Attached files
| file | filename |
|---|---|
| 8-K - ENTERGY CORP /DE/ | a00313.htm |
| EX-99.2 - ENTERGY CORP /DE/ | a00313992.htm |
| EX-99.3 - ENTERGY CORP /DE/ | a00313993.htm |
|
For further information:
Paula Waters, VP, Investor Relations
504/576-4380
pwater1@entergy.com
|
INVESTOR NEWS
Feb. 8, 2013
ENTERGY REPORTS FOURTH QUARTER EARNINGS
Exhibit 99.1
NEW ORLEANS – Entergy Corporation (NYSE: ETR) reported earnings of $1.66 per share on an as-reported basis and $1.72 per share on an operational basis for fourth quarter 2012 and $4.76 per share on an as-reported basis and $6.23 per share on an operational basis for the full year 2012, as shown in Table 1 below. A more detailed discussion of quarterly and year-to-date results begins on page 2 of this release.
|
Table 1: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
|
|||||||||||
|
Fourth Quarter and Year-to-Date 2012 vs. 2011
|
|||||||||||
|
(Per share in U.S. $)
|
|||||||||||
|
Fourth Quarter
|
Year-to-Date
|
||||||||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
||||||
|
As-Reported Earnings
|
1.66
|
0.87
|
0.79
|
4.76
|
7.55
|
(2.79)
|
|||||
|
Less Special Items
|
(0.06)
|
(0.07)
|
0.01
|
(1.47)
|
(0.07)
|
(1.40)
|
|||||
|
Operational Earnings
|
1.72
|
0.94
|
0.78
|
6.23
|
7.62
|
(1.39)
|
|||||
|
Weather Impact
|
(0.07)
|
(0.05)
|
(0.02)
|
(0.09)
|
0.52
|
(0.61)
|
|||||
Operational Earnings Highlights for Fourth Quarter 2012
|
·
|
Utility earnings were higher due largely to lower income tax expense resulting from a settlement with the Internal Revenue Service completed at the end of 2012 and higher net revenue.
|
|
·
|
Entergy Wholesale Commodities earnings decreased due primarily to a higher effective income tax rate, lower net revenue and higher decommissioning expense.
|
|
·
|
Parent & Other results improved due to a decrease in income tax expense on Parent & Other activities, partially offset by higher interest expense.
|
“In 2012, Entergy’s management team made significant progress on several key fronts,” said Leo Denault, Entergy’s chairman and chief executive officer. “Looking ahead to 2013, we will remain focused on safety and operational excellence in all aspects of our business as well as successful execution on key initiatives such as our effort to join the Midwest Independent Transmission System Operator, a regional transmission organization, and our proposal to spin off and merge the transmission business with ITC Holdings Corp., working every day to create sustainable value for all of our stakeholders.”
Entergy’s business highlights also included the following:
|
·
|
Entergy Arkansas and Entergy Mississippi completed acquisitions of the Hot Spring and Hinds power plants.
|
|
·
|
Entergy Louisiana successfully completed installation of the Waterford 3 steam generator replacement project.
|
|
·
|
Edison Electric Institute honored Entergy with Emergency Recovery and Emergency Assistance awards for restoration efforts to its own customers following Hurricane Isaac and to other utility company customers following last June’s derecho weather event and Hurricane Sandy. This is the 15th consecutive year for Entergy to receive an EEI storm restoration award.
|
A teleconference will be held at 10 a.m. CT on Friday, Feb. 8, 2013, to discuss Entergy’s fourth quarter 2012 earnings announcement, and may be accessed by dialing (719) 457-2080, confirmation code 6847131, no more than 15 minutes prior to the start of the call. The call and presentation slides can also be accessed via Entergy’s website at www.entergy.com. A replay of the teleconference will be available by telephone and on Entergy’s website at www.entergy.com as soon as practical after the transcript is filed with the U.S. Securities and Exchange Commission due to filing requirements associated with the proposed spin-off and merger of Entergy’s transmission business with ITC. The telephone replay will be available through Feb. 15, 2013, by dialing (719) 457-0820, confirmation code 6847131.
|
I.
|
Consolidated Results
|
Consolidated Earnings
Table 2 provides a comparative summary of consolidated earnings per share for fourth quarter and year-to-date 2012 versus 2011, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings. In the fourth quarter 2012, Entergy included subsidiaries previously included and reported in the Parent & Other segment in the Entergy Wholesale Commodities segment to improve the alignment of certain intercompany items. The prior period financial information has been restated to reflect this change. A detailed discussion of the factors driving quarterly and full year results at each business segment follows.
|
Table 2: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
Fourth Quarter and Year-to-Date 2012 vs. 2011 (see Appendix F for definitions of certain measures)
|
||||||
|
(Per share in U.S. $)
|
||||||
|
Fourth Quarter
|
Year-to-Date
|
|||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
As-Reported
|
||||||
|
Utility
|
1.57
|
0.96
|
0.61
|
5.30
|
6.20
|
(0.90)
|
|
Entergy Wholesale Commodities
|
0.33
|
0.88
|
(0.55)
|
0.23
|
2.74
|
(2.51)
|
|
Parent & Other
|
(0.24)
|
(0.97)
|
0.73
|
(0.77)
|
(1.39)
|
0.62
|
|
Consolidated As-Reported Earnings
|
1.66
|
0.87
|
0.79
|
4.76
|
7.55
|
(2.79)
|
|
Less Special Items
|
||||||
|
Utility
|
(0.06)
|
-
|
(0.06)
|
(0.21)
|
-
|
(0.21)
|
|
Entergy Wholesale Commodities
|
-
|
-
|
-
|
(1.26)
|
-
|
(1.26)
|
|
Parent & Other
|
-
|
(0.07)
|
0.07
|
-
|
(0.07)
|
0.07
|
|
Consolidated Special Items
|
(0.06)
|
(0.07)
|
0.01
|
(1.47)
|
(0.07)
|
(1.40)
|
|
Operational
|
||||||
|
Utility
|
1.63
|
0.96
|
0.67
|
5.51
|
6.20
|
(0.69)
|
|
Entergy Wholesale Commodities
|
0.33
|
0.88
|
(0.55)
|
1.49
|
2.74
|
(1.25)
|
|
Parent & Other
|
(0.24)
|
(0.90)
|
0.66
|
(0.77)
|
(1.32)
|
0.55
|
|
Consolidated Operational Earnings
|
1.72
|
0.94
|
0.78
|
6.23
|
7.62
|
(1.39)
|
|
Weather Impact
|
(0.07)
|
(0.05)
|
(0.02)
|
(0.09)
|
0.52
|
(0.61)
|
Detailed earnings variance analysis is included in Appendix B-1 and Appendix B-2 to this release. In addition, Appendix B-3 provides details of special items shown in Table 2 above.
Consolidated Net Cash Flow Provided by Operating Activities
Entergy’s net cash flow provided by operating activities in fourth quarter 2012 was $720 million compared to $999 million in fourth quarter 2011. Intercompany income tax payments contributed to the line of business variances, but were largely offsetting between the segments. The overall quarterly decrease was due primarily to:
|
·
|
Lower deferred fuel cost collections,
|
|
·
|
Non-capital storm spending associated with Hurricane Isaac and
|
|
·
|
Lower EWC net revenue.
|
These decreases were partially offset by lower pension contributions.
For the year 2012, Entergy’s operating cash flow was $2,940 million versus $3,129 million last year. The overall decrease for the year was due largely to:
|
·
|
Lower EWC net revenue,
|
|
·
|
Non-capital storm spending associated with Hurricane Isaac and
|
|
·
|
Higher income tax payments.
|
These decreases were partially offset by a year-over-year decrease in pension contributions.
Table 3 provides the components of net cash flow provided by operating activities contributed by each business with current quarter and year-to-date comparisons.
|
Table 3: Consolidated Net Cash Flow Provided by Operating Activities
|
||||||
|
Fourth Quarter and Year-to-Date 2012 vs. 2011
|
||||||
|
(U.S. $ in millions)
|
||||||
|
Fourth Quarter
|
Year-to-Date
|
|||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
Utility
|
557
|
610
|
(53)
|
2,354
|
2,100
|
254
|
|
Entergy Wholesale Commodities
|
111
|
12
|
99
|
676
|
737
|
(61)
|
|
Parent & Other
|
52
|
377
|
(325)
|
(90)
|
292
|
(382)
|
|
Total Net Cash Flow Provided by Operating Activities
|
720
|
999
|
(279)
|
2,940
|
3,129
|
(189)
|
|
II.
|
Utility
|
In fourth quarter 2012, Utility earnings were $1.57 per share on an as-reported basis and $1.63 per share on an operational basis, compared to as-reported and operational earnings per share of $0.96 in fourth quarter 2011. The quarter-over-quarter increase was due largely to lower income tax expense. The reduction in income tax expense was driven by a settlement with the IRS, completed at the end of 2012, regarding the tax treatment of the utilities’ decommissioning liabilities.
Higher net revenue also contributed to the earnings improvement. Fourth quarter 2012 Utility net revenue reflected the net effect of pricing adjustments from regulatory actions and investments, primarily from placing the Grand Gulf extended power uprate in service. In addition, net revenue reflected moderate retail sales growth. Increased sales in the residential segment and commercial and governmental segment were partially offset by a decline in industrial sales. The industrial sales decrease was due largely to temporary outages at two large customers. Both periods had roughly similar negative weather effects.
Retail electric sales, in billed gigawatt-hours, are summarized in Table 4. Billed retail sales increased 0.8 percent on a weather-adjusted basis quarter over quarter. Weather-adjusted growth by segment was as follows:
|
·
|
Residential sales in fourth quarter 2012, on a weather-adjusted basis, increased 2.6 percent compared to fourth quarter 2011.
|
|
·
|
Commercial and governmental sales, on a weather-adjusted basis, increased 1.0 percent quarter over quarter.
|
|
·
|
Industrial sales in the fourth quarter decreased 0.6 percent compared to the same quarter of 2011.
|
These items were partially offset by higher depreciation expense due primarily to investments placed in service since the fourth quarter of last year.
For the year 2012, the Utility earned $5.30 per share on as-reported basis and $5.51 per share on an operational basis, compared to $6.20 per share on an as-reported basis and an operational basis in 2011. The year-over-year decrease was due largely to a higher effective income tax rate. Results in both years reflected tax agreements with the IRS that resulted in significant decreases in income tax expense. The income tax expense benefit in 2011 exceeded the benefit in 2012. A portion of the benefits resulting from the third quarter 2011 and the second quarter 2012 IRS agreements will be shared with customers in the applicable jurisdictions. This customer sharing was reflected in regulatory charges in net revenue in the period the income tax adjustments were recorded. Increased non-fuel operation and maintenance expense, depreciation expense and interest expense also contributed to the year-over-year earnings decrease.
Partially offsetting was net revenue, which was higher than a year ago due to the previously noted regulatory charges as well as the net effect of rate adjustments and weather-adjusted sales volume growth. Overall billed retail sales declined year-over-year as a result of milder-than-normal weather in 2012 compared to the significant effect of weather in 2011.
Table 4 provides a comparative summary of Utility operational performance measures.
|
Table 4: Utility Operational Performance Measures
|
||||||||
|
Fourth Quarter and Year-to-Date 2012 vs. 2011 (see Appendix F for definitions of certain measures)
|
||||||||
|
Fourth Quarter
|
Year-to-Date
|
|||||||
|
2012
|
2011
|
% Change
|
% Weather Adjusted
|
2012
|
2011
|
% Change
|
% Weather Adjusted
|
|
|
GWh billed
|
||||||||
|
Residential
|
7,360
|
7,274
|
1.2%
|
2.6%
|
34,664
|
36,684
|
(5.5)%
|
2.9%
|
|
Commercial and governmental
|
7,313
|
7,270
|
0.6%
|
1.0%
|
31,159
|
31,194
|
(0.1)%
|
2.0%
|
|
Industrial
|
10,067
|
10,130
|
(0.6)%
|
(0.6)%
|
41,181
|
40,810
|
0.9%
|
0.9%
|
|
Total Retail Sales
|
24,740
|
24,674
|
0.3%
|
0.8%
|
107,004
|
108,688
|
(1.5)%
|
1.9%
|
|
Wholesale
|
798
|
1,090
|
(26.8)%
|
3,200
|
4,111
|
(22.2)%
|
||
|
Total Sales
|
25,538
|
25,764
|
(0.9)%
|
110,204
|
112,799
|
(2.3)%
|
||
|
O&M expense per MWh (a)
|
$22.19
|
$21.99
|
1.0%
|
$19.53
|
$18.22
|
7.2%
|
||
|
Number of retail customers
|
||||||||
|
Residential
|
2,379,955
|
2,362,444
|
0.7%
|
|||||
|
Commercial and governmental
|
355,870
|
353,163
|
0.8%
|
|||||
|
Industrial
|
42,230
|
41,173
|
2.6%
|
|||||
|
Total Retail Customers
|
2,778,055
|
2,756,780
|
0.8%
|
|||||
|
(a)
|
Fourth quarter and year-to-date 2012 exclude the special item associated with the proposed spin-merge of the transmission business.
|
Appendix C provides information on selected pending local and federal regulatory cases.
|
III.
|
Entergy Wholesale Commodities
|
EWC operational adjusted EBITDA was $161 million in the fourth quarter of 2012, compared to $193 million in the same period a year ago, as shown in Table 5. The decline was due largely to lower net revenue from the nuclear portfolio on lower energy pricing. The average realized revenue per megawatt hour for the nuclear fleet was approximately $50, down from $53 in the same period last year.
For the year, EWC operational adjusted EBITDA was $618 million compared to $862 million in 2011. The year-over-year decrease was driven by lower net revenue due to lower nuclear energy pricing. Nuclear generation also declined versus 2011 due to an increase in refueling and unplanned outage days. The effect of increased outage days was partially offset by the exercise of resupply options provided for in PPAs. Also partially offsetting in net revenue was contributions from the RISEC power plant acquired in December 2011. Higher non-fuel operation and maintenance expense and taxes other than income taxes also contributed to the operational adjusted EBITDA decline. Decreased nuclear refueling outage expense provided a partial offset following the first quarter 2012 asset impairment of Vermont Yankee.
|
Table 5: Entergy Wholesale Commodities Operational Adjusted EBITDA – Reconciliation of GAAP to Non-GAAP Measures
|
||||||
|
Fourth Quarter and Year-to-Date 2012 vs. 2011 (see Appendix F for definitions of certain measures)
|
||||||
|
($ in millions)
|
||||||
|
Fourth Quarter
|
Year-to-Date
|
|||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
Net income
|
59
|
156
|
(97)
|
40
|
492
|
(452)
|
|
Add back: interest expense
|
3
|
6
|
(3)
|
18
|
33
|
(15)
|
|
Add back: income tax expense
|
50
|
18
|
32
|
61
|
176
|
(115)
|
|
Add back: depreciation and amortization
|
47
|
46
|
1
|
176
|
179
|
(3)
|
|
Subtract: interest and investment income
|
28
|
29
|
(1)
|
105
|
99
|
6
|
|
Add back: decommissioning expense
|
30
|
(4)
|
34
|
72
|
81
|
(9)
|
|
Adjusted EBITDA
|
161
|
193
|
(32)
|
262
|
862
|
(600)
|
|
Add back: special item for asset impairment
|
-
|
-
|
-
|
356
|
-
|
356
|
|
Operational adjusted EBITDA
|
161
|
193
|
(32)
|
618
|
862
|
(244)
|
EWC earnings per share for the fourth quarter 2012 were $0.33 on an as-reported and operational basis, compared to $0.88 in fourth quarter 2011. The decline was attributable partly to the operational EBITDA drivers noted above. Other drivers included a higher effective income tax rate and higher decommissioning expense. The higher decommissioning expense was due to the benefit from an adjustment to the decommissioning liability recorded in the fourth quarter of 2011.
For the year, EWC earnings per share were $0.23 on an as-reported basis and $1.49 on an operational basis, compared to as-reported and operational earnings per share of $2.74 in 2011. In addition to the operational adjusted EBITDA drivers noted above, an asset impairment of the Vermont Yankee nuclear power plant recorded in the first quarter of the current year contributed to the as-reported decrease. Other drivers include a higher effective income tax rate, partially offset by lower interest expense.
Table 6 provides a comparative summary of EWC operational performance measures.
|
Table 6: Entergy Wholesale Commodities Operational Performance Measures
|
||||||
|
Fourth Quarter and Year-to-Date 2012 vs. 2011 (see Appendix F for definitions of certain measures)
|
||||||
|
Fourth Quarter
|
Year-to-Date
|
|||||
|
2012
|
2011
|
% Change
|
2012
|
2011
|
% Change
|
|
|
Owned capacity (MW)
|
6,612
|
6,599
|
0.2%
|
6,612
|
6,599
|
0.2%
|
|
GWh billed
|
11,221
|
11,121
|
0.9%
|
46,178
|
43,497
|
6.2%
|
|
Net revenue ($ millions)
|
$463
|
$504
|
(8.2)%
|
$1,854
|
$2,045
|
(9.4)%
|
|
Average realized revenue per MWh
|
$50.56
|
$52.48
|
(3.7)%
|
$50.02
|
$54.50
|
(8.2)%
|
|
Non-fuel O&M expense per MWh (b)
|
$23.52
|
$24.61
|
(4.4)%
|
$23.66
|
$24.28
|
(2.6)%
|
|
EWC Nuclear Fleet
|
||||||
|
Capacity factor
|
90%
|
93%
|
(3.2)%
|
89%
|
93%
|
(4.3)%
|
|
GWh billed
|
10,298
|
10,367
|
(0.7)%
|
41,042
|
40,918
|
0.3%
|
|
Average realized revenue per MWh
|
$49.88
|
$53.00
|
(5.9)%
|
$50.29
|
$54.73
|
(8.1)%
|
|
Production cost per MWh
|
$26.18
|
$25.92
|
1.0%
|
$26.19
|
$25.21
|
3.9%
|
|
Refueling outage days:
|
||||||
|
FitzPatrick
|
19
|
-
|
34
|
-
|
||
|
Indian Point 2
|
-
|
-
|
28
|
-
|
||
|
Indian Point 3
|
-
|
-
|
-
|
30
|
||
|
Palisades
|
-
|
-
|
34
|
-
|
||
|
Pilgrim
|
-
|
-
|
-
|
25
|
||
|
Vermont Yankee
|
-
|
25
|
-
|
25
|
||
|
|
(b)
|
Year-to-date 2012 excludes the effect of the special item for impairment of the Vermont Yankee assets.
|
Table 7 provides information on current forward capacity and generation contracts for EWC’s fleet, as well as total revenue projections based on market prices as of Dec. 31, 2012. EWC uses a combination of forward physical and financial contracts, including swaps, collars, put and / or call options, to manage forward commodity price risk. Certain hedge volumes have price downside and upside relative to market price movements. The contracted minimum, current expected value and sensitivity are provided to show potential variations. The sensitivity may not reflect the total maximum upside potential from higher market prices. Information contained in Table 7 represents projections at a point in time and will vary over time based on numerous factors, such as future market prices, contracting activities and generation.
|
Table 7: Entergy Wholesale Commodities Capacity and Generation
|
|||||
|
First Quarter 2013 through 2017 (see Appendix F for definitions of certain measures)
|
|||||
|
(based on market prices as of Dec. 31, 2012) (c)
|
|||||
|
2013
|
2014
|
2015
|
2016
|
2017
|
|
|
EWC Nuclear Portfolio
|
|||||
|
Energy
|
|||||
|
Planned TWh of generation
|
40
|
41
|
41
|
40
|
41
|
|
Percent of planned generation under contract
|
|||||
|
Unit-contingent
|
42%
|
22%
|
12%
|
12%
|
13%
|
|
Unit-contingent with availability guarantees
|
19%
|
15%
|
13%
|
13%
|
13%
|
|
Firm LD
|
24%
|
55%
|
14%
|
-%
|
-%
|
|
Offsetting positions
|
-%
|
(19)%
|
-%
|
-%
|
-%
|
|
Total
|
85%
|
73%
|
39%
|
25%
|
26%
|
|
Average revenue per MWh on contracted volumes
|
|||||
|
Minimum
|
$45
|
$44
|
$45
|
$50
|
$51
|
|
Expected based on current market prices
|
$46
|
$45
|
$47
|
$51
|
$52
|
|
Sensitivity: - / + $10 per MWh market price change
|
$45 - $48
|
$44 - $48
|
$46 - $52
|
$50 - $53
|
$51 - $54
|
|
Capacity
|
|||||
|
Planned net MW in operation
|
5,011
|
5,011
|
5,011
|
5,011
|
5,011
|
|
Percent of capacity sold forward
|
|||||
|
Bundled capacity and energy contracts
|
16%
|
16%
|
16%
|
16%
|
16%
|
|
Capacity contracts
|
33%
|
13%
|
12%
|
5%
|
-%
|
|
Total
|
49%
|
29%
|
28%
|
21%
|
16%
|
|
Average revenue under contract per kW per month
(applies to capacity contracts only)
|
$2.3
|
$2.9
|
$3.3
|
$3.4
|
$-
|
|
Total Nuclear Energy and Capacity Revenues
|
|||||
|
Expected sold and market total revenue per MWh
|
$48
|
$45
|
$45
|
$47
|
$48
|
|
Sensitivity: - / + $10 per MWh market price change
|
$47 - $51
|
$42 - $50
|
$39 - $52
|
$40 - $55
|
$41 - $56
|
|
EWC Non-Nuclear Portfolio
|
|||||
|
Energy
|
|||||
|
Planned TWh of generation
|
6
|
6
|
6
|
6
|
6
|
|
Percent of planned generation under contract
|
|||||
|
Cost-based contracts
|
39%
|
32%
|
35%
|
32%
|
32%
|
|
Firm LD
|
6%
|
6%
|
6%
|
6%
|
6%
|
|
Total
|
45%
|
38%
|
41%
|
38%
|
38%
|
|
Capacity
|
|||||
|
Planned net MW in operation
|
1,052
|
1,052
|
1,052
|
1,052
|
977
|
|
Percent of capacity sold forward
|
|||||
|
Cost-based contracts
|
29%
|
24%
|
24%
|
24%
|
26%
|
|
Bundled capacity and energy contracts
|
8%
|
8%
|
8%
|
8%
|
9%
|
|
Capacity contracts
|
48%
|
47%
|
48%
|
20%
|
-%
|
|
Total
|
85%
|
79%
|
80%
|
52%
|
35%
|
|
Total Non-Nuclear Net Revenue
|
|||||
|
Expected portfolio net revenue in $ millions
|
$79
|
$82
|
$79
|
$88
|
$95
|
|
(c)
|
Assumes uninterrupted normal operation at all plants. NRC license renewal applications are in process for both Indian Point units; current license expirations are 9/28/13 for Indian Point 2 and 12/12/15 for Indian Point 3.
|
|
IV.
|
Parent & Other
|
Parent & Other reported a loss of $(0.24) per share on an as-reported basis and an operational basis in fourth quarter 2012, compared to a fourth quarter 2011 loss of $(0.97) per share on an as-reported basis and $(0.90) per share on an operational basis. The increase in results was driven by lower income tax expense on Parent & Other activities, partially offset by higher interest expense.
For the year 2012, Parent & Other reported a loss of $(0.77) per share on an as-reported basis and an operational basis. This compares to an as-reported loss of $(1.39) per share and an operational loss of $(1.32) per share in 2011. Lower income tax expense was the primary factor in the year-over-year operational earnings per share increase, partially offset by higher interest expense. In addition to the quarterly income tax effects noted above, second quarter 2012 benefited from a favorable decision from the U.S. Court of Appeals for the Fifth Circuit affirming Entergy’s entitlement to claim foreign tax credits for the U.K. Windfall Tax.
|
V.
|
2013 Earnings Guidance
|
Entergy affirmed its previously issued 2013 earnings guidance in the range of $4.60 to $5.40 per share on both an as-reported basis and an operational basis. Entergy noted it currently expects to be in the lower half of the operational guidance range due to updated pension and post-retirement cost estimates. Year-over-year changes are shown as point estimates and are applied to 2012 earnings to compute the 2013 guidance midpoint. Drivers for the 2013 earnings guidance range are listed separately. Because there is a range of possible outcomes associated with each earnings driver, a range is applied to the guidance midpoint to produce Entergy’s guidance range. As-reported earnings guidance for 2013 does not reflect potential future expenses for the proposed spin-merge of the transmission business with ITC. The as-reported 2013 guidance will be updated throughout the year as these transaction-related expenses are incurred. Entergy’s 2013 earnings guidance is detailed in Table 8.
|
Table 8: 2013 Earnings Per Share Guidance – As-Reported and Operational
|
|||||
|
(Per share in U.S. $) – Prepared November 2012 (d)
|
|||||
|
Segment
|
Description of Drivers
|
2012 Earnings per Share
|
Expected Change
|
2013
Guidance
Midpoint
|
2013 Guidance Range
|
|
Utility
|
2012 Operational Earnings per Share
|
5.51
|
|||
|
Adjustment to normalize weather
|
0.09
|
||||
|
Increased net revenue due to absence of sharing 2012 tax benefit with customers
|
0.57
|
||||
|
Increased net revenue due to retail sales growth and rate actions
|
1.25
|
||||
|
Increased non-fuel operation and maintenance expense
|
(0.40)
|
||||
|
Increased taxes other than income taxes
|
(0.10)
|
||||
|
Increased depreciation expense
|
(0.35)
|
||||
|
Decreased other income
|
(0.05)
|
||||
|
Increased interest and other charges
|
(0.10)
|
||||
|
Higher effective income tax rate
|
(1.85)
|
||||
|
Other
|
0.13
|
||||
|
Subtotal
|
5.51
|
(0.81)
|
4.70
|
||
|
Entergy Wholesale Commodities
|
2012 Operational Earnings per Share
|
1.49
|
|||
|
Decreased net revenue due primarily to lower pricing on nuclear assets
|
(0.40)
|
||||
|
Increased non-fuel operation and maintenance expense
|
(0.15)
|
||||
|
Increased decommissioning expense
|
(0.15)
|
||||
|
Increased depreciation expense
|
(0.10)
|
||||
|
Lower effective income tax rate
|
0.10
|
||||
|
Other
|
0.01
|
||||
|
Subtotal
|
1.49
|
(0.69)
|
0.80
|
||
|
Parent & Other
|
2012 Operational Earnings per Share
|
(0.77)
|
|||
|
Increased Parent interest expense
|
(0.05)
|
||||
|
Lower income tax expense
|
0.30
|
||||
|
Other
|
0.02
|
||||
|
Subtotal
|
(0.77)
|
0.27
|
(0.50)
|
||
|
Consolidated Operational
|
2013 Operational Earnings per Share Guidance Range
|
6.23
|
(1.23)
|
5.00
|
4.60 – 5.40
|
|
Consolidated As-Reported
|
2012 As-Reported Earnings per Share
|
4.76
|
|||
|
Changes detailed above
|
(1.23)
|
||||
|
2012 Expenses associated with the proposed spin-merge of Entergy’s transmission business
|
0.21
|
||||
|
2012 Asset impairment on Vermont Yankee nuclear power plant
|
1.26
|
||||
|
2013 As-Reported Earnings per Share Guidance Range
|
4.76
|
0.24
|
5.00
|
4.60 – 5.40
|
|
|
(d)
|
Originally prepared November 2012 and updated February 2013 to reflect 2012 final results.
|
Key assumptions supporting 2013 operational earnings guidance are as follows:
Utility
|
·
|
Normal weather
|
|
·
|
Increased net revenue due to the absence of the second quarter 2012 regulatory charge to reflect sharing of income tax benefits with EGSL and ELL customers resulting from an IRS agreement regarding the treatment for hurricanes Katrina and Rita storm cost financings
|
|
·
|
Retail sales growth of around 1.25 percent on a weather-adjusted basis
|
|
·
|
Increased net revenue from rate actions, including those associated with the Waterford 3 steam generator replacement project, a full year of the Grand Gulf extended power uprate and the Hinds and Hot Spring acquisitions, which are partially offset by increases in non-fuel operation and maintenance expense, depreciation expense and taxes other than income taxes
|
|
·
|
Increased non-fuel operation and maintenance expense due to plant acquisitions and other general expense increases
|
|
·
|
Increased taxes other than income taxes resulting largely from new plant acquisitions as well as increased franchise taxes
|
|
·
|
Increased depreciation expense associated with capital spending at the Utility and the new depreciation rates established in the ETI rate case in July 2012
|
|
·
|
Decreased other income due primarily to lower allowance for equity funds used during construction as significant projects moved into service (Waterford 3 steam generator, Grand Gulf extended power uprate)
|
|
·
|
Increased interest expense due primarily to a higher level of debt outstanding
|
|
·
|
Higher effective income tax rate in 2013, due largely to the net effect of items recorded in 2012
|
Entergy Wholesale Commodities
|
·
|
EWC drivers represent expected variances at the segment level for 2013
|
|
·
|
46 TWh of output for the total fleet, reflecting an approximate 92 percent nuclear capacity factor compared to an 89 percent nuclear capacity factor in 2012; 2013 includes approximately 30- to 35-day scheduled refueling outages at Indian Point 3, Pilgrim and Vermont Yankee in Spring 2013 and Palisades in Fall 2013 (outage days vary depending on the scope of the outage)
|
|
·
|
Assumes full year operations for all nuclear plants
|
|
·
|
$47/MWh average total energy and capacity revenues for EWC-nuclear fleet based on published market prices at the end of September 2012
|
|
o
|
$45/MWh average revenue per MWh on contracted energy volumes, representing 84 percent of planned generation (prepared November 2012)
|
|
o
|
$43/MWh average market price on 16 percent unsold energy volumes (prepared November 2012); average market energy price for unsold volumes as of the end of December 2012 is unchanged
|
|
o
|
$2.3/kW-month average capacity revenue under contract on 28 percent capacity (excludes bundled capacity contracts, which are priced within the contracted energy volumes above) (prepared November 2012)
|
|
o
|
$1.8/kW-month average capacity price on 56 percent unsold capacity (prepared November 2012); average market capacity price for unsold volumes as of the end of December 2012 is approximately $2.7/kW-month
|
|
·
|
$77 million non-nuclear portfolio net revenue based on prices at the end of September 2012
|
|
·
|
Nuclear fuel expense around $6.5/MWh for 2013 compared to approximately $5.9/MWh for 2012
|
|
·
|
Decreased purchased power expense reflected in net revenue
|
|
·
|
Non-fuel operation and maintenance expense, including nuclear refueling outage expenses, around $24.3/MWh reflecting increases in refueling outage amortization for Vermont Yankee following a reduction in 2012 due to the asset impairment, general expense increases and higher costs at RISEC due to higher maintenance outage costs
|
|
·
|
Increased decommissioning expense due to the absence of a reduction in the asset retirement obligation resulting from updated decommissioning cost studies completed in the second quarter 2012, which reduced decommissioning expense in the prior year period
|
|
·
|
Increased depreciation expense on nuclear assets due to higher depreciable plant balances as well as declining useful life of nuclear assets; also contributing was the absence of the third quarter 2012 DOE litigation awards for Indian Point 2 which resulted in a reversal of previously recorded depreciation expense
|
|
·
|
Lower effective income tax rate in 2013
|
Parent & Other
|
·
|
Higher Parent interest expense due largely to higher average debt outstanding
|
|
·
|
Lower income tax expense on Parent & Other activities
|
Other
|
·
|
2013 average fully diluted shares outstanding of approximately 177 million
|
|
·
|
Overall effective income tax rate of 34 percent in 2013, the timing and segment of which may ultimately vary
|
|
·
|
Pension discount rate of 5.1 percent; the final average pension discount rate is 4.36 percent
|
Earnings guidance for 2013 should be considered in association with earnings sensitivities as shown in Table 9. These sensitivities illustrate the estimated change in operational earnings per share resulting from changes in various revenue and expense drivers. Traditionally, the most significant variables for earnings drivers are retail sales for the Utility and energy prices for EWC. In addition, the earnings guidance range for 2013 takes into consideration a number of regulatory initiatives (rate actions) underway across the Utility jurisdictions.
Estimated annual impacts shown in Table 9 are intended to be indicative rather than precise guidance.
|
Table 9: 2013 Earnings Sensitivities
|
|||
|
(Per share in U.S. $) – Prepared November 2012
|
|||
|
Variable
|
2013 Guidance Assumption
|
Description of Change
|
Estimated
Annual Impact
|
|
Utility
|
|||
|
Retail sales growth
Residential
Commercial / Governmental
Industrial
|
Around 1.25% retail sales growth on a weather adjusted basis
|
1% change in Residential MWh sold
1% change in Comm / Govt MWh sold
1% change in Industrial MWh sold
|
- / + 0.05
- / + 0.04
- / + 0.02
|
|
Rate base
|
Growing rate base
|
$100 million change in rate base
|
- / + 0.03
|
|
Return on equity
|
Authorized regulatory ROEs
|
1% change in allowed ROE
|
- / + 0.41
|
|
Non-fuel operation and maintenance expense
|
Increased due to plant acquisitions and general expenses
|
1% change in expense
|
+ / - 0.08
|
|
Entergy Wholesale Commodities (e)
|
|||
|
Nuclear capacity factor
|
92% capacity factor
|
1% change in capacity factor
|
- / + 0.06
|
|
EWC revenue
|
$47/MWh nuclear revenue;
$77M non-nuclear net revenue
|
$10/MWh market price change
|
- 0.25 / + 0.49
|
|
Total non-fuel operation and maintenance expense
|
$24.3/MWh non-fuel operation and maintenance expense
|
1% change in expense
|
+ / - 0.04
|
|
Nuclear Outage (lost revenue only)
|
92% capacity factor, including refueling outages for four EWC nuclear units
|
1,000 MW plant for 10 days at average portfolio energy price of $45/MWh for contracted volumes and $43/MWh for unsold volumes in 2013 (assuming no resupply option exercise)
|
- 0.03 / n/a
|
|
Consolidated
|
|||
|
Interest expense
|
Higher debt outstanding balances
|
1% change in interest rate on $1 billion debt
|
+ / - 0.03
|
|
Pension and other postretirement costs (expense portion only)
|
Discount rate of 5.1%
|
0.25% change
|
+/- 0.07
|
|
Effective income tax rate
|
34% effective income tax rate
|
1% change in overall effective income tax rate
|
+ / - 0.08
|
|
(e)
|
Assumes uninterrupted normal operation at all nuclear plants.
|
|
VI.
|
Long-term Financial Outlook
|
Entergy believes it offers a long-term, competitive utility investment opportunity combined with a valuable option represented by a unique, clean, non-utility generation business located in attractive power markets. Table 10 summarizes the current five-year financial outlook for 2010 through 2014. Entergy also noted that the five-year financial outlook does not reflect the effects of the proposed spin-merge of the transmission business discussed in Appendix A.
|
Table 10: Long-term Financial Outlook (see Appendix F for definitions of certain measures)
|
||
|
As of February 2013
|
||
|
Category
|
Long-term Outlook
|
Assumption
|
|
Earnings
|
Utility net income
|
Around 6 percent compound annual net income growth rate over the 2010 – 2014 horizon (2009 base year).
|
|
Entergy Wholesale Commodities results
|
Revenue projections through 2014 will experience volatility due to commodity market activities – one of the most important fundamental drivers for this business. At current sold and forward prices with its existing asset portfolio and contracts, EWC is expected to deliver declining adjusted EBITDA for the period through 2014 compared to 2010. However, EWC offers a valuable long-term option from the potential positive effects of economic growth (driving increased load, market heat rates, capacity prices and natural gas prices), aging and unprofitable unit retirements (driving market heat rate expansion and capacity price increases), rationalization of supply and growth of demand in natural gas markets, new environmental legislation and / or enforcement of additional environmental regulations.
|
|
|
Corporate results
|
Results will vary depending upon factors including future effective income tax and interest rates and the amount / timing of share repurchases, if any.
|
|
|
Capital Deployment
|
A balanced capital investment / return program
|
Entergy continues to see value-added investment opportunities at the Utility, as well as an investment outlook at EWC that supports continued safe, secure and reliable operations and opportunistic investments. Entergy aspires to fund this capital program without issuing traditional common equity, while maintaining a competitive capital return program. Given the company’s financial profile with a mix of utility and non-utility businesses, both common stock dividends and share repurchases will be considered in establishing return of capital policies. Over the five year period from 2010 – 2014 under the current long-term business outlook, capital deployment through dividends and share repurchases is projected to total around $4 billion. The amount of share repurchases may vary as a result of material changes in business results, capital spending or new investment opportunities.
|
|
Credit Quality
|
Strong liquidity.
|
|
|
Solid credit metrics that support ready access to capital on reasonable terms.
|
||
|
VII.
|
Appendices
|
Seven appendices are presented in this section as follows:
|
·
|
Appendix A includes information on Entergy’s plan to spin off the Utility transmission business and merge that business with a subsidiary of ITC Holdings Corp.
|
|
·
|
Appendix B includes earnings per share variance analysis and detail on special items that relate to the current quarter and year-to-date results.
|
|
·
|
Appendix C provides information on selected pending local and federal Utility regulatory cases and events.
|
|
·
|
Appendix D provides financial metrics for both current and historical periods. In addition, historical financial and operating performance metrics are included for the trailing eight quarters.
|
|
·
|
Appendix E provides a summary of planned capital expenditures for the next three years.
|
|
·
|
Appendix F provides definitions of the operational performance measures, GAAP and non-GAAP financial measures and abbreviations or acronyms that are used in this release.
|
|
·
|
Appendix G provides a reconciliation of GAAP to non-GAAP financial measures used in this release.
|
|
A.
|
Spin-Merge of Transmission Business
|
In December 2011, the Entergy and ITC boards of directors approved a definitive agreement under which Entergy will spin off and then merge its electric transmission business with a subsidiary of ITC. The transaction is targeted to close in 2013 and is subject to the satisfaction of certain closing conditions. Primary filings required include the Entergy Utility operating companies’ retail regulators as well as several federal agencies. ITC shareholders must also approve the transaction.
Appendix A provides a summary of certain activities that are pending.
|
Appendix A: Regulatory Summary Table for Spin-Merge of Transmission Business (see Appendix F for definitions of certain abbreviations or acronyms)
|
|
|
Proceeding
|
Pending Activities
|
|
Entergy Retail Regulators
|
Request / Recent Activity: In conjunction with ITC Holdings Corp. and ITC MidSouth LLC, collectively ITC, all of the Utility operating companies, with the exception of ETI, filed applications in the fall of 2012 with their respective retail regulators seeking approval for the Entergy companies’ proposal to spin off and merge the Utility’s transmission business with ITC, including approval for change of control of the transmission assets and transaction-related steps in the spin-merge.
Next Steps: An application will be filed with the PUCT in order to obtain transaction approval. The PUCT is required to issue an order within 180 days of a filing. In addition, EAI will also make a filing with the Missouri Public Service Commission because that operating company has some transmission assets located in the state of Missouri. The LPSC established a procedural schedule that reflected Staff testimony due in March 2013, a hearing commencing in June 2013 and Commission consideration in September 2013. The APSC and CCNO both set procedural schedules with Staff / Advisors testimony due in April 2013 and hearings in July 2013. The MPSC procedural schedule reflects Staff testimony due in June 2013 and a hearing in August 2013.
|
|
Federal Energy Regulatory Commission
|
Sections 203, 205 and 305(a) Filings Recent Activity: On Sept. 24, 2012, the Utility operating companies and ITC filed a joint application with FERC requesting certain approvals related to the proposal to spin off and merge the Utility’s transmission business with ITC, including approval for change of control of the transmission assets under Section 203 of the FPA, approval of transmission service formula rates and certain jurisdictional agreements under Section 205 of the FPA and a petition for declaratory order on application of Section 305(a) of the FPA. On Nov. 20, 2012, the Utility operating companies and ITC filed an answer to comments filed by an intervening party; on Nov. 30, 2012, the FERC noticed the answer as an amendment to the application.
Next Steps: The Utility operating companies and ITC are in the process of responding to the comments and protests filed as of the Jan. 22, 2013 comment deadline established by FERC. FERC rules call for a decision 180 days from the date of a completed application provided that the matter is not set for hearing or is not otherwise extended for up to an additional 180 days. If the matter is set for hearing, a procedural schedule will be established.
|
|
Section 204 Filings Recent Activity: On Oct. 31, 2012, three separate applications under Section 204 of the FPA were submitted to FERC (two by Entergy and one by ITC). The Entergy applications seek authorization related to certain debt financings necessary to effectuate the ITC transaction. The ITC application seeks authorizations related to certain post-closing financings. The applications request that FERC grant the requested authorizations within ninety days from the date of the application. Entergy has responded to the lone protest filed in these dockets, as well as a request for additional information from FERC Staff.
Next Steps: There is no set deadline for FERC to take action on the application.
|
|
|
Internal Revenue Service
|
Request / Recent Activity: In July 2012, Entergy Corporation submitted a request to the IRS seeking a private letter ruling substantially to the effect that certain requirements for the tax-free treatment of the distribution of Transco are met.
Next Steps: The IRS is expected to make a determination on the request in the first half of 2013.
|
|
Nuclear Regulatory Commission
|
Request / Recent Activity: On Sept. 27, 2012, Entergy Operations, Inc. on behalf of EAI, EGSL, ELL and SERI submitted an application to the NRC for approval of certain nuclear plant license transfers and amendments as part of the steps to complete the transaction.
Next Steps: The NRC is expected to complete its formal review by mid-2013.
|
|
Securities and Exchange Commission
|
Request / Recent Activity: ITC filed Amendment No. 1 to Form S-4 Registration Statement on Dec. 4, 2012 and Amendment No. 2 to Form S-4 Registration Statement on Jan. 28, 2013 with the SEC providing information regarding the proposed spin-merge transaction. The registration statement includes audited financial statements and disclosures for the Entergy transmission business.
Next Steps: Following completion of the SEC review process, ITC will hold a special meeting of shareholders. ITC’s shareholder vote is anticipated in the first half of 2013.
|
|
Hart-Scott-Rodino Notification
|
Request / Recent Activity: On Dec. 14, 2012, Entergy and ITC each filed a premerger notification under the HSR Act. The 30-day waiting period required under the HSR Act expired on Jan. 14, 2013.
|
Additional Information and Where to Find It
On Sept. 25, 2012, ITC filed a registration statement on Form S-4 with the SEC registering shares of ITC common stock to be issued to Entergy shareholders in connection with the proposed transactions, but this registration statement has not become effective. This registration statement includes a proxy statement of ITC that also constitutes a prospectus of ITC, and will be sent to ITC shareholders. In addition, Mid South TransCo LLC (TransCo) will file a registration statement with the SEC registering TransCo common units to be issued to Entergy shareholders in connection with the proposed transactions. Entergy shareholders are urged to read the proxy statement / prospectus included in the ITC registration statement and the proxy statement / prospectus to be included in the TransCo registration statement (when available) and any other relevant documents, because they contain important information about ITC, TransCo and the proposed transactions. ITC shareholders are urged to read the proxy statement / prospectus and any other relevant documents because they contain important information about TransCo and the proposed transactions. The proxy statement / prospectus and other documents relating to the proposed transactions (when they are available) can be obtained free of charge from the SEC’s website at www.sec.gov. The documents, when available, can also be obtained free of charge from Entergy upon written request to Entergy Corporation, Investor Relations, P.O. Box 61000, New Orleans, LA 70161 or by calling Entergy’s Investor Relations information line at 1-888-ENTERGY (368-3749), or from ITC upon written request to ITC Holdings Corp., Investor Relations, 27175 Energy Way, Novi, MI 48377 or by calling 248-946-3000.
|
B.
|
Variance Analysis and Special Items
|
Appendix B-1 and Appendix B-2 provide details of fourth quarter and year-to-date 2012 vs. 2011 as-reported and operational earnings variance analysis for Utility, Entergy Wholesale Commodities, Parent & Other and Consolidated.
|
Appendix B-1: As-Reported and Operational Earnings Per Share Variance Analysis
|
|||||||||||
|
Fourth Quarter 2012 vs. 2011
|
|||||||||||
|
(Per share in U.S. $, sorted in consolidated operational column, most to least favorable)
|
|||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
||||||||
|
As-
Reported |
Opera-
tional
|
As-
Reported |
Opera-
tional |
As-
Reported |
Opera-
tional |
As-
Reported |
Opera-
tional |
||||
|
2011 earnings
|
0.96
|
0.96
|
0.88
|
0.88
|
(0.97)
|
(0.90)
|
0.87
|
0.94
|
|||
|
Income taxes - other
|
0.49
|
0.49
|
(f)
|
(0.34)
|
(0.34)
|
(g)
|
0.73
|
0.73
|
(h)
|
0.88
|
0.88
|
|
Net revenue
|
0.25
|
0.25
|
(i)
|
(0.14)
|
(0.14)
|
(j)
|
-
|
-
|
0.11
|
0.11
|
|
|
Nuclear refueling outage expense
|
(0.01)
|
(0.01)
|
0.02
|
0.02
|
-
|
-
|
0.01
|
0.01
|
|||
|
Other income (deductions) - other
|
(0.01)
|
(0.01)
|
0.02
|
0.02
|
-
|
-
|
0.01
|
0.01
|
|||
|
Other operation & maintenance expense
|
(0.05)
|
0.01
|
(k)
|
0.01
|
0.01
|
0.06
|
(0.01)
|
(l)
|
0.02
|
0.01
|
|
|
Preferred dividend requirements
|
-
|
-
|
0.01
|
0.01
|
(0.01)
|
(0.01)
|
-
|
-
|
|||
|
Taxes other than income taxes
|
0.01
|
0.01
|
(0.02)
|
(0.02)
|
-
|
-
|
(0.01)
|
(0.01)
|
|||
|
Interest expense and other charges
|
(0.01)
|
(0.01)
|
0.01
|
0.01
|
(0.05)
|
(0.05)
|
(m)
|
(0.05)
|
(0.05)
|
||
|
Depreciation / amortization expense
|
(0.06)
|
(0.06)
|
(n)
|
-
|
-
|
-
|
-
|
(0.06)
|
(0.06)
|
||
|
Decommissioning expense
|
-
|
-
|
(0.12)
|
(0.12)
|
(o)
|
-
|
-
|
(0.12)
|
(0.12)
|
||
|
2012 earnings
|
1.57
|
1.63
|
0.33
|
0.33
|
(0.24)
|
(0.24)
|
1.66
|
1.72
|
|||
|
Appendix B-2: As-Reported and Operational Earnings Per Share Variance Analysis
|
|||||||||||
|
Year-to-date Fourth Quarter 2012 vs. 2011
|
|||||||||||
|
(Per share in U.S. $, sorted in consolidated operational column, most to least favorable)
|
|||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
||||||||
|
As-
Reported |
Opera-
tional
|
As-
Reported |
Opera-
tional |
As-
Reported |
Opera-
tional |
As-
Reported |
Opera-
tional |
||||
|
2011 earnings
|
6.20
|
6.20
|
2.74
|
2.74
|
(1.39)
|
(1.32)
|
7.55
|
7.62
|
|||
|
Other income (deductions) - other
|
-
|
-
|
0.03
|
0.03
|
0.01
|
0.01
|
0.04
|
0.04
|
|||
|
Nuclear refueling outage expense
|
(0.02)
|
(0.02)
|
0.05
|
0.05
|
(p)
|
-
|
-
|
0.03
|
0.03
|
||
|
Decommissioning expense
|
(0.01)
|
(0.01)
|
0.03
|
0.03
|
-
|
-
|
0.02
|
0.02
|
|||
|
Share repurchase effect
|
0.02
|
0.02
|
-
|
-
|
-
|
-
|
0.02
|
0.02
|
|||
|
Asset impairment
|
-
|
-
|
(1.26)
|
-
|
(q)
|
-
|
-
|
(1.26)
|
-
|
||
|
Preferred dividend requirements
|
-
|
-
|
0.02
|
0.02
|
(0.02)
|
(0.02)
|
-
|
-
|
|||
|
Net revenue
|
0.65
|
0.65
|
(i)
|
(0.66)
|
(0.66)
|
(j)
|
(0.02)
|
(0.02)
|
(0.03)
|
(0.03)
|
|
|
Taxes other than income taxes
|
-
|
-
|
(0.07)
|
(0.07)
|
(r)
|
-
|
-
|
(0.07)
|
(0.07)
|
||
|
Depreciation / amortization expense
|
(0.16)
|
(0.16)
|
(n)
|
0.01
|
0.01
|
-
|
-
|
(0.15)
|
(0.15)
|
||
|
Interest expense and other charges
|
(0.07)
|
(0.07)
|
(s)
|
0.05
|
0.05
|
(t)
|
(0.17)
|
(0.17)
|
(m)
|
(0.19)
|
(0.19)
|
|
Other operation & maintenance expense
|
(0.52)
|
(0.31)
|
(k)
|
(0.18)
|
(0.18)
|
(u)
|
0.04
|
(0.03)
|
(0.66)
|
(0.52)
|
|
|
Income taxes - other
|
(0.79)
|
(0.79)
|
(f)
|
(0.53)
|
(0.53)
|
(g)
|
0.78
|
0.78
|
(h)
|
(0.54)
|
(0.54)
|
|
2012 earnings
|
5.30
|
5.51
|
0.23
|
1.49
|
(0.77)
|
(0.77)
|
4.76
|
6.23
|
|||
|
(f)
|
The current quarter increase was due primarily to an IRS settlement in fourth quarter 2012 related to the tax treatment of decommissioning liabilities for the nuclear plants owned by the Utility, which decreased income tax expense by approximately $155 million. Interest on uncertain positions in the current quarter partially offset this benefit. Also contributing was less favorable consolidated tax savings adjustments, which net to zero on a consolidated basis. On a year-to-date basis, the decrease was attributable to a 2011 IRS audit settlement. A write off of an EGSL regulatory asset in the first quarter of 2012, which increased income tax expense approximately $44 million, also contributed in the year-to-date period. These decreases were partially offset by items recorded in the current quarter as well as other adjustments, including the second quarter 2012 resolution regarding certain storm cost recoveries.
|
|
(g)
|
The current quarter decrease was due primarily to consolidated tax savings adjustments, which net to zero on a consolidated basis. The year-to-date decrease reflected other adjustments previously reported in the Parent & Other segment. Partially offsetting in the year-to-date period was a one-time adjustment increasing income tax expense in 2011 stemming from Michigan tax law changes.
|
|
(h)
|
The current quarter and year-to-date increases reflected favorable consolidated tax savings adjustments, which net to zero on a consolidated basis. The year-to-date increase also included the second quarter 2012 favorable decision from the U.S. Court of Appeals for the Fifth Circuit affirming Entergy’s entitlement to claim foreign tax credits for the U.K. Windfall Tax.
|
|
Utility Net Revenue Variance Analysis
2012 vs. 2011 ($ EPS)
|
||
|
Fourth Quarter
|
Year-to-Date
|
|
|
Weather
|
(0.02)
|
(0.61)
|
|
Sales growth / pricing
|
0.28
|
0.85
|
|
Regulatory agreement
|
-
|
0.56
|
|
Other
|
(0.01)
|
(0.15)
|
|
Total
|
0.25
|
0.65
|
|
(i)
|
The current quarter and year-to-date increases were due largely to weather-adjusted sales growth and the net effect of pricing adjustments from regulatory actions and investments, including the Grand Gulf extended power uprate and rate actions at ETI and ENOI, a portion of which was partially offset in other line items. Both periods included higher revenue for storm reserves at EMI and energy efficiency programs at EAI, which were offset in non-fuel operation and maintenance expense. ELL’s rate action relating to the acquisition of Unit 2 of the Acadia Energy Center also was reflected in the year-to-date period. In addition, both 2011 and 2012 included regulatory charges to share tax benefits arising out of IRS agreements (discussed in (f)) with customers in Louisiana. The 2011 regulatory charge was approximately $200 million after-tax compared to the approximately $100 million after-tax charge in the second quarter of 2012. These increases were partially offset by the effects of weather, which was negative in 2012 and significantly favorable in 2011.
|
|
(j)
|
Decreases in current quarter and year-to-date were due primarily to lower energy pricing for the EWC nuclear fleet. Revenues from RISEC, which was acquired in the fourth quarter of 2011, partially offset the decrease. For the year-to-date period, nuclear generation declined due to an increase in refueling and unplanned outage days. The effect of outage days was partially offset by the exercise of resupply options provided for in PPAs whereby, under these options, EWC may elect to supply power from another source when the plant is not running. The majority of the resupply benefit was realized from one long-term PPA.
|
|
(k)
|
The current quarter and year-to-date as-reported decrease reflected expenses incurred in connection with the planned spin-merge of the transmission business. In addition, the year-to-date as-reported and operational decrease was attributable to several factors, including higher compensation and benefits costs (largely pension). The EAI energy efficiency program cost increases and temporary increase in EMI storm reserves also contributed (both offset in net revenue as discussed in (i)). Other factors include the 2011 deferral of previously expensed Michoud plant outage costs, the prior year sale of surplus oil inventory and the third quarter 2012 adjustment related to the ETI rate order. These items were partially offset by third quarter 2012 expenses being redirected as a result of Hurricane Isaac as well as deferral of previously-incurred MISO implementation costs as approved by the FERC and the LPSC in the second quarter of 2012.
|
|
(l)
|
The current-quarter as-reported increase was due to fourth quarter 2011 expenses recorded for the transmission business spin-merge transaction.
|
|
(m)
|
The current quarter and year-to-date decreases were due largely to a higher average interest rate on borrowed balances and higher debt balances.
|
|
(n)
|
The current quarter and year-to-date decreases reflected higher depreciable plant balances and higher depreciation rates in the July 2012 ETI rate case order.
|
|
(o)
|
The current quarter decrease was due to a fourth quarter 2011 benefit following an updated decommissioning study at Vermont Yankee whereby a reduction in the asset retirement obligation was recorded, which reduced decommissioning expense.
|
|
(p)
|
The year-to-date increase resulted from the first quarter 2012 impairment of Vermont Yankee’s long-lived assets, which reduced the deferred refueling outage asset and therefore reduced refueling outage expense for the period until the Spring 2013 refueling outage.
|
|
(q)
|
The year-to-date as-reported decrease was due to the first quarter 2012 impairment loss to write down the carrying values of Vermont Yankee’s long-lived assets to their fair value, in accordance with GAAP.
|
|
(r)
|
The year-to-date decrease was due primarily to higher property tax for the James A. FitzPatrick Nuclear Power Plant, which resulted from the expiration of an agreement entered into shortly after the plant was acquired, and higher payroll taxes.
|
|
(s)
|
The decrease year-to-date was due primarily to a 2011 revision in the treatment of funds received for transmission interconnection projects, accepted by the FERC, and higher debt balances.
|
|
(t)
|
The year-to-date increase is due primarily to lower intercompany interest expense (offset in Parent & Other).
|
|
(u)
|
The decrease year-to-date was due primarily to higher compensation and benefits costs (largely pension) and the RISEC acquisition. The fourth quarter 2012 period included a partial offset due to an accrual for reimbursement of Vermont Yankee spent nuclear fuel storage costs from the DOE. The total adjustment was $33 million pre-tax, of which $22 million was reflected in other operation and maintenance expense and the balance in depreciation expense and miscellaneous-net other income.
|
Appendix B-3 lists special items by business with quarter-to-quarter and year-to-date comparisons. Amounts are shown on both an earnings per share basis and a net income basis. Special items are those events that are not routine, are related to prior periods or are related to discontinued businesses. Special items are included in as-reported earnings per share consistent with GAAP, but are excluded from operational earnings per share. As a result, operational earnings per share is considered a non-GAAP measure.
|
Appendix B-3: Special Items (shown as positive / (negative) impact on earnings)
|
||||||
|
Fourth Quarter and Year-to-Date 2012 vs. 2011
|
||||||
|
(Per share in U.S. $)
|
||||||
|
Fourth Quarter
|
Year-to-Date
|
|||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
Utility
|
||||||
|
Transmission business spin-merge expenses
|
(0.06)
|
-
|
(0.06)
|
(0.21)
|
-
|
(0.21)
|
|
Entergy Wholesale Commodities
|
||||||
|
Vermont Yankee asset impairment
|
-
|
-
|
-
|
(1.26)
|
-
|
(1.26)
|
|
Parent & Other
|
||||||
|
Transmission business spin-merge expenses
|
-
|
(0.07)
|
0.07
|
-
|
(0.07)
|
0.07
|
|
Total Special Items
|
(0.06)
|
(0.07)
|
0.01
|
(1.47)
|
(0.07)
|
(1.40)
|
|
(U.S. $ in millions)
|
||||||
|
Fourth Quarter
|
Year-to-Date
|
|||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
Utility
|
||||||
|
Transmission business spin-merge expenses
|
(10.7)
|
-
|
(10.7)
|
(37.1)
|
-
|
(37.1)
|
|
Entergy Wholesale Commodities
|
||||||
|
Vermont Yankee asset impairment
|
-
|
-
|
-
|
(223.5)
|
-
|
(223.5)
|
|
Parent & Other
|
||||||
|
Transmission business spin-merge expenses
|
-
|
(13.0)
|
13.0
|
(1.0)
|
(13.0)
|
12.0
|
|
Total Special Items
|
(10.7)
|
(13.0)
|
2.3
|
(261.6)
|
(13.0)
|
(248.6)
|
|
C.
|
Regulatory Summary
|
Appendix C provides a summary of selected regulatory cases and events that are pending.
|
Appendix C: Regulatory Summary Table (see Appendix F for definitions of certain abbreviations or acronyms)
|
|
|
Company
|
Pending Cases / Events
|
|
Retail Regulation
|
|
|
Entergy Arkansas
Authorized ROE: 10.2%
Last Filed Rate Base: see next column
|
Rate Case Recent Activity: On Dec. 31, 2012, EAI filed a notice of intent to file a rate case during the first quarter of 2013. Once filed, a 10-month statutory time limit will apply.
Last Filed Rate Base: $4.0 billion reflected in final order issued in June 2010 based on a June 30, 2009 test year, with known and measurable changes through June 30, 2010.
|
|
Entergy Gulf States Louisiana
Authorized ROE Range:
9.9% - 11.4% (electric)
10.0% - 11.0% (gas)
Last Filed Rate Base:
$2.4 billion (electric) filed 5/12 based on 12/31/11 test yr
$0.05 billion (gas) filed 4/12 based on 9/30/11 test yr
|
Recent Activity: On Dec. 21, 2012, EGSL filed a revised evaluation report for the 2011 test year FRP for its electric operations. The ROE reflected in the report was 11.86 percent, which is above the authorized earnings bandwidth, resulting in a cost of service rate decrease of $(5.7) million. The report also included a $(3.4) million decrease outside of the FRP sharing mechanism for capacity costs, which reflects EGSL’s purchase from ELL of one-third of the output of the Acadia 2 unit, and a $0.56 million increase associated with a realignment of SO2 costs from the Fuel Adjustment Clause to base rates. Initial rate changes became effective in September 2012 with additional rate changes becoming effective in January 2013, subject to refund.
On Dec. 6, 2012, the ALJ issued a proposed recommendation in the proceeding to review the allowed ROE in EGSL’s Gas Rate Stabilization Plan. The recommendation reflected a 9.4 percent ROE for gas operations. EGSL and other parties filed exceptions to the recommendation and reply briefs. A final ALJ recommendation is pending, after which the matter will be referred to the LPSC for decision at a future B&E meeting.
Background: EGSL’s electric FRP expired with the 2011 test year. EGSL was granted an extension until Feb. 15, 2013 to file a rate case for its electric operations. As part of the rate case, EGSL is permitted to seek implementation of a new FRP.
|
|
Entergy Louisiana
Authorized ROE Range:
9.45% - 11.05%
Last Filed Rate Base:
$3.6 billion filed 5/12 based on 12/31/11 test yr
|
Recent Activity: On Dec. 21, 2012, ELL filed a revised evaluation report for the 2011 test year FRP. The ROE reflected in the report was 10.38 percent, which is within the authorized earnings bandwidth, resulting in no cost of service rate change. The report also reflected an $86.9 million increase outside of the FRP sharing mechanism for costs associated with the Waterford 3 replacement steam generator project that was completed in December 2012, net of an adjustment for earnings above 10.25 percent pursuant to prior LPSC approval and net of the expected wholesale revenues to be received from EGSL’s purchase from ELL of one-third of the capacity and energy of the Acadia 2 unit. Initial rate changes became effective in September 2012 with additional rate changes becoming effective in January 2013, subject to refund.
Background: ELL’s FRP expired with the 2011 test year. ELL was granted an extension until Feb. 15, 2013 to file a rate case. As part of the rate case, ELL is permitted to seek implementation of a new FRP.
|
|
Entergy Mississippi
Authorized ROE Range:
9.88% - 12.01%
(per 4/12 FRP filing)
Last Filed Rate Base:
$1.7 billion filed 3/12 based on 12/31/11 test yr
|
Recent Activity: On Feb. 1, 2013, EMI filed a settlement that confirmed there would be no rate adjustments under the FRP based on the 2011 test year. The MPSC approved the settlement on Feb. 5, 2013. A report by the Public Utilities Staff and consultants in the ROE inquiry docket is expected in the first quarter of 2013. EMI will have an opportunity to respond to the report.
Background: On March 4, 2010, the MPSC approved modifications to EMI’s FRP. Key provisions include an opportunity to reset the ROE and bandwidth based upon performance ratings. Returns inside the bandwidth result in no change in rates while returns outside the bandwidth reset rates prospectively to or within the bandwidth depending on performance, subject to a 4 percent revenue limit. The annual filing occurs each March with rates effective each June. EMI’s FRP does not have an expiration date. The EMI FRP revised evaluation report for the 2011 test year, which was filed on April 30, 2012, reflected a 10.92 percent earned ROE which was within the bandwidth, resulting in no change in rates. The revised 10.95 percent FRP midpoint ROE included the benefit of a 0.62 percent performance incentive.
On Aug. 7, 2012, the MPSC opened inquiries to review whether the current formulaic methodology used to calculate ROEs in both EMI's FRP and Mississippi Power Company’s annual formulary rate filing are still appropriate or can be improved to better serve the public interest. The intent of this review is for informational purposes only; evaluation of any recommendations for changes to the existing methodology would take place in a general rate case or in the existing FRP docket.
|
|
Entergy New Orleans
Authorized ROE Range:
10.7% - 11.5% (electric)
10.25% - 11.25% (gas)
Last Filed Rate Base:
$0.3 billion (electric) and $0.09 billion (gas) filed 5/12 based on 12/31/11 test yr
|
Formula Rate Plan Recent Activity: The CCNO has established a procedural schedule to resolve the remaining disputed items in the 2011 test year FRP. A hearing is scheduled in April 2013. ENOI is also in discussions with the CCNO Advisors regarding a possible extension of the FRP, which would require CCNO approval.
Background: A new three-year FRP beginning with the 2009 test year was adopted in ENOI’s rate case settled in April 2009. Key provisions include an 11.1 percent electric ROE with a +/- 40 basis points bandwidth and a 10.75 percent gas ROE with a +/- 50 basis points bandwidth. Earnings outside the bandwidth reset to the midpoint ROE, with rates changing on a prospective basis depending on whether ENOI is over- or under-earning. The FRP also includes a recovery mechanism for CCNO-approved capacity additions plus provisions for extraordinary cost changes and force majeure.
In October 2012, ENOI implemented, subject to refund pending resolution of remaining disputed items, rate changes reflected in its revised evaluation report for the 2011 test year FRP. The ROEs reflected in the revised report were 9.57 percent earned ROE for electric (which is below the bandwidth, resulting in an electric base revenue increase of $4.9 million) and a 10.83 percent earned ROE for gas (which is within the bandwidth, resulting in no change in gas base rates). As part of its initial 2011 test year FRP filing, ENOI requested to accelerate the funding of its storm reserve fund to allow it to meet the $75 million target balance established by the CCNO by 2017. The proposed increase was intended to replenish the $20 million expended for hurricanes Gustav and Ike.
|
|
Appendix C: Regulatory Summary Table (continued) (see Appendix F for definitions of certain abbreviations or acronyms)
|
|
|
Company
|
Pending Cases / Events
|
|
Retail Regulation
|
|
|
Entergy Texas
Authorized ROE: 9.8%
Last Filed Rate Base:
$1.7 billion filed 11/11 based on 6/30/11 adjusted test yr
|
Rate Case Recent Activity: On Nov. 28, 2012 and Jan. 11, 2013, ETI filed appeals of the PUCT final order and order on rehearing in ETI’s rate case proceeding, respectively. On Nov. 30, 2012, ETI filed a pleading seeking a PUCT finding that special circumstances exist for limited cost recovery of capacity costs associated with two PPAs until such time that these costs are included in base rates or a purchased capacity recovery rider or other recovery mechanism. On Nov. 16, 2012, the PUCT approved publication of a draft purchased power capacity rider. Comments were filed by the parties in December 2012 and January 2013. PUCT rules require that it act on the proposal by May 31, 2013.
Background: On Sept. 14, 2012, the PUCT issued a final order in ETI’s rate case proceeding. The order reflected a $27.7 million overall retail rate increase and an allowed ROE of 9.8 percent. On Oct. 25, 2012 and Dec. 14, 2012, the PUCT voted to deny the motions for rehearing filed by ETI and other parties on substantive issues.
|
|
Wholesale Regulation
|
|
|
System Energy Resources, Inc.
ROE and last calculated rate base: see next column
|
Recent Activity: None.
Background: 10.94 percent ROE approved by July 2001 FERC order.
Last Calculated Rate Base: $1.7 billion for Dec. 31, 2012 monthly cost of service.
|
|
Transmission, Proposal to Join MISO and System Agreement
Authorized ROE:
11.0% (v)
Last Filed OATT Rate Base:
$2.3 billion (w) filed 5/12 based on 12/31/11 test year
|
Proposal to Join MISO Recent Activity: On Nov. 15, 2012, the CCNO and MPSC issued orders approving, with conditions, ENOI’s and EMI’s respective requests for MISO membership. The Utility operating companies signed the MISO Transmission Owners Agreement (TOA) in the fourth quarter of 2012.
On Dec. 21, 2012, the PUCT Staff filed a memo in the proceeding established by the PUCT to track compliance with its Oct. 26, 2012 order conditionally approving ETI’s request for MISO membership. In the memo, the PUCT Staff expressed concerns about the effect of ETI’s exit from the System Agreement on PPAs for gas and oil fired generation units owned by ETI and EGSL that were entered into upon the Dec. 31, 2007 Jurisdictional Separation of Entergy Gulf States, Inc. and, further, expressed concerns about the implications of these issues as they relate to the continuing validity of the PUCT’s Oct. 26, 2012 order regarding MISO. On Dec. 28, 2012, ETI filed its position statement and expressed its continuing commitment to work collaboratively with the PUCT, Staff and other parties to address ongoing issues and challenges in implementing the PUCT order. On Jan. 15, 2013, ETI filed an updated analysis of the effect of termination of PPAs indicating that termination would have little or no impact on ETI’s costs. The PUCT Staff has engaged a consultant to conduct an independent assessment of the analysis. The Utility operating companies continue to target joining MISO in December 2013.
Background: On June 28, 2012, the LPSC issued an order approving EGSL’s and ELL’s request for MISO membership, subject to certain contingencies and conditions. On Oct. 26, 2012, the PUCT and APSC issued orders approving ETI’s and EAI’s respective requests for MISO membership, subject to certain conditions. The PUCT order included a requirement that ETI give notice to exit the System Agreement by October 2013 subject to certain conditions, and pursue a consensual means by which ETI may request to FERC that the mandatory 96-month notice period for exiting the System Agreement be shortened.
|
|
System Agreement Recent Activity: In the FERC proceeding regarding wholesale opportunity sales of energy by EAI to third parties for the period 2000 through 2009, on Dec. 21, 2012, the LPSC filed testimony concluding that EAI should refund approximately $75 million to the other Utility operating companies for the years 2003, 2004 and 2006, and that EAI “shareholders” should pay EAI customers $34 million. On Feb. 1, 2013, FERC Staff and certain intervenors filed testimony in the proceeding taking positions on the opposing calculations proposed by the LPSC and the Utility operating companies. A hearing on the matter is scheduled in May 2013. No payments will be made or received by the Utility operating companies until a decision is issued by FERC in this phase of the proceeding.
Background: The System Agreement proceedings address the allocation of production costs among the Utility operating companies. In 2005, FERC issued orders that require each Utility operating company’s production costs to be within
+/- 11 percent of System average production costs and set 2007 as the first possible year of payments among the Utility operating companies, based on calendar year 2006 actual production costs. A subsequent FERC order concluded that the prospective bandwidth remedy should begin on June 1, 2005 (the date of its initial order in the proceeding). Since 2007, bandwidth filings have required payments from EAI to various other Utility operating companies totaling over $1.2 billion. FERC issued a final order in the 2007 bandwidth proceeding. All other bandwidth proceedings remain outstanding. EAI and EMI will withdraw from the System Agreement effective December 2013 and November 2015, respectively.
On June 21, 2012, FERC issued an order relating to an LPSC complaint involving Entergy’s accounting for wholesale opportunity sales of energy by EAI to third parties during the period 2000 through 2009. The order found that, although the sales at issue were permitted under the System Agreement and were made and priced in good faith, the after-the-fact accounting methodology used to allocate the energy used to supply the sales was inconsistent with the System Agreement. The Utility operating companies’ request for rehearing remains pending. The June 2012 FERC decision established further hearing procedures to determine the calculations. On Sept. 28, 2012, the Utility operating companies submitted testimony that included a proposed illustrative re-run of intra-system bills for 2003, 2004 and 2006 (the three years with the highest volume of opportunity sales) consistent with the directives in FERC’s order. The proposed illustrative re-run of intra-system bills shows that the potential cost for EAI would be up to $12 million for the years 2003, 2004 and 2006, and the potential benefit would be significantly less than that for each of the other Utility operating companies; effects to other System Agreement pricing schedules may offset these costs and benefits.
|
|
|
(v)
|
Applies to sales made under Entergy’s FERC OATT.
|
|
(w)
|
Reflects transmission rate base in Entergy’s FERC OATT filing, which is also included in the rate base figures for each of the Utility operating companies shown above.
|
|
D.
|
Financial and Historical Performance Measures
|
Appendix D-1 provides comparative financial performance measures for the current quarter. Appendix D-2 provides historical financial performance measures and operating performance metrics for the trailing eight quarters. Financial performance measures in both tables include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.
As-reported measures are computed in accordance with GAAP as they include all components of net income, including special items. Operational measures are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items. A reconciliation of operational measures to as-reported measures is provided in Appendix G.
|
Appendix D-1: GAAP and Non-GAAP Financial Performance Measures
|
||||
|
Fourth Quarter 2012 vs. 2011 (see Appendix F for definitions of certain measures)
|
||||
|
For 12 months ending Dec. 31
|
2012
|
2011
|
Change
|
|
|
GAAP Measures
|
||||
|
Return on average invested capital – as-reported
|
5.5%
|
8.0%
|
(2.5)%
|
|
|
Return on average common equity – as-reported
|
9.3%
|
15.4%
|
(6.1)%
|
|
|
Cash flow interest coverage
|
6.1
|
7.1
|
(1.0)
|
|
|
Book value per share
|
$51.72
|
$50.81
|
$0.91
|
|
|
End of period shares outstanding (millions)
|
177.8
|
176.4
|
1.4
|
|
|
Non-GAAP Measures
|
||||
|
Return on average invested capital – operational
|
6.6%
|
8.0%
|
(1.4)%
|
|
|
Return on average common equity – operational
|
12.2%
|
15.6%
|
(3.4)%
|
|
|
As of Dec. 31 ($ in millions)
|
2012
|
2011
|
Change
|
|
|
GAAP Measures
|
||||
|
Cash and cash equivalents
|
533
|
694
|
(161)
|
|
|
Revolver capacity
|
3,462
|
2,001
|
1,461
|
|
|
Commercial paper outstanding
|
665
|
-
|
665
|
|
|
Total debt
|
13,473
|
12,387
|
1,086
|
|
|
Securitization debt
|
973
|
1,071
|
(98)
|
|
|
Debt to capital ratio
|
58.7%
|
57.3%
|
1.4%
|
|
|
Off-balance sheet liabilities:
|
||||
|
Debt of joint ventures – Entergy’s share
|
90
|
96
|
(6)
|
|
|
Leases – Entergy’s share
|
505
|
508
|
(3)
|
|
|
Total off-balance sheet liabilities
|
595
|
604
|
(9)
|
|
|
Non-GAAP Measures
|
||||
|
Debt to capital ratio, excluding securitization debt
|
56.9%
|
55.0%
|
1.9%
|
|
|
Total gross liquidity
|
3,995
|
2,695
|
1,300
|
|
|
Net debt to net capital ratio, excluding securitization debt
|
55.8%
|
53.5%
|
2.3%
|
|
|
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt
|
57.0%
|
54.8%
|
2.2%
|
|
|
Appendix D-2: Historical Performance Measures
(see Appendix F for definitions of certain measures)
|
|||||||||||||
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
2Q12
|
3Q12
|
4Q12
|
12YTD
|
11YTD
|
||||
|
Financial
|
|||||||||||||
|
EPS – as-reported ($)
|
1.38
|
1.76
|
3.53
|
0.87
|
(0.86)
|
2.06
|
1.89
|
1.66
|
4.76
|
7.55
|
|||
|
Less – special items ($)
|
- -
|
- -
|
- -
|
(0.07)
|
(1.30)
|
(0.05)
|
(0.06)
|
(0.06)
|
(1.47)
|
(0.07)
|
|||
|
EPS – operational ($)
|
1.38
|
1.76
|
3.53
|
0.94
|
0.44
|
2.11
|
1.95
|
1.72
|
6.23
|
7.62
|
|||
|
Trailing twelve months
|
|||||||||||||
|
ROIC – as-reported (%)
|
7.7
|
7.7
|
8.2
|
8.0
|
6.0
|
6.2
|
4.8
|
5.5
|
|||||
|
ROIC – operational (%)
|
7.9
|
7.9
|
8.2
|
8.0
|
7.2
|
7.4
|
6.0
|
6.6
|
|||||
|
ROE – as-reported (%)
|
14.8
|
14.8
|
16.1
|
15.4
|
10.8
|
11.3
|
7.8
|
9.3
|
|||||
|
ROE – operational (%)
|
15.3
|
15.2
|
16.1
|
15.6
|
13.6
|
14.2
|
10.7
|
12.2
|
|||||
|
Cash flow interest coverage
|
7.8
|
7.6
|
6.6
|
7.1
|
7.5
|
7.2
|
6.8
|
6.1
|
|||||
|
Debt to capital ratio (%)
|
57.6
|
58.1
|
57.3
|
57.3
|
57.9
|
57.4
|
57.7
|
58.7
|
|||||
|
Debt to capital ratio, excluding securitization debt (%)
|
55.7
|
56.3
|
55.1
|
55.0
|
55.7
|
55.3
|
55.7
|
56.9
|
|||||
|
Net debt to net capital ratio, excluding securitization debt (%)
|
54.0
|
55.1
|
52.8
|
53.5
|
54.2
|
54.7
|
54.1
|
55.8
|
|||||
|
Utility
|
|||||||||||||
|
GWh billed
|
|||||||||||||
|
Residential
|
9,042
|
7,993
|
12,376
|
7,274
|
7,760
|
7,940
|
11,605
|
7,360
|
34,664
|
36,684
|
|||
|
Commercial & Governmental
|
7,032
|
7,548
|
9,344
|
7,270
|
6,992
|
7,753
|
9,101
|
7,313
|
31,159
|
31,194
|
|||
|
Industrial
|
9,516
|
10,140
|
11,024
|
10,130
|
9,958
|
10,408
|
10,748
|
10,067
|
41,181
|
40,810
|
|||
|
Wholesale
|
947
|
1,036
|
1,038
|
1,090
|
732
|
836
|
833
|
798
|
3,200
|
4,111
|
|||
|
O&M expense per MWh (x)
|
$17.89
|
$19.09
|
$14.93
|
$21.99
|
$20.08
|
$19.94
|
$16.66
|
$22.19
|
$19.53
|
$18.22
|
|||
|
Reliability – trailing twelve months
|
|||||||||||||
|
SAIFI
|
1.7
|
1.7
|
1.7
|
1.6
|
1.7
|
1.6
|
1.7
|
1.7
|
|||||
|
SAIDI
|
188
|
201
|
213
|
208
|
211
|
195
|
191
|
195
|
|||||
|
Entergy Wholesale Commodities
|
|||||||||||||
|
Owned Capacity in MW
|
6,016
|
6,016
|
6,016
|
6,599
|
6,612
|
6,612
|
6,612
|
6,612
|
6,612
|
6,599
|
|||
|
GWh billed
|
10,554
|
10,567
|
11,255
|
11,121
|
11,281
|
11,674
|
12,002
|
11,221
|
46,178
|
43,497
|
|||
|
Net revenue ($ millions)
|
525
|
474
|
542
|
504
|
452
|
444
|
495
|
463
|
1,854
|
2,045
|
|||
|
Operational adjusted EBITDA
($ millions)
|
253
|
174
|
241
|
193
|
144
|
127
|
185
|
161
|
618
|
862
|
|||
|
Avg realized revenue per MWh
|
$56.79
|
$52.74
|
$56.02
|
$52.48
|
$49.29
|
$48.27
|
$51.88
|
$50.56
|
$50.02
|
$54.50
|
|||
|
Non-fuel O&M expense per MWh (x)
|
$23.37
|
$25.45
|
$23.71
|
$24.61
|
$23.93
|
$24.07
|
$23.15
|
$23.52
|
$23.66
|
$24.28
|
|||
|
EWC Nuclear Operational Measures
|
|||||||||||||
|
Capacity factor (%)
|
91
|
91
|
98
|
93
|
88
|
85
|
90
|
90
|
89
|
93
|
|||
|
GWh billed
|
9,913
|
9,993
|
10,645
|
10,367
|
9,838
|
10,426
|
10,480
|
10,298
|
41,042
|
40,918
|
|||
|
Avg realized revenue per MWh
|
$57.46
|
$52.38
|
$56.07
|
$53.00
|
$50.32
|
$48.67
|
$52.27
|
$49.88
|
$50.29
|
$54.73
|
|||
|
Production cost per MWh
|
$24.01
|
$25.96
|
$24.92
|
$25.92
|
$25.85
|
$26.61
|
$26.14
|
$26.18
|
$26.19
|
$25.21
|
|||
|
(x)
|
Excludes effect of special items, including the proposed spin-merge of the transmission business at Utility (2012) and the impairment of the Vermont Yankee plant at EWC (first quarter and year-to-date 2012).
|
|
E.
|
Planned Capital Expenditures
|
The capital plan for 2013 through 2015 anticipates $6.7 billion for investment, including $3.3 billion of maintenance capital, as shown in Appendix E. The remaining $3.4 billion is for specific investments and other initiatives such as:
|
·
|
Utility: the Utility’s portfolio transformation investment of $0.5 billion for ELL’s Ninemile 6 new CCGT project, approximately $0.3 billion for environmental compliance projects (included in Generation); and Transmission other capital of approximately $0.7 billion. Total transmission investment, including maintenance capital, is approximately $1.4 billion including spending to support the Utility’s plan to join the MISO RTO in December 2013.
|
|
·
|
Entergy Wholesale Commodities: other capital commitments reflects significant projects required to continue the operation of the current generation fleet including dry cask storage, nuclear license renewal efforts, component replacement and identified repairs across the nuclear fleet, NYPA value sharing (including the last payment to be made in January 2015 for 2014 generation) and potential wedgewire screens at the Indian Point site. No material costs have been included for capital projects as a result of the NRC post-Fukushima requirements which remain under development.
|
|
Appendix E: 2013 – 2015 Capital Expenditure Plan
|
||||
|
($ in millions) – Prepared February 2013
|
||||
|
2013
|
2014
|
2015
|
Total
|
|
|
Maintenance capital
|
||||
|
Utility
|
||||
|
Generation
|
133
|
127
|
135
|
395
|
|
Transmission
|
253
|
229
|
202
|
684
|
|
Distribution
|
504
|
494
|
489
|
1,487
|
|
Other
|
97
|
107
|
105
|
309
|
|
Utility Total
|
987
|
957
|
931
|
2,875
|
|
Entergy Wholesale Commodities
|
108
|
131
|
176
|
415
|
|
Maintenance capital subtotal
|
1,095
|
1,088
|
1,107
|
3,290
|
|
Other capital commitments
|
||||
|
Utility
|
||||
|
Generation
|
716
|
415
|
392
|
1,523
|
|
Transmission
|
162
|
240
|
303
|
705
|
|
Distribution
|
45
|
21
|
16
|
82
|
|
Other
|
92
|
88
|
92
|
272
|
|
Utility Total
|
1,015
|
764
|
803
|
2,582
|
|
Entergy Wholesale Commodities
|
257
|
242
|
281
|
780
|
|
Other capital commitments subtotal
|
1,272
|
1,006
|
1,084
|
3,362
|
|
Total Planned Capital Expenditures
|
2,367
|
2,094
|
2,191
|
6,652
|
|
F.
|
Definitions
|
Appendix F provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures, all of which are referenced in this release. Financial measures defined in the below table include measures prepared in accordance with GAAP, as well as non-GAAP measures. Non-GAAP measures are included in this release in order to provide metrics that remove the effect of not routine financial impacts from commonly used financial metrics.
|
Appendix F: Definitions of Operational Performance Measures, GAAP and Non-GAAP Financial Measures and Abbreviations or Acronyms
|
|
|
Utility Operational Performance Measures
|
|
|
GWh billed
|
Total number of GWh billed to all retail and wholesale customers
|
|
O&M expense per MWh
|
Operation, maintenance and refueling expenses per MWh of billed sales, excluding fuel
|
|
SAIFI
|
System average interruption frequency index; average number per customer per year, excluding the impact of major storm activity
|
|
SAIDI
|
System average interruption duration index; average minutes per customer per year, excluding the impact of major storm activity
|
|
Number of retail customers
|
Number of customers at end of period
|
|
Entergy Wholesale Commodities Operational Performance Measures
|
|
|
Net revenue
|
Operating revenue less fuel, fuel related expenses and purchased power
|
|
Owned capacity
|
Installed capacity owned and operated by EWC, including investments in wind generation accounted for under the equity method of accounting; EWC acquired RISEC, a 583 MW natural gas-fired combined-cycle generating plant, on Dec. 20, 2011
|
|
GWh billed
|
Total number of GWh billed to customers, excluding investments in wind generation accounted for under the equity method of accounting
|
|
Average realized revenue per MWh
|
As-reported revenue per MWh billed, excluding revenue from the amortization of the Palisades below-market PPA and / or investments in wind generation accounted for under the equity method of accounting
|
|
Non-fuel O&M expense per MWh
|
Operation, maintenance and refueling expenses per MWh billed, excluding fuel and investments in wind generation accounted for under the equity method of accounting
|
|
Capacity factor
|
Normalized percentage of the period that the nuclear plants generate power
|
|
Production cost per MWh
|
Fuel and non-fuel operation and maintenance expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation)
|
|
Refueling outage days
|
Number of days lost for scheduled refueling outage during the period
|
|
Planned TWh of generation
|
Amount of output expected to be generated by EWC resources considering plant operating characteristics, outage schedules and expected market conditions which impact dispatch, assuming timely renewal of plant operating licenses and uninterrupted normal operations at all plants; non-nuclear also includes purchases from affiliated and non-affiliated counterparties under long-term contracts and excludes energy and capacity from EWC’s wind investment accounted for under the equity method of accounting and Ritchie
|
|
Percent of planned generation under contract
|
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty (consistent with assumptions used in earnings guidance) that may or may not require regulatory approval or approval of transmission rights
|
|
Unit-contingent
|
Transaction under which power is supplied from a specific generation asset; if the asset is not operating, seller is generally not liable to buyer for any damages
|
|
Unit-contingent with availability guarantees
|
Transaction under which power is supplied from a specific generation asset; if the asset is not operating, seller is generally not liable to buyer for any damages, unless the actual availability over a specified period of time is below an availability threshold specified in the contract
|
|
Firm LD
|
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract; a portion of which may be capped through the use of risk management products
|
|
Offsetting positions
|
Transactions for the purchase of energy, generally to offset a Firm LD transaction
|
|
Cost-based contracts
|
Contracts priced in accordance with cost-based rates, a ratemaking concept used for the design and development of rate schedules to ensure that the filed rate schedules recover only the cost of providing the service; these contacts are on owned non-utility resources located within Entergy’s service territory, which do not operate under market-based rate authority
|
|
Planned net MW in operation
|
Amount of capacity to be available to generate power and/or sell capacity; non-nuclear also includes purchases from affiliated and non-affiliated counterparties under long-term contracts and excludes energy and capacity from EWC’s wind investment accounted for under the equity method of accounting and Ritchie
|
|
Percent of capacity sold forward
|
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions
|
|
Bundled capacity and energy contract
|
A contract for the sale of installed capacity and related energy, priced per megawatt-hour sold
|
|
Capacity contract
|
A contract for the sale of the installed capacity product in regional markets managed by ISO New England and the New York Independent System Operator
|
|
Appendix F: Definitions of Operational Performance Measures, GAAP and Non-GAAP Financial Measures and Abbreviations or Acronyms (continued)
|
||
|
Entergy Wholesale Commodities Operational Performance Measures (continued)
|
||
|
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 market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert firm LD to unit-contingent and other risk management cost; also, excludes payments owed under the value sharing agreements, if any
|
|
|
Average revenue under contract per kW per 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
|
|
|
Expected sold and market revenue per MWh
|
Total energy and capacity revenue on a per unit basis at which total planned generation output, capacity or a combination is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management cost
|
|
|
Financial Measures – GAAP
|
||
|
Return on average invested capital – as-reported
|
12-months rolling net income attributable to Entergy Corporation (Net Income) adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital
|
|
|
Return on average common equity – as-reported
|
12-months rolling Net Income divided by average common equity
|
|
|
Cash flow interest coverage
|
12-months cash flow from operating activities plus 12-months rolling interest paid, divided by interest expense
|
|
|
Book value per share
|
Common equity divided by end of period shares outstanding
|
|
|
Revolver capacity
|
Amount of undrawn capacity remaining on corporate and subsidiary revolvers
|
|
|
Total debt
|
Sum of short-term and long-term debt, notes payable, capital leases and preferred stock with sinking fund on the balance sheet less non-recourse debt, if any
|
|
|
Debt of joint ventures (Entergy’s share)
|
Debt issued by business joint ventures at EWC
|
|
|
Leases (Entergy’s share)
|
Operating leases held by subsidiaries capitalized at implicit interest rate
|
|
|
Debt to capital ratio
|
Gross debt divided by total capitalization
|
|
|
Securitization debt
|
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL
|
|
|
Financial Measures – Non-GAAP
|
||
|
Operational earnings
|
As-reported Net Income adjusted to exclude the impact of special items
|
|
|
Adjusted EBITDA
|
Earnings before interest, income taxes, depreciation and amortization and interest and investment income excluding decommissioning expense and other than temporary impairment losses on decommissioning trust fund assets
|
|
|
Operational adjusted EBITDA
|
Adjusted EBITDA excluding effects of special items
|
|
|
Return on average invested capital – operational
|
12-months rolling operational Net Income adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital
|
|
|
Return on average common equity – operational
|
12-months rolling operational Net Income divided by average common equity
|
|
|
Total gross liquidity
|
Sum of cash and revolver capacity
|
|
|
Debt to capital ratio, excluding securitization debt
|
Gross debt divided by total capitalization, excluding securitization debt
|
|
|
Net debt to net capital ratio, excluding securitization debt
|
Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
|
|
|
Net debt to net capital ratio, including off-balance sheet liabilities, excluding securitization debt
|
Sum of gross debt and off-balance sheet debt less cash and cash equivalents divided by sum of total capitalization and off-balance sheet debt less cash and cash equivalents, excluding securitization debt
|
|
|
Appendix F: Definitions of Operational Performance Measures, GAAP and Non-GAAP Financial Measures and Abbreviations or Acronyms (continued)
|
|
|
Abbreviations or Acronyms
|
|
|
APSC
|
Arkansas Public Service Commission
|
|
B&E
|
LPSC Business and Executive Session
|
|
CCNO
|
Council of the City of New Orleans
|
|
DOE
|
U.S. Department of Energy
|
|
EAI
|
Entergy Arkansas, Inc.
|
|
EGSL
|
Entergy Gulf States Louisiana, L.L.C.
|
|
ELL
|
Entergy Louisiana, LLC
|
|
EMI
|
Entergy Mississippi, Inc.
|
|
ENOI
|
Entergy New Orleans, Inc.
|
|
ETI
|
Entergy Texas, Inc.
|
|
EWC
|
Entergy Wholesale Commodities
|
|
FERC
|
Federal Energy Regulatory Commission
|
|
FPA
|
Federal Power Act
|
|
FRP
|
Formula rate plan
|
|
GAAP
|
Generally accepted accounting principles
|
|
ICT
|
Independent Coordinator of Transmission
|
|
IRS
|
Internal Revenue Service
|
|
HSR
|
Hart-Scott-Rodino Antitrust Improvements Act
|
|
LPSC
|
Louisiana Public Service Commission
|
|
MISO
|
Midwest Independent Transmission System Operator
|
|
MPSC
|
Mississippi Public Service Commission
|
|
NRC
|
Nuclear Regulatory Commission
|
|
OATT
|
FERC-jurisdictional Open Access Transmission Tariff
|
|
PPA
|
Power purchase agreement
|
|
PUCT
|
Public Utility Commission of Texas
|
|
SERI
|
System Energy Resources, Inc.
|
|
RISEC
|
Rhode Island State Energy Center
|
|
ROE
|
Return on equity
|
|
RTO
|
Regional transmission organization
|
|
SEC
|
U.S. Securities and Exchange Commission
|
|
SPP
|
Southwest Power Pool
|
|
G.
|
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 release to their most comparable GAAP measure.
|
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures – Return on Equity, Return on Invested Capital Metrics
|
||||||||
|
($ in millions)
|
||||||||
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
2Q12
|
3Q12
|
4Q12
|
|
|
As-reported net income-rolling 12 months (A)
|
1,285
|
1,285
|
1,421
|
1,346
|
946
|
996
|
705
|
847
|
|
Preferred dividends
|
20
|
20
|
20
|
21
|
21
|
21
|
22
|
22
|
|
Tax effected interest expense
|
327
|
320
|
320
|
316
|
322
|
329
|
342
|
350
|
|
As-reported net income, rolling 12 months including preferred dividends and tax effected interest expense (B)
|
1,632
|
1,625
|
1,761
|
1,683
|
1,289
|
1,346
|
1,069
|
1,219
|
|
Special items in prior quarters
|
(42)
|
(32)
|
(7)
|
-
|
(13)
|
(244)
|
(253)
|
(251)
|
|
Special items in current quarter
|
||||||||
|
Asset impairment
|
-
|
-
|
-
|
-
|
(224)
|
-
|
-
|
-
|
|
Transmission spin-merge
|
-
|
-
|
-
|
(13)
|
(7)
|
(9)
|
(11)
|
(11)
|
|
Total special items (C)
|
(42)
|
(32)
|
(7)
|
(13)
|
(244)
|
(253)
|
(264)
|
(262)
|
|
Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C)
|
1,674
|
1,657
|
1,768
|
1,696
|
1,533
|
1,599
|
1,333
|
1,481
|
|
Operational earnings, rolling 12 months (A-C)
|
1,327
|
1,317
|
1,428
|
1,359
|
1,190
|
1,249
|
969
|
1,109
|
|
Average invested capital (D)
|
21,093
|
21,101
|
21,509
|
21,126
|
21,339
|
21,556
|
22,065
|
22,290
|
|
Average common equity (E)
|
8,698
|
8,684
|
8,849
|
8,729
|
8,725
|
8,814
|
9,078
|
9,079
|
|
ROIC – as-reported % (B/D)
|
7.7
|
7.7
|
8.2
|
8.0
|
6.0
|
6.2
|
4.8
|
5.5
|
|
ROIC – operational % ((B-C)/D)
|
7.9
|
7.9
|
8.2
|
8.0
|
7.2
|
7.4
|
6.0
|
6.6
|
|
ROE – as-reported % (A/E)
|
14.8
|
14.8
|
16.1
|
15.4
|
10.8
|
11.3
|
7.8
|
9.3
|
|
ROE – operational % ((A-C)/E)
|
15.3
|
15.2
|
16.1
|
15.6
|
13.6
|
14.2
|
10.7
|
12.2
|
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Credit and Liquidity Metrics
|
|||||||||
|
($ in millions)
|
|||||||||
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
2Q12
|
3Q12
|
4Q12
|
||
|
Gross debt (A)
|
12,018
|
12,360
|
12,452
|
12,387
|
12,619
|
12,533
|
12,931
|
13,473
|
|
|
Less securitization debt (B)
|
910
|
896
|
1,086
|
1,071
|
1,049
|
1,020
|
1,003
|
973
|
|
|
Gross debt, excluding securitization debt (C)
|
11,108
|
11,464
|
11,366
|
11,316
|
11,570
|
11,513
|
11,928
|
12,500
|
|
|
Less cash and cash equivalents (D)
|
726
|
530
|
987
|
694
|
685
|
283
|
750
|
533
|
|
|
Net debt, excluding securitization debt (E)
|
10,382
|
10,934
|
10,379
|
10,622
|
10,885
|
11,230
|
11,178
|
11,967
|
|
|
Total capitalization (F)
|
20,864
|
21,268
|
21,728
|
21,629
|
21,813
|
21,844
|
22,402
|
22,951
|
|
|
Less securitization debt (B)
|
910
|
896
|
1,086
|
1,071
|
1,049
|
1,020
|
1,003
|
973
|
|
|
Total capitalization, excluding securitization debt (G)
|
19,954
|
20,372
|
20,642
|
20,558
|
20,764
|
20,824
|
21,399
|
21,978
|
|
|
Less cash and cash equivalents (D)
|
726
|
530
|
987
|
694
|
685
|
283
|
750
|
533
|
|
|
Net capital, excluding securitization debt (H)
|
19,228
|
19,842
|
19,655
|
19,864
|
20,079
|
20,541
|
20,649
|
21,445
|
|
|
Debt to capital ratio % (A/F)
|
57.6
|
58.1
|
57.3
|
57.3
|
57.9
|
57.4
|
57.7
|
58.7
|
|
|
Debt to capital ratio, excluding securitization debt % (C/G)
|
55.7
|
56.3
|
55.1
|
55.0
|
55.7
|
55.3
|
55.7
|
56.9
|
|
|
Net debt to net capital ratio, excluding securitization debt % (E/H)
|
54.0
|
55.1
|
52.8
|
53.5
|
54.2
|
54.7
|
54.1
|
55.8
|
|
|
Off-balance sheet liabilities (I)
|
650
|
647
|
645
|
604
|
601
|
600
|
599
|
595
|
|
|
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt % ((E+I)/(H+I))
|
55.5
|
56.5
|
54.3
|
54.8
|
55.5
|
56.0
|
55.4
|
57.0
|
|
|
Revolver capacity (J)
|
2,258
|
1,993
|
2,116
|
2,001
|
2,825
|
2,762
|
2,917
|
3,462
|
|
|
Gross liquidity (D+J)
|
2,984
|
2,523
|
3,103
|
2,695
|
3,510
|
3,045
|
3,667
|
3,995
|
|
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Entergy Wholesale Commodities Operational Adjusted EBITDA
|
||||||||
|
($ in millions)
|
||||||||
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
2Q12
|
3Q12
|
4Q12
|
|
|
Net income
|
114
|
99
|
122
|
156
|
(176)
|
71
|
87
|
59
|
|
Add back: interest expense
|
9
|
9
|
10
|
6
|
6
|
5
|
3
|
3
|
|
Add back: income tax expense
|
81
|
18
|
59
|
18
|
(92)
|
47
|
57
|
50
|
|
Add back: depreciation and amortization
|
43
|
44
|
45
|
46
|
51
|
48
|
29
|
47
|
|
Subtract: interest and investment income
|
22
|
24
|
24
|
29
|
31
|
27
|
20
|
28
|
|
Add back: decommissioning expense
|
28
|
28
|
29
|
(4)
|
30
|
(17)
|
29
|
30
|
|
Adjusted EBITDA
|
253
|
174
|
241
|
193
|
(212)
|
127
|
185
|
161
|
|
Add back: special item for asset impairment
|
-
|
-
|
-
|
-
|
356
|
-
|
-
|
–
|
|
Operational adjusted EBITDA
|
253
|
174
|
241
|
193
|
144
|
127
|
185
|
161
|
Entergy Corporation’s common stock is listed on the New York and Chicago exchanges under the symbol “ETR”.
Additional investor information can be accessed online at
www.entergy.com/investor_relations
*********************************************************************************************************************************
In this news release, and from time to time, Entergy makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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 involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed in: (i) Entergy’s Form 10-K for the year ended Dec. 31, 2011; (ii) Entergy’s Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and Sept. 30, 2012 and (iii) Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (f) conditions in commodity and capital markets during the periods covered by the forward-looking statements, in addition to other factors described elsewhere in this release and subsequent securities filings and (g) risks inherent in the proposed spin-off and subsequent merger of Entergy’s electric transmission business with a subsidiary of ITC Holdings Corp. Entergy cannot provide any assurances that the spin-off and merger transaction will be completed and cannot give any assurance as to the terms on which such transaction will be consummated. The spin-off and merger transaction is subject to certain conditions precedent, including regulatory approvals and approval by ITC Holdings Corp. shareholders.
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Balance Sheet
|
||||||||||||||||
|
December 31, 2012
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
ASSETS
|
||||||||||||||||
|
CURRENT ASSETS
|
||||||||||||||||
|
Cash and cash equivalents:
|
||||||||||||||||
|
Cash
|
$ | 104,378 | $ | 8,224 | $ | 390 | $ | 112,992 | ||||||||
|
Temporary cash investments
|
275,755 | 132,697 | 11,125 | 419,577 | ||||||||||||
|
Total cash and cash equivalents
|
380,133 | 140,921 | 11,515 | 532,569 | ||||||||||||
|
Securitization recovery trust account
|
46,040 | - | - | 46,040 | ||||||||||||
|
Notes receivable
|
- | 446,356 | (446,356 | ) | - | |||||||||||
|
Accounts receivable:
|
||||||||||||||||
|
Customer
|
374,403 | 194,468 | - | 568,871 | ||||||||||||
|
Allowance for doubtful accounts
|
(31,956 | ) | - | - | (31,956 | ) | ||||||||||
|
Associated companies
|
28,729 | 5,365 | (34,094 | ) | - | |||||||||||
|
Other
|
149,681 | 10,984 | 743 | 161,408 | ||||||||||||
|
Accrued unbilled revenues
|
303,264 | 128 | - | 303,392 | ||||||||||||
|
Total accounts receivable
|
824,121 | 210,945 | (33,351 | ) | 1,001,715 | |||||||||||
|
Deferred fuel costs
|
150,363 | - | - | 150,363 | ||||||||||||
|
Accumulated deferred income taxes
|
346,097 | 1,272 | (40,921 | ) | 306,448 | |||||||||||
|
Fuel inventory - at average cost
|
205,468 | 8,363 | - | 213,831 | ||||||||||||
|
Materials and supplies - at average cost
|
588,657 | 339,873 | - | 928,530 | ||||||||||||
|
Deferred nuclear refueling outage costs
|
123,975 | 119,399 | - | 243,374 | ||||||||||||
|
System agreement cost equalization
|
- | - | - | - | ||||||||||||
|
Prepaid taxes
|
- | - | - | - | ||||||||||||
|
Prepayments and other
|
70,777 | 413,333 | (241,188 | ) | 242,922 | |||||||||||
|
TOTAL
|
2,735,631 | 1,680,462 | (750,301 | ) | 3,665,792 | |||||||||||
|
OTHER PROPERTY AND INVESTMENTS
|
||||||||||||||||
|
Investment in affiliates - at equity
|
1,097,271 | 46,626 | (1,097,159 | ) | 46,738 | |||||||||||
|
Decommissioning trust funds
|
1,855,959 | 2,334,149 | - | 4,190,108 | ||||||||||||
|
Non-utility property - at cost (less accumulated depreciation)
|
174,219 | 70,546 | 11,274 | 256,039 | ||||||||||||
|
Other
|
422,139 | 14,095 | - | 436,234 | ||||||||||||
|
TOTAL
|
3,549,588 | 2,465,416 | (1,085,885 | ) | 4,929,119 | |||||||||||
|
PROPERTY, PLANT, AND EQUIPMENT
|
||||||||||||||||
|
Electric
|
37,264,453 | 4,605,957 | 3,418 | 41,873,828 | ||||||||||||
|
Property under capital lease
|
935,199 | - | - | 935,199 | ||||||||||||
|
Natural gas
|
353,492 | - | - | 353,492 | ||||||||||||
|
Construction work in progress
|
973,071 | 391,749 | 879 | 1,365,699 | ||||||||||||
|
Nuclear fuel
|
907,293 | 691,137 | - | 1,598,430 | ||||||||||||
|
TOTAL PROPERTY, PLANT AND EQUIPMENT
|
40,433,508 | 5,688,843 | 4,297 | 46,126,648 | ||||||||||||
|
Less - accumulated depreciation and amortization
|
17,840,387 | 987,330 | 386 | 18,828,103 | ||||||||||||
|
PROPERTY, PLANT AND EQUIPMENT - NET
|
22,593,121 | 4,701,513 | 3,911 | 27,298,545 | ||||||||||||
|
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||||||||||
|
Regulatory assets:
|
||||||||||||||||
|
Regulatory asset for income taxes - net
|
742,030 | - | - | 742,030 | ||||||||||||
|
Other regulatory assets
|
5,025,912 | - | - | 5,025,912 | ||||||||||||
|
Deferred fuel costs
|
172,202 | - | - | 172,202 | ||||||||||||
|
Goodwill
|
374,099 | 3,073 | - | 377,172 | ||||||||||||
|
Accumulated deferred income taxes
|
10,461 | 20,749 | 6,538 | 37,748 | ||||||||||||
|
Other
|
215,422 | 752,132 | (30,906 | ) | 936,648 | |||||||||||
|
TOTAL
|
6,540,126 | 775,954 | (24,368 | ) | 7,291,712 | |||||||||||
| - | ||||||||||||||||
|
TOTAL ASSETS
|
$ | 35,418,466 | $ | 9,623,345 | $ | (1,856,643 | ) | $ | 43,185,168 | |||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Balance Sheet
|
||||||||||||||||
|
December 31, 2012
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||
|
CURRENT LIABILITIES
|
||||||||||||||||
|
Currently maturing long-term debt
|
$ | 701,090 | $ | 17,426 | $ | - | $ | 718,516 | ||||||||
|
Notes payable:
|
||||||||||||||||
|
Associated companies
|
28,000 | 1,437 | (29,437 | ) | - | |||||||||||
|
Other
|
131,399 | - | 664,603 | 796,002 | ||||||||||||
|
Account payable:
|
||||||||||||||||
|
Associated companies
|
15,798 | 11,010 | (26,808 | ) | - | |||||||||||
|
Other
|
957,193 | 259,462 | 525 | 1,217,180 | ||||||||||||
|
Customer deposits
|
359,078 | - | - | 359,078 | ||||||||||||
|
Taxes accrued
|
664,312 | - | (331,172 | ) | 333,140 | |||||||||||
|
Accumulated deferred income taxes
|
7,955 | 40,431 | (35,277 | ) | 13,109 | |||||||||||
|
Interest accrued
|
160,151 | 321 | 24,192 | 184,664 | ||||||||||||
|
Deferred fuel costs
|
96,439 | - | - | 96,439 | ||||||||||||
|
Obligations under capital leases
|
3,880 | - | - | 3,880 | ||||||||||||
|
Pension and other postretirement liabilities
|
89,400 | 6,500 | - | 95,900 | ||||||||||||
|
System agreement cost equalization
|
8,968 | - | - | 8,968 | ||||||||||||
|
Other
|
106,052 | 154,019 | 1,915 | 261,986 | ||||||||||||
|
TOTAL
|
3,329,715 | 490,606 | 268,541 | 4,088,862 | ||||||||||||
|
NON-CURRENT LIABILITIES
|
||||||||||||||||
|
Accumulated deferred income taxes and taxes accrued
|
6,842,124 | 819,998 | 649,759 | 8,311,881 | ||||||||||||
|
Accumulated deferred investment tax credits
|
273,696 | - | - | 273,696 | ||||||||||||
|
Obligations under capital leases
|
34,541 | - | - | 34,541 | ||||||||||||
|
Other regulatory liabilities
|
898,614 | - | - | 898,614 | ||||||||||||
|
Decommissioning and retirement cost liabilities
|
1,970,362 | 1,543,272 | - | 3,513,634 | ||||||||||||
|
Accumulated provisions
|
357,801 | 978 | 3,447 | 362,226 | ||||||||||||
|
Pension and other postretirement liabilities
|
2,891,787 | 834,099 | - | 3,725,886 | ||||||||||||
|
Long-term debt
|
9,533,760 | 92,304 | 2,294,254 | 11,920,318 | ||||||||||||
|
Other
|
709,182 | 611,814 | (743,086 | ) | 577,910 | |||||||||||
|
TOTAL
|
23,511,867 | 3,902,465 | 2,204,374 | 29,618,706 | ||||||||||||
|
Subsidiaries' preferred stock without sinking fund
|
186,511 | - | - | 186,511 | ||||||||||||
|
EQUITY
|
||||||||||||||||
|
Common Shareholders' Equity:
|
||||||||||||||||
|
Common stock, $.01 par value, authorized 500,000,000 shares;
|
||||||||||||||||
|
issued 254,752,788 shares in 2012
|
2,161,268 | 301,097 | (2,459,817 | ) | 2,548 | |||||||||||
|
Paid-in capital
|
2,417,644 | 1,861,355 | 1,078,853 | 5,357,852 | ||||||||||||
|
Retained earnings
|
4,052,441 | 3,145,925 | 2,506,225 | 9,704,591 | ||||||||||||
|
Accumulated other comprehensive income (loss)
|
(214,980 | ) | (78,103 | ) | - | (293,083 | ) | |||||||||
|
Less - treasury stock, at cost (76,945,239 shares in 2012)
|
120,000 | - | 5,454,819 | 5,574,819 | ||||||||||||
|
Total common shareholders' equity
|
8,296,373 | 5,230,274 | (4,329,558 | ) | 9,197,089 | |||||||||||
|
Subsidiaries' preferred stock without sinking fund
|
94,000 | - | - | 94,000 | ||||||||||||
|
TOTAL
|
8,390,373 | 5,230,274 | (4,329,558 | ) | 9,291,089 | |||||||||||
|
TOTAL LIABILITIES AND EQUITY
|
$ | 35,418,466 | $ | 9,623,345 | $ | (1,856,643 | ) | $ | 43,185,168 | |||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Balance Sheet
|
||||||||||||||||
|
December 31, 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
ASSETS
|
||||||||||||||||
|
CURRENT ASSETS
|
||||||||||||||||
|
Cash and cash equivalents:
|
||||||||||||||||
|
Cash
|
$ | 77,711 | $ | 3,754 | $ | 3 | $ | 81,468 | ||||||||
|
Temporary cash investments
|
281,921 | 318,751 | 12,298 | 612,970 | ||||||||||||
|
Total cash and cash equivalents
|
359,632 | 322,505 | 12,301 | 694,438 | ||||||||||||
|
Securitization recovery trust account
|
50,304 | - | - | 50,304 | ||||||||||||
|
Notes receivable
|
- | 441,278 | (441,278 | ) | - | |||||||||||
|
Accounts receivable:
|
||||||||||||||||
|
Customer
|
403,321 | 165,237 | - | 568,558 | ||||||||||||
|
Allowance for doubtful accounts
|
(30,827 | ) | (332 | ) | - | (31,159 | ) | |||||||||
|
Associated companies
|
42,847 | 5,133 | (47,980 | ) | - | |||||||||||
|
Other
|
151,956 | 13,376 | 854 | 166,186 | ||||||||||||
|
Accrued unbilled revenues
|
297,265 | 1,018 | - | 298,283 | ||||||||||||
|
Total accounts receivable
|
864,562 | 184,432 | (47,126 | ) | 1,001,868 | |||||||||||
|
Deferred fuel costs
|
209,776 | - | - | 209,776 | ||||||||||||
|
Accumulated deferred income taxes
|
141,804 | 4,655 | (136,603 | ) | 9,856 | |||||||||||
|
Fuel inventory - at average cost
|
196,246 | 5,886 | - | 202,132 | ||||||||||||
|
Materials and supplies - at average cost
|
559,230 | 335,526 | - | 894,756 | ||||||||||||
|
Deferred nuclear refueling outage costs
|
103,788 | 127,243 | - | 231,031 | ||||||||||||
|
System agreement cost equalization
|
36,800 | - | - | 36,800 | ||||||||||||
|
Prepaid taxes
|
- | 79,165 | (79,165 | ) | - | |||||||||||
|
Prepayments and other
|
67,285 | 222,049 | 2,408 | 291,742 | ||||||||||||
|
TOTAL
|
2,589,427 | 1,722,739 | (689,463 | ) | 3,622,703 | |||||||||||
|
OTHER PROPERTY AND INVESTMENTS
|
||||||||||||||||
|
Investment in affiliates - at equity
|
1,147,271 | 44,764 | (1,147,159 | ) | 44,876 | |||||||||||
|
Decommissioning trust funds
|
1,639,951 | 2,148,080 | - | 3,788,031 | ||||||||||||
|
Non-utility property - at cost (less accumulated depreciation)
|
174,029 | 71,888 | 14,519 | 260,436 | ||||||||||||
|
Other
|
374,379 | 12,044 | 30,000 | 416,423 | ||||||||||||
|
TOTAL
|
3,335,630 | 2,276,776 | (1,102,640 | ) | 4,509,766 | |||||||||||
|
PROPERTY, PLANT, AND EQUIPMENT
|
||||||||||||||||
|
Electric
|
34,487,985 | 4,894,128 | 3,411 | 39,385,524 | ||||||||||||
|
Property under capital lease
|
809,449 | - | - | 809,449 | ||||||||||||
|
Natural gas
|
343,111 | 439 | - | 343,550 | ||||||||||||
|
Construction work in progress
|
1,420,163 | 358,902 | 658 | 1,779,723 | ||||||||||||
|
Nuclear fuel
|
801,972 | 744,195 | - | 1,546,167 | ||||||||||||
|
TOTAL PROPERTY, PLANT AND EQUIPMENT
|
37,862,680 | 5,997,664 | 4,069 | 43,864,413 | ||||||||||||
|
Less - accumulated depreciation and amortization
|
17,238,272 | 1,016,507 | 349 | 18,255,128 | ||||||||||||
|
PROPERTY, PLANT AND EQUIPMENT - NET
|
20,624,408 | 4,981,157 | 3,720 | 25,609,285 | ||||||||||||
|
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||||||||||
|
Regulatory assets:
|
||||||||||||||||
|
Regulatory asset for income taxes - net
|
799,006 | - | - | 799,006 | ||||||||||||
|
Other regulatory assets
|
4,636,871 | - | - | 4,636,871 | ||||||||||||
|
Deferred fuel costs
|
172,202 | - | - | 172,202 | ||||||||||||
|
Goodwill
|
374,099 | 3,073 | - | 377,172 | ||||||||||||
|
Accumulated deferred income taxes
|
4,313 | 9,232 | 5,458 | 19,003 | ||||||||||||
|
Other
|
198,593 | 803,552 | (46,454 | ) | 955,691 | |||||||||||
|
TOTAL
|
6,185,084 | 815,857 | (40,996 | ) | 6,959,945 | |||||||||||
| - | ||||||||||||||||
|
TOTAL ASSETS
|
$ | 32,734,549 | $ | 9,796,529 | $ | (1,829,379 | ) | $ | 40,701,699 | |||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Balance Sheet
|
||||||||||||||||
|
December 31, 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||
|
CURRENT LIABILITIES
|
||||||||||||||||
|
Currently maturing long-term debt
|
$ | 245,472 | $ | 27,261 | $ | 1,920,000 | $ | 2,192,733 | ||||||||
|
Notes payable:
|
||||||||||||||||
|
Associated companies
|
- | 67,989 | (67,989 | ) | - | |||||||||||
|
Other
|
108,331 | - | - | 108,331 | ||||||||||||
|
Account payable:
|
||||||||||||||||
|
Associated companies
|
14,839 | 34,467 | (49,306 | ) | - | |||||||||||
|
Other
|
787,516 | 280,663 | 917 | 1,069,096 | ||||||||||||
|
Customer deposits
|
351,741 | - | - | 351,741 | ||||||||||||
|
Taxes accrued
|
569,641 | 17,906 | (309,312 | ) | 278,235 | |||||||||||
|
Accumulated deferred income taxes
|
54,592 | 42,613 | 2,724 | 99,929 | ||||||||||||
|
Interest accrued
|
169,710 | 490 | 13,312 | 183,512 | ||||||||||||
|
Deferred fuel costs
|
255,839 | - | - | 255,839 | ||||||||||||
|
Obligations under capital leases
|
3,631 | - | - | 3,631 | ||||||||||||
|
Pension and other postretirement liabilities
|
37,858 | 6,173 | - | 44,031 | ||||||||||||
|
System agreement cost equalization
|
80,090 | - | - | 80,090 | ||||||||||||
|
Other
|
114,083 | 158,277 | 11,171 | 283,531 | ||||||||||||
|
TOTAL
|
2,793,343 | 635,839 | 1,521,517 | 4,950,699 | ||||||||||||
|
NON-CURRENT LIABILITIES
|
||||||||||||||||
|
Accumulated deferred income taxes and taxes accrued
|
6,680,438 | 766,149 | 649,865 | 8,096,452 | ||||||||||||
|
Accumulated deferred investment tax credits
|
284,747 | - | - | 284,747 | ||||||||||||
|
Obligations under capital leases
|
38,421 | - | - | 38,421 | ||||||||||||
|
Other regulatory liabilities
|
737,403 | - | (9,210 | ) | 728,193 | |||||||||||
|
Decommissioning and retirement cost liabilities
|
1,803,665 | 1,492,905 | - | 3,296,570 | ||||||||||||
|
Accumulated provisions
|
379,331 | 1,849 | 4,332 | 385,512 | ||||||||||||
|
Pension and other postretirement liabilities
|
2,463,493 | 670,164 | - | 3,133,657 | ||||||||||||
|
Long-term debt
|
8,936,342 | 108,451 | 998,920 | 10,043,713 | ||||||||||||
|
Other
|
651,918 | 639,552 | (789,516 | ) | 501,954 | |||||||||||
|
TOTAL
|
21,975,758 | 3,679,070 | 854,391 | 26,509,219 | ||||||||||||
|
Subsidiaries' preferred stock without sinking fund
|
186,511 | 55,399 | (55,399 | ) | 186,511 | |||||||||||
|
EQUITY
|
||||||||||||||||
|
Common Shareholders' Equity:
|
||||||||||||||||
|
Common stock, $.01 par value, authorized 500,000,000 shares;
|
||||||||||||||||
|
issued 254,752,788 shares in 2011
|
2,161,268 | 327,939 | (2,486,659 | ) | 2,548 | |||||||||||
|
Paid-in capital
|
2,416,634 | 1,815,887 | 1,128,161 | 5,360,682 | ||||||||||||
|
Retained earnings
|
3,417,829 | 3,260,053 | 2,769,078 | 9,446,960 | ||||||||||||
|
Accumulated other comprehensive income (loss)
|
(190,794 | ) | 22,342 | - | (168,452 | ) | ||||||||||
|
Less - treasury stock, at cost (78,396,988 shares in 2011)
|
120,000 | - | 5,560,468 | 5,680,468 | ||||||||||||
|
Total common shareholders' equity
|
7,684,937 | 5,426,221 | (4,149,888 | ) | 8,961,270 | |||||||||||
|
Subsidiaries' preferred stock without sinking fund
|
94,000 | - | - | 94,000 | ||||||||||||
|
TOTAL
|
7,778,937 | 5,426,221 | (4,149,888 | ) | 9,055,270 | |||||||||||
|
TOTAL LIABILITIES AND EQUITY
|
$ | 32,734,549 | $ | 9,796,529 | $ | (1,829,379 | ) | $ | 40,701,699 | |||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Balance Sheet
|
||||||||||||||||
|
December 31, 2012 vs December 31, 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
ASSETS
|
||||||||||||||||
|
CURRENT ASSETS
|
||||||||||||||||
|
Cash and cash equivalents:
|
||||||||||||||||
|
Cash
|
$ | 26,667 | $ | 4,470 | $ | 387 | $ | 31,524 | ||||||||
|
Temporary cash investments
|
(6,166 | ) | (186,054 | ) | (1,173 | ) | (193,393 | ) | ||||||||
|
Total cash and cash equivalents
|
20,501 | (181,584 | ) | (786 | ) | (161,869 | ) | |||||||||
|
Securitization recovery trust account
|
(4,264 | ) | - | - | (4,264 | ) | ||||||||||
|
Notes receivable
|
- | 5,078 | (5,078 | ) | - | |||||||||||
|
Accounts receivable:
|
||||||||||||||||
|
Customer
|
(28,918 | ) | 29,231 | - | 313 | |||||||||||
|
Allowance for doubtful accounts
|
(1,129 | ) | 332 | - | (797 | ) | ||||||||||
|
Associated companies
|
(14,118 | ) | 232 | 13,886 | - | |||||||||||
|
Other
|
(2,275 | ) | (2,392 | ) | (111 | ) | (4,778 | ) | ||||||||
|
Accrued unbilled revenues
|
5,999 | (890 | ) | - | 5,109 | |||||||||||
|
Total accounts receivable
|
(40,441 | ) | 26,513 | 13,775 | (153 | ) | ||||||||||
|
Deferred fuel costs
|
(59,413 | ) | - | - | (59,413 | ) | ||||||||||
|
Accumulated deferred income taxes
|
204,293 | (3,383 | ) | 95,682 | 296,592 | |||||||||||
|
Fuel inventory - at average cost
|
9,222 | 2,477 | - | 11,699 | ||||||||||||
|
Materials and supplies - at average cost
|
29,427 | 4,347 | - | 33,774 | ||||||||||||
|
Deferred nuclear refueling outage costs
|
20,187 | (7,844 | ) | - | 12,343 | |||||||||||
|
System agreement cost equalization
|
(36,800 | ) | - | - | (36,800 | ) | ||||||||||
|
Prepaid taxes
|
- | (79,165 | ) | 79,165 | - | |||||||||||
|
Prepayments and other
|
3,492 | 191,284 | (243,596 | ) | (48,820 | ) | ||||||||||
|
TOTAL
|
146,204 | (42,277 | ) | (60,838 | ) | 43,089 | ||||||||||
|
OTHER PROPERTY AND INVESTMENTS
|
||||||||||||||||
|
Investment in affiliates - at equity
|
(50,000 | ) | 1,862 | 50,000 | 1,862 | |||||||||||
|
Decommissioning trust funds
|
216,008 | 186,069 | - | 402,077 | ||||||||||||
|
Non-utility property - at cost (less accumulated depreciation)
|
190 | (1,342 | ) | (3,245 | ) | (4,397 | ) | |||||||||
|
Other
|
47,760 | 2,051 | (30,000 | ) | 19,811 | |||||||||||
|
TOTAL
|
213,958 | 188,640 | 16,755 | 419,353 | ||||||||||||
|
PROPERTY, PLANT, AND EQUIPMENT
|
||||||||||||||||
|
Electric
|
2,776,468 | (288,171 | ) | 7 | 2,488,304 | |||||||||||
|
Property under capital lease
|
125,750 | - | - | 125,750 | ||||||||||||
|
Natural gas
|
10,381 | (439 | ) | - | 9,942 | |||||||||||
|
Construction work in progress
|
(447,092 | ) | 32,847 | 221 | (414,024 | ) | ||||||||||
|
Nuclear fuel
|
105,321 | (53,058 | ) | - | 52,263 | |||||||||||
|
TOTAL PROPERTY, PLANT AND EQUIPMENT
|
2,570,828 | (308,821 | ) | 228 | 2,262,235 | |||||||||||
|
Less - accumulated depreciation and amortization
|
602,115 | (29,177 | ) | 37 | 572,975 | |||||||||||
|
PROPERTY, PLANT AND EQUIPMENT - NET
|
1,968,713 | (279,644 | ) | 191 | 1,689,260 | |||||||||||
|
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||||||||||
|
Regulatory assets:
|
||||||||||||||||
|
Regulatory asset for income taxes - net
|
(56,976 | ) | - | - | (56,976 | ) | ||||||||||
|
Other regulatory assets
|
389,041 | - | - | 389,041 | ||||||||||||
|
Deferred fuel costs
|
- | - | - | - | ||||||||||||
|
Goodwill
|
- | - | - | - | ||||||||||||
|
Accumulated deferred income taxes
|
6,148 | 11,517 | 1,080 | 18,745 | ||||||||||||
|
Other
|
16,829 | (51,420 | ) | 15,548 | (19,043 | ) | ||||||||||
|
TOTAL
|
355,042 | (39,903 | ) | 16,628 | 331,767 | |||||||||||
|
TOTAL ASSETS
|
$ | 2,683,917 | $ | (173,184 | ) | $ | (27,264 | ) | $ | 2,483,469 | ||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Balance Sheet
|
||||||||||||||||
|
December 31, 2012 vs December 31, 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||
|
CURRENT LIABILITIES
|
||||||||||||||||
|
Currently maturing long-term debt
|
$ | 455,618 | $ | (9,835 | ) | $ | (1,920,000 | ) | $ | (1,474,217 | ) | |||||
|
Notes payable:
|
||||||||||||||||
|
Associated companies
|
28,000 | (66,552 | ) | 38,552 | - | |||||||||||
|
Other
|
23,068 | - | 664,603 | 687,671 | ||||||||||||
|
Account payable:
|
||||||||||||||||
|
Associated companies
|
959 | (23,457 | ) | 22,498 | - | |||||||||||
|
Other
|
169,677 | (21,201 | ) | (392 | ) | 148,084 | ||||||||||
|
Customer deposits
|
7,337 | - | - | 7,337 | ||||||||||||
|
Taxes accrued
|
94,671 | (17,906 | ) | (21,860 | ) | 54,905 | ||||||||||
|
Accumulated deferred income taxes
|
(46,637 | ) | (2,182 | ) | (38,001 | ) | (86,820 | ) | ||||||||
|
Interest accrued
|
(9,559 | ) | (169 | ) | 10,880 | 1,152 | ||||||||||
|
Deferred fuel costs
|
(159,400 | ) | - | - | (159,400 | ) | ||||||||||
|
Obligations under capital leases
|
249 | - | - | 249 | ||||||||||||
|
Pension and other postretirement liabilities
|
51,542 | 327 | - | 51,869 | ||||||||||||
|
System agreement cost equalization
|
(71,122 | ) | - | - | (71,122 | ) | ||||||||||
|
Other
|
(8,031 | ) | (4,258 | ) | (9,256 | ) | (21,545 | ) | ||||||||
|
TOTAL
|
536,372 | (145,233 | ) | (1,252,976 | ) | (861,837 | ) | |||||||||
|
NON-CURRENT LIABILITIES
|
||||||||||||||||
|
Accumulated deferred income taxes and taxes accrued
|
161,686 | 53,849 | (106 | ) | 215,429 | |||||||||||
|
Accumulated deferred investment tax credits
|
(11,051 | ) | - | - | (11,051 | ) | ||||||||||
|
Obligations under capital leases
|
(3,880 | ) | - | - | (3,880 | ) | ||||||||||
|
Other regulatory liabilities
|
161,211 | - | 9,210 | 170,421 | ||||||||||||
|
Decommissioning and retirement cost liabilities
|
166,697 | 50,367 | - | 217,064 | ||||||||||||
|
Accumulated provisions
|
(21,530 | ) | (871 | ) | (885 | ) | (23,286 | ) | ||||||||
|
Pension and other postretirement liabilities
|
428,294 | 163,935 | - | 592,229 | ||||||||||||
|
Long-term debt
|
597,418 | (16,147 | ) | 1,295,334 | 1,876,605 | |||||||||||
|
Other
|
57,264 | (27,738 | ) | 46,430 | 75,956 | |||||||||||
|
TOTAL
|
1,536,109 | 223,395 | 1,349,983 | 3,109,487 | ||||||||||||
|
Subsidiaries' preferred stock without sinking fund
|
- | (55,399 | ) | 55,399 | - | |||||||||||
|
EQUITY
|
||||||||||||||||
|
Common Shareholders' Equity:
|
||||||||||||||||
|
Common stock, $.01 par value, authorized 500,000,000 shares;
|
||||||||||||||||
|
issued 254,752,788 shares in 2012 and in 2011
|
- | (26,842 | ) | 26,842 | - | |||||||||||
|
Paid-in capital
|
1,010 | 45,468 | (49,308 | ) | (2,830 | ) | ||||||||||
|
Retained earnings
|
634,612 | (114,128 | ) | (262,853 | ) | 257,631 | ||||||||||
|
Accumulated other comprehensive income (loss)
|
(24,186 | ) | (100,445 | ) | - | (124,631 | ) | |||||||||
|
Less - treasury stock, at cost
|
- | - | (105,649 | ) | (105,649 | ) | ||||||||||
|
Total common shareholders' equity
|
611,436 | (195,947 | ) | (179,670 | ) | 235,819 | ||||||||||
|
Subsidiaries' preferred stock without sinking fund
|
- | - | - | - | ||||||||||||
|
TOTAL
|
611,436 | (195,947 | ) | (179,670 | ) | 235,819 | ||||||||||
|
TOTAL LIABILITIES AND EQUITY
|
$ | 2,683,917 | $ | (173,184 | ) | $ | (27,264 | ) | $ | 2,483,469 | ||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Three Months Ended December 31, 2012
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | 1,831,597 | $ | - | $ | (700 | ) | $ | 1,830,897 | |||||||
|
Natural gas
|
37,392 | - | - | 37,392 | ||||||||||||
|
Competitive businesses
|
- | 571,535 | (3,564 | ) | 567,971 | |||||||||||
|
Total
|
1,868,989 | 571,535 | (4,264 | ) | 2,436,260 | |||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
371,573 | 93,181 | (183 | ) | 464,571 | |||||||||||
|
Purchased power
|
281,427 | 15,349 | (7,792 | ) | 288,984 | |||||||||||
|
Nuclear refueling outage expenses
|
29,324 | 31,987 | - | 61,311 | ||||||||||||
|
Other operation and maintenance
|
548,513 | 231,893 | 5,228 | 785,634 | ||||||||||||
|
Decommissioning
|
28,089 | 30,031 | - | 58,120 | ||||||||||||
|
Taxes other than income taxes
|
98,506 | 34,127 | 336 | 132,969 | ||||||||||||
|
Depreciation and amortization
|
259,440 | 47,318 | 1,116 | 307,874 | ||||||||||||
|
Other regulatory charges (credits) - net
|
12,595 | - | - | 12,595 | ||||||||||||
|
Total
|
1,629,467 | 483,886 | (1,295 | ) | 2,112,058 | |||||||||||
|
OPERATING INCOME
|
239,522 | 87,649 | (2,969 | ) | 324,202 | |||||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
21,773 | - | - | 21,773 | ||||||||||||
|
Interest and investment income
|
37,229 | 27,586 | (31,805 | ) | 33,010 | |||||||||||
|
Miscellaneous - net
|
(6,619 | ) | (3,510 | ) | (1,292 | ) | (11,421 | ) | ||||||||
|
Total
|
52,383 | 24,076 | (33,097 | ) | 43,362 | |||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
130,836 | 2,976 | 20,622 | 154,434 | ||||||||||||
|
Allowance for borrowed funds used during construction
|
(9,435 | ) | - | - | (9,435 | ) | ||||||||||
|
Total
|
121,401 | 2,976 | 20,622 | 144,999 | ||||||||||||
|
INCOME BEFORE INCOME TAXES
|
170,504 | 108,749 | (56,688 | ) | 222,565 | |||||||||||
|
Income taxes
|
(113,574 | ) | 49,902 | (15,613 | ) | (79,285 | ) | |||||||||
|
CONSOLIDATED NET INCOME
|
284,078 | 58,847 | (41,075 | ) | 301,850 | |||||||||||
|
Preferred dividend requirements of subsidiaries
|
4,332 | - | 1,250 | 5,582 | ||||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 279,746 | $ | 58,847 | $ | (42,325 | ) | $ | 296,268 | |||||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | 1.58 | $ | 0.33 | $ | (0.24 | ) | $ | 1.67 | |||||||
|
DILUTED
|
$ | 1.57 | $ | 0.33 | $ | (0.24 | ) | $ | 1.66 | |||||||
|
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
|
BASIC
|
177,742,807 | |||||||||||||||
|
DILUTED
|
178,042,364 | |||||||||||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Three Months Ended December 31, 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | 1,862,737 | $ | - | $ | (757 | ) | $ | 1,861,980 | |||||||
|
Natural gas
|
39,366 | - | - | 39,366 | ||||||||||||
|
Competitive businesses
|
- | 594,334 | (6,648 | ) | 587,686 | |||||||||||
|
Total
|
1,902,103 | 594,334 | (7,405 | ) | 2,489,032 | |||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
489,166 | 82,845 | (304 | ) | 571,707 | |||||||||||
|
Purchased power
|
278,926 | 7,116 | (10,255 | ) | 275,787 | |||||||||||
|
Nuclear refueling outage expenses
|
26,568 | 37,533 | - | 64,101 | ||||||||||||
|
Other operation and maintenance
|
539,871 | 236,145 | 14,677 | 790,692 | ||||||||||||
|
Decommissioning
|
27,776 | (4,411 | ) | - | 23,366 | |||||||||||
|
Taxes other than income taxes
|
101,388 | 27,749 | 397 | 129,533 | ||||||||||||
|
Depreciation and amortization
|
241,774 | 46,535 | 1,222 | 289,531 | ||||||||||||
|
Other regulatory charges (credits) - net
|
1,620 | - | - | 1,620 | ||||||||||||
|
Total
|
1,707,089 | 433,512 | 5,737 | 2,146,337 | ||||||||||||
|
OPERATING INCOME
|
195,014 | 160,822 | (13,142 | ) | 342,695 | |||||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
24,747 | - | - | 24,747 | ||||||||||||
|
Interest and investment income
|
37,318 | 28,967 | (33,197 | ) | 33,088 | |||||||||||
|
Miscellaneous - net
|
(8,122 | ) | (9,522 | ) | (1,129 | ) | (18,773 | ) | ||||||||
|
Total
|
53,943 | 19,445 | (34,326 | ) | 39,062 | |||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
128,698 | 5,788 | 7,550 | 142,036 | ||||||||||||
|
Allowance for borrowed funds used during construction
|
(10,496 | ) | - | - | (10,496 | ) | ||||||||||
|
Total
|
118,202 | 5,788 | 7,550 | 131,540 | ||||||||||||
|
INCOME BEFORE INCOME TAXES
|
130,755 | 174,479 | (55,018 | ) | 250,217 | |||||||||||
|
Income taxes
|
(43,257 | ) | 18,239 | 115,208 | 90,190 | |||||||||||
|
CONSOLIDATED NET INCOME
|
174,012 | 156,240 | (170,226 | ) | 160,027 | |||||||||||
|
Preferred dividend requirements of subsidiaries
|
4,332 | 1,196 | 358 | 5,887 | ||||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 169,680 | $ | 155,044 | $ | (170,584 | ) | $ | 154,140 | |||||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | 0.96 | $ | 0.88 | $ | (0.97 | ) | $ | 0.87 | |||||||
|
DILUTED
|
$ | 0.96 | $ | 0.88 | $ | (0.97 | ) | $ | 0.87 | |||||||
|
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
|
BASIC
|
176,161,769 | |||||||||||||||
|
DILUTED
|
177,082,570 | |||||||||||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Three Months Ended December 31, 2012 vs. 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | (31,140 | ) | $ | - | $ | 57 | $ | (31,083 | ) | ||||||
|
Natural gas
|
(1,974 | ) | - | - | (1,974 | ) | ||||||||||
|
Competitive businesses
|
- | (22,799 | ) | 3,084 | (19,715 | ) | ||||||||||
|
Total
|
(33,114 | ) | (22,799 | ) | 3,141 | (52,772 | ) | |||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
(117,593 | ) | 10,336 | 121 | (107,136 | ) | ||||||||||
|
Purchased power
|
2,501 | 8,233 | 2,463 | 13,197 | ||||||||||||
|
Nuclear refueling outage expenses
|
2,756 | (5,546 | ) | - | (2,790 | ) | ||||||||||
|
Other operation and maintenance
|
8,642 | (4,252 | ) | (9,449 | ) | (5,058 | ) | |||||||||
|
Decommissioning
|
313 | 34,442 | - | 34,754 | ||||||||||||
|
Taxes other than income taxes
|
(2,882 | ) | 6,378 | (61 | ) | 3,436 | ||||||||||
|
Depreciation and amortization
|
17,666 | 783 | (106 | ) | 18,343 | |||||||||||
|
Other regulatory charges (credits )- net
|
10,975 | - | - | 10,975 | ||||||||||||
|
Total
|
(77,622 | ) | 50,374 | (7,032 | ) | (34,279 | ) | |||||||||
|
OPERATING INCOME
|
44,508 | (73,173 | ) | 10,173 | (18,493 | ) | ||||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
(2,974 | ) | - | - | (2,974 | ) | ||||||||||
|
Interest and investment income
|
(89 | ) | (1,381 | ) | 1,392 | (78 | ) | |||||||||
|
Miscellaneous - net
|
1,503 | 6,012 | (163 | ) | 7,352 | |||||||||||
|
Total
|
(1,560 | ) | 4,631 | 1,229 | 4,300 | |||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
2,138 | (2,812 | ) | 13,072 | 12,398 | |||||||||||
|
Allowance for borrowed funds used during construction
|
1,061 | - | - | 1,061 | ||||||||||||
|
Total
|
3,199 | (2,812 | ) | 13,072 | 13,459 | |||||||||||
|
INCOME BEFORE INCOME TAXES
|
39,749 | (65,730 | ) | (1,670 | ) | (27,652 | ) | |||||||||
|
Income taxes
|
(70,317 | ) | 31,663 | (130,821 | ) | (169,475 | ) | |||||||||
|
CONSOLIDATED NET INCOME
|
110,066 | (97,393 | ) | 129,151 | 141,823 | |||||||||||
|
Preferred dividend requirements of subsidiaries
|
- | (1,196 | ) | 892 | (305 | ) | ||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 110,066 | $ | (96,197 | ) | $ | 128,259 | $ | 142,128 | |||||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | 0.62 | $ | (0.55 | ) | $ | 0.73 | $ | 0.80 | |||||||
|
DILUTED
|
$ | 0.61 | $ | (0.55 | ) | $ | 0.73 | $ | 0.79 | |||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Year to Date December 31, 2012
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | 7,874,255 | $ | - | $ | (3,606 | ) | $ | 7,870,649 | |||||||
|
Natural gas
|
130,836 | - | - | 130,836 | ||||||||||||
|
Competitive businesses
|
- | 2,326,309 | (25,715 | ) | 2,300,594 | |||||||||||
|
Total
|
8,005,091 | 2,326,309 | (29,321 | ) | 10,302,079 | |||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
1,676,019 | 362,406 | (1,590 | ) | 2,036,835 | |||||||||||
|
Purchased power
|
1,185,404 | 110,328 | (39,932 | ) | 1,255,800 | |||||||||||
|
Nuclear refueling outage expenses
|
110,837 | 134,763 | - | 245,600 | ||||||||||||
|
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
|
Other operation and maintenance
|
2,079,520 | 957,839 | 8,033 | 3,045,392 | ||||||||||||
|
Decommissioning
|
112,664 | 72,096 | - | 184,760 | ||||||||||||
|
Taxes other than income taxes
|
432,422 | 123,640 | 1,236 | 557,298 | ||||||||||||
|
Depreciation and amortization
|
964,181 | 176,047 | 4,357 | 1,144,585 | ||||||||||||
|
Other regulatory charges (credits) - net
|
175,104 | - | - | 175,104 | ||||||||||||
|
Total
|
6,736,151 | 2,292,643 | (27,896 | ) | 9,000,898 | |||||||||||
|
OPERATING INCOME
|
1,268,940 | 33,666 | (1,425 | ) | 1,301,181 | |||||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
92,759 | - | - | 92,759 | ||||||||||||
|
Interest and investment income
|
150,292 | 105,062 | (127,578 | ) | 127,776 | |||||||||||
|
Miscellaneous - net
|
(25,844 | ) | (19,071 | ) | (8,299 | ) | (53,214 | ) | ||||||||
|
Total
|
217,207 | 85,991 | (135,877 | ) | 167,321 | |||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
513,797 | 17,900 | 74,899 | 606,596 | ||||||||||||
|
Allowance for borrowed funds used during construction
|
(37,312 | ) | - | - | (37,312 | ) | ||||||||||
|
Total
|
476,485 | 17,900 | 74,899 | 569,284 | ||||||||||||
|
INCOME BEFORE INCOME TAXES
|
1,009,662 | 101,757 | (212,201 | ) | 899,218 | |||||||||||
|
Income taxes
|
49,340 | 61,330 | (79,815 | ) | 30,855 | |||||||||||
|
CONSOLIDATED NET INCOME
|
960,322 | 40,427 | (132,386 | ) | 868,363 | |||||||||||
|
Preferred dividend requirements of subsidiaries
|
17,329 | - | 4,361 | 21,690 | ||||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 942,993 | $ | 40,427 | $ | (136,747 | ) | $ | 846,673 | |||||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | 5.31 | $ | 0.23 | $ | (0.77 | ) | $ | 4.77 | |||||||
|
DILUTED
|
$ | 5.30 | $ | 0.23 | $ | (0.77 | ) | $ | 4.76 | |||||||
|
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
|
BASIC
|
177,324,813 | |||||||||||||||
|
DILUTED
|
177,737,565 | |||||||||||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Year to Date December 31, 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | 8,676,009 | $ | - | $ | (2,492 | ) | $ | 8,673,517 | |||||||
|
Natural gas
|
165,819 | - | - | 165,819 | ||||||||||||
|
Competitive businesses
|
- | 2,413,773 | (24,036 | ) | 2,389,737 | |||||||||||
|
Total
|
8,841,828 | 2,413,773 | (26,528 | ) | 11,229,073 | |||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
2,183,559 | 309,917 | (762 | ) | 2,492,714 | |||||||||||
|
Purchased power
|
1,548,276 | 58,971 | (42,280 | ) | 1,564,967 | |||||||||||
|
Nuclear refueling outage expenses
|
105,000 | 150,617 | - | 255,618 | ||||||||||||
|
Asset impairment
|
- | - | - | - | ||||||||||||
|
Other operation and maintenance
|
1,950,567 | 905,586 | 11,606 | 2,867,758 | ||||||||||||
|
Decommissioning
|
109,144 | 81,450 | - | 190,595 | ||||||||||||
|
Taxes other than income taxes
|
431,619 | 102,965 | 1,442 | 536,026 | ||||||||||||
|
Depreciation and amortization
|
918,453 | 179,193 | 4,556 | 1,102,202 | ||||||||||||
|
Other regulatory charges (credits) - net
|
205,959 | - | - | 205,959 | ||||||||||||
|
Total
|
7,452,577 | 1,788,699 | (25,438 | ) | 9,215,839 | |||||||||||
|
OPERATING INCOME
|
1,389,251 | 625,074 | (1,090 | ) | 2,013,234 | |||||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
84,305 | - | - | 84,305 | ||||||||||||
|
Interest and investment income
|
158,737 | 99,762 | (129,505 | ) | 128,994 | |||||||||||
|
Miscellaneous - net
|
(25,377 | ) | (23,637 | ) | (10,257 | ) | (59,271 | ) | ||||||||
|
Total
|
217,665 | 76,125 | (139,762 | ) | 154,028 | |||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
493,632 | 33,067 | 24,822 | 551,521 | ||||||||||||
|
Allowance for borrowed funds used during construction
|
(37,893 | ) | - | - | (37,894 | ) | ||||||||||
|
Total
|
455,739 | 33,067 | 24,822 | 513,627 | ||||||||||||
|
INCOME BEFORE INCOME TAXES
|
1,151,177 | 668,132 | (165,674 | ) | 1,653,635 | |||||||||||
|
Income taxes
|
27,311 | 176,286 | 82,666 | 286,263 | ||||||||||||
|
CONSOLIDATED NET INCOME
|
1,123,866 | 491,846 | (248,340 | ) | 1,367,372 | |||||||||||
|
Preferred dividend requirements of subsidiaries
|
17,329 | 3,245 | 359 | 20,933 | ||||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 1,106,537 | $ | 488,601 | $ | (248,699 | ) | $ | 1,346,439 | |||||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | 6.24 | $ | 2.75 | $ | (1.40 | ) | $ | 7.59 | |||||||
|
DILUTED
|
$ | 6.20 | $ | 2.74 | $ | (1.39 | ) | $ | 7.55 | |||||||
|
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
|
BASIC
|
177,430,208 | |||||||||||||||
|
DILUTED
|
178,370,695 | |||||||||||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Year to Date December 31, 2012 vs. 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | (801,754 | ) | $ | - | $ | (1,114 | ) | $ | (802,868 | ) | |||||
|
Natural gas
|
(34,983 | ) | - | - | (34,983 | ) | ||||||||||
|
Competitive businesses
|
- | (87,464 | ) | (1,679 | ) | (89,143 | ) | |||||||||
|
Total
|
(836,737 | ) | (87,464 | ) | (2,793 | ) | (926,994 | ) | ||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
(507,540 | ) | 52,489 | (828 | ) | (455,879 | ) | |||||||||
|
Purchased power
|
(362,872 | ) | 51,357 | 2,348 | (309,167 | ) | ||||||||||
|
Nuclear refueling outage expenses
|
5,837 | (15,854 | ) | - | (10,018 | ) | ||||||||||
|
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
|
Other operation and maintenance
|
128,953 | 52,253 | (3,573 | ) | 177,634 | |||||||||||
|
Decommissioning
|
3,520 | (9,354 | ) | - | (5,835 | ) | ||||||||||
|
Taxes other than income taxes
|
803 | 20,675 | (206 | ) | 21,272 | |||||||||||
|
Depreciation and amortization
|
45,728 | (3,146 | ) | (199 | ) | 42,383 | ||||||||||
|
Other regulatory charges (credits )- net
|
(30,855 | ) | - | - | (30,855 | ) | ||||||||||
|
Total
|
(716,426 | ) | 503,944 | (2,458 | ) | (214,941 | ) | |||||||||
|
OPERATING INCOME
|
(120,311 | ) | (591,408 | ) | (335 | ) | (712,053 | ) | ||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
8,454 | - | - | 8,454 | ||||||||||||
|
Interest and investment income
|
(8,445 | ) | 5,300 | 1,927 | (1,218 | ) | ||||||||||
|
Miscellaneous - net
|
(467 | ) | 4,566 | 1,958 | 6,057 | |||||||||||
|
Total
|
(458 | ) | 9,866 | 3,885 | 13,293 | |||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
20,165 | (15,167 | ) | 50,077 | 55,075 | |||||||||||
|
Allowance for borrowed funds used during construction
|
581 | - | - | 582 | ||||||||||||
|
Total
|
20,746 | (15,167 | ) | 50,077 | 55,657 | |||||||||||
|
INCOME BEFORE INCOME TAXES
|
(141,515 | ) | (566,375 | ) | (46,527 | ) | (754,417 | ) | ||||||||
|
Income taxes
|
22,029 | (114,956 | ) | (162,481 | ) | (255,408 | ) | |||||||||
|
CONSOLIDATED NET INCOME
|
(163,544 | ) | (451,419 | ) | 115,954 | (499,009 | ) | |||||||||
|
Preferred dividend requirements of subsidiaries
|
- | (3,245 | ) | 4,002 | 757 | |||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | (163,544 | ) | $ | (448,174 | ) | $ | 111,952 | $ | (499,766 | ) | |||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | (0.93 | ) | $ | (2.52 | ) | $ | 0.63 | $ | (2.82 | ) | |||||
|
DILUTED
|
$ | (0.90 | ) | $ | (2.51 | ) | $ | 0.62 | $ | (2.79 | ) | |||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||
|
Consolidated Cash Flow Statement
|
||||||||||||
|
Three Months Ended December 31, 2012 vs. 2011
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||
|
(Unaudited)
|
||||||||||||
|
2012
|
2011
|
Variance
|
||||||||||
|
OPERATING ACTIVITIES
|
||||||||||||
|
Consolidated net income
|
$ | 301,850 | $ | 160,027 | $ | 141,823 | ||||||
|
Adjustments to reconcile consolidated net income to net cash flow
|
||||||||||||
|
provided by operating activities:
|
||||||||||||
|
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
477,982 | 429,725 | 48,257 | |||||||||
|
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
(137,128 | ) | (274,050 | ) | 136,922 | |||||||
|
Changes in working capital:
|
||||||||||||
|
Receivables
|
147,813 | 241,615 | (93,802 | ) | ||||||||
|
Fuel inventory
|
(2,541 | ) | (7,284 | ) | 4,743 | |||||||
|
Accounts payable
|
(150,375 | ) | 106,909 | (257,284 | ) | |||||||
|
Prepaid taxes and taxes accrued
|
10,280 | 334,800 | (324,520 | ) | ||||||||
|
Interest accrued
|
25,904 | 19,135 | 6,769 | |||||||||
|
Deferred fuel
|
(59,795 | ) | 63,795 | (123,590 | ) | |||||||
|
Other working capital accounts
|
(3,735 | ) | 73,194 | (76,929 | ) | |||||||
|
Changes in provisions for estimated losses
|
(7,329 | ) | (6,478 | ) | (851 | ) | ||||||
|
Changes in other regulatory assets
|
(447,678 | ) | (923,991 | ) | 476,313 | |||||||
|
Changes in pensions and other postretirement liabilities
|
719,203 | 1,238,151 | (518,948 | ) | ||||||||
|
Other
|
(153,954 | ) | (456,487 | ) | 302,533 | |||||||
|
Net cash flow provided by operating activities
|
720,497 | 999,061 | (278,564 | ) | ||||||||
|
INVESTING ACTIVITIES
|
||||||||||||
|
Construction/capital expenditures
|
(805,960 | ) | (579,359 | ) | (226,601 | ) | ||||||
|
Allowance for equity funds used during construction
|
22,634 | 25,156 | (2,522 | ) | ||||||||
|
Nuclear fuel purchases
|
(145,048 | ) | (166,075 | ) | 21,027 | |||||||
|
Payments for purchases of plants
|
(455,711 | ) | (346,547 | ) | (109,164 | ) | ||||||
|
Changes in transition charge account
|
6,301 | (6,817 | ) | 13,118 | ||||||||
|
Payments to storm reserve escrow account
|
(1,948 | ) | (1,382 | ) | (566 | ) | ||||||
|
Receipts from storm reserve escrow account
|
10,000 | - | 10,000 | |||||||||
|
Decrease (increase) in other investments
|
85,170 | 49,070 | 36,100 | |||||||||
|
Proceeds from nuclear decommissioning trust fund sales
|
657,358 | 307,257 | 350,101 | |||||||||
|
Investment in nuclear decommissioning trust funds
|
(689,366 | ) | (332,653 | ) | (356,713 | ) | ||||||
|
Net cash flow used in investing activities
|
(1,316,570 | ) | (1,051,350 | ) | (265,220 | ) | ||||||
|
FINANCING ACTIVITIES
|
||||||||||||
|
Proceeds from the issuance of:
|
||||||||||||
|
Long-term debt
|
1,188,867 | 1,455,247 | (266,380 | ) | ||||||||
|
Treasury stock
|
6,284 | 13,296 | (7,012 | ) | ||||||||
|
Retirement of long-term debt
|
(1,101,217 | ) | (1,489,971 | ) | 388,754 | |||||||
|
Redemption of subsidiary common and preferred stock
|
- | (30,308 | ) | 30,308 | ||||||||
|
Changes in credit borrowings - net
|
439,830 | (36,537 | ) | 476,367 | ||||||||
|
Dividends paid:
|
||||||||||||
|
Common stock
|
(147,917 | ) | (146,315 | ) | (1,602 | ) | ||||||
|
Preferred stock
|
(6,832 | ) | (5,887 | ) | (945 | ) | ||||||
|
Net cash flow provided by (used in) financing activities
|
379,015 | (240,475 | ) | 619,490 | ||||||||
|
Effect of exchange rates on cash and cash equivalents
|
(92 | ) | 62 | (154 | ) | |||||||
|
Net increase (decrease) in cash and cash equivalents
|
(217,150 | ) | (292,702 | ) | 75,552 | |||||||
|
Cash and cash equivalents at beginning of period
|
749,719 | 987,140 | (237,421 | ) | ||||||||
|
Cash and cash equivalents at end of period
|
$ | 532,569 | $ | 694,438 | $ | (161,869 | ) | |||||
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
|
Cash paid (received) during the period for:
|
||||||||||||
|
Interest - net of amount capitalized
|
$ | 123,983 | $ | 118,746 | $ | 5,237 | ||||||
|
Income taxes
|
$ | 6,742 | $ | (2,031 | ) | $ | 8,773 | |||||
|
Entergy Corporation
|
||||||||||||
|
Consolidated Cash Flow Statement
|
||||||||||||
|
Year to Date December 31, 2012 vs. 2011
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||
|
(Unaudited)
|
||||||||||||
|
2012
|
2011
|
Variance
|
||||||||||
|
OPERATING ACTIVITIES
|
||||||||||||
|
Consolidated net income
|
$ | 868,363 | $ | 1,367,372 | $ | (499,009 | ) | |||||
|
Adjustments to reconcile consolidated net income to net cash flow
|
||||||||||||
|
provided by operating activities:
|
||||||||||||
|
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
1,771,649 | 1,745,455 | 26,194 | |||||||||
|
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
(25,900 | ) | (280,029 | ) | 254,129 | |||||||
|
Asset impairment
|
355,524 | - | 355,524 | |||||||||
|
Changes in working capital:
|
||||||||||||
|
Receivables
|
(14,202 | ) | 28,091 | (42,293 | ) | |||||||
|
Fuel inventory
|
(11,604 | ) | 5,393 | (16,997 | ) | |||||||
|
Accounts payable
|
(6,779 | ) | (131,970 | ) | 125,191 | |||||||
|
Prepaid taxes and taxes accrued
|
54,905 | 580,042 | (525,137 | ) | ||||||||
|
Interest accrued
|
1,152 | (34,172 | ) | 35,324 | ||||||||
|
Deferred fuel
|
(99,987 | ) | (55,686 | ) | (44,301 | ) | ||||||
|
Other working capital accounts
|
(135,109 | ) | 41,875 | (176,984 | ) | |||||||
|
Changes in provisions for estimated losses
|
(24,808 | ) | (11,086 | ) | (13,722 | ) | ||||||
|
Changes in other regulatory assets
|
(398,428 | ) | (673,244 | ) | 274,816 | |||||||
|
Changes in pensions and other postretirement liabilities
|
644,099 | 962,461 | (318,362 | ) | ||||||||
|
Other
|
(38,590 | ) | (415,685 | ) | 377,095 | |||||||
|
Net cash flow provided by operating activities
|
2,940,285 | 3,128,817 | (188,532 | ) | ||||||||
|
INVESTING ACTIVITIES
|
||||||||||||
|
Construction/capital expenditures
|
(2,674,650 | ) | (2,040,027 | ) | (634,623 | ) | ||||||
|
Allowance for equity funds used during construction
|
96,131 | 86,252 | 9,879 | |||||||||
|
Nuclear fuel purchases
|
(557,960 | ) | (641,493 | ) | 83,533 | |||||||
|
Proceeds from sale of assets and businesses
|
- | 6,531 | (6,531 | ) | ||||||||
|
Payments for purchases of plants
|
(456,356 | ) | (646,137 | ) | 189,781 | |||||||
|
Changes in transition charge account
|
4,265 | (7,260 | ) | 11,525 | ||||||||
|
NYPA value sharing payment
|
(72,000 | ) | (72,000 | ) | - | |||||||
|
Payments to storm reserve escrow account
|
(8,957 | ) | (6,425 | ) | (2,532 | ) | ||||||
|
Receipts from storm reserve escrow account
|
27,884 | - | 27,884 | |||||||||
|
Decrease (increase) in other investments
|
15,175 | (11,623 | ) | 26,798 | ||||||||
|
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
|
109,105 | - | 109,105 | |||||||||
|
Proceeds from nuclear decommissioning trust fund sales
|
2,074,055 | 1,360,346 | 713,709 | |||||||||
|
Investment in nuclear decommissioning trust funds
|
(2,196,489 | ) | (1,475,017 | ) | (721,472 | ) | ||||||
|
Net cash flow used in investing activities
|
(3,639,797 | ) | (3,446,853 | ) | (192,944 | ) | ||||||
|
FINANCING ACTIVITIES
|
||||||||||||
|
Proceeds from the issuance of:
|
||||||||||||
|
Long-term debt
|
3,478,361 | 2,990,881 | 487,480 | |||||||||
|
Preferred stock
|
51,000 | - | 51,000 | |||||||||
|
Treasury stock
|
62,886 | 46,185 | 16,701 | |||||||||
|
Retirement of long-term debt
|
(3,130,233 | ) | (2,437,372 | ) | (692,861 | ) | ||||||
|
Repurchase of common stock
|
- | (234,632 | ) | 234,632 | ||||||||
|
Redemption of subsidiary common and preferred stock
|
- | (30,308 | ) | 30,308 | ||||||||
|
Changes in credit borrowings - net
|
687,675 | (6,501 | ) | 694,176 | ||||||||
|
Dividends paid:
|
||||||||||||
|
Common stock
|
(589,209 | ) | (589,605 | ) | 396 | |||||||
|
Preferred stock
|
(22,329 | ) | (20,933 | ) | (1,396 | ) | ||||||
|
Net cash flow provided by (used in) financing activities
|
538,151 | (282,285 | ) | 820,436 | ||||||||
|
Effect of exchange rates on cash and cash equivalents
|
(508 | ) | 287 | (795 | ) | |||||||
|
Net increase (decrease) in cash and cash equivalents
|
(161,869 | ) | (600,034 | ) | 438,165 | |||||||
|
Cash and cash equivalents at beginning of period
|
694,438 | 1,294,472 | (600,034 | ) | ||||||||
|
Cash and cash equivalents at end of period
|
$ | 532,569 | $ | 694,438 | $ | (161,869 | ) | |||||
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
|
Cash paid (received) during the period for:
|
||||||||||||
|
Interest - net of amount capitalized
|
$ | 546,125 | $ | 532,271 | $ | 13,854 | ||||||
|
Income taxes
|
$ | 49,214 | $ | (2,042 | ) | $ | 51,256 | |||||