etr-20210224
false0000065984CHXUS0000007323US0001348952US0000066901US0000071508US0001427437US0000202584US00000659842021-02-242021-02-240000065984etr:EntergyNewOrleansMember2021-02-242021-02-240000065984etr:EntergyArkansasMember2021-02-242021-02-240000065984etr:EntergyTexasMember2021-02-242021-02-240000065984etr:EntergyLouisianaMember2021-02-242021-02-240000065984etr:SystemEnergyMember2021-02-242021-02-240000065984etr:EntergyMississippiMember2021-02-242021-02-240000065984exch:XNYS2021-02-242021-02-240000065984exch:XCHI2021-02-242021-02-240000065984etr:MortgageBonds4875SeriesDueSeptember2066Memberexch:XNYSetr:EntergyArkansasMember2021-02-242021-02-240000065984etr:MortgageBonds4875SeriesDueSeptember2066Memberetr:EntergyLouisianaMemberexch:XNYS2021-02-242021-02-240000065984etr:MortgageBonds490SeriesDueOctober2066Memberexch:XNYSetr:EntergyMississippiMember2021-02-242021-02-240000065984etr:EntergyNewOrleansMemberexch:XNYSetr:MortgageBonds50SeriesDueDecember2052Member2021-02-242021-02-240000065984etr:EntergyNewOrleansMemberetr:MortgageBonds550SeriesDueApril2066Memberexch:XNYS2021-02-242021-02-240000065984exch:XNYSetr:A5.375SeriesAPreferredStockCumulativeNoParValueDomainetr:EntergyTexasMember2021-02-242021-02-24

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
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, 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
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: February 24, 2021

Document

Exhibit 99.1
https://cdn.kscope.io/36bae7b51f82bb21ce3cca5ed46262ef-entergylogo1a.gif
News
Release

Date:
February 24, 2021
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 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
Appendices 8
A: Consolidated Results and Adjustments 9
B: Earnings Variance Analysis 13
C: Utility Financial and Operating Measures 16
D: EWC Financial and Operating Measures 17
E: Consolidated Financial Measures 18
F: Definitions and Abbreviations and Acronyms 19
G: Other GAAP to Non-GAAP Reconciliations 22
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)
Fourth QuarterFull Year
20202019Change20202019Change
(After-tax, $ in millions)
As-reported earnings38838531,3881,241147
Less adjustments246248(1)25017773
Adjusted earnings (non-GAAP)14213741,1381,06474
Estimated weather in billed sales(22)45(66)(75)46(120)
(After-tax, per share in $)
As-reported earnings1.931.920.016.906.300.60
Less adjustments1.221.24(0.02)1.240.900.34
Adjusted earnings (non-GAAP)0.710.680.035.665.400.26
Estimated weather in billed sales(0.11)0.22(0.33)(0.37)0.23(0.60)
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 Measures
Fourth Quarter and Full Year 2020 vs. 2019 (See Appendix A-3 and Appendix A-4 for details on adjustments)
Fourth QuarterFull Year
20202019Change20202019Change
(After-tax, $ in millions)
As-reported earnings (loss)
Utility5842713131,8001,411389
Parent & Other(127)(103)(24)(347)(316)(31)
EWC(69)217(286)(65)147(212)
Consolidated 38838531,3881,241147
Less adjustments
Utility3774133537741335
Parent & Other(61)(11)(51)(61)(11)(51)
EWC(69)217(286)(65)147(212)
Consolidated 246248(1)25017773
Adjusted earnings (loss) (non-GAAP)
Utility207229(22)1,4241,36954
Parent & Other(66)(92)26(286)(305)20
EWC------
Consolidated 14213741,1381,06474
Estimated weather in billed sales(22)45(66)(75)46(120)
Diluted average number of common shares outstanding (in millions)201201201197
(After-tax, per share in $) (a)
As-reported earnings (loss)
Utility2.901.351.558.957.161.79
Parent & Other(0.63)(0.51)(0.12)(1.73)(1.60)(0.13)
EWC(0.34)1.08(1.42)(0.32)0.74(1.06)
Consolidated1.931.920.016.906.300.60
Less adjustments
Utility1.870.211.661.870.211.66
Parent & Other(0.31)(0.05)(0.26)(0.31)(0.05)(0.26)
EWC(0.34)1.08(1.42)(0.32)0.74(1.06)
Consolidated1.221.24(0.02)1.240.900.34
Adjusted earnings (loss) (non-GAAP)
Utility1.031.14(0.11)7.086.950.13
Parent & Other(0.32)(0.46)0.14(1.42)(1.55)0.13
EWC------
Consolidated0.710.680.035.665.400.26
Estimated weather in billed sales(0.11)0.22(0.33)(0.37)0.23(0.60)
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)
Fourth QuarterFull Year
20202019Change20202019Change
Utility(95)677(772)2,2762,974(698)
Parent & Other508(21)529296(237)534
EWC(93)43(136)1188037
Consolidated320699(379)2,6902,817(127)
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
Fourth QuarterFull Year
20202019Change20202019Change
(Pre-tax except for income taxes, preferred dividend
requirements, and totals; $ in millions)
Utility
SERI regulatory liability for potential refund for rate
base reduction retroactive to 2015
(25)-(25)(25)-(25)
Income tax effect on Utility adjustment above6-66-6
2014 / 2015 IRS settlement – E-LA business
combination
396-396396-396
Reversal of income tax valuation allowance-41(41)-41(41)
Total Utility3774133537741335
Parent & Other
2014 / 2015 IRS settlement – E-LA business combination(61)-(61)(61)-(61)
Income tax valuation allowance for interest deductibility-(11)11-(11)11
Total Parent & Other(61)(11)(51)(61)(11)(51)
EWC
Income before income taxes3031(0)42(12)55
Income taxes(99)187(286)(105)161(266)
Preferred dividend requirements(1)(1)-(2)(2)-
Total EWC(69)217(286)(65)147(212)
Total adjustments246248(1)25017773
(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)-(0.09)
2014 / 2015 IRS settlement – E-LA business combination1.96-1.961.96-1.96
Reversal of income tax valuation allowance-0.21(0.21)-0.21(0.21)
Total Utility1.870.211.661.870.211.66
Parent & Other
2014 / 2015 IRS settlement – E-LA business combination(0.31)-(0.31)(0.31)-(0.31)
Income tax valuation allowance for interest deductibility-(0.05)0.05-(0.05)0.05
Total Parent & Other(0.31)(0.05)(0.26)(0.31)(0.05)(0.26)
EWC
Total EWC(0.34)1.08(1.42)(0.32)0.74(1.06)
Total adjustments1.221.24(0.02)1.240.90.34

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)
Fourth QuarterFull Year
20202019Change20202019Change
Utility
Other regulatory charges(25)-(25)(25)-(25)
Income taxes4024136140241361
Total Utility3774133537741335
Parent & Other
Income taxes(61)(11)(51)(61)(11)(51)
Total Parent & Other(61)(11)(51)(61)(11)(51)
EWC
Operating revenues196271(75)9431,295(352)
Fuel and fuel-related expenses(16)(22)6(67)(98)31
Purchased power(18)(10)(8)(68)(59)(9)
Nuclear refueling outage expense(11)(12)2(45)(49)3
Other O&M(115)(165)50(500)(678)178
Asset write-off and impairments(10)(2)(9)(27)(290)263
Decommissioning expense(53)(49)(3)(205)(237)32
Taxes other than income taxes(9)(15)6(53)(60)7
Depreciation/amortization exp.(21)(34)13(102)(148)46
Other income (deductions)–other927418189340(152)
Interest exp. and other charges(5)(5)-(22)(29)7
Income taxes(99)187(286)(105)161(266)
Preferred dividend requirements(1)(1)-(2)(2)-
Total EWC(69)217(286)(65)147(212)
Total adjustments246248(1)25017773
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 $)
UtilityParent & OtherEWCConsolidated
As-ReportedAdjustedAs-ReportedAdjusted
As-
Reported
As-
Reported
Adjusted
2019 earnings (loss)1.351.14(0.51)(0.46)1.081.920.68
Operating revenue less:
  Fuel, fuel-related expenses and
  gas purchased for resale,
  Purchased power, and
  Regulatory charges (credits)
(0.20)(0.11)(e)--(0.31)
(f)
(0.51)(0.11)
Nuclear refueling outage expense0.020.02--0.010.030.02
Other O&M(0.10)(0.10)
(g)
0.010.010.20
(h)
0.11(0.09)
Asset write-offs and impairments----(0.03)(0.03)-
Decommissioning expense(0.01)(0.01)--(0.01)(0.02)(0.01)
Taxes other than income taxes(0.01)(0.01)--0.020.01(0.01)
Depreciation/amortization exp.(0.15)(0.15)(i)--0.05(j)(0.10)(0.15)
Other income (deductions)–other0.070.07(k)0.090.090.07(m)0.230.16
Interest exp. and other charges(0.04)(0.04)0.020.02-(0.02)(0.02)
Income taxes–other1.980.23(k)(0.24)0.02(1.42)(p)0.320.25
Preferred dividend requirements-------
Share effect(0.01)(0.01)---(0.01)(0.01)
2020 earnings (loss)2.901.03(0.63)(0.32)(0.34)1.930.71
h




Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d)
Full Year 2020 vs. 2019
(After-tax, per share in $)
UtilityParent & OtherEWCConsolidated
As-ReportedAdjustedAs-ReportedAdjusted
As-
Reported
As-
Reported
Adjusted
2019 earnings (loss)7.166.95(1.60)(1.55)0.746.305.40
Operating revenue less:
  Fuel, fuel-related expenses and
  gas purchased for resale,
  Purchased power, and
  Regulatory charges (credits)
0.310.40
(e)
--(1.32)
(f)
(1.01)0.40
Nuclear refueling outage expense0.070.07(q)--0.010.080.07
Other O&M0.300.30
(g)
0.030.030.71
(h)
1.040.33
Asset write-offs and impairments----1.06(r)1.06-
Decommissioning expense(0.04)(0.04)--0.12(s)0.08(0.04)
Taxes other than income taxes(0.06)(0.06)(t)--0.03(0.03)(0.06)
Depreciation/amortization exp.(0.68)(0.68)(i)--0.19(j)(0.49)(0.68)
Other income (deductions)–other(0.09)(0.09)(k)0.150.15(l)(0.61)
(m)
(0.55)0.06
Interest exp. and other charges(0.22)(0.22)(u)0.030.030.03(0.16)(0.19)
Income taxes–other2.400.65(n)(0.37)(0.11)(o)(1.29)(p)0.740.54
Preferred dividend requirements(0.01)(0.01)---(0.01)(0.01)
Share effect(0.19)(0.19)(v)0.030.030.01(0.15)(0.16)
2020 earnings (loss)8.957.08(1.73)(1.42)(0.32)6.905.66
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 analysis
2020 vs. 2019 ($ EPS)
4QFY
Volume/weather(0.07)(0.61)
Retail electric price0.31.39
Reg. provision at E-AR in 4Q20(0.16)(0.16)
Reg. provision at E-AR in 1Q19-0.05
Reg. provision at SERI (classified as an adjustment)(0.09)(0.09)
Reg. liability for tax sharing(0.12)(0.22)
Other(0.06)(0.05)
Total(0.20)0.31

(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 QuarterFull Year
20202019% Change% Weather Adjusted (w)20202019% Change% Weather Adjusted (w)
GWh billed
Residential7,6548,344(8.3)3.435,17336,094(2.6)2.7
Commercial6,3596,991(9.0)(4.6)26,46628,755(8.0)(6.5)
Governmental590647(8.8)(7.9)2,4142,579(6.4)(6.3)
Industrial11,46111,974(4.3)(4.3)47,11748,483(2.8)(2.8)
Total retail sales26,06427,956(6.8)(2.3)111,170115,911(4.1)(2.1)
Wholesale2,5493,201(20.4)13,65813,2103.4
Total sales28,61331,157(8.2)124,828129,121(3.3)
Number of electric retail customers
Residential2,527,4022,500,7361.1
Commercial361,054359,3950.5
Governmental17,80317,7680.2
Industrial47,30545,3204.4
Total retail customers2,953,5642,923,2191.0
Other O&M and refueling outage expense per MWh$25.34$22.7011.6$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 QuarterFull Year
20202019Change20202019Change
Net income (loss)(68)218(286)(63)149(212)
Add back: interest expense55-2229(7)
Add back: income taxes99(187)286105(161)266
Add back: depreciation and amortization2134(13)102148(46)
Subtract: interest and investment income104995234415(180)
Add back: decommissioning expense53493205237(32)
Adjusted EBITDA (non-GAAP)520(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 QuarterFull Year
20202019% Change20202019% Change
Owned capacity (MW) (w)
2,2463,274(31.4)2,2463,274(31.4)
GWh billed4,4426,780(34.5)20,58128,088(26.7)
EWC Nuclear Fleet
Capacity factor89%99%(10.1)93%93%-
GWh billed4,0816,326(35.5)18,86325,928(27.2)
Production cost per MWh$19.87$17.7112.2$18.58$18.291.6
Average energy/capacity revenue per MWh$49.71 $35.73 39.1$44.34 $43.881.0
Refueling outage days
Indian Point 3---29
Palisades20-52-
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 3120202019Change
GAAP Measures
As-reported ROIC6.1%6.3%(0.2)%
As-reported ROE13.1%13.0%0.1%
Non-GAAP Financial Measures
Adjusted ROIC5.3%5.6%(0.3)%
Adjusted ROE10.8%11.2%(0.4)%
As of December 31 ($ in millions, except where noted)20202019Change
GAAP Measures
Cash and cash equivalents
1,7594261,333
Available revolver capacity
4,1103,810300
Commercial paper1,6271,947(319)
Total debt24,06219,8854,177
Securitization debt
175298(123)
Debt to capital68.3%65.5%2.8%
Off-balance sheet liabilities:
  Debt of joint ventures – Entergy’s share
1754(37)
Total off-balance sheet liabilities1754(37)
Storm escrows116412(295)
Non-GAAP Financial Measures ($ in millions, except where noted)
Debt to capital, excluding securitization debt68.1%65.1%3.0%
Net debt to net capital, excluding securitization debt66.4%64.6%1.8%
Gross liquidity5,8694,2361,633
Net liquidity4,2412,2891,952
Net liquidity, including storm escrows4,3572,7011,657
Parent debt to total debt, excluding securitization debt21.6%21.6%-
FFO to debt, excluding securitization debt10.3%14.6%(4.2)%
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC10.9%16.8%(6.0)%
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 contracts A 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
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 generationAmount 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 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 ROE12-months rolling net income attributable to Entergy Corporation 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 capacity Amount 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 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 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 liquidity Sum 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
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 or Indian Point
IRP
IRS
Accumulated deferred income taxes
Allowance for funds used during construction
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 April 30, 2020)
Indian Point Energy Center Unit 3 (nuclear)
Indian Point Energy Center (nuclear)
Integrated resource plan
Internal Revenue Service
ISES 2

ISO
LCPS
LPSC
LTM
MCPS
MISO
Moody’s
MPSC
MTEP
Nelson 6
NDT
NOPA
NOPS
NOSS
NRC
NY PSC
NYISO
NYSE
OCF
OCPS
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)
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
IRS Notice of Proposed Adjustment
New Orleans Power Station
New Orleans Solar 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
Orange County Power Station
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)
Fourth Quarter
20202019
As-reported net income (loss) attributable to Entergy Corporation (A)1,3881,241
Preferred dividends1817
Tax-effected interest expense586554
As-reported net income (loss) attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense (B)1,9921,812
Adjustments
  
(C)250177
EWC preferred dividends and tax-effected interest expense included in adjustments2025
Total adjustments, excluding EWC preferred dividends and tax-effected interest expense (non-GAAP)(D)
270
202
Adjusted earnings (non-GAAP)(A-C)1,1381,064
Adjusted earnings, excluding preferred dividends and tax- effected interest expense (non-GAAP)(B-D)1,7221,610
Average invested capital (average of beginning and ending balances)(E)
32,803
28,780
Average common equity (average of beginning and ending balances)(F)
10,575
9,534
As-reported ROIC(B/E)6.1%6.3%
Adjusted ROIC (non-GAAP)[(B-D)/E]5.3%5.6%
As-reported ROE(A/F)13.1%13.0%
Adjusted ROE (non-GAAP)[(A-C)/F]10.8%11.2%
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
20202019
Total debt (A)24,06219,885
Less securitization debt (B)175298
Total debt, excluding securitization debt (C)23,88719,587
Less cash and cash equivalents (D)1,759426
Net debt, excluding securitization debt (E)22,12819,161
Commercial paper(F)1,6271,947
Total capitalization(G)35,24330,363
Less securitization debt(B)175298
Total capitalization, excluding securitization debt(H)35,06830,065
Less cash and cash equivalents(D)1,759426
Net capital, excluding securitization debt(I)33,30929,639
Debt to capital(A/G)68.3%65.5%
Debt to capital, excluding securitization debt (non-GAAP)(C/H)68.1%65.1%
Net debt to net capital, excluding securitization debt (non-GAAP)(E/I)66.4%64.6%
Available revolver capacity(J)4,1103,810
Storm escrows(K)116412
Gross liquidity (non-GAAP)(D+J)5,8694,236
Net liquidity (non-GAAP)(D+J-F)4,2412,289
Net liquidity, including storm escrows (non-GAAP)(D+J-F+K)4,3572,701
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) 165  440
Unamortized debt issuance costs and discounts(N) (38) (8)
Total parent debt(F+L+M+N) 5,154  4,229
Parent debt to total debt, excluding securitization debt (non-GAAP)[(F+L+M+N)/C]21.6%21.6%
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
20202019
Total debt(A)24,06219,885
Less securitization debt(B)175298
Total debt, excluding securitization debt(C) 23,887  19,587
Net cash flow provided by operating activities, LTM
(D)
 2,690  2,817
AFUDC – borrowed funds, LTM
(E) (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 (F) 168  (102)
FFO, LTM (non-GAAP)(G)=(D+E-F)2,4702,854
FFO to debt, excluding securitization debt (non-GAAP)(G/C)10.3%14.6%
Estimated return of unprotected excess ADIT, LTM(H)70301
Severance and retention payments associated with exit of EWC, LTM pre-tax(I)55141
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)]10.9%16.8%
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:
    Cash85,219 42,388 1,244 128,851 
    Temporary cash investments1,440,796 13,648 175,804 1,630,248 
     Total cash and cash equivalents1,526,015 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 companies16,999 (19,008)2,009  
   Other109,725 — 25,483 135,208 
   Accrued unbilled revenues434,835 — — 434,835 
     Total accounts receivable1,225,037 (19,008)79,698 1,285,727 
Deferred fuel costs4,380 — — 4,380 
Fuel inventory - at average cost167,117 — 5,817 172,934 
Materials and supplies - at average cost930,895 (2)31,292 962,185 
Deferred nuclear refueling outage costs115,559 — 63,591 179,150 
Prepayments and other162,405 (16,306)50,325 196,424 
TOTAL4,131,408 (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 funds4,283,831 — 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 
TOTAL6,260,128 (1,462,721)3,013,358 7,810,765 
PROPERTY, PLANT, AND EQUIPMENT
Electric58,711,665 10,705 974,073 59,696,443 
Natural gas610,768 — — 610,768 
Construction work in progress2,006,905 261 4,864 2,012,030 
Nuclear fuel548,178 — 53,103 601,281 
TOTAL PROPERTY, PLANT, AND EQUIPMENT61,877,516 10,966 1,032,040 62,920,522 
Less - accumulated depreciation and amortization23,204,219 4,006 859,520 24,067,745 
PROPERTY, PLANT, AND EQUIPMENT - NET38,673,297 6,960 172,520 38,852,777 
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
  Other regulatory assets6,076,549 — — 6,076,549 
  Deferred fuel costs240,422 — — 240,422 
Goodwill374,099 — 3,073 377,172 
Accumulated deferred income taxes72,599 373 3,317 76,289 
Other111,651 8,349 125,339 245,339 
TOTAL6,875,320 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)        
  Utility Parent & Other Entergy Wholesale Commodities Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY        
         
CURRENT LIABILITIES        
Currently maturing long-term debt $1,025,015 $— $139,000 $1,164,015 
Notes payable and commercial paper: 
  Other — 1,627,489 — 1,627,489 
Account payable: 
  Associated companies 32,247 (42,703)10,456  
  Other 2,541,702 706 197,029 2,739,437 
Customer deposits 401,512 — — 401,512 
Taxes accrued 420,510 (9,028)29,529 441,011 
Interest accrued 177,557 23,708 526 201,791 
Deferred fuel costs 153,113 — — 153,113 
Pension and other postretirement liabilities 48,757 — 13,058 61,815 
Current portion of unprotected excess accumulated  
   deferred income taxes 63,683 — — 63,683 
Other 182,095 1,892 22,653 206,640 
TOTAL 5,046,191 1,602,064 412,251 7,060,506 
         
NON-CURRENT LIABILITIES        
Accumulated deferred income taxes and taxes accrued 5,188,989 (179,493)(647,724)4,361,772 
Accumulated deferred investment tax credits 212,494 — — 212,494 
Regulatory liability for income taxes - net 1,521,757 — — 1,521,757 
Other regulatory liabilities 2,323,851 — — 2,323,851 
Decommissioning and retirement cost liabilities 3,877,971 — 2,591,481 6,469,452 
Accumulated provisions 242,511 — 324 242,835 
Pension and other postretirement liabilities 2,224,025 — 628,988 2,853,013 
Long-term debt 17,679,206 3,526,555 — 21,205,761 
Other 1,200,370 (448,834)55,683 807,219 
TOTAL 34,471,174 2,898,228 2,628,752 39,998,154 
         
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 4,722,954 651,574 1,175,395 6,549,923 
  Retained earnings 9,705,837 473,422 (282,077)9,897,182 
  Accumulated other comprehensive loss (89,912)— (359,295)(449,207)
Less - treasury stock, at cost (69,790,346 shares in 2020) 120,000 4,954,456 — 5,074,456 
TOTAL COMMON SHAREHOLDERS' EQUITY 16,192,627 (6,001,611)735,126 10,926,142 
Subsidiaries' preferred stock without sinking fund 35,000 — — 35,000 
TOTAL 16,227,627 (6,001,611)735,126 10,961,142 
         
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $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, 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)        
  Utility Parent & Other Entergy Wholesale Commodities Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY        
         
CURRENT LIABILITIES        
Currently maturing long-term debt $345,012  $450,000  $ - $795,012 
Notes payable and commercial paper: