Attached files
file | filename |
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8-K - ENTERGY CORP /DE/ | a02310.htm |
EX-99.1 - ENTERGY CORP /DE/ | a02310991.htm |
EX-99.2 - ENTERGY CORP /DE/ | a02310992.htm |
Exhibit
99.3
STATEMENT
ON USES AND USEFULNESS OF NON-GAAP FINANCIAL MEASURES
Exhibits
99.1 and 99.2 to this Report on Form 8-K (the "Releases"), contain non-GAAP
financial measures. Generally, a non-GAAP financial measure is a
numerical measure of a company's performance, financial position, or cash flows
that either excludes or includes amounts that are not normally excluded or
included in the most directly comparable measure calculated and presented in
accordance with United States generally accepted accounting principles, or
GAAP. Pursuant to the requirements of Regulation G, Entergy has
provided quantitative reconciliations within the Releases and the presentation
of the non-GAAP financial measures to the most directly comparable GAAP
financial measures.
Certain
non-GAAP measures in the Releases could differ from GAAP only in that the figure
or ratio states or includes operational earnings per
share. Operational earnings per share is presented for each of
Entergy's major business segments as well as on a consolidated
basis. Operational earnings per share is not calculated in accordance
with GAAP because it excludes the effect of "special items." Special
items reflect the effect on earnings of events that are less routine, are
related to prior periods, or are related to discontinued
businesses. In addition, other financial measures including return on
average invested capital, return on average common equity, and net margin are
included on both an operational and as-reported basis. In each case,
the metrics defined as "operational" would exclude the effect of special items
as defined above. Management believes financial metrics calculated
using operational earnings provides useful information to investors in
evaluating the ongoing results of Entergy's businesses and assists investors in
comparing the company's operating performance to the operating performance of
others in the energy sector. Entergy management frequently references
these non-GAAP financial measures in its decision-making, using them to
facilitate historical and ongoing performance comparisons as well as comparisons
to the performance of peer companies.
Other
non-GAAP measures, total gross liquidity; debt to capital, excluding
securitization debt; net debt to net capital, excluding securitization debt; and
net debt including off-balance sheet liabilities, excluding securitization debt;
are measures Entergy uses internally for management and board discussions and
cash budgeting and performance monitoring activities to gauge the overall
strength of its business. Entergy believes the above data provides
useful information to investors in evaluating Entergy's ongoing financial
flexibility, and assists investors in comparing the company's cash availability
to the cash availability of others in the energy sector.
The
non-GAAP financial measures and other reported adjusted items in Entergy's
Releases are used in addition to, and in conjunction with, results presented in
accordance with GAAP. These non-GAAP financial measures should not be
relied upon to the exclusion of GAAP financial measures. These non-GAAP
financial measures reflect an additional way of viewing aspects of our
operations that, when viewed with our GAAP results and the accompanying
reconciliations to corresponding GAAP financial measures, may provide a more
complete understanding of factors and trends affecting our business.
Investors are strongly encouraged to review our consolidated financial
statements and publicly filed reports in their entirety and to not rely on any
single financial measure. Non-GAAP financial measures are not
standardized; therefore, it may not be possible to compare these financial
measures with other companies' non-GAAP financial measures having the same or
similar names.