Retirement And Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2024 |
Retirement Benefits [Text Block] | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension costs, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $23,358 $25,302 Interest cost on projected benefit obligation 56,631 73,850 Expected return on assets (76,557) (96,775) Recognized net loss 14,322 20,204 Settlement charges — 6,914 Net pension cost $17,754 $29,495 Entergy’s qualified pension costs, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $70,104 $76,346 Interest cost on projected benefit obligation 193,218 223,584 Expected return on assets (262,043) (290,660) Recognized net loss 44,296 63,858 Settlement charges 325,253 152,588 Net pension cost $370,828 $225,716 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,101 $5,550 $1,284 $441 $963 $1,380 Interest cost on projected benefit obligation 13,218 13,962 3,522 1,569 2,832 3,375 Expected return on assets (18,156) (19,446) (5,112) (2,202) (4,077) (4,602) Recognized net loss 5,745 2,601 1,140 471 393 1,155 Net pension cost $4,908 $2,667 $834 $279 $111 $1,308 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,566 $6,175 $1,431 $492 $1,074 $1,430 Interest cost on projected benefit obligation 13,813 14,896 3,797 1,667 3,138 3,419 Expected return on assets (17,639) (18,892) (4,830) (2,206) (4,147) (4,392) Recognized net loss 5,438 4,748 1,545 456 1,008 1,204 Settlement charges 558 561 345 248 632 228 Net pension cost $6,736 $7,488 $2,288 $657 $1,705 $1,889 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $12,300 $16,652 $3,852 $1,321 $2,886 $4,147 Interest cost on projected benefit obligation 39,652 41,884 10,564 4,707 8,494 10,152 Expected return on assets (54,466) (58,340) (15,338) (6,609) (12,231) (13,883) Recognized net loss 17,237 7,805 3,420 1,411 1,179 3,482 Settlement charges — — — — — 611 Net pension cost $14,723 $8,001 $2,498 $830 $328 $4,509 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $13,976 $18,654 $4,369 $1,470 $3,271 $4,342 Interest cost on projected benefit obligation 42,010 45,219 11,551 5,051 9,542 10,382 Expected return on assets (53,593) (56,891) (14,349) (6,783) (12,322) (13,431) Recognized net loss 18,170 14,704 4,937 1,453 3,057 3,939 Settlement charges 24,516 38,791 12,088 1,948 10,902 5,518 Net pension cost $45,079 $60,477 $18,596 $3,139 $14,450 $10,750 Non-Qualified Net Pension Cost Entergy recognized $2.7 million and $21.8 million in pension cost for its non-qualified pension plans for the third quarters of 2024 and 2023, respectively. For the third quarter of 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the third quarter of 2023 were settlement charges of $18 million related to the payment of lump sum benefits out of the plans. Entergy recognized $8.2 million and $39.8 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the nine months ended September 30, 2023 were settlement charges of $27.3 million related to the payment of lump sum benefits out of the plans. The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the third quarters of 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $68 $51 $83 $31 $62 2023 $63 $24 $85 $33 $63 The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the nine months ended September 30, 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $204 $153 $249 $93 $186 2023 $575 $76 $724 $99 $190 For the third quarters of 2024 and 2023, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2024, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2023, there were settlement charges of $379 thousand and $453 thousand for Entergy Arkansas and Entergy Mississippi, respectively, included in the non-qualified pension costs above related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefits Cost (Income) Entergy’s other postretirement benefits income, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $3,126 $3,664 Interest cost on accumulated postretirement benefit obligation (APBO) 9,852 10,568 Expected return on assets (10,569) (9,183) Amortization of prior service credit (5,720) (5,640) Recognized net gain (2,761) (2,862) Net other postretirement benefits income ($6,072) ($3,453) Entergy’s other postretirement benefits income, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $9,378 $10,992 Interest cost on APBO 29,556 31,704 Expected return on assets (31,707) (27,549) Amortization of prior service credit (17,160) (16,920) Recognized net gain (8,283) (8,586) Net other postretirement benefits income ($18,216) ($10,359) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $642 $700 $184 $51 $168 $175 Interest cost on APBO 1,833 1,999 486 253 603 398 Expected return on assets (4,384) — (1,372) (1,479) (2,539) (728) Amortization of prior service cost (credit) 524 (1,136) (239) (229) (1,093) (73) Recognized net (gain) loss — (1,738) 15 19 148 — Net other postretirement benefits income ($1,385) ($175) ($926) ($1,385) ($2,713) ($228) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $741 $845 $220 $59 $202 $189 Interest cost on APBO 2,001 2,233 543 290 649 432 Expected return on assets (3,778) — (1,179) (1,316) (2,194) (634) Amortization of prior service cost (credit) 524 (951) (239) (229) (1,093) (73) Recognized net (gain) loss 43 (1,764) 21 117 229 — Net other postretirement benefits (income) cost ($469) $363 ($634) ($1,079) ($2,207) ($86) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,926 $2,100 $552 $153 $504 $525 Interest cost on APBO 5,499 5,997 1,458 759 1,809 1,194 Expected return on assets (13,152) — (4,116) (4,437) (7,617) (2,184) Amortization of prior service cost (credit) 1,572 (3,408) (717) (687) (3,279) (219) Recognized net (gain) loss — (5,214) 45 57 444 — Net other postretirement benefits income ($4,155) ($525) ($2,778) ($4,155) ($8,139) ($684) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $2,223 $2,535 $660 $177 $606 $567 Interest cost on APBO 6,003 6,699 1,629 870 1,947 1,296 Expected return on assets (11,334) — (3,537) (3,948) (6,582) (1,902) Amortization of prior service cost (credit) 1,572 (2,853) (717) (687) (3,279) (219) Recognized net (gain) loss 129 (5,292) 63 351 687 — Net other postretirement benefits (income) cost ($1,407) $1,089 ($1,902) ($3,237) ($6,621) ($258) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,513 ($40) $3,473 Amortization of net gain (loss) (405) 2,615 (80) 2,130 ($405) $6,128 ($120) $5,603 Entergy Louisiana Amortization of prior service credit $— $1,136 $— $1,136 Amortization of net gain (loss) (104) 1,738 — 1,634 ($104) $2,874 $— $2,770 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,509 ($113) $3,396 Amortization of net gain (loss) (1,064) 2,898 (134) 1,700 Settlement loss (490) — (1,429) (1,919) ($1,554) $6,407 ($1,676) $3,177 Entergy Louisiana Amortization of prior service credit $— $951 $— $951 Amortization of net gain (loss) (190) 1,764 — 1,574 Settlement loss (22) — — (22) ($212) $2,715 $— $2,503 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,539 ($120) $10,419 Amortization of net gain (loss) (2,438) 7,845 (240) 5,167 Settlement loss (316,974) — — (316,974) ($319,412) $18,384 ($360) ($301,388) Entergy Louisiana Amortization of prior service credit $— $3,408 $— $3,408 Amortization of net gain (loss) (312) 5,214 (2) 4,900 ($312) $8,622 ($2) $8,308 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,529 ($338) $10,191 Amortization of net gain (loss) (3,208) 8,693 (491) 4,994 Settlement loss (7,446) — (2,962) (10,408) ($10,654) $19,222 ($3,791) $4,777 Entergy Louisiana Amortization of prior service credit $— $2,853 $— $2,853 Amortization of net gain (loss) (588) 5,292 (1) 4,703 Settlement loss (1,551) — — (1,551) ($2,139) $8,145 ($1) $6,005 Accounting for Pension and Other Postretirement Benefits In accordance with accounting standards, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Qualified Pension Settlement Costs In May 2024, Entergy Corporation entered into a commitment agreement by and between Entergy Corporation, Newport Trust Company, LLC, as independent fiduciary of Entergy Corporation Retirement Plan II for Non-Bargaining Employees, Entergy Corporation Retirement Plan II for Bargaining Employees, Entergy Corporation Retirement Plan III, and Entergy Corporation Retirement Plan IV for Bargaining Employees (the Pension Plans), and the Metropolitan Life Insurance Company (MetLife), under which the Pension Plans purchased a nonparticipating single premium group annuity contract from MetLife to settle approximately $1.157 billion of benefit liabilities of the Pension Plans. The group annuity contract primarily covers a population that includes approximately 3,400 non-utility business retirees, joint annuitants, beneficiaries, and alternate payees who commenced benefit payments from the Pension Plans on or before March 1, 2024 (Transferred Participants). MetLife irrevocably guarantees and assumes the sole obligation to make future monthly pension benefit payments to the Transferred Participants as provided under its group annuity contract, with direct payments that began September 1, 2024. The aggregate amount of each Transferred Participant’s payment under the group annuity contract will be equal to the amount of each individual’s payment under the Pension Plans. The purchase of the group annuity contract was funded directly by assets of the Pension Plans. The transferred pension liability required no additional funding prior to transfer, as the liability was fully funded. As a result of the transaction, Entergy recognized a one-time non-cash pension settlement charge in the second quarter of 2024 of $325 million, of which $8 million was recorded at Utility, as described below, and $317 million was recorded at Parent & Other. The $317 million settlement charge at Parent & Other is reflected in Miscellaneous - net in Other income (deductions) on the consolidated income statements. For the nine months ended September 30, 2023, lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2023 service and interest cost, resulting in settlement costs. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy each participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees and incurred settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans each received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, to track the surplus or deficit in the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amounts recorded are evaluated in each rate case filed by Entergy Texas and an amortization period is determined at that time. See Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs. Employer Contributions Based on current assumptions, Entergy expects to contribute $270 million to its qualified pension plans in 2024. As of September 30, 2024, Entergy had contributed $164.3 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their current and former employees in 2024: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2024 pension contributions $55,112 $48,401 $14,980 $4,931 $8,272 $16,650 Pension contributions made through September 2024 $33,560 $29,375 $9,820 $2,643 $4,782 $9,994 Remaining estimated pension contributions to be made in 2024 $21,552 $19,026 $5,160 $2,288 $3,490 $6,656 |
Entergy Arkansas [Member] | |
Retirement Benefits [Text Block] | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension costs, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $23,358 $25,302 Interest cost on projected benefit obligation 56,631 73,850 Expected return on assets (76,557) (96,775) Recognized net loss 14,322 20,204 Settlement charges — 6,914 Net pension cost $17,754 $29,495 Entergy’s qualified pension costs, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $70,104 $76,346 Interest cost on projected benefit obligation 193,218 223,584 Expected return on assets (262,043) (290,660) Recognized net loss 44,296 63,858 Settlement charges 325,253 152,588 Net pension cost $370,828 $225,716 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,101 $5,550 $1,284 $441 $963 $1,380 Interest cost on projected benefit obligation 13,218 13,962 3,522 1,569 2,832 3,375 Expected return on assets (18,156) (19,446) (5,112) (2,202) (4,077) (4,602) Recognized net loss 5,745 2,601 1,140 471 393 1,155 Net pension cost $4,908 $2,667 $834 $279 $111 $1,308 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,566 $6,175 $1,431 $492 $1,074 $1,430 Interest cost on projected benefit obligation 13,813 14,896 3,797 1,667 3,138 3,419 Expected return on assets (17,639) (18,892) (4,830) (2,206) (4,147) (4,392) Recognized net loss 5,438 4,748 1,545 456 1,008 1,204 Settlement charges 558 561 345 248 632 228 Net pension cost $6,736 $7,488 $2,288 $657 $1,705 $1,889 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $12,300 $16,652 $3,852 $1,321 $2,886 $4,147 Interest cost on projected benefit obligation 39,652 41,884 10,564 4,707 8,494 10,152 Expected return on assets (54,466) (58,340) (15,338) (6,609) (12,231) (13,883) Recognized net loss 17,237 7,805 3,420 1,411 1,179 3,482 Settlement charges — — — — — 611 Net pension cost $14,723 $8,001 $2,498 $830 $328 $4,509 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $13,976 $18,654 $4,369 $1,470 $3,271 $4,342 Interest cost on projected benefit obligation 42,010 45,219 11,551 5,051 9,542 10,382 Expected return on assets (53,593) (56,891) (14,349) (6,783) (12,322) (13,431) Recognized net loss 18,170 14,704 4,937 1,453 3,057 3,939 Settlement charges 24,516 38,791 12,088 1,948 10,902 5,518 Net pension cost $45,079 $60,477 $18,596 $3,139 $14,450 $10,750 Non-Qualified Net Pension Cost Entergy recognized $2.7 million and $21.8 million in pension cost for its non-qualified pension plans for the third quarters of 2024 and 2023, respectively. For the third quarter of 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the third quarter of 2023 were settlement charges of $18 million related to the payment of lump sum benefits out of the plans. Entergy recognized $8.2 million and $39.8 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the nine months ended September 30, 2023 were settlement charges of $27.3 million related to the payment of lump sum benefits out of the plans. The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the third quarters of 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $68 $51 $83 $31 $62 2023 $63 $24 $85 $33 $63 The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the nine months ended September 30, 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $204 $153 $249 $93 $186 2023 $575 $76 $724 $99 $190 For the third quarters of 2024 and 2023, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2024, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2023, there were settlement charges of $379 thousand and $453 thousand for Entergy Arkansas and Entergy Mississippi, respectively, included in the non-qualified pension costs above related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefits Cost (Income) Entergy’s other postretirement benefits income, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $3,126 $3,664 Interest cost on accumulated postretirement benefit obligation (APBO) 9,852 10,568 Expected return on assets (10,569) (9,183) Amortization of prior service credit (5,720) (5,640) Recognized net gain (2,761) (2,862) Net other postretirement benefits income ($6,072) ($3,453) Entergy’s other postretirement benefits income, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $9,378 $10,992 Interest cost on APBO 29,556 31,704 Expected return on assets (31,707) (27,549) Amortization of prior service credit (17,160) (16,920) Recognized net gain (8,283) (8,586) Net other postretirement benefits income ($18,216) ($10,359) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $642 $700 $184 $51 $168 $175 Interest cost on APBO 1,833 1,999 486 253 603 398 Expected return on assets (4,384) — (1,372) (1,479) (2,539) (728) Amortization of prior service cost (credit) 524 (1,136) (239) (229) (1,093) (73) Recognized net (gain) loss — (1,738) 15 19 148 — Net other postretirement benefits income ($1,385) ($175) ($926) ($1,385) ($2,713) ($228) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $741 $845 $220 $59 $202 $189 Interest cost on APBO 2,001 2,233 543 290 649 432 Expected return on assets (3,778) — (1,179) (1,316) (2,194) (634) Amortization of prior service cost (credit) 524 (951) (239) (229) (1,093) (73) Recognized net (gain) loss 43 (1,764) 21 117 229 — Net other postretirement benefits (income) cost ($469) $363 ($634) ($1,079) ($2,207) ($86) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,926 $2,100 $552 $153 $504 $525 Interest cost on APBO 5,499 5,997 1,458 759 1,809 1,194 Expected return on assets (13,152) — (4,116) (4,437) (7,617) (2,184) Amortization of prior service cost (credit) 1,572 (3,408) (717) (687) (3,279) (219) Recognized net (gain) loss — (5,214) 45 57 444 — Net other postretirement benefits income ($4,155) ($525) ($2,778) ($4,155) ($8,139) ($684) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $2,223 $2,535 $660 $177 $606 $567 Interest cost on APBO 6,003 6,699 1,629 870 1,947 1,296 Expected return on assets (11,334) — (3,537) (3,948) (6,582) (1,902) Amortization of prior service cost (credit) 1,572 (2,853) (717) (687) (3,279) (219) Recognized net (gain) loss 129 (5,292) 63 351 687 — Net other postretirement benefits (income) cost ($1,407) $1,089 ($1,902) ($3,237) ($6,621) ($258) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,513 ($40) $3,473 Amortization of net gain (loss) (405) 2,615 (80) 2,130 ($405) $6,128 ($120) $5,603 Entergy Louisiana Amortization of prior service credit $— $1,136 $— $1,136 Amortization of net gain (loss) (104) 1,738 — 1,634 ($104) $2,874 $— $2,770 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,509 ($113) $3,396 Amortization of net gain (loss) (1,064) 2,898 (134) 1,700 Settlement loss (490) — (1,429) (1,919) ($1,554) $6,407 ($1,676) $3,177 Entergy Louisiana Amortization of prior service credit $— $951 $— $951 Amortization of net gain (loss) (190) 1,764 — 1,574 Settlement loss (22) — — (22) ($212) $2,715 $— $2,503 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,539 ($120) $10,419 Amortization of net gain (loss) (2,438) 7,845 (240) 5,167 Settlement loss (316,974) — — (316,974) ($319,412) $18,384 ($360) ($301,388) Entergy Louisiana Amortization of prior service credit $— $3,408 $— $3,408 Amortization of net gain (loss) (312) 5,214 (2) 4,900 ($312) $8,622 ($2) $8,308 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,529 ($338) $10,191 Amortization of net gain (loss) (3,208) 8,693 (491) 4,994 Settlement loss (7,446) — (2,962) (10,408) ($10,654) $19,222 ($3,791) $4,777 Entergy Louisiana Amortization of prior service credit $— $2,853 $— $2,853 Amortization of net gain (loss) (588) 5,292 (1) 4,703 Settlement loss (1,551) — — (1,551) ($2,139) $8,145 ($1) $6,005 Accounting for Pension and Other Postretirement Benefits In accordance with accounting standards, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Qualified Pension Settlement Costs In May 2024, Entergy Corporation entered into a commitment agreement by and between Entergy Corporation, Newport Trust Company, LLC, as independent fiduciary of Entergy Corporation Retirement Plan II for Non-Bargaining Employees, Entergy Corporation Retirement Plan II for Bargaining Employees, Entergy Corporation Retirement Plan III, and Entergy Corporation Retirement Plan IV for Bargaining Employees (the Pension Plans), and the Metropolitan Life Insurance Company (MetLife), under which the Pension Plans purchased a nonparticipating single premium group annuity contract from MetLife to settle approximately $1.157 billion of benefit liabilities of the Pension Plans. The group annuity contract primarily covers a population that includes approximately 3,400 non-utility business retirees, joint annuitants, beneficiaries, and alternate payees who commenced benefit payments from the Pension Plans on or before March 1, 2024 (Transferred Participants). MetLife irrevocably guarantees and assumes the sole obligation to make future monthly pension benefit payments to the Transferred Participants as provided under its group annuity contract, with direct payments that began September 1, 2024. The aggregate amount of each Transferred Participant’s payment under the group annuity contract will be equal to the amount of each individual’s payment under the Pension Plans. The purchase of the group annuity contract was funded directly by assets of the Pension Plans. The transferred pension liability required no additional funding prior to transfer, as the liability was fully funded. As a result of the transaction, Entergy recognized a one-time non-cash pension settlement charge in the second quarter of 2024 of $325 million, of which $8 million was recorded at Utility, as described below, and $317 million was recorded at Parent & Other. The $317 million settlement charge at Parent & Other is reflected in Miscellaneous - net in Other income (deductions) on the consolidated income statements. For the nine months ended September 30, 2023, lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2023 service and interest cost, resulting in settlement costs. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy each participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees and incurred settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans each received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, to track the surplus or deficit in the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amounts recorded are evaluated in each rate case filed by Entergy Texas and an amortization period is determined at that time. See Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs. Employer Contributions Based on current assumptions, Entergy expects to contribute $270 million to its qualified pension plans in 2024. As of September 30, 2024, Entergy had contributed $164.3 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their current and former employees in 2024: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2024 pension contributions $55,112 $48,401 $14,980 $4,931 $8,272 $16,650 Pension contributions made through September 2024 $33,560 $29,375 $9,820 $2,643 $4,782 $9,994 Remaining estimated pension contributions to be made in 2024 $21,552 $19,026 $5,160 $2,288 $3,490 $6,656 |
Entergy Louisiana [Member] | |
Retirement Benefits [Text Block] | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension costs, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $23,358 $25,302 Interest cost on projected benefit obligation 56,631 73,850 Expected return on assets (76,557) (96,775) Recognized net loss 14,322 20,204 Settlement charges — 6,914 Net pension cost $17,754 $29,495 Entergy’s qualified pension costs, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $70,104 $76,346 Interest cost on projected benefit obligation 193,218 223,584 Expected return on assets (262,043) (290,660) Recognized net loss 44,296 63,858 Settlement charges 325,253 152,588 Net pension cost $370,828 $225,716 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,101 $5,550 $1,284 $441 $963 $1,380 Interest cost on projected benefit obligation 13,218 13,962 3,522 1,569 2,832 3,375 Expected return on assets (18,156) (19,446) (5,112) (2,202) (4,077) (4,602) Recognized net loss 5,745 2,601 1,140 471 393 1,155 Net pension cost $4,908 $2,667 $834 $279 $111 $1,308 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,566 $6,175 $1,431 $492 $1,074 $1,430 Interest cost on projected benefit obligation 13,813 14,896 3,797 1,667 3,138 3,419 Expected return on assets (17,639) (18,892) (4,830) (2,206) (4,147) (4,392) Recognized net loss 5,438 4,748 1,545 456 1,008 1,204 Settlement charges 558 561 345 248 632 228 Net pension cost $6,736 $7,488 $2,288 $657 $1,705 $1,889 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $12,300 $16,652 $3,852 $1,321 $2,886 $4,147 Interest cost on projected benefit obligation 39,652 41,884 10,564 4,707 8,494 10,152 Expected return on assets (54,466) (58,340) (15,338) (6,609) (12,231) (13,883) Recognized net loss 17,237 7,805 3,420 1,411 1,179 3,482 Settlement charges — — — — — 611 Net pension cost $14,723 $8,001 $2,498 $830 $328 $4,509 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $13,976 $18,654 $4,369 $1,470 $3,271 $4,342 Interest cost on projected benefit obligation 42,010 45,219 11,551 5,051 9,542 10,382 Expected return on assets (53,593) (56,891) (14,349) (6,783) (12,322) (13,431) Recognized net loss 18,170 14,704 4,937 1,453 3,057 3,939 Settlement charges 24,516 38,791 12,088 1,948 10,902 5,518 Net pension cost $45,079 $60,477 $18,596 $3,139 $14,450 $10,750 Non-Qualified Net Pension Cost Entergy recognized $2.7 million and $21.8 million in pension cost for its non-qualified pension plans for the third quarters of 2024 and 2023, respectively. For the third quarter of 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the third quarter of 2023 were settlement charges of $18 million related to the payment of lump sum benefits out of the plans. Entergy recognized $8.2 million and $39.8 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the nine months ended September 30, 2023 were settlement charges of $27.3 million related to the payment of lump sum benefits out of the plans. The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the third quarters of 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $68 $51 $83 $31 $62 2023 $63 $24 $85 $33 $63 The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the nine months ended September 30, 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $204 $153 $249 $93 $186 2023 $575 $76 $724 $99 $190 For the third quarters of 2024 and 2023, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2024, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2023, there were settlement charges of $379 thousand and $453 thousand for Entergy Arkansas and Entergy Mississippi, respectively, included in the non-qualified pension costs above related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefits Cost (Income) Entergy’s other postretirement benefits income, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $3,126 $3,664 Interest cost on accumulated postretirement benefit obligation (APBO) 9,852 10,568 Expected return on assets (10,569) (9,183) Amortization of prior service credit (5,720) (5,640) Recognized net gain (2,761) (2,862) Net other postretirement benefits income ($6,072) ($3,453) Entergy’s other postretirement benefits income, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $9,378 $10,992 Interest cost on APBO 29,556 31,704 Expected return on assets (31,707) (27,549) Amortization of prior service credit (17,160) (16,920) Recognized net gain (8,283) (8,586) Net other postretirement benefits income ($18,216) ($10,359) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $642 $700 $184 $51 $168 $175 Interest cost on APBO 1,833 1,999 486 253 603 398 Expected return on assets (4,384) — (1,372) (1,479) (2,539) (728) Amortization of prior service cost (credit) 524 (1,136) (239) (229) (1,093) (73) Recognized net (gain) loss — (1,738) 15 19 148 — Net other postretirement benefits income ($1,385) ($175) ($926) ($1,385) ($2,713) ($228) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $741 $845 $220 $59 $202 $189 Interest cost on APBO 2,001 2,233 543 290 649 432 Expected return on assets (3,778) — (1,179) (1,316) (2,194) (634) Amortization of prior service cost (credit) 524 (951) (239) (229) (1,093) (73) Recognized net (gain) loss 43 (1,764) 21 117 229 — Net other postretirement benefits (income) cost ($469) $363 ($634) ($1,079) ($2,207) ($86) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,926 $2,100 $552 $153 $504 $525 Interest cost on APBO 5,499 5,997 1,458 759 1,809 1,194 Expected return on assets (13,152) — (4,116) (4,437) (7,617) (2,184) Amortization of prior service cost (credit) 1,572 (3,408) (717) (687) (3,279) (219) Recognized net (gain) loss — (5,214) 45 57 444 — Net other postretirement benefits income ($4,155) ($525) ($2,778) ($4,155) ($8,139) ($684) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $2,223 $2,535 $660 $177 $606 $567 Interest cost on APBO 6,003 6,699 1,629 870 1,947 1,296 Expected return on assets (11,334) — (3,537) (3,948) (6,582) (1,902) Amortization of prior service cost (credit) 1,572 (2,853) (717) (687) (3,279) (219) Recognized net (gain) loss 129 (5,292) 63 351 687 — Net other postretirement benefits (income) cost ($1,407) $1,089 ($1,902) ($3,237) ($6,621) ($258) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,513 ($40) $3,473 Amortization of net gain (loss) (405) 2,615 (80) 2,130 ($405) $6,128 ($120) $5,603 Entergy Louisiana Amortization of prior service credit $— $1,136 $— $1,136 Amortization of net gain (loss) (104) 1,738 — 1,634 ($104) $2,874 $— $2,770 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,509 ($113) $3,396 Amortization of net gain (loss) (1,064) 2,898 (134) 1,700 Settlement loss (490) — (1,429) (1,919) ($1,554) $6,407 ($1,676) $3,177 Entergy Louisiana Amortization of prior service credit $— $951 $— $951 Amortization of net gain (loss) (190) 1,764 — 1,574 Settlement loss (22) — — (22) ($212) $2,715 $— $2,503 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,539 ($120) $10,419 Amortization of net gain (loss) (2,438) 7,845 (240) 5,167 Settlement loss (316,974) — — (316,974) ($319,412) $18,384 ($360) ($301,388) Entergy Louisiana Amortization of prior service credit $— $3,408 $— $3,408 Amortization of net gain (loss) (312) 5,214 (2) 4,900 ($312) $8,622 ($2) $8,308 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,529 ($338) $10,191 Amortization of net gain (loss) (3,208) 8,693 (491) 4,994 Settlement loss (7,446) — (2,962) (10,408) ($10,654) $19,222 ($3,791) $4,777 Entergy Louisiana Amortization of prior service credit $— $2,853 $— $2,853 Amortization of net gain (loss) (588) 5,292 (1) 4,703 Settlement loss (1,551) — — (1,551) ($2,139) $8,145 ($1) $6,005 Accounting for Pension and Other Postretirement Benefits In accordance with accounting standards, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Qualified Pension Settlement Costs In May 2024, Entergy Corporation entered into a commitment agreement by and between Entergy Corporation, Newport Trust Company, LLC, as independent fiduciary of Entergy Corporation Retirement Plan II for Non-Bargaining Employees, Entergy Corporation Retirement Plan II for Bargaining Employees, Entergy Corporation Retirement Plan III, and Entergy Corporation Retirement Plan IV for Bargaining Employees (the Pension Plans), and the Metropolitan Life Insurance Company (MetLife), under which the Pension Plans purchased a nonparticipating single premium group annuity contract from MetLife to settle approximately $1.157 billion of benefit liabilities of the Pension Plans. The group annuity contract primarily covers a population that includes approximately 3,400 non-utility business retirees, joint annuitants, beneficiaries, and alternate payees who commenced benefit payments from the Pension Plans on or before March 1, 2024 (Transferred Participants). MetLife irrevocably guarantees and assumes the sole obligation to make future monthly pension benefit payments to the Transferred Participants as provided under its group annuity contract, with direct payments that began September 1, 2024. The aggregate amount of each Transferred Participant’s payment under the group annuity contract will be equal to the amount of each individual’s payment under the Pension Plans. The purchase of the group annuity contract was funded directly by assets of the Pension Plans. The transferred pension liability required no additional funding prior to transfer, as the liability was fully funded. As a result of the transaction, Entergy recognized a one-time non-cash pension settlement charge in the second quarter of 2024 of $325 million, of which $8 million was recorded at Utility, as described below, and $317 million was recorded at Parent & Other. The $317 million settlement charge at Parent & Other is reflected in Miscellaneous - net in Other income (deductions) on the consolidated income statements. For the nine months ended September 30, 2023, lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2023 service and interest cost, resulting in settlement costs. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy each participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees and incurred settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans each received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, to track the surplus or deficit in the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amounts recorded are evaluated in each rate case filed by Entergy Texas and an amortization period is determined at that time. See Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs. Employer Contributions Based on current assumptions, Entergy expects to contribute $270 million to its qualified pension plans in 2024. As of September 30, 2024, Entergy had contributed $164.3 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their current and former employees in 2024: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2024 pension contributions $55,112 $48,401 $14,980 $4,931 $8,272 $16,650 Pension contributions made through September 2024 $33,560 $29,375 $9,820 $2,643 $4,782 $9,994 Remaining estimated pension contributions to be made in 2024 $21,552 $19,026 $5,160 $2,288 $3,490 $6,656 |
Entergy Mississippi [Member] | |
Retirement Benefits [Text Block] | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension costs, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $23,358 $25,302 Interest cost on projected benefit obligation 56,631 73,850 Expected return on assets (76,557) (96,775) Recognized net loss 14,322 20,204 Settlement charges — 6,914 Net pension cost $17,754 $29,495 Entergy’s qualified pension costs, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $70,104 $76,346 Interest cost on projected benefit obligation 193,218 223,584 Expected return on assets (262,043) (290,660) Recognized net loss 44,296 63,858 Settlement charges 325,253 152,588 Net pension cost $370,828 $225,716 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,101 $5,550 $1,284 $441 $963 $1,380 Interest cost on projected benefit obligation 13,218 13,962 3,522 1,569 2,832 3,375 Expected return on assets (18,156) (19,446) (5,112) (2,202) (4,077) (4,602) Recognized net loss 5,745 2,601 1,140 471 393 1,155 Net pension cost $4,908 $2,667 $834 $279 $111 $1,308 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,566 $6,175 $1,431 $492 $1,074 $1,430 Interest cost on projected benefit obligation 13,813 14,896 3,797 1,667 3,138 3,419 Expected return on assets (17,639) (18,892) (4,830) (2,206) (4,147) (4,392) Recognized net loss 5,438 4,748 1,545 456 1,008 1,204 Settlement charges 558 561 345 248 632 228 Net pension cost $6,736 $7,488 $2,288 $657 $1,705 $1,889 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $12,300 $16,652 $3,852 $1,321 $2,886 $4,147 Interest cost on projected benefit obligation 39,652 41,884 10,564 4,707 8,494 10,152 Expected return on assets (54,466) (58,340) (15,338) (6,609) (12,231) (13,883) Recognized net loss 17,237 7,805 3,420 1,411 1,179 3,482 Settlement charges — — — — — 611 Net pension cost $14,723 $8,001 $2,498 $830 $328 $4,509 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $13,976 $18,654 $4,369 $1,470 $3,271 $4,342 Interest cost on projected benefit obligation 42,010 45,219 11,551 5,051 9,542 10,382 Expected return on assets (53,593) (56,891) (14,349) (6,783) (12,322) (13,431) Recognized net loss 18,170 14,704 4,937 1,453 3,057 3,939 Settlement charges 24,516 38,791 12,088 1,948 10,902 5,518 Net pension cost $45,079 $60,477 $18,596 $3,139 $14,450 $10,750 Non-Qualified Net Pension Cost Entergy recognized $2.7 million and $21.8 million in pension cost for its non-qualified pension plans for the third quarters of 2024 and 2023, respectively. For the third quarter of 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the third quarter of 2023 were settlement charges of $18 million related to the payment of lump sum benefits out of the plans. Entergy recognized $8.2 million and $39.8 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the nine months ended September 30, 2023 were settlement charges of $27.3 million related to the payment of lump sum benefits out of the plans. The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the third quarters of 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $68 $51 $83 $31 $62 2023 $63 $24 $85 $33 $63 The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the nine months ended September 30, 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $204 $153 $249 $93 $186 2023 $575 $76 $724 $99 $190 For the third quarters of 2024 and 2023, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2024, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2023, there were settlement charges of $379 thousand and $453 thousand for Entergy Arkansas and Entergy Mississippi, respectively, included in the non-qualified pension costs above related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefits Cost (Income) Entergy’s other postretirement benefits income, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $3,126 $3,664 Interest cost on accumulated postretirement benefit obligation (APBO) 9,852 10,568 Expected return on assets (10,569) (9,183) Amortization of prior service credit (5,720) (5,640) Recognized net gain (2,761) (2,862) Net other postretirement benefits income ($6,072) ($3,453) Entergy’s other postretirement benefits income, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $9,378 $10,992 Interest cost on APBO 29,556 31,704 Expected return on assets (31,707) (27,549) Amortization of prior service credit (17,160) (16,920) Recognized net gain (8,283) (8,586) Net other postretirement benefits income ($18,216) ($10,359) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $642 $700 $184 $51 $168 $175 Interest cost on APBO 1,833 1,999 486 253 603 398 Expected return on assets (4,384) — (1,372) (1,479) (2,539) (728) Amortization of prior service cost (credit) 524 (1,136) (239) (229) (1,093) (73) Recognized net (gain) loss — (1,738) 15 19 148 — Net other postretirement benefits income ($1,385) ($175) ($926) ($1,385) ($2,713) ($228) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $741 $845 $220 $59 $202 $189 Interest cost on APBO 2,001 2,233 543 290 649 432 Expected return on assets (3,778) — (1,179) (1,316) (2,194) (634) Amortization of prior service cost (credit) 524 (951) (239) (229) (1,093) (73) Recognized net (gain) loss 43 (1,764) 21 117 229 — Net other postretirement benefits (income) cost ($469) $363 ($634) ($1,079) ($2,207) ($86) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,926 $2,100 $552 $153 $504 $525 Interest cost on APBO 5,499 5,997 1,458 759 1,809 1,194 Expected return on assets (13,152) — (4,116) (4,437) (7,617) (2,184) Amortization of prior service cost (credit) 1,572 (3,408) (717) (687) (3,279) (219) Recognized net (gain) loss — (5,214) 45 57 444 — Net other postretirement benefits income ($4,155) ($525) ($2,778) ($4,155) ($8,139) ($684) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $2,223 $2,535 $660 $177 $606 $567 Interest cost on APBO 6,003 6,699 1,629 870 1,947 1,296 Expected return on assets (11,334) — (3,537) (3,948) (6,582) (1,902) Amortization of prior service cost (credit) 1,572 (2,853) (717) (687) (3,279) (219) Recognized net (gain) loss 129 (5,292) 63 351 687 — Net other postretirement benefits (income) cost ($1,407) $1,089 ($1,902) ($3,237) ($6,621) ($258) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,513 ($40) $3,473 Amortization of net gain (loss) (405) 2,615 (80) 2,130 ($405) $6,128 ($120) $5,603 Entergy Louisiana Amortization of prior service credit $— $1,136 $— $1,136 Amortization of net gain (loss) (104) 1,738 — 1,634 ($104) $2,874 $— $2,770 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,509 ($113) $3,396 Amortization of net gain (loss) (1,064) 2,898 (134) 1,700 Settlement loss (490) — (1,429) (1,919) ($1,554) $6,407 ($1,676) $3,177 Entergy Louisiana Amortization of prior service credit $— $951 $— $951 Amortization of net gain (loss) (190) 1,764 — 1,574 Settlement loss (22) — — (22) ($212) $2,715 $— $2,503 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,539 ($120) $10,419 Amortization of net gain (loss) (2,438) 7,845 (240) 5,167 Settlement loss (316,974) — — (316,974) ($319,412) $18,384 ($360) ($301,388) Entergy Louisiana Amortization of prior service credit $— $3,408 $— $3,408 Amortization of net gain (loss) (312) 5,214 (2) 4,900 ($312) $8,622 ($2) $8,308 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,529 ($338) $10,191 Amortization of net gain (loss) (3,208) 8,693 (491) 4,994 Settlement loss (7,446) — (2,962) (10,408) ($10,654) $19,222 ($3,791) $4,777 Entergy Louisiana Amortization of prior service credit $— $2,853 $— $2,853 Amortization of net gain (loss) (588) 5,292 (1) 4,703 Settlement loss (1,551) — — (1,551) ($2,139) $8,145 ($1) $6,005 Accounting for Pension and Other Postretirement Benefits In accordance with accounting standards, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Qualified Pension Settlement Costs In May 2024, Entergy Corporation entered into a commitment agreement by and between Entergy Corporation, Newport Trust Company, LLC, as independent fiduciary of Entergy Corporation Retirement Plan II for Non-Bargaining Employees, Entergy Corporation Retirement Plan II for Bargaining Employees, Entergy Corporation Retirement Plan III, and Entergy Corporation Retirement Plan IV for Bargaining Employees (the Pension Plans), and the Metropolitan Life Insurance Company (MetLife), under which the Pension Plans purchased a nonparticipating single premium group annuity contract from MetLife to settle approximately $1.157 billion of benefit liabilities of the Pension Plans. The group annuity contract primarily covers a population that includes approximately 3,400 non-utility business retirees, joint annuitants, beneficiaries, and alternate payees who commenced benefit payments from the Pension Plans on or before March 1, 2024 (Transferred Participants). MetLife irrevocably guarantees and assumes the sole obligation to make future monthly pension benefit payments to the Transferred Participants as provided under its group annuity contract, with direct payments that began September 1, 2024. The aggregate amount of each Transferred Participant’s payment under the group annuity contract will be equal to the amount of each individual’s payment under the Pension Plans. The purchase of the group annuity contract was funded directly by assets of the Pension Plans. The transferred pension liability required no additional funding prior to transfer, as the liability was fully funded. As a result of the transaction, Entergy recognized a one-time non-cash pension settlement charge in the second quarter of 2024 of $325 million, of which $8 million was recorded at Utility, as described below, and $317 million was recorded at Parent & Other. The $317 million settlement charge at Parent & Other is reflected in Miscellaneous - net in Other income (deductions) on the consolidated income statements. For the nine months ended September 30, 2023, lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2023 service and interest cost, resulting in settlement costs. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy each participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees and incurred settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans each received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, to track the surplus or deficit in the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amounts recorded are evaluated in each rate case filed by Entergy Texas and an amortization period is determined at that time. See Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs. Employer Contributions Based on current assumptions, Entergy expects to contribute $270 million to its qualified pension plans in 2024. As of September 30, 2024, Entergy had contributed $164.3 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their current and former employees in 2024: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2024 pension contributions $55,112 $48,401 $14,980 $4,931 $8,272 $16,650 Pension contributions made through September 2024 $33,560 $29,375 $9,820 $2,643 $4,782 $9,994 Remaining estimated pension contributions to be made in 2024 $21,552 $19,026 $5,160 $2,288 $3,490 $6,656 |
Entergy New Orleans [Member] | |
Retirement Benefits [Text Block] | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension costs, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $23,358 $25,302 Interest cost on projected benefit obligation 56,631 73,850 Expected return on assets (76,557) (96,775) Recognized net loss 14,322 20,204 Settlement charges — 6,914 Net pension cost $17,754 $29,495 Entergy’s qualified pension costs, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $70,104 $76,346 Interest cost on projected benefit obligation 193,218 223,584 Expected return on assets (262,043) (290,660) Recognized net loss 44,296 63,858 Settlement charges 325,253 152,588 Net pension cost $370,828 $225,716 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,101 $5,550 $1,284 $441 $963 $1,380 Interest cost on projected benefit obligation 13,218 13,962 3,522 1,569 2,832 3,375 Expected return on assets (18,156) (19,446) (5,112) (2,202) (4,077) (4,602) Recognized net loss 5,745 2,601 1,140 471 393 1,155 Net pension cost $4,908 $2,667 $834 $279 $111 $1,308 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,566 $6,175 $1,431 $492 $1,074 $1,430 Interest cost on projected benefit obligation 13,813 14,896 3,797 1,667 3,138 3,419 Expected return on assets (17,639) (18,892) (4,830) (2,206) (4,147) (4,392) Recognized net loss 5,438 4,748 1,545 456 1,008 1,204 Settlement charges 558 561 345 248 632 228 Net pension cost $6,736 $7,488 $2,288 $657 $1,705 $1,889 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $12,300 $16,652 $3,852 $1,321 $2,886 $4,147 Interest cost on projected benefit obligation 39,652 41,884 10,564 4,707 8,494 10,152 Expected return on assets (54,466) (58,340) (15,338) (6,609) (12,231) (13,883) Recognized net loss 17,237 7,805 3,420 1,411 1,179 3,482 Settlement charges — — — — — 611 Net pension cost $14,723 $8,001 $2,498 $830 $328 $4,509 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $13,976 $18,654 $4,369 $1,470 $3,271 $4,342 Interest cost on projected benefit obligation 42,010 45,219 11,551 5,051 9,542 10,382 Expected return on assets (53,593) (56,891) (14,349) (6,783) (12,322) (13,431) Recognized net loss 18,170 14,704 4,937 1,453 3,057 3,939 Settlement charges 24,516 38,791 12,088 1,948 10,902 5,518 Net pension cost $45,079 $60,477 $18,596 $3,139 $14,450 $10,750 Non-Qualified Net Pension Cost Entergy recognized $2.7 million and $21.8 million in pension cost for its non-qualified pension plans for the third quarters of 2024 and 2023, respectively. For the third quarter of 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the third quarter of 2023 were settlement charges of $18 million related to the payment of lump sum benefits out of the plans. Entergy recognized $8.2 million and $39.8 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the nine months ended September 30, 2023 were settlement charges of $27.3 million related to the payment of lump sum benefits out of the plans. The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the third quarters of 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $68 $51 $83 $31 $62 2023 $63 $24 $85 $33 $63 The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the nine months ended September 30, 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $204 $153 $249 $93 $186 2023 $575 $76 $724 $99 $190 For the third quarters of 2024 and 2023, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2024, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2023, there were settlement charges of $379 thousand and $453 thousand for Entergy Arkansas and Entergy Mississippi, respectively, included in the non-qualified pension costs above related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefits Cost (Income) Entergy’s other postretirement benefits income, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $3,126 $3,664 Interest cost on accumulated postretirement benefit obligation (APBO) 9,852 10,568 Expected return on assets (10,569) (9,183) Amortization of prior service credit (5,720) (5,640) Recognized net gain (2,761) (2,862) Net other postretirement benefits income ($6,072) ($3,453) Entergy’s other postretirement benefits income, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $9,378 $10,992 Interest cost on APBO 29,556 31,704 Expected return on assets (31,707) (27,549) Amortization of prior service credit (17,160) (16,920) Recognized net gain (8,283) (8,586) Net other postretirement benefits income ($18,216) ($10,359) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $642 $700 $184 $51 $168 $175 Interest cost on APBO 1,833 1,999 486 253 603 398 Expected return on assets (4,384) — (1,372) (1,479) (2,539) (728) Amortization of prior service cost (credit) 524 (1,136) (239) (229) (1,093) (73) Recognized net (gain) loss — (1,738) 15 19 148 — Net other postretirement benefits income ($1,385) ($175) ($926) ($1,385) ($2,713) ($228) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $741 $845 $220 $59 $202 $189 Interest cost on APBO 2,001 2,233 543 290 649 432 Expected return on assets (3,778) — (1,179) (1,316) (2,194) (634) Amortization of prior service cost (credit) 524 (951) (239) (229) (1,093) (73) Recognized net (gain) loss 43 (1,764) 21 117 229 — Net other postretirement benefits (income) cost ($469) $363 ($634) ($1,079) ($2,207) ($86) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,926 $2,100 $552 $153 $504 $525 Interest cost on APBO 5,499 5,997 1,458 759 1,809 1,194 Expected return on assets (13,152) — (4,116) (4,437) (7,617) (2,184) Amortization of prior service cost (credit) 1,572 (3,408) (717) (687) (3,279) (219) Recognized net (gain) loss — (5,214) 45 57 444 — Net other postretirement benefits income ($4,155) ($525) ($2,778) ($4,155) ($8,139) ($684) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $2,223 $2,535 $660 $177 $606 $567 Interest cost on APBO 6,003 6,699 1,629 870 1,947 1,296 Expected return on assets (11,334) — (3,537) (3,948) (6,582) (1,902) Amortization of prior service cost (credit) 1,572 (2,853) (717) (687) (3,279) (219) Recognized net (gain) loss 129 (5,292) 63 351 687 — Net other postretirement benefits (income) cost ($1,407) $1,089 ($1,902) ($3,237) ($6,621) ($258) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,513 ($40) $3,473 Amortization of net gain (loss) (405) 2,615 (80) 2,130 ($405) $6,128 ($120) $5,603 Entergy Louisiana Amortization of prior service credit $— $1,136 $— $1,136 Amortization of net gain (loss) (104) 1,738 — 1,634 ($104) $2,874 $— $2,770 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,509 ($113) $3,396 Amortization of net gain (loss) (1,064) 2,898 (134) 1,700 Settlement loss (490) — (1,429) (1,919) ($1,554) $6,407 ($1,676) $3,177 Entergy Louisiana Amortization of prior service credit $— $951 $— $951 Amortization of net gain (loss) (190) 1,764 — 1,574 Settlement loss (22) — — (22) ($212) $2,715 $— $2,503 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,539 ($120) $10,419 Amortization of net gain (loss) (2,438) 7,845 (240) 5,167 Settlement loss (316,974) — — (316,974) ($319,412) $18,384 ($360) ($301,388) Entergy Louisiana Amortization of prior service credit $— $3,408 $— $3,408 Amortization of net gain (loss) (312) 5,214 (2) 4,900 ($312) $8,622 ($2) $8,308 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,529 ($338) $10,191 Amortization of net gain (loss) (3,208) 8,693 (491) 4,994 Settlement loss (7,446) — (2,962) (10,408) ($10,654) $19,222 ($3,791) $4,777 Entergy Louisiana Amortization of prior service credit $— $2,853 $— $2,853 Amortization of net gain (loss) (588) 5,292 (1) 4,703 Settlement loss (1,551) — — (1,551) ($2,139) $8,145 ($1) $6,005 Accounting for Pension and Other Postretirement Benefits In accordance with accounting standards, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Qualified Pension Settlement Costs In May 2024, Entergy Corporation entered into a commitment agreement by and between Entergy Corporation, Newport Trust Company, LLC, as independent fiduciary of Entergy Corporation Retirement Plan II for Non-Bargaining Employees, Entergy Corporation Retirement Plan II for Bargaining Employees, Entergy Corporation Retirement Plan III, and Entergy Corporation Retirement Plan IV for Bargaining Employees (the Pension Plans), and the Metropolitan Life Insurance Company (MetLife), under which the Pension Plans purchased a nonparticipating single premium group annuity contract from MetLife to settle approximately $1.157 billion of benefit liabilities of the Pension Plans. The group annuity contract primarily covers a population that includes approximately 3,400 non-utility business retirees, joint annuitants, beneficiaries, and alternate payees who commenced benefit payments from the Pension Plans on or before March 1, 2024 (Transferred Participants). MetLife irrevocably guarantees and assumes the sole obligation to make future monthly pension benefit payments to the Transferred Participants as provided under its group annuity contract, with direct payments that began September 1, 2024. The aggregate amount of each Transferred Participant’s payment under the group annuity contract will be equal to the amount of each individual’s payment under the Pension Plans. The purchase of the group annuity contract was funded directly by assets of the Pension Plans. The transferred pension liability required no additional funding prior to transfer, as the liability was fully funded. As a result of the transaction, Entergy recognized a one-time non-cash pension settlement charge in the second quarter of 2024 of $325 million, of which $8 million was recorded at Utility, as described below, and $317 million was recorded at Parent & Other. The $317 million settlement charge at Parent & Other is reflected in Miscellaneous - net in Other income (deductions) on the consolidated income statements. For the nine months ended September 30, 2023, lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2023 service and interest cost, resulting in settlement costs. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy each participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees and incurred settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans each received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, to track the surplus or deficit in the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amounts recorded are evaluated in each rate case filed by Entergy Texas and an amortization period is determined at that time. See Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs. Employer Contributions Based on current assumptions, Entergy expects to contribute $270 million to its qualified pension plans in 2024. As of September 30, 2024, Entergy had contributed $164.3 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their current and former employees in 2024: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2024 pension contributions $55,112 $48,401 $14,980 $4,931 $8,272 $16,650 Pension contributions made through September 2024 $33,560 $29,375 $9,820 $2,643 $4,782 $9,994 Remaining estimated pension contributions to be made in 2024 $21,552 $19,026 $5,160 $2,288 $3,490 $6,656 |
Entergy Texas [Member] | |
Retirement Benefits [Text Block] | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension costs, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $23,358 $25,302 Interest cost on projected benefit obligation 56,631 73,850 Expected return on assets (76,557) (96,775) Recognized net loss 14,322 20,204 Settlement charges — 6,914 Net pension cost $17,754 $29,495 Entergy’s qualified pension costs, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $70,104 $76,346 Interest cost on projected benefit obligation 193,218 223,584 Expected return on assets (262,043) (290,660) Recognized net loss 44,296 63,858 Settlement charges 325,253 152,588 Net pension cost $370,828 $225,716 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,101 $5,550 $1,284 $441 $963 $1,380 Interest cost on projected benefit obligation 13,218 13,962 3,522 1,569 2,832 3,375 Expected return on assets (18,156) (19,446) (5,112) (2,202) (4,077) (4,602) Recognized net loss 5,745 2,601 1,140 471 393 1,155 Net pension cost $4,908 $2,667 $834 $279 $111 $1,308 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,566 $6,175 $1,431 $492 $1,074 $1,430 Interest cost on projected benefit obligation 13,813 14,896 3,797 1,667 3,138 3,419 Expected return on assets (17,639) (18,892) (4,830) (2,206) (4,147) (4,392) Recognized net loss 5,438 4,748 1,545 456 1,008 1,204 Settlement charges 558 561 345 248 632 228 Net pension cost $6,736 $7,488 $2,288 $657 $1,705 $1,889 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $12,300 $16,652 $3,852 $1,321 $2,886 $4,147 Interest cost on projected benefit obligation 39,652 41,884 10,564 4,707 8,494 10,152 Expected return on assets (54,466) (58,340) (15,338) (6,609) (12,231) (13,883) Recognized net loss 17,237 7,805 3,420 1,411 1,179 3,482 Settlement charges — — — — — 611 Net pension cost $14,723 $8,001 $2,498 $830 $328 $4,509 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $13,976 $18,654 $4,369 $1,470 $3,271 $4,342 Interest cost on projected benefit obligation 42,010 45,219 11,551 5,051 9,542 10,382 Expected return on assets (53,593) (56,891) (14,349) (6,783) (12,322) (13,431) Recognized net loss 18,170 14,704 4,937 1,453 3,057 3,939 Settlement charges 24,516 38,791 12,088 1,948 10,902 5,518 Net pension cost $45,079 $60,477 $18,596 $3,139 $14,450 $10,750 Non-Qualified Net Pension Cost Entergy recognized $2.7 million and $21.8 million in pension cost for its non-qualified pension plans for the third quarters of 2024 and 2023, respectively. For the third quarter of 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the third quarter of 2023 were settlement charges of $18 million related to the payment of lump sum benefits out of the plans. Entergy recognized $8.2 million and $39.8 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the nine months ended September 30, 2023 were settlement charges of $27.3 million related to the payment of lump sum benefits out of the plans. The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the third quarters of 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $68 $51 $83 $31 $62 2023 $63 $24 $85 $33 $63 The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the nine months ended September 30, 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $204 $153 $249 $93 $186 2023 $575 $76 $724 $99 $190 For the third quarters of 2024 and 2023, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2024, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2023, there were settlement charges of $379 thousand and $453 thousand for Entergy Arkansas and Entergy Mississippi, respectively, included in the non-qualified pension costs above related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefits Cost (Income) Entergy’s other postretirement benefits income, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $3,126 $3,664 Interest cost on accumulated postretirement benefit obligation (APBO) 9,852 10,568 Expected return on assets (10,569) (9,183) Amortization of prior service credit (5,720) (5,640) Recognized net gain (2,761) (2,862) Net other postretirement benefits income ($6,072) ($3,453) Entergy’s other postretirement benefits income, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $9,378 $10,992 Interest cost on APBO 29,556 31,704 Expected return on assets (31,707) (27,549) Amortization of prior service credit (17,160) (16,920) Recognized net gain (8,283) (8,586) Net other postretirement benefits income ($18,216) ($10,359) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $642 $700 $184 $51 $168 $175 Interest cost on APBO 1,833 1,999 486 253 603 398 Expected return on assets (4,384) — (1,372) (1,479) (2,539) (728) Amortization of prior service cost (credit) 524 (1,136) (239) (229) (1,093) (73) Recognized net (gain) loss — (1,738) 15 19 148 — Net other postretirement benefits income ($1,385) ($175) ($926) ($1,385) ($2,713) ($228) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $741 $845 $220 $59 $202 $189 Interest cost on APBO 2,001 2,233 543 290 649 432 Expected return on assets (3,778) — (1,179) (1,316) (2,194) (634) Amortization of prior service cost (credit) 524 (951) (239) (229) (1,093) (73) Recognized net (gain) loss 43 (1,764) 21 117 229 — Net other postretirement benefits (income) cost ($469) $363 ($634) ($1,079) ($2,207) ($86) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,926 $2,100 $552 $153 $504 $525 Interest cost on APBO 5,499 5,997 1,458 759 1,809 1,194 Expected return on assets (13,152) — (4,116) (4,437) (7,617) (2,184) Amortization of prior service cost (credit) 1,572 (3,408) (717) (687) (3,279) (219) Recognized net (gain) loss — (5,214) 45 57 444 — Net other postretirement benefits income ($4,155) ($525) ($2,778) ($4,155) ($8,139) ($684) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $2,223 $2,535 $660 $177 $606 $567 Interest cost on APBO 6,003 6,699 1,629 870 1,947 1,296 Expected return on assets (11,334) — (3,537) (3,948) (6,582) (1,902) Amortization of prior service cost (credit) 1,572 (2,853) (717) (687) (3,279) (219) Recognized net (gain) loss 129 (5,292) 63 351 687 — Net other postretirement benefits (income) cost ($1,407) $1,089 ($1,902) ($3,237) ($6,621) ($258) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,513 ($40) $3,473 Amortization of net gain (loss) (405) 2,615 (80) 2,130 ($405) $6,128 ($120) $5,603 Entergy Louisiana Amortization of prior service credit $— $1,136 $— $1,136 Amortization of net gain (loss) (104) 1,738 — 1,634 ($104) $2,874 $— $2,770 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,509 ($113) $3,396 Amortization of net gain (loss) (1,064) 2,898 (134) 1,700 Settlement loss (490) — (1,429) (1,919) ($1,554) $6,407 ($1,676) $3,177 Entergy Louisiana Amortization of prior service credit $— $951 $— $951 Amortization of net gain (loss) (190) 1,764 — 1,574 Settlement loss (22) — — (22) ($212) $2,715 $— $2,503 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,539 ($120) $10,419 Amortization of net gain (loss) (2,438) 7,845 (240) 5,167 Settlement loss (316,974) — — (316,974) ($319,412) $18,384 ($360) ($301,388) Entergy Louisiana Amortization of prior service credit $— $3,408 $— $3,408 Amortization of net gain (loss) (312) 5,214 (2) 4,900 ($312) $8,622 ($2) $8,308 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,529 ($338) $10,191 Amortization of net gain (loss) (3,208) 8,693 (491) 4,994 Settlement loss (7,446) — (2,962) (10,408) ($10,654) $19,222 ($3,791) $4,777 Entergy Louisiana Amortization of prior service credit $— $2,853 $— $2,853 Amortization of net gain (loss) (588) 5,292 (1) 4,703 Settlement loss (1,551) — — (1,551) ($2,139) $8,145 ($1) $6,005 Accounting for Pension and Other Postretirement Benefits In accordance with accounting standards, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Qualified Pension Settlement Costs In May 2024, Entergy Corporation entered into a commitment agreement by and between Entergy Corporation, Newport Trust Company, LLC, as independent fiduciary of Entergy Corporation Retirement Plan II for Non-Bargaining Employees, Entergy Corporation Retirement Plan II for Bargaining Employees, Entergy Corporation Retirement Plan III, and Entergy Corporation Retirement Plan IV for Bargaining Employees (the Pension Plans), and the Metropolitan Life Insurance Company (MetLife), under which the Pension Plans purchased a nonparticipating single premium group annuity contract from MetLife to settle approximately $1.157 billion of benefit liabilities of the Pension Plans. The group annuity contract primarily covers a population that includes approximately 3,400 non-utility business retirees, joint annuitants, beneficiaries, and alternate payees who commenced benefit payments from the Pension Plans on or before March 1, 2024 (Transferred Participants). MetLife irrevocably guarantees and assumes the sole obligation to make future monthly pension benefit payments to the Transferred Participants as provided under its group annuity contract, with direct payments that began September 1, 2024. The aggregate amount of each Transferred Participant’s payment under the group annuity contract will be equal to the amount of each individual’s payment under the Pension Plans. The purchase of the group annuity contract was funded directly by assets of the Pension Plans. The transferred pension liability required no additional funding prior to transfer, as the liability was fully funded. As a result of the transaction, Entergy recognized a one-time non-cash pension settlement charge in the second quarter of 2024 of $325 million, of which $8 million was recorded at Utility, as described below, and $317 million was recorded at Parent & Other. The $317 million settlement charge at Parent & Other is reflected in Miscellaneous - net in Other income (deductions) on the consolidated income statements. For the nine months ended September 30, 2023, lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2023 service and interest cost, resulting in settlement costs. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy each participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees and incurred settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans each received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, to track the surplus or deficit in the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amounts recorded are evaluated in each rate case filed by Entergy Texas and an amortization period is determined at that time. See Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs. Employer Contributions Based on current assumptions, Entergy expects to contribute $270 million to its qualified pension plans in 2024. As of September 30, 2024, Entergy had contributed $164.3 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their current and former employees in 2024: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2024 pension contributions $55,112 $48,401 $14,980 $4,931 $8,272 $16,650 Pension contributions made through September 2024 $33,560 $29,375 $9,820 $2,643 $4,782 $9,994 Remaining estimated pension contributions to be made in 2024 $21,552 $19,026 $5,160 $2,288 $3,490 $6,656 |
System Energy [Member] | |
Retirement Benefits [Text Block] | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension costs, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $23,358 $25,302 Interest cost on projected benefit obligation 56,631 73,850 Expected return on assets (76,557) (96,775) Recognized net loss 14,322 20,204 Settlement charges — 6,914 Net pension cost $17,754 $29,495 Entergy’s qualified pension costs, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $70,104 $76,346 Interest cost on projected benefit obligation 193,218 223,584 Expected return on assets (262,043) (290,660) Recognized net loss 44,296 63,858 Settlement charges 325,253 152,588 Net pension cost $370,828 $225,716 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,101 $5,550 $1,284 $441 $963 $1,380 Interest cost on projected benefit obligation 13,218 13,962 3,522 1,569 2,832 3,375 Expected return on assets (18,156) (19,446) (5,112) (2,202) (4,077) (4,602) Recognized net loss 5,745 2,601 1,140 471 393 1,155 Net pension cost $4,908 $2,667 $834 $279 $111 $1,308 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $4,566 $6,175 $1,431 $492 $1,074 $1,430 Interest cost on projected benefit obligation 13,813 14,896 3,797 1,667 3,138 3,419 Expected return on assets (17,639) (18,892) (4,830) (2,206) (4,147) (4,392) Recognized net loss 5,438 4,748 1,545 456 1,008 1,204 Settlement charges 558 561 345 248 632 228 Net pension cost $6,736 $7,488 $2,288 $657 $1,705 $1,889 The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $12,300 $16,652 $3,852 $1,321 $2,886 $4,147 Interest cost on projected benefit obligation 39,652 41,884 10,564 4,707 8,494 10,152 Expected return on assets (54,466) (58,340) (15,338) (6,609) (12,231) (13,883) Recognized net loss 17,237 7,805 3,420 1,411 1,179 3,482 Settlement charges — — — — — 611 Net pension cost $14,723 $8,001 $2,498 $830 $328 $4,509 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $13,976 $18,654 $4,369 $1,470 $3,271 $4,342 Interest cost on projected benefit obligation 42,010 45,219 11,551 5,051 9,542 10,382 Expected return on assets (53,593) (56,891) (14,349) (6,783) (12,322) (13,431) Recognized net loss 18,170 14,704 4,937 1,453 3,057 3,939 Settlement charges 24,516 38,791 12,088 1,948 10,902 5,518 Net pension cost $45,079 $60,477 $18,596 $3,139 $14,450 $10,750 Non-Qualified Net Pension Cost Entergy recognized $2.7 million and $21.8 million in pension cost for its non-qualified pension plans for the third quarters of 2024 and 2023, respectively. For the third quarter of 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the third quarter of 2023 were settlement charges of $18 million related to the payment of lump sum benefits out of the plans. Entergy recognized $8.2 million and $39.8 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Included in the pension cost for non-qualified pension plans for the nine months ended September 30, 2023 were settlement charges of $27.3 million related to the payment of lump sum benefits out of the plans. The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the third quarters of 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $68 $51 $83 $31 $62 2023 $63 $24 $85 $33 $63 The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the nine months ended September 30, 2024 and 2023: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2024 $204 $153 $249 $93 $186 2023 $575 $76 $724 $99 $190 For the third quarters of 2024 and 2023, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2024, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2023, there were settlement charges of $379 thousand and $453 thousand for Entergy Arkansas and Entergy Mississippi, respectively, included in the non-qualified pension costs above related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefits Cost (Income) Entergy’s other postretirement benefits income, including amounts capitalized, for the third quarters of 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $3,126 $3,664 Interest cost on accumulated postretirement benefit obligation (APBO) 9,852 10,568 Expected return on assets (10,569) (9,183) Amortization of prior service credit (5,720) (5,640) Recognized net gain (2,761) (2,862) Net other postretirement benefits income ($6,072) ($3,453) Entergy’s other postretirement benefits income, including amounts capitalized, for the nine months ended September 30, 2024 and 2023, included the following components: 2024 2023 (In Thousands) Service cost - benefits earned during the period $9,378 $10,992 Interest cost on APBO 29,556 31,704 Expected return on assets (31,707) (27,549) Amortization of prior service credit (17,160) (16,920) Recognized net gain (8,283) (8,586) Net other postretirement benefits income ($18,216) ($10,359) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the third quarters of 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $642 $700 $184 $51 $168 $175 Interest cost on APBO 1,833 1,999 486 253 603 398 Expected return on assets (4,384) — (1,372) (1,479) (2,539) (728) Amortization of prior service cost (credit) 524 (1,136) (239) (229) (1,093) (73) Recognized net (gain) loss — (1,738) 15 19 148 — Net other postretirement benefits income ($1,385) ($175) ($926) ($1,385) ($2,713) ($228) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $741 $845 $220 $59 $202 $189 Interest cost on APBO 2,001 2,233 543 290 649 432 Expected return on assets (3,778) — (1,179) (1,316) (2,194) (634) Amortization of prior service cost (credit) 524 (951) (239) (229) (1,093) (73) Recognized net (gain) loss 43 (1,764) 21 117 229 — Net other postretirement benefits (income) cost ($469) $363 ($634) ($1,079) ($2,207) ($86) The Registrant Subsidiaries’ other postretirement benefits (income) cost, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2024 and 2023, included the following components: 2024 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,926 $2,100 $552 $153 $504 $525 Interest cost on APBO 5,499 5,997 1,458 759 1,809 1,194 Expected return on assets (13,152) — (4,116) (4,437) (7,617) (2,184) Amortization of prior service cost (credit) 1,572 (3,408) (717) (687) (3,279) (219) Recognized net (gain) loss — (5,214) 45 57 444 — Net other postretirement benefits income ($4,155) ($525) ($2,778) ($4,155) ($8,139) ($684) 2023 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $2,223 $2,535 $660 $177 $606 $567 Interest cost on APBO 6,003 6,699 1,629 870 1,947 1,296 Expected return on assets (11,334) — (3,537) (3,948) (6,582) (1,902) Amortization of prior service cost (credit) 1,572 (2,853) (717) (687) (3,279) (219) Recognized net (gain) loss 129 (5,292) 63 351 687 — Net other postretirement benefits (income) cost ($1,407) $1,089 ($1,902) ($3,237) ($6,621) ($258) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,513 ($40) $3,473 Amortization of net gain (loss) (405) 2,615 (80) 2,130 ($405) $6,128 ($120) $5,603 Entergy Louisiana Amortization of prior service credit $— $1,136 $— $1,136 Amortization of net gain (loss) (104) 1,738 — 1,634 ($104) $2,874 $— $2,770 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $3,509 ($113) $3,396 Amortization of net gain (loss) (1,064) 2,898 (134) 1,700 Settlement loss (490) — (1,429) (1,919) ($1,554) $6,407 ($1,676) $3,177 Entergy Louisiana Amortization of prior service credit $— $951 $— $951 Amortization of net gain (loss) (190) 1,764 — 1,574 Settlement loss (22) — — (22) ($212) $2,715 $— $2,503 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2024 and 2023: 2024 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,539 ($120) $10,419 Amortization of net gain (loss) (2,438) 7,845 (240) 5,167 Settlement loss (316,974) — — (316,974) ($319,412) $18,384 ($360) ($301,388) Entergy Louisiana Amortization of prior service credit $— $3,408 $— $3,408 Amortization of net gain (loss) (312) 5,214 (2) 4,900 ($312) $8,622 ($2) $8,308 2023 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service credit (cost) $— $10,529 ($338) $10,191 Amortization of net gain (loss) (3,208) 8,693 (491) 4,994 Settlement loss (7,446) — (2,962) (10,408) ($10,654) $19,222 ($3,791) $4,777 Entergy Louisiana Amortization of prior service credit $— $2,853 $— $2,853 Amortization of net gain (loss) (588) 5,292 (1) 4,703 Settlement loss (1,551) — — (1,551) ($2,139) $8,145 ($1) $6,005 Accounting for Pension and Other Postretirement Benefits In accordance with accounting standards, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Qualified Pension Settlement Costs In May 2024, Entergy Corporation entered into a commitment agreement by and between Entergy Corporation, Newport Trust Company, LLC, as independent fiduciary of Entergy Corporation Retirement Plan II for Non-Bargaining Employees, Entergy Corporation Retirement Plan II for Bargaining Employees, Entergy Corporation Retirement Plan III, and Entergy Corporation Retirement Plan IV for Bargaining Employees (the Pension Plans), and the Metropolitan Life Insurance Company (MetLife), under which the Pension Plans purchased a nonparticipating single premium group annuity contract from MetLife to settle approximately $1.157 billion of benefit liabilities of the Pension Plans. The group annuity contract primarily covers a population that includes approximately 3,400 non-utility business retirees, joint annuitants, beneficiaries, and alternate payees who commenced benefit payments from the Pension Plans on or before March 1, 2024 (Transferred Participants). MetLife irrevocably guarantees and assumes the sole obligation to make future monthly pension benefit payments to the Transferred Participants as provided under its group annuity contract, with direct payments that began September 1, 2024. The aggregate amount of each Transferred Participant’s payment under the group annuity contract will be equal to the amount of each individual’s payment under the Pension Plans. The purchase of the group annuity contract was funded directly by assets of the Pension Plans. The transferred pension liability required no additional funding prior to transfer, as the liability was fully funded. As a result of the transaction, Entergy recognized a one-time non-cash pension settlement charge in the second quarter of 2024 of $325 million, of which $8 million was recorded at Utility, as described below, and $317 million was recorded at Parent & Other. The $317 million settlement charge at Parent & Other is reflected in Miscellaneous - net in Other income (deductions) on the consolidated income statements. For the nine months ended September 30, 2023, lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2023 service and interest cost, resulting in settlement costs. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy each participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees and incurred settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans each received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, to track the surplus or deficit in the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amounts recorded are evaluated in each rate case filed by Entergy Texas and an amortization period is determined at that time. See Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs. Employer Contributions Based on current assumptions, Entergy expects to contribute $270 million to its qualified pension plans in 2024. As of September 30, 2024, Entergy had contributed $164.3 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their current and former employees in 2024: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2024 pension contributions $55,112 $48,401 $14,980 $4,931 $8,272 $16,650 Pension contributions made through September 2024 $33,560 $29,375 $9,820 $2,643 $4,782 $9,994 Remaining estimated pension contributions to be made in 2024 $21,552 $19,026 $5,160 $2,288 $3,490 $6,656 |