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| 8-K - 8-K - ENTERGY CORP /DE/ | a04018.htm |
Exhibit 99.1
Entergy 639 Loyola Avenue New Orleans, LA 70113 | |||
News
Release
Date: | August 1, 2018 | ||
For Release: | Immediately | ||
Contact: | Emily Parenteau (Media) (504) 576-4238 eparent@entergy.com | David Borde (Investor Relations) (504) 576-5668 dborde@entergy.com | |
Entergy Reports Second Quarter Earnings
NEW ORLEANS - Entergy Corporation (NYSE: ETR) reported second quarter 2018 earnings per share of $1.34 on an as-reported basis and $1.79 on an operational basis (non-GAAP), which excludes the effects of special items. Results included 31 cents of income tax benefits from the settlement of its 2012-2013 IRS audit.
“Our results this quarter keep us on track to meet the strategic, operational and financial objectives that we reinforced at our Analyst Day in June,” said Entergy Chairman and Chief Executive Officer Leo Denault. “We continue to make significant progress toward transitioning to a pure play utility, as evidenced by our announcement to sell EWC’s Pilgrim and Palisades nuclear plants after their scheduled shutdowns.”
Table of Contents Page |
News Release1 Appendices8 A: Consolidated Results and Special Items9 B: Earnings Variance Analysis12 C: Utility Financial and Operating Measures14 D: EWC Financial and Operating Measures16 E: Consolidated Financial Measures17 F: Definitions and Abbreviations and Acronyms18 G: GAAP to Non-GAAP Reconciliations22 Financial Statements26 |
Business highlights included the following:
• | Entergy entered into purchase and sale agreements for EWC’s Pilgrim and Palisades nuclear plants. |
• | The LPSC approved Entergy Louisiana’s planned acquisition of Washington Parish Energy Center. |
• | ANO Units 1 and 2 returned to Column 1 of the NRC’s reactor oversight process. |
• | Entergy Louisiana and Entergy Arkansas each submitted annual formula rate plan filings and Entergy New Orleans and Entergy Texas each filed base rate cases. |
• | In June, Entergy Corporation completed a $1.15 billion common stock offering with a forward component. |
• | For the third consecutive year, Entergy Corporation was named to The Civic 50, a Points of Light initiative honoring the 50 most community-minded companies in the nation. |
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
Second Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items) | ||||||
Second Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings | 245 | 410 | (165) | 378 | 493 | (114) |
Less special items | (82) | (151) | 70 | (160) | (246) | 87 |
Operational earnings (non-GAAP) | 327 | 561 | (234) | 538 | 739 | (201) |
Estimated weather in billed sales | 21 | (16) | 36 | 37 | (45) | 82 |
(After-tax, per share in $) | ||||||
As-reported earnings | 1.34 | 2.27 | (0.93) | 2.08 | 2.74 | (0.66) |
Less special items | (0.45) | (0.84) | 0.39 | (0.88) | (1.37) | 0.49 |
Operational earnings (non-GAAP) | 1.79 | 3.11 | (1.32) | 2.96 | 4.11 | (1.15) |
Estimated weather in billed sales | 0.11 | (0.09) | 0.20 | 0.20 | (0.25) | 0.45 |
Calculations may differ due to rounding
Consolidated Results
For second quarter 2018, the company reported earnings of $245 million, or $1.34 per share, on an as-reported basis and earnings of $327 million, or $1.79 per share, on an operational basis. This compared to second quarter 2017 earnings of $410 million, or $2.27 per share, on an as-reported basis and earnings of $561 million, or $3.11 per share on an operational basis. Second quarter 2017 results included a $373 million, or $2.07 per share income tax item at EWC.
Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances by business is provided in Appendix B.
Utility, Parent & Other Results
For second quarter 2018, the Utility business reported earnings attributable to Entergy Corporation of $376 million, or $2.05 per share, compared to $243 million, or $1.35 per share, in second quarter 2017. Drivers for the quarterly increase included higher retail sales volume and lower income taxes, partially offset by higher operating expenses.
The current period results reflected a $278 million reduction in income taxes, with a corresponding reduction in net revenue, for the amortization of unprotected excess ADIT. Approximately $150 million was credited to customer bills and the balance was recorded as a regulatory charge for recovery of certain rate base and related assets. The net effect was neutral to earnings.
Excluding the $278 million unprotected excess ADIT, net revenue increased, driven by higher retail sales volume, including favorable weather in second quarter 2018 compared to unfavorable weather a year ago. Weather-adjusted billed sales declined period over period, but was more than offset by higher volume in the unbilled period. Rate actions to recover investments that benefit customers also contributed to the increase. Current period results also included regulatory provisions recorded to return benefits of the lower federal tax rate to customers at Entergy Louisiana and Entergy New Orleans.
On a weather-adjusted basis, billed sales decreased (1.3) percent, including (3.4) percent and (1.6) percent for residential and commercial sales, respectively. Industrial sales volume was essentially flat driven by continued growth from new and expansion customers as well as small industrials, largely offset by decreased cogeneration sales.
Excluding the $278 million unprotected excess ADIT, income taxes were lower driven by tax benefits from the settlement of the 2012-2013 IRS audit and the reduction of the federal income tax rate.
Utility non-fuel O&M increased quarter-over-quarter. The primary driver was higher spending on fossil operations. Energy efficiency spending and storm reserves were also higher, but were largely offset in net revenue.
For second quarter 2018, Parent & Other reported a loss of $(73 million), or (40) cents per share, compared to a loss of $(57 million), or (32) cents per share, in second quarter 2017.
On a combined basis, Utility, Parent & Other (non-GAAP) contributed $1.65 to second quarter 2018 consolidated EPS compared to $1.03 in second quarter 2017 consolidated EPS. On an adjusted basis, excluding special items and normalizing weather and income taxes, Utility, Parent & Other contributed $1.23 in second quarter 2018 to consolidated EPS, compared to $1.12 in second quarter 2017.
Appendix C contains additional details on Utility financial and operating measures, including a reconciliation for non-GAAP Utility, Parent & Other adjusted earnings and EPS.
Entergy Wholesale Commodities Results
For second quarter 2018, EWC recorded a loss attributable to Entergy Corporation of $(57 million), or (31) cents per share, on an as-reported basis and earned $25 million, or 14 cents per share, on an operational basis. This compared to second quarter 2017 earnings of $223 million, or $1.24 per share, on an as-reported basis and earnings of $375 million, or $2.08 per share, on an operational basis. The prior period results included an income tax item which reduced income taxes and increased earnings by $373 million, or $2.07 per share.
As-reported results in both periods reflected impairments and other expenses recorded as a result of strategic decisions for the wholesale business. These items totaled $(82 million), or (45)
cents per share, in second quarter 2018, compared to $(151 million), or (84) cents per share, a year ago. These costs were considered special items and excluded from operational earnings.
Quarterly earnings also reflected higher net revenue as a result of higher nuclear energy volume, partially offset by lower nuclear energy pricing.
Appendix D contains additional details on EWC financial and operating measures, including a reconciliation for non-GAAP EWC operational adjusted EBITDA.
Earnings Guidance
Entergy affirmed its 2018 consolidated operational earnings guidance range of $6.25 to $6.85 per share and its Utility, Parent & Other adjusted guidance range of $4.50 to $4.90 per share.
The company has provided 2018 earnings guidance with regard to the non-GAAP measures of consolidated operational EPS and Utility, Parent & Other adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items as described below under “Non-GAAP Financial Measures.” The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the special items that may occur during 2018. The only anticipated special items that the company can reasonably estimate at this time are those that relate to the decisions to sell or close the company’s merchant nuclear plants; these estimated costs, which are excluded from the earnings guidance, are expected to decrease as-reported EPS by approximately $(2.75) per share in 2018.
Earnings Teleconference
A teleconference will be held at 9:00 a.m. Central Time on Wednesday, August 1, 2018, to discuss Entergy’s quarterly earnings announcement and the company’s financial performance. The teleconference may be accessed by visiting Entergy’s website at www.entergy.com or by dialing 844-309-6569, conference ID 3594779, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy’s website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy’s website at www.entergy.com and by telephone. The telephone replay will be available through August 8, 2018, by dialing 855-859-2056, conference ID 3594779. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Entergy Corporation’s common stock is listed on the New York and Chicago stock exchanges under the symbol “ETR.”
Details regarding Entergy’s results of operations, regulatory proceedings and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast slide
presentation. Both documents are available on Entergy’s Investor Relations website at www.entergy.com/investor_relations and on Entergy’s Investor Relations mobile web app at iretr.com.
Entergy maintains a web page as part of its Investor Relations website, entitled “Regulatory and Other Information,” which provides investors with key updates of regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Certain non-GAAP financial measures in this news release could differ from GAAP only in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of “special items.” Special items are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairments, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as Entergy’s decisions to shut down or sell its merchant nuclear plants. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; net revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as “operational” would exclude the effect of special items as defined above.
Entergy reports the combination of the Utility segment with Parent & Other as Utility, Parent & Other, which is all of Entergy excluding the EWC segment, since management uses this combination in making decisions about its ongoing business in light of its decision to exit the merchant power business. Entergy also reports Utility, Parent & Other adjusted earnings, which combines the Utility segment with Parent & Other, excludes applicable special items and normalizes weather and income tax expense for the periods presented, because it believes that these financial metrics provide useful information to investors in evaluating the ongoing results of Entergy’s businesses and assist investors in comparing Entergy’s financial performance to the financial performance of other companies in the Utility sector. The methodologies employed to determine the normalized weather and income tax expense adjustments, each of which is further described in this release, involve estimations and the judgement of management.
In addition to reporting earnings per share on a consolidated basis, Entergy reports on a per share basis the earnings or loss of each of its segments, together with the combination of the Utility segment and Parent & Other. These per share measures represent the net income or loss of such segment or segments divided by the diluted average number of shares of common stock
outstanding for the period. Entergy believes such per share measures provide useful information to investors in understanding the results of operations of those businesses and their contribution to Entergy’s consolidated results of operations.
Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; operational FFO to debt ratio, excluding securitization debt and operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT are measures Entergy uses internally for management and board discussions and cash budgeting and performance monitoring activities to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy’s ongoing financial results and flexibility and assists investors in comparing Entergy’s credit and liquidity to the credit and liquidity of others in the Utility sector.
The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy’s operations that, when viewed with Entergy’s GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy’s business. Investors are strongly encouraged to review Entergy’s consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. Non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
Cautionary Note Regarding Forward-Looking Statements
In this news release, and from time to time, Entergy Corporation makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy’s 2018 earnings guidance; its current financial and operational outlook; and other statements of Entergy’s plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any
changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy’s nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.
Second Quarter 2018 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
• | A: Consolidated Results and Special Items |
• | B: Earnings Variance Analysis |
• | C: Utility Financial and Operating Measures |
• | D: EWC Financial and Operating Measures |
• | E: Consolidated Financial Measures |
• | F: Definitions and Abbreviations and Acronyms |
• | G: GAAP to Non-GAAP Reconciliations |
Financial Statements
Financial statements are presented in this section.
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to operational earnings (non-GAAP).
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Second Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A-3 and Appendix A-4 for details on special items, including income tax effects on adjustments) | ||||||
Second Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
(After-tax, $ in millions) | ||||||
Earnings (loss) | ||||||
Utility | 376 | 243 | 132 | 591 | 408 | 182 |
Parent & Other | (73) | (57) | (16) | (137) | (111) | (26) |
EWC | (57) | 223 | (280) | (75) | 196 | (271) |
Consolidated | 245 | 410 | (165) | 378 | 493 | (114) |
Less special items | ||||||
Utility | — | — | — | — | — | — |
Parent & Other | — | — | — | — | — | — |
EWC | (82) | (151) | 70 | (160) | (246) | 87 |
Consolidated | (82) | (151) | 70 | (160) | (246) | 87 |
Operational earnings (loss) (non-GAAP) | ||||||
Utility | 376 | 243 | 132 | 591 | 408 | 182 |
Parent & Other | (73) | (57) | (16) | (137) | (111) | (26) |
EWC | 25 | 375 | (350) | 84 | 442 | (358) |
Consolidated | 327 | 561 | (234) | 538 | 739 | (201) |
Estimated weather in billed sales | 21 | (16) | 36 | 37 | (45) | 82 |
Diluted average number of common shares outstanding (in millions) | 183.0 | 180.2 | 182.2 | 180.0 | ||
(After-tax, per share in $) (a) | ||||||
Earnings (loss) | ||||||
Utility | 2.05 | 1.35 | 0.7 | 3.24 | 2.27 | 0.97 |
Parent & Other | (0.4) | (0.32) | (0.08) | (0.75) | (0.62) | (0.13) |
EWC | (0.31) | 1.24 | (1.55) | (0.41) | 1.09 | (1.5) |
Consolidated | 1.34 | 2.27 | (0.93) | 2.08 | 2.74 | (0.66) |
Less special items | ||||||
Utility | — | — | — | — | — | — |
Parent & Other | — | — | — | — | — | — |
EWC | (0.45) | (0.84) | 0.39 | (0.88) | (1.37) | 0.49 |
Consolidated | (0.45) | (0.84) | 0.39 | (0.88) | (1.37) | 0.49 |
Operational earnings (loss) (non-GAAP) | ||||||
Utility | 2.05 | 1.35 | 0.70 | 3.24 | 2.27 | 0.97 |
Parent & Other | (0.40) | (0.32) | (0.08) | (0.75) | (0.62) | (0.13) |
EWC | 0.14 | 2.08 | (1.94) | 0.47 | 2.46 | (1.99) |
Consolidated | 1.79 | 3.11 | (1.32) | 2.96 | 4.11 | (1.15) |
Estimated weather in billed sales | 0.11 | (0.09) | 0.20 | 0.20 | (0.25) | 0.45 |
Calculations may differ due to rounding
(a) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for special items by driver.
Appendix A-2 provides a comparative summary OCF, by business.
Appendix A-2: Consolidated Operating Cash Flow | ||||||
Second Quarter and Year-to-Date 2018 vs. 2017 | ||||||
($ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
Utility | 626 | 569 | 57 | 1,149 | 1,127 | 22 |
Parent & Other | (58) | (51) | (7) | (115) | (226) | 111 |
EWC | (45) | (228) | 183 | 46 | (81) | 127 |
Consolidated | 523 | 290 | 232 | 1,080 | 820 | 260 |
Calculations may differ due to rounding
OCF increased quarter-over-quarter due primarily to lower severance and retention payments at EWC and increased collections for fuel and purchased power cost recovery at the Utility. Another contributing factor was lower refueling outage costs at both EWC and the Utility. The increase was partially offset by the return of the unprotected excess ADIT to customers.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both an earnings and EPS basis. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational earnings is considered a non-GAAP measure.
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
Second Quarter and Year-to-Date 2018 vs. 2017 | ||||||
(Pre-tax except for income tax effects and total, $ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
EWC | ||||||
Items associated with decisions to close or sell EWC nuclear plants | (103) | (233) | 129 | (202) | (464) | 262 |
Gain on the sale of FitzPatrick | — | — | — | — | 16 | (16) |
Income tax effect on adjustments above (b) | 22 | 82 | (60) | 42 | 157 | (114) |
Income tax benefit resulting from FitzPatrick transaction | — | — | — | — | 45 | (45) |
Total EWC | (82) | (151) | 70 | (160) | (246) | 87 |
Total special items | (82) | (151) | 70 | (160) | (246) | 87 |
(After-tax, per share in $) (c) | ||||||
EWC | ||||||
Items associated with decisions to close or sell EWC nuclear plants | (0.45) | (0.84) | 0.39 | (0.88) | (1.68) | 0.80 |
Gain on the sale of FitzPatrick | — | — | — | — | 0.06 | (0.06) |
Income tax benefit resulting from FitzPatrick transaction | — | — | — | — | 0.25 | (0.25) |
Total EWC | (0.45) | (0.84) | 0.39 | (0.88) | (1.37) | 0.49 |
Total special items | (0.45) | (0.84) | 0.39 | (0.88) | (1.37) | 0.49 |
Calculations may differ due to rounding
(b) | Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply. |
(c) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the diluted average number of common shares outstanding for the period. |
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
Second Quarter and Year-to-Date 2018 vs. 2017 | ||||||
(Pre-tax except for Income taxes and Total, $ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
EWC | ||||||
Net revenue | — | 1 | (1) | — | 91 | (91) |
Non-fuel O&M | (32) | (37) | 5 | (57) | (157) | 100 |
Taxes other than income taxes | (2) | (3) | 1 | (3) | (7) | 4 |
Asset write-off and impairments | (69) | (194) | 125 | (142) | (405) | 264 |
Gain on sale of assets | — | — | — | — | 16 | (16) |
Miscellaneous net (other income) | — | — | — | — | 15 | (15) |
Income taxes (d) | 22 | 82 | (60) | 42 | 201 | (159) |
Total EWC | (82) | (151) | 70 | (160) | (246) | 87 |
Total special items (after-tax) | (82) | (151) | 70 | (160) | (246) | 87 |
Calculations may differ due to rounding
(d) | Income taxes included the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item. The year-to-date 2017 period also included the income tax benefit which resulted from the FitzPatrick transaction. |
B: Earnings Variance Analysis
Appendix B provides details of current quarter 2018 versus 2017 as-reported and operational earnings variance analysis for Utility, Parent & Other and EWC.
Appendix B-1: As-Reported and Operational Earnings Variance Analysis | |||||||||||
Second Quarter 2018 vs. 2017 | |||||||||||
(Pre-tax except for Income taxes, $ in millions) | |||||||||||
Utility | Parent & Other | EWC | Consolidated | ||||||||
As-Reported | Opera-tional | As-Reported | Opera-tional | As- Reported | Opera-tional | As- Reported | Opera- tional | ||||
2017 earnings | 243 | 243 | (57) | (57) | 223 | 375 | 410 | 561 | |||
Net revenue | (179) | (179) | (e) | — | — | 22 | 22 | (f) | (157) | (157) | |
Non-fuel O&M | (31) | (31) | (g) | (5) | (5) | (6) | (11) | (42) | (47) | ||
Asset write-offs and impairments | — | — | — | — | 125 | — | (h) | 125 | — | ||
Decommissioning expense | 3 | 3 | — | — | — | — | 3 | 3 | |||
Taxes other than income taxes | (2) | (2) | — | — | (3) | (3) | (5) | (5) | |||
Depreciation/amortization exp. | (14) | (14) | — | — | 13 | 13 | (1) | (1) | |||
Other income (deductions)-other | (11) | (11) | (1) | (1) | (4) | (4) | (16) | (16) | |||
Interest exp. and other charges | (5) | (5) | (7) | (7) | (2) | (2) | (14) | (14) | |||
Income taxes | 371 | 371 | (i) | (3) | (3) | (425) | (365) | (j) | (57) | 3 | |
2018 earnings | 376 | 376 | (73) | (73) | (57) | 25 | 245 | 327 | |||
Appendix B-2: As-Reported and Operational Earnings Variance Analysis | |||||||||||
Year-to-Date 2018 vs. 2017 | |||||||||||
(Pre-tax except for Income taxes, $ in millions) | |||||||||||
Utility | Parent & Other | EWC | Consolidated | ||||||||
As-Reported | Opera-tional | As-Reported | Opera-tional | As- Reported | Opera-tional | As- Reported | Opera- tional | ||||
2017 earnings | 408 | 408 | (111) | (111) | 196 | 442 | 493 | 739 | |||
Net revenue | (124) | (124) | (e) | — | — | (90) | 1 | (f) | (214) | (123) | |
Non-fuel O&M | (66) | (66) | (g) | (5) | (5) | 92 | (8) | (k) | 21 | (79) | |
Asset write-offs and impairments | — | — | — | — | 263 | — | (h) | 263 | — | ||
Decommissioning expense | 6 | 6 | — | — | 17 | 17 | (l) | 23 | 23 | ||
Taxes other than income taxes | (17) | (17) | (m) | — | — | 3 | (1) | (14) | (18) | ||
Depreciation/amortization exp. | (28) | (28) | (n) | — | — | 28 | 28 | (o) | — | — | |
Gain on sale of assets | — | — | — | — | (16) | — | (p) | (16) | — | ||
Other income (deductions)-other | — | — | (2) | (2) | (61) | (46) | (q) | (63) | (48) | ||
Interest exp. and other charges | (7) | (7) | (11) | (11) | (4) | (4) | (22) | (22) | |||
Income taxes | 417 | 417 | (i) | (8) | (8) | (502) | (344) | (j) | (93) | 65 | |
2018 earnings | 591 | 591 | (137) | (137) | (75) | 84 | 378 | 538 | |||
Calculations may differ due to rounding
See appendix in the webcast slide presentation for additional details on EWC line item variances.
Utility Net Revenue Variance Analysis 2018 vs. 2017 (Pre-tax, $ in millions) | ||
Second Quarter | Year-to-Date | |
Estimated weather | 53 | 123 |
Volume/unbilled | 48 | 36 |
Retail electric price | 10 | 28 |
Unprotected excess ADIT | (278) | (278) |
Reg. provisions for lower tax rate | (29) | (58) |
Other | 17 | 25 |
Total | (179) | (124) |
(e) | The second quarter and year-to-date earnings decreases from lower Utility net revenue were driven by unprotected excess ADIT (offset in income taxes), as well as regulatory provisions at E-LA and E-NO to reflect regulatory agreements to return the benefits of the lower federal tax rate to customers. The decreases were partially offset by higher retail sales volume, including the effects of weather and volume in the unbilled period. In the second quarter, weather-adjusted billed sales volume decreased, however this was more than offset by higher volume in the unbilled period. 2018 results also included rate changes from E-AR’s 2018 FRP and E-TX’s DCRF. |
(f) | The second quarter earnings increase from higher EWC net revenue reflected higher volume from merchant nuclear plants, partially offset by lower nuclear energy prices. The year-to-date as-reported variance reflected cost reimbursements from the buyer related to the FitzPatrick sale in first quarter 2017 (classified as a special item and offset in non-fuel O&M). |
(g) | The second quarter earnings decrease from higher Utility non-fuel O&M was due primarily to higher spending on fossil operations. Energy efficiency spending and storm reserves were also higher (largely offset in net revenue). The year-to-date variance was due to higher spending on fossil and nuclear operations, as well as higher vegetation spending. Higher energy efficiency spending and storm reserves also contributed (largely offset in net revenue). This was partly offset by higher nuclear insurance refunds in 2018 compared to 2017. |
(h) | The second quarter and year-to-date as-reported earnings increases from lower EWC asset write-offs and impairments were due to lower impairment charges for EWC nuclear plants, partly due to Palisades no longer being impaired as a result of the decision to operate that plant until May 2022, as well as lower refueling outage costs charged to impairment (classified as special items). |
(i) | The second quarter and year-to-date earnings increases from lower Utility income taxes were primarily due to the amortization of the unprotected excess ADIT (offset in net revenue), tax benefits from the settlement of the 2012-2013 IRS audit totaling $44 million and the change in the federal income tax rate. |
(j) | The second quarter and year-to-date earnings decreases from higher EWC income taxes were due primarily to a tax election in second quarter 2017 that reduced income taxes by $373 million. 2018 results also reflected $13 million in tax benefits from the settlement of the 2012-2013 IRS audit and the change in the federal income tax rate. The year-to-date as-reported earnings decrease also reflected a tax benefit in first quarter 2017, which resulted from the sale of FitzPatrick (classified as a special item). |
(k) | The as-reported earnings increase from lower EWC non-fuel O&M was due primarily to costs incurred in first quarter 2017 related to the agreement to sell FitzPatrick (classified as a special item and offset in net revenue). |
(l) | The earnings increase from lower EWC decommissioning expense was due primarily to the sale of FitzPatrick in first quarter 2017. |
(m) | The earnings decrease from higher Utility taxes other than income taxes was due to higher franchise, ad valorem and payroll taxes. |
(n) | The earnings decrease from higher depreciation expense was due primarily to higher plant in service. |
(o) | The earnings increase from lower depreciation expense was due primarily to the decision to operate Palisades until May 2022, thereby extending the period in which the plant is depreciated. |
(p) | The as-reported earnings decrease from lower EWC gain on sale of assets was due to the gain on the sale of FitzPatrick in first quarter 2017 (classified as a special item). |
(q) | The earnings decrease from lower EWC other income (deductions)-other was due largely to losses on the decommissioning trust fund investments in first quarter 2018, including unrealized losses on equity investments that were previously recorded as other comprehensive income on the balance sheet, now recorded to the income statement. The as-reported earnings decrease also reflected the absence of gains on the receipt of the Indian Point 3 and FitzPatrick decommissioning trust funds from NYPA in first quarter 2017 (classified as a special item). |
C: Utility Financial and Operating Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other adjusted earnings and EPS contribution, each of which excludes the effects of special items and normalizes weather and income tax expense.
Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS - Reconciliation of GAAP to Non-GAAP Measures | |||||||
Second Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A for details on special items) | |||||||
Second Quarter | Year-to-Date | ||||||
2018 | 2017 | Change | 2018 | 2017 | Change | ||
($ in millions) | |||||||
Utility as-reported earnings | 376 | 243 | 132 | 591 | 408 | 182 | |
Parent & Other as-reported (loss) | (73) | (57) | (16) | (137) | (111) | (26) | |
UP&O as-reported earnings | 303 | 187 | 116 | 454 | 297 | 156 | |
Less: | |||||||
Special items | — | — | — | — | — | — | |
Estimated weather (r) | 28 | (26) | 53 | 49 | (73) | 123 | |
Tax effect of estimated weather (s) | (7) | 10 | (17) | (13) | 28 | (41) | |
Estimated weather impact (after-tax) | 21 | (16) | 36 | 37 | (45) | 82 | |
Other income tax items (t) | 57 | 1 | 57 | 64 | (9) | 72 | |
UP&O adjusted earnings | 224 | 202 | 23 | 353 | 351 | 2 | |
(After-tax, per share in $) (u) | |||||||
Utility as-reported earnings | 2.05 | 1.35 | 0.70 | 3.24 | 2.27 | 0.97 | |
Parent & Other as-reported (loss) | (0.40) | (0.32) | (0.08) | (0.75) | (0.62) | (0.13) | |
UP&O as-reported earnings | 1.65 | 1.03 | 0.62 | 2.49 | 1.65 | 0.84 | |
Less: | |||||||
Special items | — | — | — | — | — | — | |
Estimated weather | 0.11 | (0.09) | 0.20 | 0.20 | (0.25) | 0.45 | |
Other income tax items | 0.31 | — | 0.31 | 0.35 | (0.05) | 0.40 | |
UP&O adjusted earnings | 1.23 | 1.12 | 0.11 | 1.94 | 1.95 | (0.01) | |
Calculations may differ due to rounding
(r) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
(s) | Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply. |
(t) | Other income tax items represent the adjustment made to income tax expense to reflect a statutory tax rate estimated to be 25.5% in 2018 and 38.5% in 2017. The second quarter and year-to-date 2018 periods exclude $278 million reduction in net revenue and income taxes for unprotected excess ADIT (no earnings impact). |
(u) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
Appendix C-2 and Appendix C-3 provides comparative summaries of Utility operating and financial measures.
Appendix C-2: Utility Operating and Financial Measures | ||||||||||||
Second Quarter and Year-to-Date 2018 vs. 2017 | ||||||||||||
Second Quarter | Year-to-Date | |||||||||||
2018 | 2017 | % Change | % Weather Adjusted (v) | 2018 | 2017 | % Change | % Weather Adjusted (v) | |||||
GWh billed | ||||||||||||
Residential | 7,749 | 7,340 | 5.6% | (3.4%) | 17,036 | 14,977 | 13.7% | 0.6% | ||||
Commercial | 6,943 | 6,886 | 0.8% | (1.6%) | 13,675 | 13,325 | 2.6% | 0.3% | ||||
Governmental | 612 | 609 | 0.5% | (0.5%) | 1,220 | 1,202 | 1.5% | 0.8% | ||||
Industrial | 12,219 | 12,209 | 0.1% | 0.1% | 23,624 | 23,326 | 1.3% | 1.3% | ||||
Total retail sales | 27,523 | 27,044 | 1.8% | (1.3%) | 55,555 | 52,830 | 5.2% | 0.8% | ||||
Wholesale | 2,566 | 1,845 | 39.1% | 5,810 | 4,867 | 19.4% | ||||||
Total sales | 30,089 | 28,889 | 4.2% | 61,365 | 57,697 | 6.4% | ||||||
Number of electric retail customers | ||||||||||||
Residential | 2,481,598 | 2,470,348 | 0.5% | |||||||||
Commercial | 357,177 | 355,751 | 0.4% | |||||||||
Governmental | 17,917 | 17,844 | 0.4% | |||||||||
Industrial | 47,694 | 45,872 | 4.0% | |||||||||
Total retail customers | 2,904,386 | 2,889,815 | 0.5% | |||||||||
Net revenue ($ in millions) | 1,382 | 1,549 | (10.8%) | 2,842 | 2,954 | (3.8%) | ||||||
Non-fuel O&M (per MWh in $) | 22.05 | 21.88 | 0.8% | 21.05 | 21.25 | (0.9%) | ||||||
Appendix C-3: Utility Operating Measures | ||||
Twelve Months Ended June 30, 2018 vs. 2017 | ||||
Twelve Months Ended June 30 | ||||
2018 | 2017 | % Change | % Weather Adjusted (v) | |
GWh billed | ||||
Residential | 35,893 | 34,871 | 2.9% | 1.6% |
Commercial | 29,096 | 29,234 | (0.5%) | 1.0% |
Governmental | 2,529 | 2,540 | (0.4%) | (0.2%) |
Industrial | 48,067 | 46,501 | 3.4% | 3.4% |
Total retail sales | 115,585 | 113,146 | 2.2% | 2.1% |
Calculations may differ due to rounding
Certain prior year data has been reclassified to conform with current year presentation
(v) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA (non-GAAP).
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
Second Quarter and Year-to-Date 2018 vs. 2017 | ||||||
($ in millions) | Second Quarter | Year-to-Date | ||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
Net income (loss) | (56) | 224 | (280) | (74) | 197 | (271) |
Add back: interest expense | 8 | 6 | 2 | 17 | 12 | 5 |
Add back: income taxes | (30) | (455) | 425 | (31) | (533) | 502 |
Add back: depreciation and amortization | 39 | 52 | (13) | 77 | 105 | (28) |
Subtract: interest and investment income | 58 | 59 | (1) | 56 | 102 | (46) |
Add back: decommissioning expense | 60 | 60 | — | 118 | 135 | (17) |
Adjusted EBITDA (non-GAAP) | (37) | (172) | 135 | 50 | (186) | 236 |
Add back pre-tax special items for: | ||||||
Items associated with decisions to close or sell EWC nuclear plants | 103 | 233 | (129) | 202 | 464 | (262) |
Gain on the sale of FitzPatrick | — | — | — | — | (16) | 16 |
Operational adjusted EBITDA (non-GAAP) | 66 | 61 | 5 | 252 | 261 | (10) |
Calculations may differ due to rounding
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
Appendix D-2: EWC Operating and Financial Measures | ||||||
Second Quarter and Year-to-Date 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||
Second Quarter | Year-to-Date | |||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | |
Owned capacity (MW) | 3,962 | 3,962 | — | |||
GWh billed | 7,281 | 6,019 | 21.0 | 14,277 | 14,382 | (0.7) |
As-reported net revenue ($ in millions) | 272 | 250 | 8.8 | 654 | 744 | (12.1) |
Operational net revenue (non-GAAP) ($ in millions) | 272 | 250 | 8.8 | 654 | 653 | 0.2 |
EWC Nuclear Fleet | ||||||
Capacity factor | 86% | 59% | 45.8 | 85% | 71% | 19.7 |
GWh billed | 6,713 | 5,393 | 24.5 | 13,121 | 13,228 | (0.8) |
Production cost per MWh | $17.15 | $27.11 | (36.7) | $17.93 | $20.96 | (14.5) |
Average energy/capacity revenue per MWh (w) | $41.82 | $51.76 | (19.2) | $49.21 | $53.79 | (8.5) |
As-reported net revenue ($ in millions) | 267 | 247 | 8.1 | 646 | 738 | (12.6) |
Operational net revenue (non-GAAP) ($ in millions) | 267 | 246 | 8.4 | 646 | 647 | (0.3) |
Refueling outage days | ||||||
FitzPatrick | — | — | — | 42 | ||
Indian Point 2 | 20 | — | 33 | — | ||
Indian Point 3 | — | 47 | — | 66 | ||
Palisades | — | 27 | — | 27 | ||
Pilgrim | — | 43 | — | 43 | ||
Calculations may differ due to rounding
(w) | Average energy and capacity revenue per MWh excluding FitzPatrick was $52.02 in year-to-date 2017. |
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix E: GAAP and Non-GAAP Financial Measures | |||
Second Quarter 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending June 30 | 2018 | 2017 | Change |
GAAP Measures | |||
ROIC - as-reported | 3.2% | (1.9%) | 5.1% |
ROE - as-reported | 3.6% | (9.8%) | 13.4% |
Non-GAAP Measures | |||
ROIC - operational | 6.4% | 6.5% | (0.1%) |
ROE - operational | 13.4% | 13.3% | 0.1% |
As of June 30 ($ in millions) | 2018 | 2017 | Change |
GAAP Measures | |||
Cash and cash equivalents | 813 | 934 | (121) |
Revolver capacity | 3,885 | 4,163 | (278) |
Commercial paper | 1,945 | 1,147 | 798 |
Total debt | 17,881 | 16,285 | 1,596 |
Securitization debt | 483 | 602 | (119) |
Debt to capital ratio | 68.5% | 65.5% | 3.0% |
Off-balance sheet liabilities: | |||
Debt of joint ventures - Entergy’s share | 64 | 70 | (6) |
Leases - Entergy’s share | 429 | 397 | 32 |
Power purchase agreements accounted for as leases | 136 | 166 | (30) |
Total off-balance sheet liabilities | 629 | 633 | (4) |
Non-GAAP Financial Measures | |||
Debt to capital ratio, excluding securitization debt | 67.9% | 64.7% | 3.2% |
Gross liquidity | 4,698 | 5,097 | (399) |
Net debt to net capital ratio, excluding securitization debt | 66.9% | 63.2% | 3.7% |
Parent debt to total debt ratio, excluding securitization debt | 24.1% | 20.5% | 3.6% |
Operational FFO to debt ratio, excluding securitization debt | 15.4% | 15.2% | 0.2% |
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT | 15.9% | 15.2% | 0.7% |
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures. Non-GAAP financial measures remove the effects of financial events that are not routine from commonly used financial measures.
Appendix F-1: Definitions | |
Utility Operating and Financial Measures | |
GWh billed | Total number of GWh billed to retail and wholesale customers |
Net revenue | Operating revenues less fuel, fuel related expenses and gas purchased for resale; purchased power and other regulatory charges (credits) - net |
Non-fuel O&M | Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
Non-fuel O&M per MWh | Non-fuel O&M per MWh of billed sales |
Number of electric retail customers | Number of electric customers at the end of the period |
EWC Operating and Financial Measures | |
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 the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs |
Average revenue under contract (applies to capacity contracts only) (in $/kW-month) | Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
Bundled capacity and energy contracts | A contract for the sale of installed capacity and related energy, priced per MWh sold |
Capacity contracts | A contract for the sale of the installed capacity product in regional markets managed by ISO New England, NYISO and MISO |
Capacity factor | Normalized percentage of the period that the nuclear plants generate power |
Expected sold and market total revenue per MWh | Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including 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 costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
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 |
Appendix F-1: Definitions | ||
EWC Operating and Financial Measures (continued) | ||
GWh billed | Total number of GWh billed to customers and financially-settled instruments | |
Net revenue | Operating revenues less fuel, fuel-related expenses and purchased power | |
Offsetting positions | Transactions for the purchase of energy, generally to offset a Firm LD transaction | |
Owned capacity (MW) | Installed capacity owned by EWC | |
Percent of capacity sold forward | Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
Percent of planned generation under contract | Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
Planned net MW in operation (average) | Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
Planned TWh of generation | Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
Production cost per MWh | Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items | |
Refueling outage days | Number of days lost for a scheduled refueling and maintenance outage during the period | |
Unit-contingent | Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
Financial Measures - GAAP | ||
Debt of joint ventures - Entergy’s share | Entergy’s share of debt issued by business joint ventures at EWC | |
Debt to capital ratio | Total debt divided by total capitalization | |
Leases - Entergy’s share | Operating leases held by subsidiaries capitalized at implicit interest rate | |
Revolver capacity | Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee | |
ROE - as-reported | 12-months rolling net income attributable to Entergy Corporation divided by average common equity | |
ROIC - as-reported | 12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
Securitization debt | Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at E-TX and Hurricane Isaac at E-NO; the 2009 ice storm at E-AR and investment recovery of costs associated with the cancelled Little Gypsy repowering project at E-LA | |
Total debt | Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet | |
Appendix F-1: Definitions | |
Financial Measures - Non-GAAP | |
Adjusted EBITDA | Earnings before interest, depreciation and amortization and income taxes and excluding decommissioning expense |
Debt to capital ratio, excluding securitization debt | Total debt divided by total capitalization, excluding securitization debt |
FFO | OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges |
Gross liquidity | Sum of cash and revolver capacity |
Net debt to net capital ratio, excluding securitization debt | Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
Operational adjusted EBITDA | Adjusted EBITDA excluding effects of special items |
Operational EPS | As-reported EPS excluding special items |
Operational FFO | FFO excluding the effects of special items |
Operational FFO to debt ratio, excluding securitization debt | 12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT | 12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt and return of unprotected excess ADIT |
Parent debt to total debt ratio, excluding securitization debt | End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt |
ROE - operational | 12-months rolling operational net income attributable to Entergy Corporation divided by average common equity |
ROIC - operational | 12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
UP&O adjusted earnings | As-reported earnings excluding special items and normalizing weather and income taxes |
Utility, Parent & Other | Combines the Utility segment with Parent & Other, which is all of Entergy excluding the EWC segment |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
Appendix F-2: Abbreviations and Acronyms | |||
ADIT AFUDC - borrowed funds AMI ANO APSC ARO bps CCGT CCNO COD CT DCRF E-AR E-LA E-MS E-NO E-TX EBITDA ENGC ENP ENVY ESI EPS ETR EWC FERC FFO Firm LD FitzPatrick FRP GAAP Grand Gulf or GGNS Indian Point 1 or IP1 Indian Point 2 or IP2 Indian Point 3 or IP3 IPEC IRS ISO ISES 2 | Accumulated deferred income taxes Allowance for borrowed funds used during construction Advanced metering infrastructure Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) Arkansas Public Service Commission Asset retirement obligation Basis points Combined cycle gas turbine Council of the City of New Orleans, Louisiana Commercial operation date Simple cycle combustion turbine Distribution cost recovery factor Entergy Arkansas, Inc. Entergy Louisiana, LLC Entergy Mississippi, Inc. Entergy New Orleans, LLC Entergy Texas, Inc. Earnings before interest, income taxes, depreciation and amortization Entergy Nuclear Generation Company Entergy Nuclear Palisades, LLC Entergy Nuclear Vermont Yankee Entergy Services, Inc. Earnings per share Entergy Corporation Entergy Wholesale Commodities Federal Energy Regulatory Commission Funds from operations Firm liquidated damages James A. FitzPatrick Nuclear Power Plant (nuclear, sold March 31, 2017) Formula rate plan U.S. generally accepted accounting principles Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974) Indian Point Energy Center Unit 2 (nuclear) Indian Point Energy Center Unit 3 (nuclear) Indian Point Energy Center (nuclear) Internal Revenue Service Independent system operator Unit 2 of Independence Steam Electric Station (coal) | LPSC LTM MISO Moody’s MPSC MTEP Nelson 6 NEPOOL Ninemile 6 Non-fuel O&M NDT NOPS NorthStar NRC NYISO NYPA NYSE O&M OCF OpCo OPEB Palisades Pilgrim PPA PUCT RICE RFP ROE ROIC RPCE RS Cogen RSP S&P SEC SERI TCRF Union UPSA UP&O VPUC VY or Vermont Yankee WACC WPEC | Louisiana Public Service Commission Last twelve months Midcontinent Independent System Operator, Inc. Moody’s Investor Service Mississippi Public Service Commission MISO Transmission Expansion Planning Unit 6 of Roy S. Nelson plant (coal) New England Power Pool Ninemile Point Unit 6 (CCGT) Non-fuel operation and maintenance expense Nuclear decommissioning trust New Orleans Power Station (reciprocating internal combustion engine/natural gas) NorthStar Decommissioning Holdings, LLC Nuclear Regulatory Commission New York Independent System Operator, Inc. New York Power Authority New York Stock Exchange Operation and maintenance expense Net cash flow provided by operating activities Operating Company Other post-employment benefits Palisades Power Plant (nuclear) Pilgrim Nuclear Power Station (nuclear) Power purchase agreement or purchased power agreement Public Utility Commission of Texas Reciprocating Internal Combustion Engine Request for proposals Return on equity Return on invested capital Rough production cost equalization RS Cogen facility (CCGT cogeneration) Rate Stabilization Plan (E-LA Gas) Standard & Poor’s U.S. Securities and Exchange Commission System Energy Resources, Inc. Transmission cost recovery factor Union Power Station (CCGT) Unit Power Sales Agreement Utility, Parent & Other Vermont Public Utility Commission Vermont Yankee Nuclear Power Station (nuclear) Weighted-average cost of capital Washington Parish Energy Center (CT/natural gas) |
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 - EWC Operational Net Revenue | ||||||||||||||
($ in millions except where noted) | Second Quarter | Year-to-Date | ||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
EWC | ||||||||||||||
As-reported net revenue | (A) | 272 | 250 | 654 | 744 | |||||||||
Special items included in net revenue: | ||||||||||||||
EWC Nuclear costs associated with decisions to close or sell plants | — | 1 | — | 91 | ||||||||||
Total special items included in net revenue | (B) | — | 1 | — | 91 | |||||||||
Operational net revenue | (A-B) | 272 | 250 | 654 | 653 | |||||||||
EWC Nuclear | ||||||||||||||
As-reported EWC Nuclear net revenue | (C) | 267 | 247 | 646 | 738 | |||||||||
Special items included in EWC Nuclear net revenue: | ||||||||||||||
EWC Nuclear costs associated with decisions to close or sell plants | — | 1 | — | 91 | ||||||||||
Total special items included in EWC Nuclear net revenue | (D) | — | 1 | — | 91 | |||||||||
Operational EWC Nuclear net revenue | (C-D) | 267 | 247 | 646 | 647 | |||||||||
Calculations may differ due to rounding
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
($ in millions except where noted) | Second Quarter | ||
2018 | 2017 | ||
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months | (A) | 297 | (888) |
Preferred dividends | 14 | 15 | |
Tax effected interest expense | 510 | 404 | |
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense | (B) | 821 | (469) |
Special items in prior quarters | (720) | (1,947) | |
Items associated with decisions to close or sell EWC nuclear plants | (82) | (151) | |
Total special items, rolling 12 months | (C) | (802) | (2,098) |
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense (non-GAAP) | (B-C) | 1,624 | 1,629 |
Operational earnings, rolling 12 months (non-GAAP) | (A-C) | 1,099 | 1,210 |
Average invested capital | (D) | 25,480 | 24,886 |
Average common equity | (E) | 8,197 | 9,064 |
ROIC - as-reported | (B/D) | 3.2% | (1.9%) |
ROIC - operational | [(B-C)/D] | 6.4% | 6.5% |
ROE - as-reported | (A/E) | 3.6% | (9.8%) |
ROE - operational | [(A-C)/E] | 13.4% | 13.3% |
Calculations may differ due to rounding
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt and Return of Unprotected Excess ADIT | |||
($ in millions except where noted) | Second Quarter | ||
2018 | 2017 | ||
Total debt | (A) | 17,881 | 16,285 |
Less securitization debt | (B) | 483 | 602 |
Total debt, excluding securitization debt | (C) | 17,398 | 15,683 |
Less cash and cash equivalents | (D) | 813 | 934 |
Net debt, excluding securitization debt | (E) | 16,585 | 14,749 |
Total capitalization | (F) | 26,102 | 24,859 |
Less securitization debt | (B) | 483 | 602 |
Total capitalization, excluding securitization debt | (G) | 25,619 | 24,257 |
Less cash and cash equivalents | (D) | 813 | 934 |
Net capital, excluding securitization debt | (H) | 24,806 | 23,323 |
Debt to capital ratio | (A/F) | 68.5% | 65.5% |
Debt to capital ratio, excluding securitization debt | (C/G) | 67.9% | 64.7% |
Net debt to net capital ratio, excluding securitization debt | (E/H) | 66.9% | 63.2% |
Revolver capacity | (I) | 3,885 | 4,163 |
Gross liquidity | (D+I) | 4,698 | 5,097 |
Entergy Corporation notes: | |||
Due September 2020 | 450 | 450 | |
Due July 2022 | 650 | 650 | |
Due September 2026 | 750 | 750 | |
Total parent long-term debt | (J) | 1,850 | 1,850 |
Revolver draw | (K) | 390 | 225 |
Commercial paper | (L) | 1,945 | 1,147 |
Total parent debt | (J+K+L) | 4,185 | 3,222 |
Parent debt to total debt ratio, excluding securitization debt | [(J+K+L)/C] | 24.1% | 20.5% |
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt and Return of Unprotected Excess ADIT (continued) | |||
($ in millions except where noted) | Second Quarter | ||
2018 | 2017 | ||
Total debt | (A) | 17,881 | 16,285 |
Less securitization debt | (B) | 483 | 602 |
Total debt, excluding securitization debt | (C) | 17,398 | 15,683 |
Net cash flow provided by operating activities, rolling 12 months | (D) | 2,884 | 2,566 |
AFUDC-borrowed funds, rolling 12 months | (E) | (53) | (37) |
Working capital items in net cash flow provided by operating activities (rolling 12 months): | |||
Receivables | (149) | (33) | |
Fuel inventory | (1) | 35 | |
Accounts payable | 190 | 139 | |
Prepaid taxes and taxes accrued | 28 | (38) | |
Interest accrued | 3 | (2) | |
Other working capital accounts | (48) | 62 | |
Securitization regulatory charges | 123 | 115 | |
Total | (F) | 146 | 278 |
FFO, rolling 12 months | (G)=(D+E-F) | 2,685 | 2,251 |
Add back special items (rolling 12 months pre-tax): | |||
Items associated with decisions to close or sell EWC nuclear plants | 0 | 126 | |
Operational FFO, rolling 12 months | (H) | 2,685 | 2,377 |
Operational FFO to debt ratio, excluding securitization debt | (H/C) | 15.4% | 15.2% |
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax) | (I) | 76 | 0 |
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT | [(H)+(I)/(C] | 15.9% | 15.2% |
Calculations may differ due to rounding
Financial Statements
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
June 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 48,661 | $ | 6,212 | $ | 324 | $ | 55,197 | ||||||||
Temporary cash investments | 574,624 | 6,038 | 176,928 | 757,590 | ||||||||||||
Total cash and cash equivalents | 623,285 | 12,250 | 177,252 | 812,787 | ||||||||||||
Notes receivable | — | (514,151 | ) | 514,151 | — | |||||||||||
Accounts receivable: | ||||||||||||||||
Customer | 576,467 | — | 86,279 | 662,746 | ||||||||||||
Allowance for doubtful accounts | (14,545 | ) | — | — | (14,545 | ) | ||||||||||
Associated companies | 19,330 | (40,995 | ) | 21,665 | — | |||||||||||
Other | 140,166 | — | 9,918 | 150,084 | ||||||||||||
Accrued unbilled revenues | 460,181 | — | — | 460,181 | ||||||||||||
Total accounts receivable | 1,181,599 | (40,995 | ) | 117,862 | 1,258,466 | |||||||||||
Deferred fuel costs | 114,293 | — | — | 114,293 | ||||||||||||
Fuel inventory - at average cost | 169,958 | — | 4,173 | 174,131 | ||||||||||||
Materials and supplies - at average cost | 694,914 | — | 57,606 | 752,520 | ||||||||||||
Deferred nuclear refueling outage costs | 169,654 | — | 2,954 | 172,608 | ||||||||||||
Prepayments and other | 211,356 | (9,088 | ) | 47,377 | 249,645 | |||||||||||
TOTAL | 3,165,059 | (551,984 | ) | 921,375 | 3,534,450 | |||||||||||
OTHER PROPERTY AND INVESTMENTS | ||||||||||||||||
Investment in affiliates - at equity | 1,390,786 | (1,390,674 | ) | 86 | 198 | |||||||||||
Decommissioning trust funds | 3,203,656 | — | 4,013,642 | 7,217,298 | ||||||||||||
Non-utility property - at cost (less accumulated depreciation) | 284,452 | (13 | ) | 10,109 | 294,548 | |||||||||||
Other | 433,319 | — | 747 | 434,066 | ||||||||||||
TOTAL | 5,312,213 | (1,390,687 | ) | 4,024,584 | 7,946,110 | |||||||||||
PROPERTY, PLANT, AND EQUIPMENT | ||||||||||||||||
Electric | 46,851,946 | 4,465 | 949,057 | 47,805,468 | ||||||||||||
Property under capital lease | 620,419 | — | — | 620,419 | ||||||||||||
Natural gas | 477,715 | — | — | 477,715 | ||||||||||||
Construction work in progress | 2,504,083 | 287 | 55,420 | 2,559,790 | ||||||||||||
Nuclear fuel | 760,373 | — | 105,856 | 866,229 | ||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 51,214,536 | 4,752 | 1,110,333 | 52,329,621 | ||||||||||||
Less - accumulated depreciation and amortization | 21,153,503 | 198 | 663,807 | 21,817,508 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET | 30,061,033 | 4,554 | 446,526 | 30,512,113 | ||||||||||||
DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||||
Regulatory assets: | ||||||||||||||||
Other regulatory assets | 4,828,973 | — | — | 4,828,973 | ||||||||||||
Deferred fuel costs | 239,397 | — | — | 239,397 | ||||||||||||
Goodwill | 374,099 | — | 3,073 | 377,172 | ||||||||||||
Accumulated deferred income taxes | 12,796 | 268 | 4,704 | 17,768 | ||||||||||||
Other | 124,214 | 9,096 | 33,356 | 166,666 | ||||||||||||
TOTAL | 5,579,479 | 9,364 | 41,133 | 5,629,976 | ||||||||||||
TOTAL ASSETS | $ | 44,117,784 | $ | (1,928,753 | ) | $ | 5,433,618 | $ | 47,622,649 | |||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
June 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Currently maturing long-term debt | $ | 1,016,908 | $ | — | $ | — | $ | 1,016,908 | ||||||||
Notes payable and commercial paper: | ||||||||||||||||
Associated companies | — | (243,862 | ) | 243,862 | — | |||||||||||
Other | 38,874 | 1,945,229 | — | 1,984,103 | ||||||||||||
Account payable: | ||||||||||||||||
Associated companies | 24,651 | (37,582 | ) | 12,931 | — | |||||||||||
Other | 1,164,857 | 54 | 294,521 | 1,459,432 | ||||||||||||
Customer deposits | 404,880 | — | — | 404,880 | ||||||||||||
Taxes accrued | 199,390 | (11,952 | ) | 19,436 | 206,874 | |||||||||||
Interest accrued | 158,982 | 26,795 | 139 | 185,916 | ||||||||||||
Deferred fuel costs | 32,904 | — | — | 32,904 | ||||||||||||
Obligations under capital leases | 1,442 | — | — | 1,442 | ||||||||||||
Pension and other postretirement liabilities | 49,084 | — | 12,496 | 61,580 | ||||||||||||
Current portion of unprotected excess accumulated deferred | ||||||||||||||||
income taxes | 710,108 | — | — | 710,108 | ||||||||||||
Other | 130,609 | 1,843 | 35,474 | 167,926 | ||||||||||||
TOTAL | 3,932,689 | 1,680,525 | 618,859 | 6,232,073 | ||||||||||||
NON-CURRENT LIABILITIES | ||||||||||||||||
Accumulated deferred income taxes and taxes accrued | 5,448,017 | (190,563 | ) | (823,146 | ) | 4,434,308 | ||||||||||
Accumulated deferred investment tax credits | 215,369 | — | — | 215,369 | ||||||||||||
Obligations under capital leases | 21,263 | — | — | 21,263 | ||||||||||||
Regulatory liability for income taxes - net | 1,901,043 | — | — | 1,901,043 | ||||||||||||
Other regulatory liabilities | 1,630,335 | — | — | 1,630,335 | ||||||||||||
Decommissioning and retirement cost liabilities | 3,167,009 | — | 3,231,971 | 6,398,980 | ||||||||||||
Accumulated provisions | 505,140 | — | 624 | 505,764 | ||||||||||||
Pension and other postretirement liabilities | 2,037,425 | — | 701,982 | 2,739,407 | ||||||||||||
Long-term debt | 12,521,013 | 2,229,173 | 107,500 | 14,857,686 | ||||||||||||
Other | 770,989 | (388,409 | ) | 83,609 | 466,189 | |||||||||||
TOTAL | 28,217,603 | 1,650,201 | 3,302,540 | 33,170,344 | ||||||||||||
Subsidiaries' preferred stock without sinking fund | 173,522 | — | 24,249 | 197,771 | ||||||||||||
COMMON EQUITY | ||||||||||||||||
Common stock, $.01 par value, authorized 500,000,000 shares; | ||||||||||||||||
issued 254,752,788 shares in 2018 | 1,973,768 | (2,172,323 | ) | 201,103 | 2,548 | |||||||||||
Paid-in capital | 3,284,981 | 898,406 | 1,246,017 | 5,429,404 | ||||||||||||
Retained earnings | 6,824,652 | 1,268,563 | 485,061 | 8,578,276 | ||||||||||||
Accumulated other comprehensive loss | (169,431 | ) | — | (444,211 | ) | (613,642 | ) | |||||||||
Less - treasury stock, at cost (73,911,771 shares in 2018) | 120,000 | 5,254,125 | — | 5,374,125 | ||||||||||||
TOTAL | 11,793,970 | (5,259,479 | ) | 1,487,970 | 8,022,461 | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 44,117,784 | $ | (1,928,753 | ) | $ | 5,433,618 | $ | 47,622,649 | |||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
December 31, 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 50,270 | $ | 971 | $ | 5,388 | $ | 56,629 | ||||||||
Temporary cash investments | 494,158 | 3,663 | 226,822 | 724,644 | ||||||||||||
Total cash and cash equivalents | 544,428 | 4,634 | 232,210 | 781,273 | ||||||||||||
Notes receivable | — | (514,418 | ) | 514,418 | — | |||||||||||
Accounts receivable: | ||||||||||||||||
Customer | 561,751 | — | 111,596 | 673,347 | ||||||||||||
Allowance for doubtful accounts | (13,587 | ) | — | — | (13,587 | ) | ||||||||||
Associated companies | 43,639 | (55,019 | ) | 11,381 | — | |||||||||||
Other | 159,396 | — | 9,981 | 169,377 | ||||||||||||
Accrued unbilled revenues | 383,813 | — | — | 383,813 | ||||||||||||
Total accounts receivable | 1,135,012 | (55,019 | ) | 132,958 | 1,212,950 | |||||||||||
Deferred fuel costs | 95,746 | — | — | 95,746 | ||||||||||||
Fuel inventory - at average cost | 178,813 | — | 3,830 | 182,643 | ||||||||||||
Materials and supplies - at average cost | 672,715 | — | 50,506 | 723,222 | ||||||||||||
Deferred nuclear refueling outage costs | 130,103 | — | 3,061 | 133,164 | ||||||||||||
Prepayments and other | 150,568 | (8,677 | ) | 14,442 | 156,333 | |||||||||||
TOTAL | 2,907,385 | (573,480 | ) | 951,425 | 3,285,331 | |||||||||||
OTHER PROPERTY AND INVESTMENTS | ||||||||||||||||
Investment in affiliates - at equity | 1,390,785 | (1,390,673 | ) | 86 | 198 | |||||||||||
Decommissioning trust funds | 3,162,649 | — | 4,049,344 | 7,211,993 | ||||||||||||
Non-utility property - at cost (less accumulated depreciation) | 251,904 | (13 | ) | 9,089 | 260,980 | |||||||||||
Other | 439,264 | — | 2,598 | 441,862 | ||||||||||||
TOTAL | 5,244,602 | (1,390,686 | ) | 4,061,117 | 7,915,033 | |||||||||||
PROPERTY, PLANT, AND EQUIPMENT | ||||||||||||||||
Electric | 46,332,630 | 4,406 | 950,333 | 47,287,370 | ||||||||||||
Property under capital lease | 620,544 | — | — | 620,544 | ||||||||||||
Natural gas | 453,162 | — | — | 453,162 | ||||||||||||
Construction work in progress | 1,949,769 | 253 | 30,487 | 1,980,508 | ||||||||||||
Nuclear fuel | 822,260 | — | 100,941 | 923,200 | ||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 50,178,365 | 4,659 | 1,081,761 | 51,264,784 | ||||||||||||
Less - accumulated depreciation and amortization | 21,003,295 | 198 | 596,931 | 21,600,424 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET | 29,175,070 | 4,461 | 484,830 | 29,664,360 | ||||||||||||
DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||||
Regulatory assets: | ||||||||||||||||
Regulatory asset for income taxes - net | — | — | — | — | ||||||||||||
Other regulatory assets | 4,935,689 | — | — | 4,935,689 | ||||||||||||
Deferred fuel costs | 239,298 | — | — | 239,298 | ||||||||||||
Goodwill | 374,099 | — | 3,073 | 377,172 | ||||||||||||
Accumulated deferred income taxes | 32,238 | 40,541 | 105,425 | 178,204 | ||||||||||||
Other | 70,288 | 9,635 | 32,139 | 112,062 | ||||||||||||
TOTAL | 5,651,612 | 50,176 | 140,637 | 5,842,425 | ||||||||||||
TOTAL ASSETS | $ | 42,978,669 | $ | (1,909,529 | ) | $ | 5,638,009 | $ | 46,707,149 | |||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
December 31, 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Currently maturing long-term debt | $ | 760,007 | $ | — | $ | — | $ | 760,007 | ||||||||
Notes payable and commercial paper: | ||||||||||||||||
Associated companies | — | (6,433 | ) | 6,433 | — | |||||||||||
Other | 111,345 | 1,466,963 | — | 1,578,308 | ||||||||||||
Account payable: | ||||||||||||||||
Associated companies | 31,970 | (67,310 | ) | 35,340 | — | |||||||||||
Other | 1,211,661 | 109 | 240,446 | 1,452,216 | ||||||||||||
Customer deposits | 401,330 | — | — | 401,330 | ||||||||||||
Taxes accrued | 241,877 | (12,298 | ) | (14,612 | ) | 214,967 | ||||||||||
Interest accrued | 161,077 | 26,603 | 292 | 187,972 | ||||||||||||
Deferred fuel costs | 146,522 | — | — | 146,522 | ||||||||||||
Obligations under capital leases | 1,502 | — | — | 1,502 | ||||||||||||
Pension and other postretirement liabilities | 59,378 | — | 12,234 | 71,612 | ||||||||||||
Other | 129,001 | 1,958 | 90,812 | 221,771 | ||||||||||||
TOTAL | 3,255,670 | 1,409,592 | 370,945 | 5,036,207 | ||||||||||||
NON-CURRENT LIABILITIES | ||||||||||||||||
Accumulated deferred income taxes and taxes accrued | 5,288,573 | (151,174 | ) | (670,896 | ) | 4,466,503 | ||||||||||
Accumulated deferred investment tax credits | 219,634 | — | — | 219,634 | ||||||||||||
Obligations under capital leases | 22,015 | — | — | 22,015 | ||||||||||||
Regulatory liability for income taxes - net | 2,900,204 | — | — | 2,900,204 | ||||||||||||
Other regulatory liabilities | 1,588,520 | — | — | 1,588,520 | ||||||||||||
Decommissioning and retirement cost liabilities | 3,002,469 | — | 3,183,345 | 6,185,814 | ||||||||||||
Accumulated provisions | 477,742 | — | 531 | 478,273 | ||||||||||||
Pension and other postretirement liabilities | 2,170,518 | — | 740,136 | 2,910,654 | ||||||||||||
Long-term debt | 12,163,671 | 2,048,518 | 103,070 | 14,315,259 | ||||||||||||
Other | 714,509 | (393,075 | ) | 72,314 | 393,748 | |||||||||||
TOTAL | 28,547,855 | 1,504,269 | 3,428,500 | 33,480,624 | ||||||||||||
Subsidiaries' preferred stock without sinking fund | 173,554 | — | 24,249 | 197,803 | ||||||||||||
COMMON EQUITY | ||||||||||||||||
Common stock, $.01 par value, authorized 500,000,000 shares; | ||||||||||||||||
issued 254,752,788 shares in 20157 | 2,030,268 | (2,228,823 | ) | 201,103 | 2,548 | |||||||||||
Paid-in capital | 2,934,943 | 1,006,941 | 1,491,549 | 5,433,433 | ||||||||||||
Retained earnings | 6,304,977 | 1,676,129 | (3,404 | ) | 7,977,702 | |||||||||||
Accumulated other comprehensive income (loss) | (148,598 | ) | — | 125,067 | (23,531 | ) | ||||||||||
Less - treasury stock, at cost (74,235,135 shares in 2017) | 120,000 | 5,277,637 | — | 5,397,637 | ||||||||||||
TOTAL | 11,001,590 | (4,823,390 | ) | 1,814,315 | 7,992,515 | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 42,978,669 | $ | (1,909,529 | ) | $ | 5,638,009 | $ | 46,707,149 | |||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Three Months Ended June 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $ | 2,330,265 | $ | (40 | ) | $ | — | $ | 2,330,225 | |||||||
Natural gas | 29,943 | — | — | 29,943 | ||||||||||||
Competitive businesses | — | — | 308,602 | 308,602 | ||||||||||||
Total | 2,360,208 | (40 | ) | 308,602 | 2,668,770 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operating and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 447,051 | (40 | ) | 18,791 | 465,802 | |||||||||||
Purchased power | 399,454 | 40 | 17,540 | 417,034 | ||||||||||||
Nuclear refueling outage expenses | 34,650 | — | 710 | 35,360 | ||||||||||||
Other operation and maintenance | 628,751 | 11,724 | 199,628 | 840,103 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 68,943 | 68,943 | ||||||||||||
Decommissioning | 37,285 | — | 60,320 | 97,605 | ||||||||||||
Taxes other than income taxes | 135,812 | 415 | 22,320 | 158,547 | ||||||||||||
Depreciation and amortization | 311,518 | 386 | 38,581 | 350,485 | ||||||||||||
Other regulatory charges | 143,294 | — | — | 143,294 | ||||||||||||
Total | 2,137,815 | 12,525 | 426,833 | 2,577,173 | ||||||||||||
OPERATING INCOME | 222,393 | (12,565 | ) | (118,231 | ) | 91,597 | ||||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 31,670 | — | — | 31,670 | ||||||||||||
Interest and investment income | 52,296 | (38,713 | ) | 57,551 | 71,134 | |||||||||||
Miscellaneous - net | (28,370 | ) | (2,786 | ) | (17,335 | ) | (48,491 | ) | ||||||||
Total | 55,596 | (41,499 | ) | 40,216 | 54,313 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 154,587 | 29,261 | 8,466 | 192,314 | ||||||||||||
Allowance for borrowed funds used during construction | (14,668 | ) | — | — | (14,668 | ) | ||||||||||
Total | 139,919 | 29,261 | 8,466 | 177,646 | ||||||||||||
INCOME BEFORE INCOME TAXES | 138,070 | (83,325 | ) | (86,481 | ) | (31,736 | ) | |||||||||
Income taxes | (240,324 | ) | (10,128 | ) | (30,144 | ) | (280,596 | ) | ||||||||
CONSOLIDATED NET INCOME | 378,394 | (73,197 | ) | (56,337 | ) | 248,860 | ||||||||||
Preferred dividend requirements of subsidiaries | 2,892 | — | 547 | 3,439 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 375,502 | $ | (73,197 | ) | $ | (56,884 | ) | $ | 245,421 | ||||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $2.07 | ($0.40) | ($0.31) | $1.36 | ||||||||||||
DILUTED | $2.05 | ($0.40) | ($0.31) | $1.34 | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 180,823,203 | |||||||||||||||
DILUTED | 182,982,630 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Three Months Ended June 30, 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $ | 2,271,257 | $ | (37 | ) | $ | — | $ | 2,271,220 | |||||||
Natural gas | 30,075 | — | — | 30,075 | ||||||||||||
Competitive businesses | — | — | 317,255 | 317,255 | ||||||||||||
Total | 2,301,332 | (37 | ) | 317,255 | 2,618,550 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operation and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 367,422 | (36 | ) | 28,561 | 395,947 | |||||||||||
Purchased power | 377,916 | 37 | 38,544 | 416,497 | ||||||||||||
Nuclear refueling outage expenses | 34,486 | — | 3,802 | 38,288 | ||||||||||||
Other operation and maintenance | 597,624 | 6,611 | 190,732 | 794,967 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 193,571 | 193,571 | ||||||||||||
Decommissioning | 40,105 | — | 60,191 | 100,296 | ||||||||||||
Taxes other than income taxes | 134,016 | 393 | 18,855 | 153,264 | ||||||||||||
Depreciation and amortization | 297,954 | 443 | 51,931 | 350,328 | ||||||||||||
Other regulatory credits | 6,553 | — | — | 6,553 | ||||||||||||
Total | 1,856,076 | 7,448 | 586,187 | 2,449,711 | ||||||||||||
OPERATING INCOME | 445,256 | (7,485 | ) | (268,932 | ) | 168,839 | ||||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 22,376 | — | — | 22,376 | ||||||||||||
Interest and investment income | 59,927 | (38,734 | ) | 58,904 | 80,097 | |||||||||||
Miscellaneous - net | (15,615 | ) | (1,613 | ) | (14,974 | ) | (32,202 | ) | ||||||||
Total | 66,688 | (40,347 | ) | 43,930 | 70,271 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 145,234 | 22,087 | 6,056 | 173,377 | ||||||||||||
Allowance for borrowed funds used during construction | (10,523 | ) | — | — | (10,523 | ) | ||||||||||
Total | 134,711 | 22,087 | 6,056 | 162,854 | ||||||||||||
INCOME BEFORE INCOME TAXES | 377,233 | (69,919 | ) | (231,058 | ) | 76,256 | ||||||||||
Income taxes | 130,851 | (13,019 | ) | (454,944 | ) | (337,112 | ) | |||||||||
CONSOLIDATED NET INCOME | 246,382 | (56,900 | ) | 223,886 | 413,368 | |||||||||||
Preferred dividend requirements of subsidiaries | 2,899 | — | 547 | 3,446 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 243,483 | $ | (56,900 | ) | $ | 223,339 | $ | 409,922 | |||||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $1.36 | ($0.32) | $1.24 | $2.28 | ||||||||||||
DILUTED | $1.35 | ($0.32) | $1.24 | $2.27 | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 179,475,346 | |||||||||||||||
DILUTED | 180,234,694 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Six Months Ended June 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $ | 4,578,559 | $ | (73 | ) | $ | — | $ | 4,578,486 | |||||||
Natural gas | 86,638 | — | — | 86,638 | ||||||||||||
Competitive businesses | — | — | 727,526 | 727,526 | ||||||||||||
Total | 4,665,197 | (73 | ) | 727,526 | 5,392,650 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operating and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 870,448 | (73 | ) | 38,723 | 909,098 | |||||||||||
Purchased power | 778,441 | 70 | 34,547 | 813,058 | ||||||||||||
Nuclear refueling outage expenses | 75,123 | — | 2,997 | 78,120 | ||||||||||||
Other operation and maintenance | 1,216,756 | 16,546 | 390,385 | 1,623,687 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 141,867 | 141,867 | ||||||||||||
Decommissioning | 73,550 | — | 118,455 | 192,005 | ||||||||||||
Taxes other than income taxes | 283,728 | 1,374 | 38,663 | 323,765 | ||||||||||||
Depreciation and amortization | 619,984 | 757 | 76,730 | 697,471 | ||||||||||||
Other regulatory charges | 186,319 | — | — | 186,319 | ||||||||||||
Total | 4,104,349 | 18,674 | 842,367 | 4,965,390 | ||||||||||||
OPERATING INCOME | 560,848 | (18,747 | ) | (114,841 | ) | 427,260 | ||||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 60,014 | — | — | 60,014 | ||||||||||||
Interest and investment income | 109,100 | (77,286 | ) | 56,191 | 88,005 | |||||||||||
Miscellaneous - net | (45,503 | ) | (4,387 | ) | (29,959 | ) | (79,849 | ) | ||||||||
Total | 123,611 | (81,673 | ) | 26,232 | 68,170 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 304,159 | 54,349 | 16,729 | 375,237 | ||||||||||||
Allowance for borrowed funds used during construction | (27,933 | ) | — | — | (27,933 | ) | ||||||||||
Total | 276,226 | 54,349 | 16,729 | 347,304 | ||||||||||||
INCOME BEFORE INCOME TAXES | 408,233 | (154,769 | ) | (105,338 | ) | 148,126 | ||||||||||
Income taxes | (188,100 | ) | (17,611 | ) | (31,222 | ) | (236,933 | ) | ||||||||
CONSOLIDATED NET INCOME | 596,333 | (137,158 | ) | (74,116 | ) | 385,059 | ||||||||||
Preferred dividend requirements of subsidiaries | 5,784 | — | 1,094 | 6,878 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 590,549 | $ | (137,158 | ) | $ | (75,210 | ) | $ | 378,181 | ||||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $3.27 | ($0.76) | ($0.42) | $2.09 | ||||||||||||
DILUTED | $3.24 | ($0.75) | ($0.41) | $2.08 | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 180,765,708 | |||||||||||||||
DILUTED | 182,208,328 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Six Months Ended June 30, 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $ | 4,263,018 | $ | (58 | ) | $ | — | $ | 4,262,960 | |||||||
Natural gas | 73,426 | — | — | 73,426 | ||||||||||||
Competitive businesses | — | — | 870,622 | 870,622 | ||||||||||||
Total | 4,336,444 | (58 | ) | 870,622 | 5,207,008 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operation and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 763,367 | (58 | ) | 50,204 | 813,513 | |||||||||||
Purchased power | 698,211 | 58 | 75,995 | 774,264 | ||||||||||||
Nuclear refueling outage expenses | 71,063 | — | 9,790 | 80,853 | ||||||||||||
Other operation and maintenance | 1,154,757 | 11,466 | 475,602 | 1,641,825 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 405,362 | 405,362 | ||||||||||||
Decommissioning | 79,615 | — | 135,054 | 214,669 | ||||||||||||
Taxes other than income taxes | 266,639 | 1,202 | 41,775 | 309,616 | ||||||||||||
Depreciation and amortization | 592,312 | 757 | 104,524 | 697,593 | ||||||||||||
Other regulatory credits | (78,749 | ) | — | — | (78,749 | ) | ||||||||||
Total | 3,547,215 | 13,425 | 1,298,306 | 4,858,946 | ||||||||||||
Gain on sale of assets | — | — | 16,270 | 16,270 | ||||||||||||
OPERATING INCOME | 789,229 | (13,483 | ) | (411,414 | ) | 364,332 | ||||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 41,384 | — | — | 41,384 | ||||||||||||
Interest and investment income | 111,608 | (77,004 | ) | 102,042 | 136,646 | |||||||||||
Miscellaneous - net | (29,839 | ) | (2,829 | ) | (14,723 | ) | (47,391 | ) | ||||||||
Total | 123,153 | (79,833 | ) | 87,319 | 130,639 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 288,599 | 43,370 | 12,497 | 344,466 | ||||||||||||
Allowance for borrowed funds used during construction | (19,565 | ) | — | — | (19,565 | ) | ||||||||||
Total | 269,034 | 43,370 | 12,497 | 324,901 | ||||||||||||
INCOME BEFORE INCOME TAXES | 643,348 | (136,686 | ) | (336,592 | ) | 170,070 | ||||||||||
Income taxes | 229,343 | (25,412 | ) | (533,281 | ) | (329,350 | ) | |||||||||
CONSOLIDATED NET INCOME | 414,005 | (111,274 | ) | 196,689 | 499,420 | |||||||||||
Preferred dividend requirements of subsidiaries | 5,798 | — | 1,094 | 6,892 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 408,207 | $ | (111,274 | ) | $ | 195,595 | $ | 492,528 | |||||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $2.28 | ($0.62) | $1.09 | $2.75 | ||||||||||||
DILUTED | $2.27 | ($0.62) | $1.09 | $2.74 | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 179,405,592 | |||||||||||||||
DILUTED | 180,032,233 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Twelve Months Ended June 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $ | 9,594,552 | $ | (130 | ) | $ | — | $ | 9,594,422 | |||||||
Natural gas | 152,068 | 0 | 0 | 152,068 | ||||||||||||
Competitive businesses | 0 | 0 | 1,513,633 | 1,513,633 | ||||||||||||
Total | 9,746,620 | (130) | 1,513,633 | 11,260,123 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operating and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 2,015,657 | (130) | 71,648 | 2,087,175 | ||||||||||||
Purchased power | 1,403,391 | 127 | 63,225 | 1,466,743 | ||||||||||||
Nuclear refueling outage expenses | 158,070 | 0 | 7,348 | 165,418 | ||||||||||||
Other operation and maintenance | 2,480,323 | 32,208 | 784,600 | 3,297,131 | ||||||||||||
Asset write-offs, impairments and related charges | 0 | 0 | 274,877 | 274,877 | ||||||||||||
Decommissioning | 144,663 | 0 | 238,357 | 383,020 | ||||||||||||
Taxes other than income taxes | 553,496 | 1,704 | 76,505 | 631,705 | ||||||||||||
Depreciation and amortization | 1,222,693 | 1,678 | 165,327 | 1,389,698 | ||||||||||||
Other regulatory charges - net | 133,325 | 0 | 0 | 133,325 | ||||||||||||
Total | 8,111,618 | 35,587 | 1,681,887 | 9,829,092 | ||||||||||||
OPERATING INCOME (LOSS) | 1,635,002 | (35,717) | (168,254) | 1,431,031 | ||||||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 113,718 | 0 | 0 | 113,718 | ||||||||||||
Interest and investment income | 215,809 | (154,523) | 178,270 | 239,556 | ||||||||||||
Miscellaneous - net | (77,387) | (6,562) | (69,631) | (153,580) | ||||||||||||
Total | 252,140 | (161,085) | 108,639 | 199,694 | ||||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 607,729 | 102,308 | 27,946 | 737,983 | ||||||||||||
Allowance for borrowed funds used during construction | (53,237) | 0 | 0 | (53,237) | ||||||||||||
Total | 554,492 | 102,308 | 27,946 | 684,746 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 1,332,650 | (299,110) | (87,561) | 945,979 | ||||||||||||
Income taxes | 377,173 | (97,766) | 355,580 | 634,987 | ||||||||||||
CONSOLIDATED NET INCOME (LOSS) | 955,477 | (201,344) | (443,141) | 310,992 | ||||||||||||
Preferred dividend requirements of subsidiaries | 11,540 | 0 | 2,187 | 13,727 | ||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 943,937 | $ | (201,344 | ) | $ | (445,328 | ) | $ | 297,265 | ||||||
EARNINGS (LOSS) PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $5.24 | ($1.12) | ($2.47) | $1.65 | ||||||||||||
DILUTED | $5.20 | ($1.11) | ($2.45) | $1.64 | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 180,346,266 | |||||||||||||||
DILUTED | 181,444,134 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Twelve Months Ended June 30, 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $ | 8,994,239 | $ | (112 | ) | $ | — | $ | 8,994,127 | |||||||
Natural gas | 132,040 | — | — | 132,040 | ||||||||||||
Competitive businesses | — | — | 1,854,071 | 1,854,071 | ||||||||||||
Total | 9,126,279 | (112 | ) | 1,854,071 | 10,980,238 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operating and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 1,521,687 | (112 | ) | 214,706 | 1,736,281 | |||||||||||
Purchased power | 1,377,790 | 112 | 111,893 | 1,489,795 | ||||||||||||
Nuclear refueling outage expenses | 133,293 | — | 57,962 | 191,254 | ||||||||||||
Other operation and maintenance | 2,392,614 | 22,961 | 991,040 | 3,406,616 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 3,226,669 | 3,226,669 | ||||||||||||
Decommissioning | 156,925 | — | 239,917 | 396,842 | ||||||||||||
Taxes other than income taxes | 515,715 | 1,109 | 86,267 | 603,091 | ||||||||||||
Depreciation and amortization | 1,170,971 | 1,430 | 202,438 | 1,374,840 | ||||||||||||
Other regulatory charges - net | (7,019 | ) | — | — | (7,019 | ) | ||||||||||
Total | 7,261,976 | 25,500 | 5,130,892 | 12,418,369 | ||||||||||||
Gain on sale of assets | — | — | 16,270 | 16,270 | ||||||||||||
OPERATING INCOME (LOSS) | 1,864,303 | (25,612 | ) | (3,260,551 | ) | (1,421,861 | ) | |||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 76,155 | — | — | 76,155 | ||||||||||||
Interest and investment income | 205,464 | (152,998 | ) | 150,178 | 202,645 | |||||||||||
Miscellaneous - net | (66,759 | ) | (7,557 | ) | (36,478 | ) | (110,794 | ) | ||||||||
Total | 214,860 | (160,555 | ) | 113,700 | 168,006 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 581,240 | 89,512 | 22,817 | 693,569 | ||||||||||||
Allowance for borrowed funds used during construction | (36,927 | ) | — | — | (36,927 | ) | ||||||||||
Total | 544,313 | 89,512 | 22,817 | 656,642 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 1,534,850 | (275,679 | ) | (3,169,668 | ) | (1,910,497 | ) | |||||||||
Income taxes | 549,681 | (44,460 | ) | (1,542,803 | ) | (1,037,582 | ) | |||||||||
CONSOLIDATED NET INCOME (LOSS) | 985,169 | (231,219 | ) | (1,626,865 | ) | (872,915 | ) | |||||||||
Preferred dividend requirements of subsidiaries | 13,267 | — | 2,188 | 15,455 | ||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 971,902 | $ | (231,219 | ) | $ | (1,629,053 | ) | $ | (888,370 | ) | |||||
EARNINGS (LOSS) PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $5.40 | ($1.29) | ($9.05) | ($4.94) | ||||||||||||
DILUTED | $5.40 | ($1.29) | ($9.05) | ($4.94) | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 180,009,482 | |||||||||||||||
DILUTED | 180,009,482 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||
Consolidated Cash Flow Statement | ||||||||||||
Three Months Ended June 30, 2018 vs. 2017 | ||||||||||||
(Dollars in thousands) | ||||||||||||
(Unaudited) | ||||||||||||
2018 | 2017 | Variance | ||||||||||
OPERATING ACTIVITIES | ||||||||||||
Consolidated net income | $ | 248,860 | $ | 413,368 | $ | (164,508 | ) | |||||
Adjustments to reconcile consolidated net income to net cash | ||||||||||||
flow provided by operating activities: | ||||||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 502,428 | 511,298 | (8,870 | ) | ||||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued | (15,875 | ) | (340,724 | ) | 324,849 | |||||||
Asset write-offs, impairments and related charges | 25,703 | 75,802 | (50,099 | ) | ||||||||
Changes in working capital: | ||||||||||||
Receivables | (176,665 | ) | (150,110 | ) | (26,555 | ) | ||||||
Fuel inventory | 24,773 | (252 | ) | 25,025 | ||||||||
Accounts payable | 166,321 | 57,369 | 108,952 | |||||||||
Taxes accrued | 48,209 | 56,630 | (8,421 | ) | ||||||||
Interest accrued | 7,955 | 9,974 | (2,019 | ) | ||||||||
Deferred fuel costs | (56,025 | ) | (120,556 | ) | 64,531 | |||||||
Other working capital accounts | (106,978 | ) | (84,181 | ) | (22,797 | ) | ||||||
Changes in provisions for estimated losses | 16,699 | (3,309 | ) | 20,008 | ||||||||
Changes in other regulatory assets | 22,363 | 15,115 | 7,248 | |||||||||
Changes in other regulatory liabilities | (215,859 | ) | 10,074 | (225,933 | ) | |||||||
Changes in pensions and other postretirement liabilities | (83,860 | ) | (93,916 | ) | 10,056 | |||||||
Other | 114,481 | (66,292 | ) | 180,773 | ||||||||
Net cash flow provided by operating activities | 522,530 | 290,290 | 232,240 | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Construction/capital expenditures | (953,940 | ) | (925,264 | ) | (28,676 | ) | ||||||
Allowance for equity funds used during construction | 31,823 | 22,623 | 9,200 | |||||||||
Nuclear fuel purchases | (40,674 | ) | (72,143 | ) | 31,469 | |||||||
Proceeds from sale of assets | 9,163 | — | 9,163 | |||||||||
Insurance proceeds received for property damages | 8,941 | 5,248 | 3,693 | |||||||||
Changes in securitization account | 11,817 | 10,991 | 826 | |||||||||
Payments to storm reserve escrow account | (1,569 | ) | (644 | ) | (925 | ) | ||||||
Receipts from storm reserve escrow account | — | — | — | |||||||||
Decrease (increase) in other investments | (10,363 | ) | 12,082 | (22,445 | ) | |||||||
Litigation proceeds for reimbursement of spent nuclear fuel storage costs | — | — | — | |||||||||
Proceeds from nuclear decommissioning trust fund sales | 709,838 | 948,948 | (239,110 | ) | ||||||||
Investment in nuclear decommissioning trust funds | (720,290 | ) | (960,245 | ) | 239,955 | |||||||
Net cash flow used in investing activities | (955,254 | ) | (958,404 | ) | 3,150 | |||||||
FINANCING ACTIVITIES | ||||||||||||
Proceeds from the issuance of: | ||||||||||||
Long-term debt | 853,467 | 800,331 | 53,136 | |||||||||
Treasury stock | 1,739 | 5,371 | (3,632 | ) | ||||||||
Retirement of long-term debt | (1,835,131 | ) | (54,647 | ) | (1,780,484 | ) | ||||||
Changes in credit borrowings and commercial paper - net | 1,178,972 | (74,421 | ) | 1,253,393 | ||||||||
Other | 5,241 | 2,495 | 2,746 | |||||||||
Dividends paid: | ||||||||||||
Common stock | (160,934 | ) | (156,136 | ) | (4,798 | ) | ||||||
Preferred stock | (3,439 | ) | (3,446 | ) | 7 | |||||||
Net cash flow provided by financing activities | 39,915 | 519,547 | (479,632 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | (392,809 | ) | (148,567 | ) | (244,242 | ) | ||||||
Cash and cash equivalents at beginning of period | 1,205,596 | 1,083,062 | 122,534 | |||||||||
Cash and cash equivalents at end of period | $ | 812,787 | $ | 934,495 | $ | (121,708 | ) | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
Cash paid during the period for: | ||||||||||||
Interest - net of amount capitalized | $177,023 | $156,421 | $20,602 | |||||||||
Income taxes | $18,442 | $3,371 | $15,071 | |||||||||
Entergy Corporation | ||||||||||||
Consolidated Cash Flow Statement | ||||||||||||
Six Months Ended June 30, 2018 vs. 2017 | ||||||||||||
(Dollars in thousands) | ||||||||||||
(Unaudited) | ||||||||||||
2018 | 2017 | Variance | ||||||||||
OPERATING ACTIVITIES | ||||||||||||
Consolidated net income | $ | 385,059 | $ | 499,420 | $ | (114,361 | ) | |||||
Adjustments to reconcile consolidated net income to net cash | ||||||||||||
flow provided by operating activities: | ||||||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 1,027,609 | 1,042,671 | (15,062 | ) | ||||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued | 88,732 | (324,227 | ) | 412,959 | ||||||||
Asset write-offs, impairments and related charges | 51,503 | 220,828 | (169,325 | ) | ||||||||
Gain on sale of assets | — | (16,270 | ) | 16,270 | ||||||||
Changes in working capital: | ||||||||||||
Receivables | (45,515 | ) | 6,091 | (51,606 | ) | |||||||
Fuel inventory | 8,512 | 6,213 | 2,299 | |||||||||
Accounts payable | 97,464 | 9,687 | 87,777 | |||||||||
Taxes accrued | (8,092 | ) | (2,202 | ) | (5,890 | ) | ||||||
Interest accrued | (2,056 | ) | (3,947 | ) | 1,891 | |||||||
Deferred fuel costs | (132,263 | ) | (127,945 | ) | (4,318 | ) | ||||||
Other working capital accounts | (134,982 | ) | (91,505 | ) | (43,477 | ) | ||||||
Changes in provisions for estimated losses | 27,443 | (7,340 | ) | 34,783 | ||||||||
Changes in other regulatory assets | 106,712 | 62,612 | 44,100 | |||||||||
Changes in other regulatory liabilities | (247,239 | ) | (8,250 | ) | (238,989 | ) | ||||||
Changes in pensions and other postretirement liabilities | (181,278 | ) | (180,346 | ) | (932 | ) | ||||||
Other | 38,314 | (265,807 | ) | 304,121 | ||||||||
Net cash flow provided by operating activities | 1,079,923 | 819,683 | 260,240 | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Construction/capital expenditures | (1,885,419 | ) | (1,719,712 | ) | (165,707 | ) | ||||||
Allowance for equity funds used during construction | 60,335 | 41,877 | 18,458 | |||||||||
Nuclear fuel purchases | (90,321 | ) | (209,756 | ) | 119,435 | |||||||
Proceeds from sale of assets | 9,163 | 100,000 | (90,837 | ) | ||||||||
Insurance proceeds received for property damages | 10,523 | 26,157 | (15,634 | ) | ||||||||
Changes in securitization account | 4,754 | 10,028 | (5,274 | ) | ||||||||
Payments to storm reserve escrow account | (2,744 | ) | (1,124 | ) | (1,620 | ) | ||||||
Receipts from storm reserve escrow account | — | 8,836 | (8,836 | ) | ||||||||
Decrease (increase) in other investments | (10,769 | ) | 1,705 | (12,474 | ) | |||||||
Litigation proceeds for reimbursement of spent nuclear fuel storage costs | — | 25,493 | (25,493 | ) | ||||||||
Proceeds from nuclear decommissioning trust fund sales | 1,801,170 | 1,462,698 | 338,472 | |||||||||
Investment in nuclear decommissioning trust funds | (1,826,384 | ) | (1,516,406 | ) | (309,978 | ) | ||||||
Net cash flow used in investing activities | (1,929,692 | ) | (1,770,204 | ) | (159,488 | ) | ||||||
FINANCING ACTIVITIES | ||||||||||||
Proceeds from the issuance of: | ||||||||||||
Long-term debt | 3,359,193 | 1,036,529 | 2,322,664 | |||||||||
Treasury stock | 3,691 | 7,819 | (4,128 | ) | ||||||||
Retirement of long-term debt | (2,569,131 | ) | (866,337 | ) | (1,702,794 | ) | ||||||
Changes in credit borrowings and commercial paper - net | 405,795 | 833,957 | (428,162 | ) | ||||||||
Other | 10,434 | 4,305 | 6,129 | |||||||||
Dividends paid: | ||||||||||||
Common stock | (321,821 | ) | (312,209 | ) | (9,612 | ) | ||||||
Preferred stock | (6,878 | ) | (6,892 | ) | 14 | |||||||
Net cash flow provided by financing activities | 881,283 | 697,172 | 184,111 | |||||||||
Net increase (decrease) in cash and cash equivalents | 31,514 | (253,349 | ) | 284,863 | ||||||||
Cash and cash equivalents at beginning of period | 781,273 | 1,187,844 | (406,571 | ) | ||||||||
Cash and cash equivalents at end of period | $ | 812,787 | $ | 934,495 | $ | (121,708 | ) | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
Cash paid (received) during the period for: | ||||||||||||
Interest - net of amount capitalized | $362,629 | $334,555 | $28,074 | |||||||||
Income taxes | $14,145 | ($14,673) | $28,818 | |||||||||
Entergy Corporation | ||||||||||||
Consolidated Cash Flow Statement | ||||||||||||
Twelve Months Ended June 30, 2018 vs. 2017 | ||||||||||||
(Dollars in thousands) | ||||||||||||
(Unaudited) | ||||||||||||
2018 | 2017 | Variance | ||||||||||
OPERATING ACTIVITIES | ||||||||||||
Consolidated net income (loss) | $ | 310,992 | $ | (872,915 | ) | $ | 1,183,907 | |||||
Adjustments to reconcile consolidated net income (loss) to net cash | ||||||||||||
flow provided by operating activities: | ||||||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 2,063,516 | 2,153,209 | (89,693 | ) | ||||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued | 942,012 | (990,458 | ) | 1,932,470 | ||||||||
Asset write-offs, impairments and related charges | 187,926 | 3,042,136 | (2,854,210 | ) | ||||||||
Gain on sale of asset | — | (16,270 | ) | 16,270 | ||||||||
Changes in working capital: | ||||||||||||
Receivables | (149,243 | ) | (33,211 | ) | (116,032 | ) | ||||||
Fuel inventory | (744 | ) | 34,837 | (35,581 | ) | |||||||
Accounts payable | 189,579 | 138,696 | 50,883 | |||||||||
Taxes accrued | 27,963 | (38,221 | ) | 66,184 | ||||||||
Interest accrued | 2,633 | (1,739 | ) | 4,372 | ||||||||
Deferred fuel costs | 51,972 | (373,598 | ) | 425,570 | ||||||||
Other working capital accounts | (47,808 | ) | 61,621 | (109,429 | ) | |||||||
Changes in provisions for estimated losses | 31,504 | 12,032 | 19,472 | |||||||||
Changes in other regulatory assets | 639,604 | (95,557 | ) | 735,161 | ||||||||
Changes in other regulatory liabilities | 2,676,806 | 79,276 | 2,597,530 | |||||||||
Deferred tax rate change recognized as regulatory liability / asset | (3,665,498 | ) | — | (3,665,498 | ) | |||||||
Changes in pensions and other postretirement liabilities | (131,618 | ) | (148,409 | ) | 16,791 | |||||||
Other | (245,856 | ) | (385,127 | ) | 139,271 | |||||||
Net cash flow provided by operating activities | 2,883,740 | 2,566,302 | 317,438 | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Construction/capital expenditures | (3,773,239 | ) | (3,205,436 | ) | (567,803 | ) | ||||||
Allowance for equity funds used during construction | 114,458 | 77,070 | 37,388 | |||||||||
Nuclear fuel purchases | (257,889 | ) | (400,355 | ) | 142,466 | |||||||
Payment for purchase of plant or assets | (16,762 | ) | (1,426 | ) | (15,336 | ) | ||||||
Proceeds from sale of assets | 9,163 | 100,000 | (90,837 | ) | ||||||||
Insurance proceeds received for property damages | 10,523 | 47,125 | (36,602 | ) | ||||||||
Changes in securitization account | (3,951 | ) | 796 | (4,747 | ) | |||||||
Payments to storm reserve escrow account | (4,498 | ) | (1,863 | ) | (2,635 | ) | ||||||
Receipts from storm reserve escrow account | 2,487 | 8,836 | (6,349 | ) | ||||||||
Decrease (increase) in other investments | (11,396 | ) | 10,703 | (22,099 | ) | |||||||
Litigation proceeds for reimbursement of spent nuclear fuel storage costs | — | 105,171 | (105,171 | ) | ||||||||
Proceeds from nuclear decommissioning trust fund sales | 3,501,219 | 2,638,946 | 862,273 | |||||||||
Investment in nuclear decommissioning trust funds | (3,570,652 | ) | (2,733,581 | ) | (837,071 | ) | ||||||
Net cash flow used in investing activities | (4,000,537 | ) | (3,354,014 | ) | (646,523 | ) | ||||||
FINANCING ACTIVITIES | ||||||||||||
Proceeds from the issuance of: | ||||||||||||
Long-term debt | 4,132,054 | 3,980,319 | 151,735 | |||||||||
Preferred stock of subsidiary | 14,399 | — | 14,399 | |||||||||
Treasury stock | 76,601 | 24,078 | 52,523 | |||||||||
Retirement of long-term debt | (3,288,475 | ) | (2,757,465 | ) | (531,010 | ) | ||||||
Repurchase / redemption of preferred stock | (20,599 | ) | (115,283 | ) | 94,684 | |||||||
Changes in credit borrowings and commercial paper - net | 735,134 | 224,080 | 511,054 | |||||||||
Other | (1,602 | ) | 7,709 | (9,311 | ) | |||||||
Dividends paid: | ||||||||||||
Common stock | (638,497 | ) | (620,201 | ) | (18,296 | ) | ||||||
Preferred stock | (13,926 | ) | (17,129 | ) | 3,203 | |||||||
Net cash flow provided by financing activities | 995,089 | 726,108 | 268,981 | |||||||||
Net decrease in cash and cash equivalents | (121,708 | ) | (61,604 | ) | (60,104 | ) | ||||||
Cash and cash equivalents at beginning of period | 934,495 | 996,099 | (61,604 | ) | ||||||||
Cash and cash equivalents at end of period | $ | 812,787 | $ | 934,495 | $ | (121,708 | ) | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
Cash paid (received) during the period for: | ||||||||||||
Interest - net of amount capitalized | $706,445 | $670,590 | $35,855 | |||||||||
Income taxes | $15,443 | ($3,963) | $19,406 | |||||||||