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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) November 3, 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 November 3, 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 third quarter 2021 (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 November 3, 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 third quarter 2021. 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: November 3, 2021


Document

Exhibit 99.1
https://cdn.kscope.io/23c4d757cbc02315fd03f5eaf43585a1-entergylogo.gif
Entergy
639 Loyola Avenue
New Orleans, LA 70113
News
Release

Date:
November 3, 2021
For Release:Immediately
Contact:
Neal Kirby (Media)
(504) 576-4238
nkirby@entergy.com
Bill Abler (Investor Relations)
(504) 576-3097
wabler@entergy.com

Entergy Reports Third Quarter Earnings
Company narrows 2021 guidance range, affirms and extends outlooks

NEW ORLEANS – Entergy Corporation (NYSE: ETR) reported third quarter 2021 earnings per share of $2.63 on an as-reported basis and earnings per share of $2.45 on an adjusted basis (non-GAAP).

“We delivered another strong quarter. With clear visibility into the remainder of the year and a strong base plan, we are narrowing our 2021 adjusted earnings per share guidance range and affirming our longer-term outlooks.” said Entergy Chairman and Chief Executive Officer Leo Denault. “Looking forward, we are working to accelerate resilience, expand renewables, and help our customers meet their sustainability objectives. These efforts and related load growth opportunities will extend and expand our customer-centered capital investment through the end of the decade and beyond.”

Business highlights included the following:
Entergy narrowed its 2021 adjusted EPS guidance range to $5.90 to $6.10.
The Arkansas Public Service Commission approved the West Memphis Solar project.
Entergy Texas filed its application for approval of Orange County Advanced Power Station.
Entergy Arkansas reached settlements on its annual FRP and Green Promise Tariff filings.
Entergy New Orleans implemented new FRP rates.
Entergy Texas filed a settlement on its 2020 storm cost filing.
Entergy Texas submitted distribution and transmission cost recovery filings.
Entergy’s Board of Directors declared a quarterly dividend of $1.01 per share, a six percent increase.



Entergy was named as one of the nation’s top utilities in economic development by Site Selection magazine for the 14th consecutive year.
The Center for Climate and Energy Solutions and the Climate Registry awarded Entergy with a 2021 Climate Leadership Award for Organizational Leadership, recognizing Entergy for its leadership in reducing carbon emissions and its 2030 and 2050 climate commitments.

.
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 13
D: EWC Financial and Operating Measures 14
E: Consolidated Financial Measures 15
F: Definitions and Abbreviations and Acronyms 16
G: Other GAAP to Non-GAAP Reconciliations 19
Financial Statements 22


Consolidated Earnings (GAAP and Non-GAAP Measures)
Third Quarter and Year-to-Date 2021 vs. 2020 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments)
Third Quarter
Year-to-Date
2021
2020
Change
2021
2020
Change
(After-tax, $ in millions)
As-reported earnings
531521118601,000(141)
Less adjustments
37307(201)4(205)
Adjusted earnings (non-GAAP)
49449141,06199664
  Estimated weather in billed sales
(2)1(3)4(53)57
(After-tax, per share in $)
As-reported earnings
2.632.590.044.264.98(0.72)
Less adjustments
0.180.150.03(1.00)0.02(1.02)
Adjusted earnings (non-GAAP)
2.452.440.015.264.960.30
  Estimated weather in billed sales
(0.01)0.01(0.02)0.02(0.26)0.28
Calculations may differ due to rounding

Consolidated Results

For third quarter 2021, the company reported earnings of $531 million, or $2.63 per share, on an as-reported basis, and earnings of $494 million, or $2.45 per share, on an adjusted basis. This compared to third quarter 2020 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.

Summary discussions by business follow. 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 2021, the Utility business reported earnings attributable to Entergy Corporation of $570 million, or $2.82 per share, on an as-reported basis and $559 million, or $2.77 per share, on an adjusted basis. This compared to third quarter 2020 earnings of $552 million, or $2.74 per share, on both an as-reported and an adjusted basis. Drivers for the change in quarterly earnings included:
the net effect of regulatory actions across the operating companies.

The driver was partially offset by:
higher operating expenses including other O&M, taxes other than income taxes, and depreciation expense; and
retail sales volume, including volume in the unbilled period, largely due to impacts of Hurricane Ida.

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

Parent & Other

For third quarter 2021, Parent & Other reported a loss attributable to Entergy Corporation of $(65 million), or (32) cents per share, on both an as-reported and an adjusted basis. This compared to a third quarter 2020 loss of $(61 million), or (30) cents per share, on both an as-reported and an adjusted basis.

Entergy Wholesale Commodities

For third quarter 2021, EWC reported earnings attributable to Entergy Corporation of $26 million, or 13 cents per share, on an as-reported basis. This compared to third quarter 2020 earnings of $30 million, or 15 cents per share, on an as-reported basis. Drivers for the quarter included:
lower operating expenses, including other O&M primarily due to the shutdown of Indian Point 3 and decommissioning expense primarily due to the sale of Indian Point.

The driver was partially offset by:
lower revenue primarily due to the shutdown of Indian Point 3; and
lower earnings on the decommissioning trusts due to the transfer of the trusts resulting from the sale of Indian Point.

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

Earnings Per Share Guidance

Entergy narrowed its 2021 adjusted EPS guidance to a range of $5.90 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 $(0.80) in 2021. This estimate is 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, November 3, 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 8029888, no more than 15 minutes prior to the start of the call. The webcast presentation is also being posted to Entergy’s website concurrent with this news release. 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 10, 2021, by dialing 855-859-2056, conference ID 8029888.

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 7,000 megawatts of nuclear power. Headquartered in New Orleans, Louisiana, Entergy has annual revenues of $10 billion and approximately 12,500 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 on 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 or on the timeline 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 2021 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 2021 vs. 2020 (See Appendix A-3 and Appendix A-4 for details on adjustments)
Third Quarter
Year-to-Date
2021
2020
Change
2021
2020
Change
(After-tax, $ in millions)
As-reported earnings (loss)
Utility570552191,2531,21637
Parent & Other(65)(61)(4)(181)(220)39
EWC2630(4)(212)4(216)
Consolidated 531521118601,000(141)
Less adjustments
Utility11111111
Parent & Other
EWC2630(4)(212)4(216)
Consolidated 37307(201)4(205)
Adjusted earnings (loss) (non-GAAP)
Utility55955281,2421,21626
Parent & Other(65)(61)(4)(181)(220)39
EWC
Consolidated 49449141,06199664
Estimated weather in billed sales(2)1(3)4(53)57
Diluted average number of common shares outstanding (in millions)202201202201
(After-tax, per share in $) (a)
As-reported earnings (loss)
Utility2.822.740.086.216.050.16
Parent & Other(0.32)(0.30)(0.02)(0.90)(1.09)0.19
EWC0.130.15(0.02)(1.05)0.02(1.07)
Consolidated 2.632.590.044.264.98(0.72)
Less adjustments
Utility0.050.050.050.05
Parent & Other
EWC0.130.15(0.02)(1.05)0.02(1.07)
Consolidated 0.180.150.03(1.00)0.02(1.02)
Adjusted earnings (loss) (non-GAAP)
Utility2.772.740.036.166.050.11
Parent & Other(0.32)(0.30)(0.02)(0.90)(1.09)0.19
EWC
Consolidated 2.452.440.015.264.960.30
Estimated weather in billed sales(0.01)0.01(0.02)0.02(0.26)0.28

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 2021 vs. 2020
($ in millions)
Third Quarter
Year-to-Date
2021
2020
Change
2021
2020
Change
Utility
1,2899763132,2262,371(145)
Parent & Other
(68)(67)(1)(154)(211)58
EWC
431331(62)211(272)
Consolidated
1,2649223432,0112,370(359)
Calculations may differ due to rounding

OCF increased quarter-over-quarter due primarily to higher collections from Utility customers, net of the timing of fuel and purchased power payments and cost recovery.

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 2021 vs. 2020
Third Quarter
Year-to-Date
2021
2020
Change
2021
2020
Change
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)
Utility
Gain on sale15151515
Income tax effect on adjustment above(4)(4)(4)(4)
Total Utility11111111
EWC
Income before income taxes
3543(8)(258)12(270)
Income taxes
(9)(12)347(6)54
Preferred dividend requirements
(1)(1)(2)(2)
Total EWC
2630(4)(212)4(216)
Total adjustments
37307(201)4(205)
(After-tax, per share in $) (b)
Utility
Gain on sale0.050.050.050.05
Total Utility0.050.050.050.05
EWC
Total EWC
0.130.15(0.02)(1.05)0.02(1.07)
Total adjustments
0.180.150.03(1.00)0.02(1.02)
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 2021 vs. 2020
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)
Third Quarter
Year-to-Date
2021
2020
Change
2021
2020
Change
Utility
Other O&M
15
-
15
15
-
15
Income taxes
(4)
-
(4)
(4)
-
(4)
Total Utility
11
-
11
11
-
11
EWC
Operating revenues
162
214
(52)
559
747
(187)
Fuel and fuel-related expenses
(24)
(14)
(10)
(63)
(51)
(12)
Purchased power
(22)
(29)
7
(58)
(49)
(9)
Nuclear refueling outage expense
(11)
(11)
(1)
(34)
(35)
1
Other O&M
(51)
(114)
63
(233)
(385)
152
Asset write-off and impairments
-
(4)
5
(345)
(16)
(329)
Decommissioning expense
(14)
(51)
37
(106)
(152)
46
Taxes other than income taxes
(2)
(10)
8
(15)
(44)
30
Depreciation/amortization exp.
(9)
(21)
12
(36)
(81)
45
Other income (deductions)–other
9
87
(78)
84
97
(13)
Interest exp. and other charges
(3)
(5)
2
(11)
(17)
6
Income taxes
(9)
(12)
3
47
(6)
54
Preferred dividend requirements
(1)
(1)
-
(2)
(2)
-
Total EWC
26
30
(4)
(212)
4
(216)
Total adjustments
37
30
7
(201)
4
(205)

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 2021 versus 2020 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 2021 vs. 2020
(After-tax, per share in $)
Utility
Parent & Other
EWC
Consolidated
As-Reported
Adjusted
As-Reported
Adjusted
As-
Reported
As-
Reported
Adjusted
2020 earnings (loss)2.742.74(0.30)(0.30)0.152.592.44
Operating revenue less:0.170.17(e)(0.22)(f)(0.05)0.17
  Fuel, fuel-related expenses and
  gas purchased for resale,
  Purchased power, and
  Regulatory charges (credits)–net
Nuclear refueling outage expense0.010.010.010.01
Other O&M(0.04)(0.09)(g)0.24(h)0.20(0.09)
Asset write-offs and impairments0.020.02
Decommissioning expense(0.01)(0.01)0.15(i)0.14(0.01)
Taxes other than income taxes(0.07)(0.07)(j)0.03(0.04)(0.07)
Depreciation/amortization exp.(0.12)(0.12)(k)0.05(l)(0.07)(0.12)
Other income (deductions)–other0.220.22(m)(0.31)(n)(0.09)0.22
Interest exp. and other charges(0.03)(0.03)(0.03)(0.03)0.01(0.05)(0.06)
Income taxes–other (0.04)(0.04)0.010.010.01(0.02)(0.03)
Preferred dividend requirements
Share effect(0.01)(0.01)(0.01)(0.01)
2021 earnings (loss)2.822.77(0.32)(0.32)0.132.632.45

h
Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d)
Year-to-date 2021 vs. 2020
(After-tax, per share in $)
Utility
Parent & Other
EWC
Consolidated
As-Reported
Adjusted
As-Reported
Adjusted
As-
Reported
As-
Reported
Adjusted
2020 earnings (loss)
6.056.05(1.09)(1.09)0.024.984.96
Operating revenue less:
Fuel, fuel-related expenses and
gas purchased for resale,
Purchased power, and
Regulatory charges (credits)–net
1.601.60
(e)
(0.82)
(f)
0.781.60
Nuclear refueling outage expense
0.030.030.030.03
Other O&M
(0.56)(0.61)
(g)
0.60
(h)
0.04(0.61)
Asset write-offs and impairments
(1.29)
(o)
(1.29)
Decommissioning expense
(0.03)(0.03)0.18(i)0.15(0.03)
Taxes other than income taxes
(0.09)(0.09)(j)0.12
(p)
0.03(0.09)
Depreciation/amortization exp.
(0.36)(0.36)
(k)
0.18
(l)
(0.18)(0.36)
Other income (deductions)–other
0.170.17
(m)
0.040.04(0.05)
(n)
0.160.21
Interest exp. and other charges
(0.12)(0.12)
(q)
(0.02)(0.02)0.02(0.12)(0.14)



Income taxes–other
(0.46)(0.46)
(r)
0.170.17
(s)
(0.01)(0.30)(0.29)
Preferred dividend requirements
Share effect
(0.02)(0.02)(0.02)(0.02)
2021 earnings (loss)
6.216.16(0.90)(0.90)(1.05)4.265.26
Calculations may differ due to rounding

(c)Utility operating revenue / regulatory charges (credits)–net and Utility income taxes–other exclude $17 million in third quarter 2021 and $16 million in third quarter 2020 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 (credits)–net and Utility income taxes–other exclude $72 million in 2021 and $61 million in 2020 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings).
(d)EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes–other represents income tax differences other than the tax effect of individual line items.
Utility as-reported operating revenue less fuel, fuel-related expenses and gas purchased for resale; purchased power; and regulatory charges (credits) variance analysis
2021 vs. 2020 ($ EPS)
3QYTD
Volume/weather
(0.09)0.31
Retail electric price
0.380.86
MSS-4 ROE reserve adjustment0.020.07
Reg. provision for decommissioning(0.25)(0.32)
Lower capacity cost not offset in fuel recovery0.070.15
Reg. provision for E-AR FRP (2019 netting adj.)0.16
Reg. liability for tax sharing0.10
Reg. credit for E-MS 0.07
Other, including Grand Gulf recovery0.040.20
Total
0.171.60

(e)The third quarter and year-to-date earnings increases were driven by regulatory actions including E-LA’s FRP; E-TX’s GCRR, TCRF, and DCRF; E-NO’s NOPS recovery; and E-MS’s FRP. The variances also reflected a few other items: regulatory charges (credits)–net for the difference between decommissioning expenses and decommissioning trust earnings plus decommissioning costs collected in revenue (largely earnings neutral, offset in Utility other income (deductions)–other; a reserve adjustment for the FERC MSS-4 ROE decision; and higher Grand Gulf revenue. For the quarter, retail sales volume including volume in the unbilled period partially offset the increase. Volume for the year-to-date period contributed to the increase. The year-to-date variance also reflected recovery of LCPS, the reversal of a regulatory provision for E-AR’s 2019 netting adjustment, a regulatory credit for E-MS (primarily for its 2020 lookback evaluation), and a first quarter 2020 regulatory liability for tax sharing with E-LA customers (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 3 in April 2021. The year-to-date decrease also reflected the shutdown of Indian Point 2 in April 2020.
(g)The third quarter and year-to-date earnings decreases from higher Utility other O&M reflected higher distribution operations expenses primarily due to contractor and reliability costs; higher non-nuclear generation expenses due partly to materials and supplies, contractor spending, and expenses associated with new plants placed in service; and higher benefits costs. These items were partially offset by a $15 million pre-tax gain on the sale of an asset (considered an adjustment and excluded from adjusted earnings). The year-to-date decrease also reflected higher scope of work performed during non-nuclear plant outages, higher nuclear generation expenses, lower nuclear insurance refunds, higher MISO expenses, and higher contract costs related to new customer initiatives.
(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 3 in April 2021 and lower severance and retention costs. The year-to-date increase also reflected the shutdown of Indian Point 2 in April 2020.
(i)The third quarter and year-to-date earnings increases from lower EWC decommissioning expense were due to the sale of Indian Point in May 2021.



(j)The third quarter and year-to-date earnings decreases from higher Utility taxes other than income taxes were due to higher franchise taxes and higher ad valorem taxes.
(k)The third quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including MCPS. The year-to-date decrease also reflected LCPS.
(l)The third quarter and year-to-date earnings increases from lower EWC depreciation expense were due primarily to the shutdown of Indian Point 3 in April 2021. The year-to-date variance also reflected the Indian Point 2 shutdown in April 2020.
(m)The third quarter and year-to-date earnings increases from higher Utility other income (deductions)–other were due largely to differences in decommissioning trust fund returns (based on regulatory treatment, decommissioning-related variances are largely earnings neutral). The year-to-date increase was partially offset by lower AFUDC as a result of higher construction work in progress in 2020.
(n)The third quarter and year-to-date earnings decrease from lower EWC other income (deductions)–other were due largely to lower gains on decommissioning trust fund investments, including the absence of earnings from nuclear decommissioning trust funds that were transferred in the sale of Indian Point. In the year-to-date period, the decrease was partially offset by lower non-service pension costs.
(o)The year-to-date earnings decrease from higher EWC asset write-offs and impairments was due primarily to a $340 million ($268 million net-of-tax) loss which resulted from the sale of Indian Point in May 2021.
(p)The year-to-date earnings increase from lower EWC taxes other than income taxes was due primarily to the shutdown of Indian Point 2 in April 2020 and Indian Point 3 in April 2021.
(q)The year-to-date earnings decrease from higher Utility interest expense was due primarily to higher debt balances at E-LA and E-MS, as well as lower AFUDC as a result of higher construction work in progress in 2020.
(r)The year-to-date earnings decrease from Utility income taxes–other primarily relates to two first quarter 2020 items. First, a $55 million tax benefit was recorded in first quarter 2020 as a result of an IRS settlement related to Act 55 financing of Hurricane Isaac costs (partly offset by customer sharing, discussed in footnote e); and second, an annual tax accrual related to stock-based compensation resulted in a $22 million income tax benefit in first quarter 2020.
(s)The year-to-date earnings increase from Parent & Other income taxes–other reflected a reversal of a $9 million valuation allowance related to the interest expense limitation in second quarter 2021. The year-to-date increase 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 r).







C: Utility Financial and Operating Measures
Appendix C provides comparative summaries of Utility operating and financial measures.

Appendix C: Utility Operating and Financial Measures
Third Quarter and Year-to-Date 2021 vs. 2020
Third Quarter
Year-to-Date
2021
2020
% Change
% Weather Adjusted (t)
2021
2020
% Change
% Weather Adjusted (t)
GWh billed
Residential
11,21811,634(3.6)
(2.9)
28,17827,5192.4(1.3)
Commercial
7,7957,7910.10.520,29920,1061.00.8
Governmental
6606600.51,8411,8260.81.7
Industrial
13,18711,9949.99.937,33535,6554.74.7
Total retail sales
32,86032,0792.42.887,65385,1063.01.7
Wholesale
4,3504,881(10.9)13,36511,10920.3
Total sales
37,21036,9600.7101,01896,2155.0
Number of electric retail customers
Residential
2,548,8652,530,1500.7
Commercial
365,364361,4011.1
Governmental
17,92217,6531.5
Industrial
50,57948,6514.0
Total retail customers
2,982,7302,957,8550.8
Other O&M and refueling outage expense per MWh
$18.17$18.020.8$20.14$19.662.4

Calculations may differ due to rounding
(t)The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change.

On a weather-adjusted basis, billed retail sales increased 2.8 percent. Third quarter 2021 sales were impacted by Hurricane Ida while third quarter 2020 sales were affected by Hurricane Laura; the estimated net impact for the quarter was approximately (1.0) percent. The impact that the COVID-19 pandemic had on the prior year also contributed to the variance. Industrial billed sales were 9.9 percent higher than third quarter 2020. The increase in industrial usage was primarily due to an increase in demand from expansion projects, primarily in the transportation, metals, and chemicals industries, an increase in demand from existing customers, primarily in the gases and chemicals industries as a result of temporary plant shutdowns and operational issues, and an increase in demand from mid-to-small and cogeneration customers. Residential billed sales decreased (2.9) percent and commercial billed sales increased 0.5 percent.





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 2021 vs. 2020
($ in millions)
Third Quarter
Year-to-Date
2021
2020
Change
2021
2020
Change
Net income (loss)
2631(5)(210)6(216)
Add back: interest expense
35(2)1117(6)
Add back: income taxes
912(3)(47)6(54)
Add back: depreciation and amortization
921(12)3681(45)
Subtract: interest and investment income
395(92)100130(30)
Add back: decommissioning expense
1451(37)106152(46)
Adjusted EBITDA (non-GAAP)
572433(205)132(337)
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 2021 vs. 2020
Third Quarter
Year-to-Date
2021
2020
% Change
2021
2020
% Change
Owned capacity (MW) (u)
1,2052,246(46.3)1,2052,246(46.3)
GWh billed
2,1664,332(50.0)9,26516,047(42.3)
EWC Nuclear Fleet
Capacity factor
97%83%16.997%94%3.2
GWh billed
1,7023,943(56.8)8,04614,782(45.6)
Production cost per MWh
$28.91$21.8532.3$23.32$18.2427.9
Average energy/capacity revenue per MWh
$69.35$49.7139.5$54.79$45.2321.1
Refueling outage days
  Palisades3232
Calculations may differ due to rounding
(u)2021 is lower due to the shutdown of IP3 (1,041MW) on April 30, 2021.

See the appendix in the webcast 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 2021 vs. 2020 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures)
For 12 months ending September 30
2021
2020
Change
GAAP Measures
As-reported ROIC
5.3%6.3%(1.0)%
As-reported ROE
11.3%13.3%(2.0)%
Non-GAAP Financial Measures
Adjusted ROIC
5.2%5.4%(0.2)%
Adjusted ROE
10.9%10.9%—%
As of September 30 ($ in millions, except where noted)
2021
2020
Change
GAAP Measures
Cash and cash equivalents
1,0001,240(240)
Available revolver capacity
3,9254,125(199)
Commercial paper
1,0061,398(392)
Total debt
25,69522,1273,568
Securitization debt
90209(120)
Debt to capital
69.1%66.7%2.3%
Off-balance sheet liabilities:
Debt of joint ventures – Entergy’s share
949(39)
Total off-balance sheet liabilities
949(39)
Storm escrow balances
33373(340)
Non-GAAP Financial Measures ($ in millions, except where noted)
Debt to capital, excluding securitization debt
69.0%66.5%2.5%
Net debt to net capital, excluding securitization debt
68.1%65.2%2.9%
Gross liquidity
4,9255,364(439)
Net liquidity
3,9193,966(47)
Net liquidity, including storm escrow balances
3,9524,339(387)
Parent debt to total debt, excluding securitization debt
23.4%22.4%1.0%
FFO to debt, excluding securitization debt
8.3%11.8%(3.5)%
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC
9.2%12.5%(3.3)%

Calculations may differ due to rounding





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


Appendix F-1: Definitions
Utility Financial and Operating Measures
GWh billed
Total number of GWh billed to retail and wholesale customers
Number of electric retail customers
Average number of electric customers over the period
Other O&M and refueling outage expense per MWh
Other operation and maintenance expense plus nuclear refueling outage expense per MWh of billed sales
EWC Financial and Operating Measures
Adjusted EBITDA (non-GAAP)
Earnings before interest, income taxes, and depreciation and amortization, and excluding decommissioning expense
Average revenue per MWh on contracted volumes
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades (revenue will fluctuate due to factors including positive or negative basis differentials and other risk management costs)
Average revenue under contract per kW-month (applies to capacity contracts only)
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards
Bundled capacity and energy contracts
A contract for the sale of installed capacity and related energy, priced per MWh sold
Capacity factor
Normalized percentage of the period that the nuclear plants generate power
Expected sold and market total revenue per MWh
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including positive or negative basis differentials and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA
GWh billed
Total number of GWh billed to customers and financially-settled instruments
Owned capacity (MW)
Installed capacity owned by EWC
Percent of capacity sold forward
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions
Percent of planned generation under contract (unit contingent)
Percent of planned generation output sold under unit-contingent contracts
Planned net MW in operation (average)
Average installed nuclear capacity to generate power and/or sell capacity, reflecting the shutdown of Palisades (May 31, 2022)
Planned TWh of generation
Amount of output expected to be generated by EWC nuclear resources considering plant operating characteristics, reflecting the shutdown of Palisades (May 31, 2022)
Production cost per MWh
Fuel and other O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation)






Appendix F-1: Definitions (continued
EWC Financial and Operating Measures (continued)
Unit contingent
Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee
Financial Measures – GAAP
As-reported ROE
12-months rolling net income attributable to Entergy Corporation divided by avg. common equity
As-reported ROIC
12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
Debt of joint ventures Entergy’s share
Entergy’s share of debt issued by business joint ventures at EWC
Debt to capital
Total debt divided by total capitalization
Available revolver capacity
Amount of undrawn capacity remaining on corporate and subsidiary revolvers
Securitization debt
Debt on the balance sheet associated with securitization bonds that is secured by certain future customer collections
Total debt
Sum of short-term and long-term debt, notes payable and commercial paper, and finance leases on the balance sheet
Financial Measures – Non-GAAP
Adjusted EPS
As-reported EPS excluding adjustments
Adjusted ROE
12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity
Adjusted ROIC
12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
Adjustments
Unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items
Debt to capital, excluding securitization debt
Total debt divided by total capitalization, excluding securitization debt
FFO
OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, taxes accrued, interest accrued, and other working capital accounts), and securitization regulatory charges
FFO to debt, excluding securitization debt
12-months rolling FFO as a percentage of end of period total debt excluding securitization debt
FFO to debt, excl. securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC
12-months rolling FFO excluding return of unprotected excess ADIT and severance and retention payments associated with exit of EWC as a percentage of end of period total debt excluding securitization debt
Gross liquidity
Sum of cash and available revolver capacity
Net debt to net capital, excl. securitization debt
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
Net liquidity
Sum of cash and available revolver capacity less commercial paper borrowing
Net liquidity, including storm escrows
Sum of cash, available revolver capacity, and escrow accounts available for certain storm expenses, less commercial paper borrowing
Parent debt to total debt, excl. securitization debt
Entergy Corp. debt, incl. amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excl. securitization debt




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


Appendix F-2: Abbreviations and Acronyms
ADIT
AFUDC
AFUDC –
borrowed funds
ALJ
AMI
ANO
APSC
ARO
bps
CCGT
CCNO
Choctaw
COD
CT
CWIP
DCRF
DOE
DSM
E-AR
E-LA
E-MS
E-NO
E-TX
EBITDA
EEI
EPS
ETR
EWC
FERC
FFO
FIN 48
FRP
GAAP
GCRR
Grand Gulf or GGNS
IIRR-G
Indian Point 2 or IP2
Indian Point 3 or IP3
IPEC

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
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
Demand side management
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
Edison Electric Institute
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 2 (nuclear) (shut down April 30, 2020, sold May 28,2021)
Indian Point Energy Center Unit 3 (nuclear) (shut down April 30, 2021, sold May 28, 2021)
Indian Point Energy Center (nuclear) (sold May 28, 2021)

IRP
IRS
ISES 2

LCPS
LPSC
LTM
MCPS
MISO
Moody’s
MPSC
MTEP
Nelson 6
NDT
NOPA
NOPS
NOSS
NRC
NYSE
OCAPS
OCF
OpCo
OPEB
Other O&M
P&O
Palisades
PMR
PPA
PUCT
REC
RFP
ROE
ROIC
RS Cogen
RSP
S&P
SEC
SERI
TCRF
UPSA
WACC
WPEC
Integrated resource plan
Internal Revenue Service
Unit 2 of Independence Steam Electric Station (coal)
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 Stock Exchange
Orange County Advanced Power Station
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)
Performance Management Rider
Power purchase agreement or purchased power agreement
Public Utility Commission of Texas
Renewable energy credit
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
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
20212020
As-reported net income (loss) attributable to Entergy Corporation (A)1,2481,385
Preferred dividends1818
Tax-effected interest expense609582
As-reported net income (loss) attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense (B)1,8751,985
Adjustments(C)45252
  
EWC preferred dividends and tax-effected interest expense included in adjustments1520
Total adjustments, excluding EWC preferred dividends and tax-effected interest expense (non-GAAP)(D)60272
Adjusted earnings (non-GAAP)(A-C)1,2021,134
Adjusted earnings, excluding preferred dividends and tax- effected interest expense (non-GAAP)(B-D)1,8151,713
Average invested capital (average of beginning and ending balances)(E)35,17831,442
Average common equity (average of beginning and ending balances)(F)11,01210,403
As-reported ROIC(B/E)5.3%6.3%
Adjusted ROIC (non-GAAP)[(B-D)/E]5.2%5.4%
As-reported ROE(A/F)11.3%13.3%
Adjusted ROE (non-GAAP)[(A-C)/F]10.9%10.9%
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
2021
2020
Total debt
(A)
25,69522,127
Less securitization debt
(B)
90209
Total debt, excluding securitization debt
(C)
25,60621,918
Less cash and cash equivalents
(D)
1,0001,240
Net debt, excluding securitization debt
(E)
24,60520,678
Commercial paper
(F)
1,0061,398
Total capitalization
(G)
37,20233,153
Less securitization debt
(B)
90209
Total capitalization, excluding securitization debt
(H)
37,11232,944
Less cash and cash equivalents
(D)
1,0001,240
Net capital, excluding securitization debt
(I)
36,11231,704
Debt to capital
(A/G)
69.1%66.7%
Debt to capital, excluding securitization debt (non-GAAP)
(C/H)
69.0%66.5%
Net debt to net capital, excluding securitization debt (non-GAAP)
(E/I)
68.1%65.2%
Available revolver capacity
(J)
3,9254,125
Storm escrows
(K)
33373
Gross liquidity (non-GAAP)
(D+J)
4,9255,364
Net liquidity (non-GAAP)
(D+J-F)
3,9193,966
Net liquidity, including storm escrows (non-GAAP)
(D+J-F+K)
3,9524,339
Entergy Corporation notes:
Due July 2022
650650
Due September 2025
800800
Due September 2026
750750
Due June 2028
650
Due June 2030
600600
Due June 2031
650
Due June 2050
600600
Total Entergy Corporation notes
(L)
4,7003,400
Revolver draw
(M)
325150
Unamortized debt issuance costs and discounts
(N)
(51)(40)
Total parent debt
(F+L+M+N)
5,9814,909
Parent debt to total debt, excluding securitization debt (non-GAAP)
[(F+L+M+N)/C]
23.4%22.4%

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
2021
2020
Total debt
(A)
25,69522,127
Less securitization debt
(B)
90209
Total debt, excluding securitization debt
(C)
25,60621,918
Net cash flow provided by operating activities, LTM
(D)
2,3313,069
AFUDC – borrowed funds, LTM
(E)
(34)(55)
Working capital items in net cash flow provided by operating activities, LTM:
Receivables
(183)(71)
Fuel inventory
20(14)
Accounts payable
326277
Taxes accrued
20188
Interest accrued
2614
Other working capital accounts
(124)(98)
Securitization regulatory charges, LTM
98125
Total
(F)
184421
FFO, LTM (non-GAAP)
(G)=(D+E-F)
2,1132,594
FFO to debt, excluding securitization debt (non-GAAP)
(G/C)
8.3%11.8%
Estimated return of unprotected excess ADIT, LTM
(H)
85119
Severance and retention payments associated with exit of EWC, LTM pre-tax
(I)
15817
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)]
9.2%12.5%

Calculations may differ due to rounding





Financial Statements
Entergy Corporation 
Consolidating Balance Sheet        
September 30, 2021        
(Dollars in thousands)        
(Unaudited)        
  Utility Parent & Other Entergy Wholesale Commodities Consolidated
ASSETS
CURRENT ASSETS
 Cash and cash equivalents:
    Cash$40,075 $4,002 $138 $44,215 
    Temporary cash investments582,043 180,186 193,592 955,821 
     Total cash and cash equivalents622,118 184,188 193,730 1,000,036 
Notes receivable— (75,000)75,000  
Accounts receivable:
   Customer 942,659 — 39,337 981,996 
   Allowance for doubtful accounts(96,087)— — (96,087)
   Associated companies7,635 (10,082)2,447  
   Other148,089 35 11,128 159,252 
   Accrued unbilled revenues485,648 — — 485,648 
     Total accounts receivable1,487,944 (10,047)52,912 1,530,809 
Deferred fuel costs209,853 — — 209,853 
Fuel inventory - at average cost121,966 — 4,017 125,983 
Materials and supplies - at average cost1,014,339 — 17,921 1,032,260 
Deferred nuclear refueling outage costs110,819 — 29,823 140,642 
Prepayments and other198,706 (15,792)10,170 193,084 
TOTAL3,765,745 83,349 383,573 4,232,667 
OTHER PROPERTY AND INVESTMENTS
Investment in affiliates1,456,358 (1,456,444)22,066 21,980 
Decommissioning trust funds4,674,054 — 561,442 5,235,496 
Non-utility property - at cost (less accumulated depreciation)339,413 (13)13,306 352,706 
Other 80,452 12,703 8,585 101,740 
TOTAL6,550,277 (1,443,754)605,399 5,711,922 
PROPERTY, PLANT, AND EQUIPMENT
Electric61,124,150 10,737 474,073 61,608,960 
Natural gas642,708 — — 642,708 
Construction work in progress2,907,923 352 4,104 2,912,379 
Nuclear fuel510,019 — 24,150 534,169 
TOTAL PROPERTY, PLANT, AND EQUIPMENT65,184,800 11,089 502,327 65,698,216 
Less - accumulated depreciation and amortization24,095,409 5,477 408,355 24,509,241 
PROPERTY, PLANT, AND EQUIPMENT - NET41,089,391 5,612 93,972 41,188,975 
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
    Other regulatory assets6,707,721 — — 6,707,721 
    Deferred fuel costs240,820 — — 240,820 
Goodwill374,099 — 3,073 377,172 
Accumulated deferred income taxes54,884 60 3,125 58,069 
Other165,073 12,022 149,058 326,153 
TOTAL7,542,597 12,082 155,256 7,709,935 
TOTAL ASSETS$58,948,010 ($1,342,711)$1,238,200 $58,843,499 
*Totals may not foot due to rounding.



Entergy Corporation 
Consolidating Balance Sheet        
September 30, 2021        
(Dollars in thousands)        
(Unaudited)        
  Utility Parent & Other Entergy Wholesale Commodities Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Currently maturing long-term debt$120,329 $650,000 $— $770,329 
Notes payable and commercial paper:
  Other— 1,006,321 — 1,006,321 
Account payable:
  Associated companies41,651 (42,519)868  
  Other3,387,440 259 64,518 3,452,217 
Customer deposits390,423 — — 390,423 
Taxes accrued461,058 23,377 (23,813)460,622 
Interest accrued195,107 35,499 498 231,104 
Deferred fuel costs2,150 — — 2,150 
Pension and other postretirement liabilities54,014 — 13,347 67,361 
Current portion of unprotected excess accumulated deferred
      income taxes69,768 — — 69,768 
Other175,143 1,899 17,563 194,605 
TOTAL4,897,083 1,674,836 72,981 6,644,900 
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued5,573,341 (450,194)(568,028)4,555,119 
Accumulated deferred investment tax credits213,768 — — 213,768 
Regulatory liability for income taxes - net1,396,385 — — 1,396,385 
Other regulatory liabilities2,560,439 — — 2,560,439 
Decommissioning and retirement cost liabilities4,025,178 — 671,380 4,696,558 
Accumulated provisions169,959 — 299 170,258 
Pension and other postretirement liabilities1,918,748 — 506,691 2,425,439 
Long-term debt19,383,367 4,324,308 139,000 23,846,675 
Other 1,209,387 (448,404)66,041 827,024 
TOTAL36,450,572 3,425,710 815,383 40,691,665 
Subsidiaries' preferred stock without sinking fund195,161 — 24,249 219,410 
EQUITY
  Preferred stock, no par value, authorized 1,000,000 shares;
    issued shares in 2021 - none— — —  
  Common stock, $.01 par value, authorized 499,000,000 shares;
    issued 270,300,648 shares in 20212,323,748 (2,522,148)201,103 2,703 
  Paid-in capital4,448,516 1,089,457 1,039,879 6,577,852 
  Retained earnings10,797,251 (89,929)(522,677)10,184,645 
  Accumulated other comprehensive loss(79,321)— (392,718)(472,039)
Less - treasury stock, at cost (69,325,211 shares in 2021)120,000 4,920,637 — 5,040,637 
TOTAL COMMON SHAREHOLDERS' EQUITY17,370,194 (6,443,257)325,587 11,252,524 
Subsidiaries' preferred stock without sinking fund35,000 — — 35,000 
TOTAL17,405,194 (6,443,257)325,587 11,287,524 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$58,948,010 ($1,342,711)$1,238,200 $58,843,499 
*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
ASSETS        
         
CURRENT ASSETS        
Cash and cash equivalents:        
  Cash $85,219 $42,388 $1,244 $128,851 
  Temporary cash investments 1,440,796 13,648 175,804 1,630,248 
     Total cash and cash equivalents 1,526,015 56,036 177,048 1,759,099 
Notes receivable— (75,000)75,000  
Accounts receivable:
   Customer 781,272 — 52,206 833,478 
   Allowance for doubtful accounts(117,794)— — (117,794)
   Associated 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 funds 4,283,831 — 2,969,384 7,253,215 
Non-utility property - at cost (less accumulated depreciation)329,700 (11)13,639 343,328 
Other 180,971 3,002 8,342 192,315 
TOTAL 6,260,128 (1,462,721)3,013,358 7,810,765 
         
PROPERTY, PLANT, AND EQUIPMENT        
Electric 58,711,665 10,705 974,073 59,696,443 
Natural gas 610,768 — — 610,768 
Construction work in progress 2,006,905 261 4,864 2,012,030 
Nuclear fuel 548,178 — 53,103 601,281 
TOTAL PROPERTY, PLANT, AND EQUIPMENT 61,877,516 10,966 1,032,040 62,920,522 
Less - accumulated depreciation and amortization 23,204,219 4,006 859,520 24,067,745 
PROPERTY, PLANT, AND EQUIPMENT - NET 38,673,297 6,960 172,520 38,852,777 
         
DEFERRED DEBITS AND OTHER ASSETS        
Regulatory assets:        
  Other regulatory assets 6,076,549 — — 6,076,549 
  Deferred fuel costs 240,422 — — 240,422 
Goodwill 374,099 — 3,073 377,172 
Accumulated deferred income taxes 72,599 373 3,317 76,289 
Other 111,651 8,349 125,339 245,339 
TOTAL 6,875,320 8,722 131,729 7,015,771 
         
TOTAL ASSETS $55,940,153 ($1,501,319)$3,800,378 $58,239,212 
         
*Totals may not foot due to rounding.        




Entergy Corporation        
Consolidating Balance Sheet        
December 31, 2020        
(Dollars in thousands)        
(Unaudited)        
  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