–other--(0.01)(0.01)0.01-(0.01)
Preferred dividend requirements-------
Share effect(0.01)(0.01)---(0.01)(0.01)
2020 earnings (loss)2.742.74(0.30)(0.30)0.152.592.44
h




Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d)
Year-to-Date 2020 vs. 2019
(After-tax, per share in $)
UtilityParent & OtherEWCConsolidated
As-ReportedAdjustedAs-ReportedAdjusted
As-
Reported
As-
Reported
Adjusted
2019 earnings (loss)5.835.83(1.09)(1.09)(0.36)4.384.74
Operating revenue less:
  Fuel, fuel-related expenses and
  gas purchased for resale,
  Purchased power, and
  Regulatory charges (credits)
0.530.53
(e)
--(1.02)
(f)
(0.49)0.53
Nuclear refueling outage expense0.040.04--0.010.050.04
Other O&M0.400.40
(g)
0.020.020.52
(h)
0.940.42
Asset write-offs and impairments----1.10
(i)
1.10-
Decommissioning expense(0.04)(0.04)--0.14
(o)
0.10(0.04)
Taxes other than income taxes(0.06)(0.06)
(p)
---(0.06)(0.06)
Depreciation/amortization exp.(0.52)(0.52)
(j)
--0.13
(k)
(0.39)(0.52)
Other income (deductions)–other(0.16)(0.16)
(l)
0.060.06
(q)
(0.69)
(m)
(0.79)(0.10)
Interest exp. and other charges(0.18)(0.18)
(n)
0.020.020.03(0.13)(0.16)
Income taxes–other0.380.38
(r)
(0.13)(0.13)
(s)
0.16
(t)
0.410.25
Preferred dividend requirements(0.01)(0.01)---(0.01)(0.01)
Share effect(0.16)(0.16)
(u)
0.030.03-(0.13)(0.13)
2020 earnings (loss)6.056.05(1.09)(1.09)0.024.984.96
Calculations may differ due to rounding
(c)Utility operating revenue / regulatory charges, Utility other O&M, and Utility income taxes-other exclude $16 million, $- million, and $16 million respectively in third quarter 2020 and $93 million, $3 million, and $96 million respectively in third quarter 2019 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). On a year-to-date basis, Utility operating revenue / regulatory charges, Utility other O&M, and Utility income taxes-other exclude $61 million, $- million, and $61 million respectively in 2020 and $216 million, $3 million, and $219 million respectively in 2019 (net effect is neutral to earnings).
(d)EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes–other represents income tax differences other than the tax effect of individual line items.
Utility as-reported operating revenue less fuel, fuel-related expenses and gas purchased for resale; purchased power; and regulatory charges (credits) variance analysis
2020 vs. 2019 ($ EPS)
3QYTD
Volume/weather(0.30)(0.55)
Retail electric price0.421.12
Reg. provision for E-AR FRP-0.05
Reg. liability for tax sharing
-(0.10)
Other-0.01
Total0.120.53
(e)The third quarter and year-to-date earnings increases were primarily driven by E-AR’s FRP; E-LA’s FRP, including recovery of the LCPS; E-MS’s FRP, vegetation rider, and recovery of Choctaw; and E-TX’s TCRF.



Partially offsetting was volume/weather, including the effects of COVID-19 and Hurricane Laura as well as E-NO’s rate case. The year-to date 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 (this partially offsets the Hurricane Isaac Act 55 income tax item discussed in footnote r).
(f)The third quarter and year-to-date earnings decreases were due largely to lower revenues from the shutdown of Indian Point 2 in April 2020. The year-to-date variance also reflected lower revenues from the shutdown of Pilgrim in May 2019 and lower capacity and energy prices, partially offset by higher energy volume in the remaining EWC nuclear fleet.
(g)The third quarter and year-to-date earnings increases from lower Utility other O&M were due primarily to a decrease in loss provisions, lower contract costs related to new customer initiatives, and lower non-nuclear generation expenses related to long-term service agreements and the timing and scope of outages, including a delay in planned outages as a result of COVID-19. These were partially offset by higher compensation and benefits costs, primarily pension. The year-to-date variance also reflected lower nuclear generation expenses, higher nuclear insurance refunds, and higher E-MS storm damage provisions (offset in operating revenue).
(h)The third quarter and year-to-date earnings increases from lower EWC other O&M were due largely to the shutdown of Indian Point 2 in April 2020. The year-to-date variance also reflected the shutdown of Pilgrim in May 2019, as well as a decrease in severance and retention expense.
(i)The third quarter and year-to-date earnings increases 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. The year-to-date variance also reflected higher impairment charges in first quarter 2019, largely refueling outage costs at Indian Point.
(j)The third quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including the LCPS and Choctaw. The year-to-date 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.
(k)The third quarter and year-to-date earnings increases from lower EWC depreciation expense were due primarily to the shutdown of Indian Point 2 in April 2020. The year-to-date variance also reflected the shutdown of Pilgrim in May 2019.
(l)The third quarter and year-to-date earnings decreases from lower Utility other income (deductions)–other were due largely to changes in decommissioning trust fund activity (based on regulatory treatment, decommissioning-related variances are largely earnings neutral). Lower AFUDC as a result of higher construction work in progress in 2019 also contributed.
(m)The third quarter earnings increase from higher EWC other income (deductions)–other was due largely to higher gains on decommissioning trust fund investments in 2020 as compared to 2019, as well as a $16 million pension settlement charge in third quarter 2019 related to the exit of the EWC business. The year-to-date earnings decrease was due largely to performance of nuclear decommissioning trust fund investments in 2020 as compared to 2019.
(n)The third quarter and year-to-date earnings decreases from higher Utility interest expense were due primarily to higher debt balances at E-LA, E-TX, and E-MS. The year-to-date variance also reflected a higher debt balance at E-AR.
(o)The year-to-date earnings increase from lower EWC decommissioning expense was due to the sale of Pilgrim in 2019.
(p)The year-to-date earnings decrease from higher Utility taxes other than income taxes was due primarily to an increase in ad valorem taxes at E-LA.
(q)The year-to-date earnings increase from Parent & Other other income (deductions)–other was due primarily to intercompany interest.
(r)The year-to-date earnings increase from Utility effective income tax rate reflected two first quarter 2020 items. A $55 million tax benefit was recorded as a result of an IRS settlement related to Act 55 financing of Hurricane Isaac costs (partly offset by customer sharing, recorded as a regulatory charge discussed in footnote e). In addition, an annual tax deduction related to stock-based compensation resulted in an income tax benefit of $22 million, $20 million greater than first quarter 2019.



(s)The year-to-date earnings decrease from Parent & Other effective income tax rate was due to an increase in income tax expense of $23 million as a result of the IRS settlement related to the Hurricane Isaac Act 55 financing (discussed in footnote r).
(t)The year-to-date earnings increase from EWC effective income tax rate is primarily due to a first quarter 2019 accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019.
(u)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
Third Quarter and Year-to-Date 2020 vs. 2019
Third QuarterYear-to-Date
20202019% Change% Weather Adjusted (v)20202019% Change% Weather Adjusted (v)
GWh billed
Residential11,63411,6270.11.627,51927,749(0.8)2.5
Commercial7,7918,499(8.3)(7.5)20,10621,764(7.6)(7.1)
Governmental660705(6.4)(6.2)1,8261,932(5.5)(5.8)
Industrial11,99412,861(6.7)(6.7)35,65536,509(2.3)(2.3)
Total retail sales32,07933,692(4.8)(4.1)85,10687,954(3.2)(2.1)
Wholesale4,8813,02561.411,10910,00911
Total sales36,96036,7170.796,21597,963(1.8)
Number of electric retail customers
Residential2,530,1502,500,6531.2
Commercial361,401359,5910.5
Governmental17,65317,860(1.2)
Industrial48,65149,051(0.8)
Total retail customers2,957,8552,927,1551.0
Other O&M and refueling outage expense per MWh$18.02$19.02(5.3)$19.66$20.53(4.2)

Appendix C-2: Utility Operating Measures
Twelve Months Ended September 30, 2020 vs. 2019
Twelve Months Ended September 30
20202019%
Change
% Weather Adjusted (v)
GWh billed
Residential35,86335,999(0.4)1.7
Commercial27,09828,789(5.9)(5.9)
Governmental2,4722,579(4.1)(4.4)
Industrial47,62948,390(1.6)(1.6)
Total retail sales113,062115,757(2.3)(1.7)
Calculations may differ due to rounding
(v)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 third quarter 2020, billed retail sales decreased (4.1) percent, including the impacts of Hurricane Laura and COVID-19. Residential billed sales increased 1.6 percent and commercial billed sales decreased (7.5) percent. Industrial billed sales volume decreased (6.7) reflecting lower sales to existing large and small customers, partially offset by continued growth from new/expansion customers.

D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).

Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures
Third Quarter and Year-to-Date 2020 vs. 2019
($ in millions)Third QuarterYear-to-Date
20202019Change20202019Change
Net income (loss)31(141)1716(69)74
Add back: interest expense56(1)1724(7)
Add back: income taxes12(31)43626(20)
Add back: depreciation and amortization2138(17)81114(33)
Subtract: interest and investment income955937130316(185)
Add back: decommissioning expense5160(9)152187(35)
Adjusted EBITDA (non-GAAP)24(127)151132(34)166
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
Third Quarter and Year-to-Date 2020 vs. 2019
Third QuarterYear-to-Date
20202019% Change20202019% Change
Owned capacity (MW) (w)
2,2463,274(31.4)2,2463,274(31.4)
GWh billed4,3326,847(36.7)16,04721,308(24.7)
EWC Nuclear Fleet
Capacity factor83%98%(15.3)94%91%(3.3)
GWh billed3,9436,210(36.5)14,78219,602(24.6)
Production cost per MWh$21.85$16.2734.3$18.24$18.48(1.3)
Average energy/capacity revenue per MWh$49.71$42.1517.9$45.23$46.53(2.8)
Refueling outage days
Indian Point 3---29
Palisades32-32-
Calculations may differ due to rounding
(w)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
Third Quarter 2020 vs. 2019 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures)
For 12 months ending September 3020202019Change
GAAP Measures
As-reported ROIC6.3%4.8%1.5%
As-reported ROE13.3%8.6%4.8%
Non-GAAP Financial Measures
Adjusted ROIC5.4%5.6%(0.1)%
Adjusted ROE10.9%11.4%(0.5)%
As of September 30 ($ in millions, except where noted)20202019Change
GAAP Measures
Cash and cash equivalents
1,240956284
Available revolver capacity
4,1254,11510
Commercial paper1,3981,918(520)
Total debt22,12719,4412,686
Securitization debt
209338(129)
Debt to capital66.7%65.4%1.4%
Off-balance sheet liabilities:
  Debt of joint ventures – Entergy’s share
4956(7)
Total off-balance sheet liabilities4956(7)
Storm escrows373410(37)
Non-GAAP Financial Measures ($ in millions, except where noted)
Debt to capital, excluding securitization debt66.5%65.0%1.5%
Net debt to net capital, excluding securitization debt65.2%63.8%1.4%
Gross liquidity5,3645,071293
Net liquidity3,9663,153813
Net liquidity, including storm escrows4,3393,563776
Parent debt to total debt, excluding securitization debt22.4%20.5%1.9%
FFO to debt, excluding securitization debt11.8%14.2%(2.3)%
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC12.5%17.6%(5.1)%
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 billedTotal number of GWh billed to retail and wholesale customers
Number of electric retail customersAverage number of electric customers over the period
Other O&M and refueling outage expense per MWhOther 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 volumesRevenue 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 contractsA contract for the sale of installed capacity and related energy, priced per MWh sold
Capacity contractsA contract for the sale of the installed capacity product in regional markets managed by NYISO and MISO
Capacity factorNormalized percentage of the period that the nuclear plants generate power
Expected sold and market total revenue per MWhTotal 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 billedTotal number of GWh billed to customers and financially-settled instruments
Owned capacity (MW)Installed capacity owned by EWC
Percent of capacity sold forwardPercent 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 MWhFuel 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 daysNumber 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 contingentTransaction 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 ROE12-months rolling net income attributable to Entergy Corp. divided by avg. common equity
As-reported ROIC12-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 capitalTotal debt divided by total capitalization
Available revolver capacityAmount of undrawn capacity remaining on corporate and subsidiary revolvers
Securitization debtDebt on the balance sheet associated with securitization bonds that is secured by certain future customer collections
Total debtSum of short-term and long-term debt, notes payable and commercial paper, and finance leases on the balance sheet
Financial Measures – Non-GAAP
Adjusted EPSAs-reported EPS excluding adjustments
Adjusted ROE12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity
Adjusted ROIC12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
AdjustmentsUnusual 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 debtTotal debt divided by total capitalization, excluding securitization debt
FFOOCF 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 debt12-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 liquiditySum of cash and available revolver capacity
Net debt to net capital, excl. securitization debtTotal debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
Net liquiditySum of cash and available revolver capacity less commercial paper borrowing
Net liquidity, including storm escrowsSum of cash, available revolver capacity, and escrow accounts available for certain storm expenses, less commercial paper borrowing
Parent debt to total debt, excl. securitization debtEntergy 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
AFUDC –
borrowed funds
ALJ
AMI
ANO

APSC
ARO
bps
CCGT
CCN
CCNO
Choctaw
COD
CT
CWIP
DCRF
DOE
E-AR
E-LA
E-MS
E-NO
E-TX
EBITDA

ENP
EPS
ETR
EWC
FERC
FFO
FIN 48

FRP
GAAP

GCRR
Grand Gulf or GGNS
IIRR-G

Indian Point 1

Indian Point 2
or IP2
Indian Point 3
or IP3
IPEC

Accumulated deferred income taxes
Allowance for borrowed funds used during construction
Administrative law judge
Advanced metering infrastructure
Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear)
Arkansas Public Service Commission
Asset retirement obligation
Basis points
Combined cycle gas turbine
Certificate of convenience and necessity
Council of the City of New Orleans
Choctaw County Generating Station (CCGT)
Commercial operation date
Simple cycle combustion turbine
Construction work in progress
Distribution cost recovery factor
U.S. Department of Energy
Entergy Arkansas, LLC
Entergy Louisiana, LLC
Entergy Mississippi, LLC
Entergy New Orleans, LLC
Entergy Texas, Inc.
Earnings before interest, income taxes, and depreciation and amortization
Entergy Nuclear Palisades, LLC
Earnings per share
Entergy Corporation
Entergy Wholesale Commodities
Federal Energy Regulatory Commission
Funds from operations
FASB Interpretation No.48, “Accounting for Uncertainty in Income Taxes”
Formula rate plan
U.S. generally accepted accounting principles
Generation Cost Recovery Rider
Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI
Infrastructure investment recovery rider - gas
Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974)
Indian Point Energy Center Unit 2 (nuclear) (shut down 4/30/20)
Indian Point Energy Center Unit 3 (nuclear)

Indian Point Energy Center (nuclear)

ISES 2

IRS
ISO
LCPS
LPSC
LTM
MCPS
MISO

Moody’s
MPSC
MTEP
Nelson 6
NDT
NOPS
NRC
NY PSC
NYISO
NYSE
OCF
OpCo
OPEB
Other O&M

P&O
Palisades
Pilgrim

PMR
PPA

PSC
PUCT
RICE
RFP
ROE
ROIC
RS Cogen
RSP
S&P
SEC
SERI
TCRF
UPSA
Vermont
Yankee
WACC
WPEC
Unit 2 of Independence Steam Electric Station (coal)
Internal Revenue Service
Independent system operator
Lake Charles Power Station (CCGT)
Louisiana Public Service Commission
Last twelve months
Montgomery County Power Station (CCGT)
Midcontinent Independent System Operator, Inc.
Moody’s Investor Service
Mississippi Public Service Commission
MISO Transmission Expansion Plan
Unit 6 of Roy S. Nelson plant (coal)
Nuclear decommissioning trust
New Orleans Power Station
U.S. Nuclear Regulatory Commission
New York Public Service Commission
New York Independent System Operator, Inc.
New York Stock Exchange
Net cash flow provided by operating activities
Utility operating company
Other post-employment benefits
Other non-fuel operation and maintenance expense
Parent & Other
Palisades Power Plant (nuclear)
Pilgrim Nuclear Power Station (nuclear, sold August 26, 2019)
Performance Management Rider
Power purchase agreement or purchased power agreement
Public service commission
Public Utility Commission of Texas
Reciprocating internal combustion engine
Request for proposals
Return on equity
Return on invested capital
RS Cogen facility (CCGT cogeneration)
Rate Stabilization Plan (E-LA Gas)
Standard & Poor’s
U.S. Securities and Exchange Commission
System Energy Resources, Inc.
Transmission cost recovery factor
Unit Power Sales Agreement
Vermont Yankee Nuclear Power Station (nuclear, sold January 11, 2019)
Weighted-average cost of capital
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)Third Quarter
20202019
As-reported net income (loss) attributable to Entergy Corporation(A)1,385790
Preferred dividends1816
Tax-effected interest expense582548
As-reported net income (loss) attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense(B)1,9851,354
Adjustments
  
(C)252(264)
EWC preferred dividends and tax-effected interest expense included in adjustments2027
Total adjustments, excluding EWC preferred dividends and tax-effected interest expense (non-GAAP)(D)
272
(237)
Adjusted earnings (non-GAAP)(A-C)1,1341,054
Adjusted earnings, excluding preferred dividends and tax- effected interest expense (non-GAAP)(B-D)1,7131,591
Average invested capital (average of beginning and ending balances)(E)
31,442
28,413
Average common equity (average of beginning and ending balances)(F)
10,403
9,224
As-reported ROIC(B/E)6.3%4.8%
Adjusted ROIC (non-GAAP)[(B-D)/E]5.4%5.6%
As-reported ROE(A/F)13.3%8.6%
Adjusted ROE (non-GAAP)[(A-C)/F]10.9%11.4%
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)Third Quarter
20202019
Total debt(A)22,12719,441
Less securitization debt(B)209338
Total debt, excluding securitization debt(C)21,91819,103
Less cash and cash equivalents(D)1,240956
Net debt, excluding securitization debt(E)20,67818,147
Commercial paper(F)1,3981,918
Total capitalization(G)33,15329,730
Less securitization debt(B)209338
Total capitalization, excluding securitization debt(H)32,94429,392
Less cash and cash equivalents(D)1,240956
Net capital, excluding securitization debt(I)31,70428,436
Debt to capital(A/G)66.7%65.4%
Debt to capital, excluding securitization debt (non-GAAP)(C/H)66.5%65.0%
Net debt to net capital, excluding securitization debt (non-GAAP)(E/I)65.2%63.8%
Available revolver capacity(J)4,1254,115
Storm escrows(K)373410
Gross liquidity (non-GAAP)(D+J)5,3645,071
Net liquidity (non-GAAP)(D+J-F)3,9663,153
Net liquidity, including storm escrows (non-GAAP)(D+J-F+K)4,3393,563
Entergy Corporation notes:
Due September 2020-450
Due July 2022650650
Due September 2025800-
Due September 2026750750
Due June 2030600-
Due June 2050600-
Total Entergy Corporation notes(L)3,4001,850
Revolver draw(M)150155
Unamortized debt issuance costs and discounts(N)(40)(9)
Total parent debt(F+L+M+N)4,9093,914
Parent debt to total debt, excluding securitization debt (non-GAAP)[(F+L+M+N)/C]22.4%20.5%
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)
Third Quarter
20202019
Total debt(A)22,12719,441
Less securitization debt(B)209338
Total debt, excluding securitization debt(C)21,91819,103
Net cash flow provided by operating activities, LTM
(D)
3,0692,644
AFUDC – borrowed funds, LTM
(E)(55)(67)
Working capital items in net cash flow provided by operating activities, LTM:
Receivables(71)21
Fuel inventory(14)(18)
Accounts payable277(158)
Taxes accrued188(7)
Interest accrued1412
Other working capital accounts(98)(97)
Securitization regulatory charges, LTM125120
Total(F)421(127)
FFO, LTM (non-GAAP)
(G)=(D+E-F)2,5942,704
FFO to debt, excluding securitization debt (non-GAAP)(G/C)11.8%14.2%
Estimated return of unprotected excess ADIT, LTM
(H)119469
Severance and retention payments associated with exit of EWC, LTM pre-tax
(I)17183
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP)[(G+H+I)/(C)]12.5%17.6%
Calculations may differ due to rounding




Financial Statements
Entergy Corporation 
Consolidating Balance Sheet        
September 30, 2020        
(Dollars in thousands)        
(Unaudited)        
  Utility Parent & Other Entergy Wholesale Commodities Consolidated
ASSETS        
         
CURRENT ASSETS        
Cash and cash equivalents:        
Cash $34,474  $4,488  $4,897  $43,859 
Temporary cash investments 937,823  28,052  229,930  1,195,805 
Total cash and cash equivalents 972,297  32,540  234,827  1,239,664 
Notes receivable —  (75,000) 75,000   
Accounts receivable:        
Customer 798,136  —  46,658  844,794 
Allowance for doubtful accounts (73,426) —  —  (73,426)
Associated companies 12,516  (13,026) 510   
Other 118,295   4,375  122,674 
Accrued unbilled revenues 453,378  —  —  453,378 
Total accounts receivable 1,308,899  (13,022) 51,543  1,347,420 
Deferred fuel costs 6,798  —  —  6,798 
Fuel inventory - at average cost 140,989  —  5,095  146,084 
Materials and supplies - at average cost 888,615   30,344  918,962 
Deferred nuclear refueling outage costs 117,487  —  53,594  171,081 
Prepayments and other 183,165  (15,881) 65,512  232,796 
TOTAL 3,618,250  (71,360) 515,915  4,062,805 
         
OTHER PROPERTY AND INVESTMENTS        
Investment in affiliates - at equity 1,445,723  (1,445,809) 86   
Decommissioning trust funds 3,933,739  —  2,853,218  6,786,957 
Non-utility property - at cost (less accumulated depreciation) 327,410  (10) 13,790  341,190 
Other 453,223  1,212  11,468  465,903 
TOTAL 6,160,095  (1,444,607) 2,878,562  7,594,050 
         
PROPERTY, PLANT, AND EQUIPMENT        
Electric 56,206,503  10,647  968,741  57,185,891 
Natural gas 577,349  —  —  577,349 
Construction work in progress 3,466,304  279  10,803  3,477,386 
Nuclear fuel 552,224  —  61,074  613,298 
TOTAL PROPERTY, PLANT, AND EQUIPMENT 60,802,380  10,926  1,040,618  61,853,924 
Less - accumulated depreciation and amortization 23,008,377  3,515  841,036  23,852,928 
PROPERTY, PLANT, AND EQUIPMENT - NET 37,794,003  7,411  199,582  38,000,996 
         
DEFERRED DEBITS AND OTHER ASSETS        
Regulatory assets:        
Other regulatory assets 5,422,588  —  —  5,422,588 
Deferred fuel costs 240,290  —  —  240,290 
Goodwill 374,099  —  3,073  377,172 
Accumulated deferred income taxes 71,510  1,210  3,527  76,247 
Other 144,638  8,957  142,508  296,103 
TOTAL 6,253,125  10,167  149,108  6,412,400 
         
TOTAL ASSETS $53,825,473  $ (1,498,389) $3,743,167  $56,070,251 
         
*Totals may not foot due to rounding.        



Entergy Corporation 
Consolidating Balance Sheet        
September 30, 2020        
(Dollars in thousands)        
(Unaudited)        
  Utility Parent & Other Entergy Wholesale Commodities Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY        
         
CURRENT LIABILITIES        
Currently maturing long-term debt $1,050,015  $—  $ - $1,050,015 
Notes payable and commercial paper:        
Other —  1,398,205  —  1,398,205 
Account payable:        
Associated companies 25,670  (33,963) 8,293   
Other 2,611,084  696  260,667  2,872,447 
Customer deposits 408,764  —  —  408,764 
Taxes accrued 959,235  (154,761) (364,250) 440,224 
Interest accrued 181,935  22,521  539  204,995 
Deferred fuel costs 156,721  —  —  156,721 
Pension and other postretirement liabilities 45,970  —  13,582  59,552 
Current portion of unprotected excess accumulated         
   deferred income taxes 63,261  —  —  63,261 
Other 198,284  1,942  21,116  221,342 
TOTAL 5,700,939  1,234,640  (60,053) 6,875,526 
         
NON-CURRENT LIABILITIES        
Accumulated deferred income taxes and taxes accrued 5,655,198  (237,289) (749,063) 4,668,846 
Accumulated deferred investment tax credits 200,914  —  —  200,914 
Regulatory liability for income taxes - net 1,542,122  —  —  1,542,122 
Other regulatory liabilities 2,026,867  —  —  2,026,867 
Decommissioning and retirement cost liabilities 3,830,156  —  2,560,289  6,390,445 
Accumulated provisions 495,675  —  324  495,999 
Pension and other postretirement liabilities 1,952,446  —  582,307  2,534,753 
Long-term debt 15,963,325  3,510,339  139,000  19,612,664 
Other 1,097,630  (443,533) 41,769  695,866 
TOTAL 32,764,333  2,829,517  2,574,626  38,168,476 
         
Subsidiaries' preferred stock without sinking fund 195,161  —  24,249  219,410 
         
EQUITY        
Common stock, $.01 par value, authorized 500,000,000       
   shares; issued 270,035,180 shares in 2020 1,973,748  (2,172,151) 201,103  2,700 
Paid-in capital 4,269,439  733,904  1,532,198  6,535,541 
Retained earnings 9,081,561  831,118  (213,244) 9,699,435 
Accumulated other comprehensive loss (74,708) —  (315,712) (390,420)
Less - treasury stock, at cost (69,803,566 shares in 2020) 120,000  4,955,417  —  5,075,417 
TOTAL COMMON SHAREHOLDERS' EQUITY 15,130,040  (5,562,546) 1,204,345  10,771,839 
Subsidiaries' preferred stock without sinking fund 35,000  —  —  35,000 
TOTAL 15,165,040  (5,562,546) 1,204,345  10,806,839 
         
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $53,825,473  $ (1,498,389) $3,743,167  $56,070,251 
         
*Totals may not foot due to rounding.        




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