Exhibit 99.1
Entergy
639 Loyola Avenue
New Orleans, LA 70113
NEWS
RELEASE
| Date: | Feb. 15, 2017 | ||
| For Release: | Immediately | ||
| Contact: | Kay Jones (Media) (504) 576-4238 cjone22@entergy.com | David Borde (Investor Relations) (504) 576-5668 dborde@entergy.com | |
Entergy Reports Fourth Quarter and Full Year Financial Results;
Initiates 2017 Earnings Guidance
2016 results consistent with guidance; accomplishments set stage for future growth
NEW ORLEANS - Entergy Corporation (NYSE: ETR) reported a fourth quarter 2016 loss of $(9.88) per share on an as-reported basis and earnings of 31 cents per share on an operational basis. For the full year, the company reported a loss of $(3.26) per share on an as-reported basis and operational earnings of $7.11 per share. The as-reported losses for the quarter and full year resulted from asset impairments reflecting the effects of strategic decisions in the EWC business.
“2016 was a pivotal year for our company - a year in which our objectives were ambitious and our execution was on the mark,” said Entergy chairman and chief executive officer Leo Denault. “We completed our plan to exit the merchant power business and transition to a pure-play utility. While previously disclosed charges at our EWC business led to an as-reported loss, adjusted earnings at our core Utility, Parent & Other business increased by more than 40 percent in 2016. Our strong operational results for the year are the outcome of disciplined execution on our strategy over the past few years, a strategy intended to fundamentally reposition our company and set it on a steady, predictable earnings and dividend trajectory.”
Business highlights included the following:
| Table of Contents Page |
News Release1 Appendices8 A: Consolidated Results and Special Items10 B: Variance Analysis12 C: Utility Financial and Operational Measures15 D: EWC Financial and Operational Measures16 E: Consolidated Financial Performance Measures17 F: Definitions, Abbreviations and Acronyms19 G: GAAP to Non-GAAP Reconciliations23 Financial Statements27 |
| • | Entergy initiated 2017 consolidated operational EPS guidance of $4.75 to $5.35 and Utility, Parent & Other adjusted EPS guidance of $4.25 to $4.55. |
| • | Entergy raised its dividend for the second consecutive year. |
| • | The LPSC approved ELL’s application to construct the St. Charles Power Station. |
| • | ELL and EMI made filings requesting approval for AMI investment. |
| • | Entergy made several announcements related to its wholesale strategy, including agreements which will result in the early closure of Indian Point Units 2 and 3 (in 2020 and 2021, respectively) and Palisades (in 2018). |
| • | Moody’s placed the ratings of Entergy Corporation under “review for upgrade” and S&P revised its outlook on Entergy to “positive” from “stable.” |
| • | For the 19th consecutive year, the Edison Electric Institute awarded Entergy’s storm team with emergency response awards for recovery and/or assistance. |
| Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
Fourth Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items) | ||||||
| Fourth Quarter | Year-to-Date | |||||
| 2016 | 2015 | Change | 2016 | 2015 | Change | |
| As-Reported Earnings (Loss) ($ in millions) | (1,769.1) | 99.6 | (1,868.7) | (583.6) | (176.6) | (407.1) |
| Less Special Items | (1,824.6) | (183.0) | (1,641.5) | (1,855.3) | (1,252.4) | (602.9) |
| Operational Earnings | 55.5 | 282.6 | (227.1) | 1,271.7 | 1,075.9 | 195.8 |
| Estimated Weather Impact (after-tax) | 19.1 | (6.1) | 25.2 | 11.1 | 34.6 | (23.5) |
| As-Reported Earnings (Loss) (per share in $) | (9.88) | 0.56 | (10.44) | (3.26) | (0.99) | (2.27) |
| Less Special Items | (10.19) | (1.02) | (9.17) | (10.37) | (6.99) | (3.38) |
| Operational Earnings | 0.31 | 1.58 | (1.27) | 7.11 | 6.00 | 1.11 |
| Estimated Weather Impact | 0.11 | (0.03) | 0.14 | 0.06 | 0.19 | (0.13) |
Totals may not foot due to rounding
Consolidated Results
For fourth quarter 2016, the company reported a loss of $(9.88) per share on an as-reported basis and EPS of 31 cents on an operational basis, compared to fourth quarter 2015 EPS of 56 cents on an as-reported basis and operational EPS of $1.58. For the full year, the company reported an as-reported loss of $(3.26) per share and operational EPS of $7.11, compared to a 2015 as-reported loss of (99) cents per share and operational EPS of $6.00. Summary discussions by business are below.
Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances is provided in Appendix B.
Utility, Parent & Other Results
For fourth quarter 2016, Utility, Parent & Other EPS were 35 cents on an as-reported basis and 27 cents on an adjusted basis. In fourth quarter 2015, Utility, Parent & Other as-reported EPS were $1.42 and a (12) cents per share loss on an adjusted basis. 2015 results included a significant income tax item, a portion of which was reserved for sharing with customers of ELL. Last year’s results also reflected charges for outstanding regulatory matters; there were similar, but smaller, charges in the current period.
The current period results reflected continued growth in the Utility business, including effects of new rate actions that recover investments that benefit customers and improve returns.
Net revenue increased quarter-over-quarter driven largely by the Union acquisition, EAI’s rate case and EMI’s FRP. Revenue increases for Union included amounts to recover operating expenses for the assets.
Billed retail sales volume increased quarter-over-quarter. The increase was partly due to weather, but the Utility realized higher billed sales, even on a weather-adjusted basis, across all customer classes. However, estimated volume in the current unbilled period was lower than fourth quarter 2015.
Utility non-fuel O&M was higher than fourth quarter 2015 due partly to an increase in nuclear generation spending and higher fossil spending primarily related to Union. Pension and OPEB expenses declined quarter-over-quarter.
For the full year, 2016 Utility, Parent & Other EPS were $5.10 on an as-reported basis and $4.38 on an adjusted basis. In comparison, 2015 earnings were $4.97 per share on an as-reported basis and $3.08 per share on an adjusted basis. As-reported results for 2015 included significantly higher income tax items and more favorable weather. Results for 2016 also reflected the effects of continued investment as well as lower operating expenses and lower charges for outstanding regulatory matters.
Appendix C contains additional details on Utility financial and operational measures, including a schedule of Utility, Parent & Other adjusted earnings and EPS which excludes special items and weather and normalizes income taxes.
Entergy Wholesale Commodities Results
For fourth quarter 2016, EWC recorded a $(10.23) per share loss on an as-reported basis and an operational loss of (4) cents per share. For the comparable period in 2015, EWC recorded an as-reported loss of (86) cents per share and operational EPS of 16 cents.
The decrease in EWC’s as-reported results was due largely to impairments and other expenses recorded as a result of strategic decisions for the wholesale business, including decisions to close Palisades and IPEC. Fourth quarter 2015 results also included a gain on the sale of Rhode Island State Energy Center. All of these were considered special items and excluded from operational earnings.
The quarter-over-quarter decline was also due partly to income tax items recorded in 2015, lower price and volume for nuclear assets and higher decommissioning expense (due partly to the establishment of decommissioning liabilities for Indian Point 3 and FitzPatrick in 2016 as a result of a trust transfer agreement Entergy entered into with NYPA). In the current period, EWC results also reflected expense reductions which resulted from recording final court decisions in several lawsuits against the DOE related to spent nuclear fuel storage costs.
For the full year, EWC reported a loss of $(8.36) per share on an as-reported basis and operational EPS of $2.01. In 2015, EWC realized an as-reported loss of $(5.96) per share and operational EPS of $1.03. Both periods reflected the effects of strategic decisions for the EWC business. Other drivers included lower net revenue from the nuclear business, higher decommissioning expense and lower realized earnings on decommissioning trusts. Conversely, 2016 results included significant income tax benefits recorded in the second quarter.
Appendix D contains additional details on EWC financial and operational measures, including a schedule of EWC operational adjusted EBITDA calculations.
Earnings Guidance
Entergy initiated its 2017 operational guidance in the range of $4.75 to $5.35 per share and Utility, Parent & Other adjusted EPS guidance range of $4.25 to $4.55. See webcast presentation slides for additional details.
The company has provided 2017 earnings guidance with regard to the non-GAAP measures of operational EPS and Utility, Parent and Other Adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items, such as impairment charges, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as the company’s recent decisions to shut down or sell its merchant nuclear plants. The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot reasonably estimate all of the special items that may occur for the periods presented. The company’s current estimate for special items in 2017 relates to the decisions to close or sell its merchant nuclear plants; those anticipated special items are expected to decrease as-reported EPS by approximately $2.35 per share. Other special items may occur during the periods presented, the impact of which cannot reasonably be estimated at this time.
Earnings Teleconference
A teleconference will be held at 10 a.m. central time on Wednesday, Feb. 15, 2017, to discuss Entergy’s fourth quarter earnings announcement and the company’s financial performance. The teleconference may be accessed by visiting Entergy’s website at www.entergy.com or by dialing 844-309-6569, conference ID 52887956, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy’s website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy’s website at www.entergy.com and by telephone. The telephone replay will be available through Feb. 22, 2017, by dialing 855-859-2056, conference ID 52887956. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and more than 13,000 employees.
Entergy Corporation’s common stock is listed on the New York and Chicago stock exchanges under the symbol “ETR.”
Details regarding Entergy’s results of operations, regulatory proceedings and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast slide presentation. Both documents are available on Entergy’s Investor Relations website at www.entergy.com/investor_relations and on Entergy’s Investor Relations mobile web app at iretr.com.
For definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F and Appendix G.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this release and the presentation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Certain non-GAAP measures in this news release could differ from GAAP only in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of “special items.” Special items are unusual or non-recurring items or events or other non-routine items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairment charges, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as Entergy’s recent decisions to shut down or sell its merchant nuclear plants. Operational earnings per share are presented for each of Entergy’s reportable business segments as well as on a consolidated basis. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; non-fuel operation and maintenance expenses; average total revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as “operational” would exclude the effect of special items as defined above. Entergy also reports Utility, Parent & Other adjusted earnings and earnings per share, which exclude from GAAP earnings the special items described above and weather and normalizes tax expense for the periods presented. Management believes that financial metrics calculated using operational earnings or otherwise adjusted as described above could provide useful information to investors in evaluating the ongoing results of Entergy’s businesses and could assist investors in comparing Entergy’s operating performance to the operating performance of others in the Utility sector.
Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; debt to operational adjusted EBITDA, excluding securitization debt; operational FFO to debt ratio, excluding securitization debt; are measures Entergy uses internally for management and board discussions and cash budgeting and performance monitoring activities to gauge the overall strength of its business. Entergy believes the above data could provide useful information to investors in evaluating Entergy’s ongoing financial results and flexibility, and could assist investors in comparing Entergy’s credit and liquidity to the credit and liquidity of others in the Utility sector.
The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. These non-GAAP
financial measures reflect an additional way of viewing aspects of Entergy’s operations that, when viewed with Entergy’s GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, could provide a more complete understanding of factors and trends affecting Entergy’s business. Investors are strongly encouraged to review Entergy’s consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. Non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
Cautionary Note Regarding Forward-Looking Statements
In this news release, and from time to time, Entergy Corporation makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy’s 2017 earnings guidance, its current financial and operational outlook, and other statements of Entergy’s plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this press release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy’s nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.
Fourth Quarter 2016 Earnings Release Appendices and Financial Statements
Appendices
Seven appendices are presented in this section as follows:
| • | A: Consolidated Results and Special Items |
| • | B: Variance Analysis |
| • | C: Utility Financial and Operational Measures |
| • | D: EWC Financial and Operational Measures |
| • | E: Consolidated Financial Performance Measures |
| • | F: Definitions, Abbreviations and Acronyms |
| • | G: GAAP to Non-GAAP Reconciliations |
Also included in this earnings release are:
| • | Financial Statements |
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated EPS for current quarter and year-to-date 2016 versus 2015, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Fourth Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A-3 and Appendix A-4 for details on special items) | ||||||
| (Per share in $) | ||||||
| Fourth Quarter | Year-to-Date | |||||
| 2016 | 2015 | Change | 2016 | 2015 | Change | |
| As-reported | ||||||
| Utility | 0.67 | 1.75 | (1.08) | 6.34 | 6.12 | 0.22 |
| Parent & Other | (0.32) | (0.33) | 0.01 | (1.24) | (1.15) | (0.09) |
| EWC | (10.23) | (0.86) | (9.37) | (8.36) | (5.96) | (2.40) |
| Consolidated as-reported earnings | (9.88) | 0.56 | (10.44) | (3.26) | (0.99) | (2.27) |
| Less special items | ||||||
| Utility | — | — | — | — | — | — |
| Parent & Other | — | — | — | — | — | — |
| EWC | (10.19) | (1.02) | (9.17) | (10.37) | (6.99) | (3.38) |
| Consolidated special items | (10.19) | (1.02) | (9.17) | (10.37) | (6.99) | (3.38) |
| Operational | ||||||
| Utility | 0.67 | 1.75 | (1.08) | 6.34 | 6.12 | 0.22 |
| Parent & Other | (0.32) | (0.33) | 0.01 | (1.24) | (1.15) | (0.09) |
| EWC | (0.04) | 0.16 | (0.20) | 2.01 | 1.03 | 0.98 |
| Consolidated operational earnings | 0.31 | 1.58 | (1.27) | 7.11 | 6.00 | 1.11 |
| Estimated weather impact | 0.11 | (0.03) | 0.14 | 0.06 | 0.19 | (0.13) |
Totals may not foot due to rounding
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for special items by driver.
Appendix A-2 provides the components of OCF contributed by each business for current quarter and year-to-date 2016 versus 2015.
| Appendix A-2: Consolidated Operating Cash Flow | ||||||
| Fourth Quarter and Year-to-Date 2016 vs. 2015 | ||||||
| ($ in millions) | ||||||
| Fourth Quarter | Year-to-Date | |||||
| 2016 | 2015 | Change | 2016 | 2015 | Change | |
| Utility | 783 | 858 | (75) | 2,861 | 2,907 | (46) |
| Parent & Other | 53 | 3 | 50 | (108) | (78) | (30) |
| EWC | (90) | 81 | (171) | 246 | 462 | (216) |
| Total OCF | 746 | 942 | (195) | 2,999 | 3,291 | (292) |
Totals may not foot due to rounding
The quarter-over-quarter OCF decrease reflected timing in the recovery of fuel and purchased power costs, net of increases in Utility net revenue, and higher pension funding. These items were partially offset by changes in working capital.
For the full year, OCF declined due to timing in the recovery of fuel and purchased power costs, net of increases in Utility net revenue, and lower EWC net revenues. These items were partially offset by receipt of DOE litigation awards, lower severance and retention payments and lower refueling outage payments at EWC.
For both the fourth quarter and full year, intercompany income tax payments contributed to the line of business variances.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both a net income basis and an EPS basis. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational EPS is considered a non-GAAP measure.
| Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
| Fourth Quarter and Year-to-Date 2016 vs. 2015 | ||||||
| Fourth Quarter | Year-to-Date | |||||
| 2016 | 2015 | Change | 2016 | 2015 | Change | |
| (Pre-tax except for income tax effects and total, $ in millions) | ||||||
| EWC | ||||||
| EWC Nuclear plant impairments and costs associated with decisions to close or sell plants | (2,828.5) | (400.7) | (2,427.8) | (2,909.8) | (2,053.5) | (856.3) |
| Top Deer investment impairment | — | (36.8) | 36.8 | — | (36.8) | 36.8 |
| Gain on the sale of RISEC | — | 154.0 | (154.0) | — | 154.0 | (154.0) |
| DOE litigation awards for VY and FitzPatrick | — | — | — | 33.8 | — | 33.8 |
| Income tax effect on adjustments above (a) | 1,003.9 | 100.4 | 903.5 | 1,020.7 | 683.8 | 336.9 |
| Total EWC | (1,824.6) | (183.0) | (1,641.5) | (1,855.3) | (1,252.4) | (602.9) |
| Total special items | (1,824.6) | (183.0) | (1,641.5) | (1,855.3) | (1,252.4) | (602.9) |
| (After-tax, per share in $) (b) | ||||||
| EWC | ||||||
| EWC Nuclear plant impairments and costs associated with decisions to close or sell plants | (10.19) | (1.45) | (8.74) | (10.49) | (7.42) | (3.07) |
| Top Deer investment impairment | — | (0.13) | 0.13 | — | (0.13) | 0.13 |
| Gain on the sale of RISEC | — | 0.56 | (0.56) | — | 0.56 | (0.56) |
| DOE litigation awards for VY and FitzPatrick | — | — | — | 0.12 | — | 0.12 |
| Total EWC | (10.19) | (1.02) | (9.17) | (10.37) | (6.99) | (3.38) |
| Total special items | (10.19) | (1.02) | (9.17) | (10.37) | (6.99) | (3.38) |
Totals may not foot due to rounding
| (a) | Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply |
| (b) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the fully diluted average shares outstanding for the period |
| Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
| Fourth Quarter and Year-to-Date 2016 vs. 2015 | ||||||
| (Pre-tax except for Income taxes - other and Total, $ in millions) | ||||||
| Fourth Quarter | Year-to-Date | |||||
| 2016 | 2015 | Change | 2016 | 2015 | Change | |
| EWC | ||||||
| Net revenue | 33.3 | — | 33.3 | 40.7 | — | 40.7 |
| Non-fuel O&M | (57.5) | (6.2) | (51.3) | (75.6) | (17.0) | (58.6) |
| Taxes other than income taxes | (1.8) | (0.5) | (1.3) | (5.5) | (0.3) | (5.2) |
| Asset write-off and impairments | (2,802.5) | (394.0) | (2,408.5) | (2,835.6) | (2,036.2) | (799.4) |
| Gain on sale of asset | — | 154.0 | (154.0) | — | 154.0 | (154.0) |
| Miscellaneous net (other income) | — | (36.8) | 36.8 | — | (36.8) | 36.8 |
| Income taxes (c) | 1,003.9 | 100.4 | 903.5 | 1,020.7 | 683.8 | 336.9 |
| Total EWC | (1,824.6) | (183.0) | (1,641.5) | (1,855.3) | (1,252.4) | (602.9) |
| Total special items (after-tax) | (1,824.6) | (183.0) | (1,641.5) | (1,855.3) | (1,252.4) | (602.9) |
Totals may not foot due to rounding
| (c) | Income taxes represents the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item |
B: Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2016 versus 2015 as-reported and operational earnings variance analysis for Utility, Parent & Other, EWC and Consolidated.
| Appendix B-1: As-Reported and Operational EPS Variance Analysis (d) | |||||||||||
| Fourth Quarter 2016 vs. 2015 | |||||||||||
| (After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
| Utility | Parent & Other | EWC | Consolidated | ||||||||
| As-Reported | Opera-tional | As-Reported | Opera-tional | As- Reported | Opera-tional | As- Reported | Opera- tional | ||||
| 2015 earnings | 1.75 | 1.75 | (0.33) | (0.33) | (0.86) | 0.16 | 0.56 | 1.58 | |||
| Net revenue | 0.83 | 0.83 | (e) | — | — | 0.03 | (0.09) | (f) | 0.86 | 0.74 | |
| Asset write-offs and impairments | 0.24 | 0.24 | (g) | — | — | (8.66) | — | (h) | (8.42) | 0.24 | |
| Taxes other than income taxes | (0.01) | (0.01) | — | — | 0.02 | 0.03 | 0.01 | 0.02 | |||
| Preferred dividend requirements | 0.01 | 0.01 | — | — | — | — | 0.01 | 0.01 | |||
| Other income (deductions)-other | 0.02 | 0.02 | 0.03 | 0.03 | 0.09 | (0.04) | (i) | 0.14 | 0.01 | ||
| Gain on sale of asset | — | — | — | — | (0.56) | — | (j) | (0.56) | — | ||
| Interest expense and other charges | (0.01) | (0.01) | (0.02) | (0.02) | 0.01 | 0.01 | (0.02) | (0.02) | |||
| Depreciation/ amortization expense | (0.05) | (0.05) | (k) | — | — | 0.03 | 0.03 | (0.02) | (0.02) | ||
| Non-fuel O&M | (0.11) | (0.11) | (l) | (0.01) | (0.01) | (0.14) | 0.05 | (m) | (0.26) | (0.07) | |
| Decommissioning expense | (0.01) | (0.01) | — | — | (0.08) | (0.08) | (n) | (0.09) | (0.09) | ||
| Income taxes - other | (1.99) | (1.99) | (o) | 0.01 | 0.01 | (0.11) | (0.11) | (p) | (2.09) | (2.09) | |
| 2016 earnings | 0.67 | 0.67 | (0.32) | (0.32) | (10.23) | (0.04) | (9.88) | 0.31 | |||
| Appendix B-2: As-Reported and Operational EPS Variance Analysis (d) | |||||||||||
| Year-to-Date 2016 vs. 2015 | |||||||||||
| (After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
| Utility | Parent & Other | EWC | Consolidated | ||||||||
As- Reported | Opera- tional | As- Reported | Opera-tional | As- Reported | Opera-tional | As- Reported | Opera- Tional | ||||
| 2015 earnings | 6.12 | 6.12 | (1.15) | (1.15) | (5.96) | 1.03 | (0.99) | 6.00 | |||
| Net revenue | 1.21 | 1.21 | (e) | — | — | (0.45) | (0.60) | (f) | 0.76 | 0.61 | |
| Non-fuel O&M | 0.25 | 0.25 | (l) | (0.03) | (0.03) | 0.14 | 0.35 | (m) | 0.36 | 0.57 | |
| Asset write-offs and impairments | 0.24 | 0.24 | (g) | — | — | (2.87) | — | (h) | (2.63) | 0.24 | |
| Taxes other than income taxes | 0.04 | 0.04 | — | — | 0.06 | 0.08 | (q) | 0.10 | 0.12 | ||
| Gain on sale of asset | — | — | — | — | (0.56) | — | (j) | (0.56) | — | ||
| Other income (deductions)-other | 0.05 | 0.05 | (r) | 0.02 | 0.02 | 0.03 | (0.10) | (i) | 0.10 | (0.03) | |
| Depreciation/ amortization expense | (0.17) | (0.17) | (k) | — | — | 0.14 | 0.14 | (s) | (0.03) | (0.03) | |
| Interest expense and other charges | (0.05) | (0.05) | (t) | (0.04) | (0.04) | 0.02 | 0.02 | (0.07) | (0.07) | ||
| Income taxes - other | (1.32) | (1.32) | (o) | (0.04) | (0.04) | 1.23 | 1.23 | (p) | (0.13) | (0.13) | |
| Decommissioning expense | (0.03) | (0.03) | — | — | (0.14) | (0.14) | (n) | (0.17) | (0.17) | ||
| 2016 earnings | 6.34 | 6.34 | (1.24) | (1.24) | (8.36) | 2.01 | (3.26) | 7.11 | |||
Totals may not foot due to rounding
See appendix in the webcast slide presentation for additional details on EWC line item variances.
Utility As-Reported Net Revenue Variance Analysis 2016 vs. 2015 ($ EPS) | ||
| Fourth Quarter | Year-to- Date | |
| Estimated weather | 0.14 | (0.13) |
| Sales growth/pricing | 0.29 | 1.15 |
| Regulatory charges | 0.38 | 0.32 |
| Other | 0.02 | (0.13) |
| Total | 0.83 | 1.21 |
| (d) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and then dividing by the fully diluted average shares outstanding for the period; income taxes - other represents income tax differences other than the tax effect of individual line items. |
| (e) | The current quarter and year-to-date increases were due partly to rate changes associated with the Union acquisition, EAI’s rate case and EMI’s FRP. In addition, regulatory charges recorded in fourth quarter 2015, which were for tax sharing agreements, reduced net revenue in that period. The effect of weather was positive quarter-over-quarter but negative in the year-to-date variance. The year-to-date increase also reflected higher industrial usage. |
| (f) | The current quarter and year-to-date as-reported results included cost reimbursements which are part of the FitzPatrick sale agreement (classified as special items and offset in non-fuel O&M). The current quarter and year-to-date periods also reflected lower energy price and volume for nuclear assets. The sale of the RISEC facility in December 2015 also reduced net revenue period-over-period. In the year-to-date period, nuclear fuel expense declined due largely to impairments recorded in 2015. |
| (g) | The current quarter and year-to-date increases were driven by regulatory charges recorded in fourth quarter 2015 arising from the Waterford 3 replacement steam generator prudence review proceeding and the System Agreement termination settlement agreement. |
| (h) | The as-reported current quarter and year-to-date decreases were due primarily to non-cash impairment charges and related write-offs for Palisades and Indian Point Units 2 and 3 recorded in fourth quarter 2016. EWC also recorded |
impairment charges and related write-offs in 2015 for Pilgrim, FitzPatrick and Palisades. Both periods also included write-offs of ongoing capital investment for plants that continue to operate.
| (i) | The current quarter and year-to-date as-reported increases were due largely to the fourth quarter 2015 asset impairment on EWC’s ownership interest in the Top Deer wind generation investment, which was accounted for under the equity method of accounting (classified as a special item). The year-to-date operational decrease was due primarily to higher realized gains in 2015 on decommissioning trusts, including the rebalancing of VY's decommissioning trust portfolio. |
| (j) | The as-reported decreases in the current quarter and year-to-date periods were attributable to the fourth quarter 2015 gain on sale of the RISEC facility (classified as a special item). |
| (k) | The current quarter and year-to-date decreases were due primarily to additions to plant, including Union, which was acquired in March 2016. In the year-to-date period, the decrease was partially offset by a reduction in depreciation expense which resulted from litigation awards from the DOE in connection with spent nuclear fuel storage costs in third quarter 2016. |
| (l) | The current quarter decrease reflected higher nuclear generation spending (higher overall scope of work and higher labor costs) and increased fossil spending primarily related to the Union plant (offset in net revenue). Lower pension and OPEB expenses, stemming partly from a higher discount rate, partly offset the decreases. The year-to-date increase reflected lower pension and OPEB expenses and lower spending on fossil outages. Non-fuel O&M expense was also reduced as a result of litigation awards from the DOE in connection with spent nuclear fuel storage costs, a deferral recorded at EAI in first quarter 2016 and lower energy efficiency costs. The expense decreases were partially offset by Union expenses (acquired in 2016) (offset in net revenue) and higher nuclear generation spending. |
| (m) | The current quarter and year-to-date as-reported results included higher expenses resulting from the decisions to close or sell merchant nuclear plants (these expenses were considered special items and excluded from operational results). Fourth quarter 2016 also included FitzPatrick plant costs that are being reimbursed and offset in net revenue (also considered a special item). The current quarter and year-to-date variances also reflected the sale of the RISEC facility in December 2015, a reduction in expense for DOE litigation awards in connection with spent nuclear fuel storage costs and lower benefit expenses. These were partially offset by higher site expenses and an increase in costs related to Pilgrim’s response to a planned NRC enhanced inspection. The year-to-date increase also reflected a reduction in expense for litigation proceeds received from the DOE in second quarter 2016 (approximately 12 cents EPS received for VY and FitzPatrick was considered a special item) and lower refueling outage expense, largely as a result of 2015 impairments. |
| (n) | The current quarter and year-to-date decreases were due to the establishment of decommissioning liabilities for Indian Point 3 and FitzPatrick in 2016 and revisions to decommissioning cost studies at other EWC nuclear facilities in 2015. |
| (o) | The current quarter and year-to-date decreases were due primarily to an income tax item in fourth quarter 2015 of approximately $334 million resulting from the ELL business combination (this was partly offset by customer sharing recorded as a regulatory charge, included in net revenue). A 2015 audit settlement in Mississippi of $15 million also contributed to the decreases. The year-to-date decrease also reflected a first quarter 2015 adjustment of $24 million involving the reversal of a portion of the provision for uncertain tax provisions related to interest accrual. These items were partly offset by the second quarter 2016 reversal of a portion of the provision for uncertain tax positions totaling $136 million for two previous positions that were resolved in the 2010-2011 tax audit (this was partly offset by customer sharing recorded as a regulatory charge, included in net revenue). |
| (p) | The current quarter decrease was due largely to state tax effects from the 2015 settlement on the 2008/2009 audit. The year-to-date increase also reflected the second quarter 2016 tax election which reduced income tax expense by $238 million. |
| (q) | The year-to-date increase was due largely to lower sales and use tax and the effect of the 2015 New York state audit settlement. |
| (r) | The year-to-date increase was due primarily to higher AFUDC-equity funds, resulting from higher average CWIP balances. |
| (s) | The year-to-date increase resulted from 2015 impairments, recording the effects of DOE litigation proceeds related to spent nuclear fuel storage costs and the sale of RISEC. |
| (t) | The year-to-date decrease resulted primarily from higher interest expense on long-term debt resulting from additional debt issuances. |
C: Utility Financial and Operational Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other adjusted earnings and EPS, which excludes the effects of special items and weather and normalizes income tax expense.
| Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS - Reconciliation of GAAP to Non-GAAP Measures | ||||||
Fourth Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for details on special items) | ||||||
| Fourth Quarter | Year-to-Date | |||||
| 2016 | 2015 | Change | 2016 | 2015 | Change | |
| ($ in millions) | ||||||
| Utility as-reported earnings | 120.4 | 313.7 | (193.3) | 1,134.2 | 1,096.9 | 37.3 |
| Parent & Other as-reported earnings (loss) | (57.1) | (59.5) | 2.3 | (222.5) | (205.6) | (16.9) |
| UP&O as-reported earnings | 63.3 | 254.3 | (191.0) | 911.7 | 891.3 | 20.4 |
| Less: | ||||||
| Special items | — | — | — | — | — | — |
| Weather | 31.0 | (9.9) | 40.9 | 18.1 | 56.3 | (38.2) |
| Tax effect of weather (u) | (12.0) | 3.8 | (15.8) | (7.0) | (21.7) | 14.7 |
| Estimated weather impact (after-tax) | 19.1 | (6.1) | 25.1 | 11.1 | 34.6 | (23.5) |
| Customer sharing | — | (107.0) | 107.0 | (16.1) | (107.0) | 90.9 |
| Tax effect of customer sharing | — | 41.2 | (41.2) | 6.2 | 41.2 | (35.0) |
| Other tax items | (4.9) | 347.5 | (352.4) | 126.9 | 370.0 | (243.1) |
| Tax items, net of customer sharing | (4.9) | 281.6 | (286.5) | 117.0 | 304.2 | (187.2) |
| UP&O adjusted earnings (loss) | 49.2 | (21.3) | 70.5 | 783.6 | 552.5 | 231.1 |
| (After tax, per share in $) | ||||||
| UP&O as-reported earnings | 0.35 | 1.42 | (1.07) | 5.10 | 4.97 | 0.13 |
| Less: | ||||||
| Special items | — | — | — | — | — | — |
| Weather | 0.11 | (0.03) | 0.14 | 0.06 | 0.19 | (0.13) |
| UP&O tax items, net of customer sharing | (0.03) | 1.57 | (1.60) | 0.66 | 1.70 | (1.04) |
| UP&O adjusted earnings (loss) | 0.27 | (0.12) | 0.39 | 4.38 | 3.08 | 1.30 |
Totals may not foot due to rounding
| (u) | Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply to those adjustments |
Appendix C-2 provides a comparative summary of Utility operational performance measures.
| Appendix C-2: Utility Operational Performance Measures | ||||||||
Fourth Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||||
| Fourth Quarter | Year-to-Date | |||||||
| 2016 | 2015 | % Change | % Weather Adjusted | 2016 | 2015 | % Change | % Weather Adjusted | |
| GWh billed | ||||||||
| Residential | 8,077 | 7,385 | 9.4% | 1.5% | 35,112 | 36,068 | (2.7%) | (0.1%) |
| Commercial | 7,259 | 6,979 | 4.0% | 1.1% | 29,197 | 29,348 | (0.5%) | (0.9%) |
| Governmental | 635 | 627 | 1.2% | 1.2% | 2,547 | 2,514 | 1.3% | 1.3% |
| Industrial | 11,158 | 11,152 | 0.1% | 0.1% | 45,739 | 44,382 | 3.1% | 3.1% |
| Total retail sales | 27,129 | 26,143 | 3.8% | 0.8% | 112,595 | 112,312 | 0.3% | 1.0% |
| Wholesale | 1,602 | 1,739 | (7.9%) | 11,054 | 9,274 | 19.2% | ||
| Total sales | 28,731 | 27,882 | 3.0% | 123,649 | 121,586 | 1.7% | ||
| Number of electric retail customers | ||||||||
| Residential | 2,452,686 | 2,431,984 | 0.9% | |||||
| Commercial | 352,147 | 348,840 | 0.9% | |||||
| Governmental | 17,731 | 17,899 | (0.9%) | |||||
| Industrial | 46,252 | 46,572 | (0.7%) | |||||
| Total retail customers | 2,868,816 | 2,845,295 | 0.8% | |||||
| As-reported net revenue ($ in millions) | 1,421 | 1,181 | 20.3% | 6,179 | 5,829 | 6.0% | ||
| As-reported non-fuel O&M per MWh | $24.62 | $24.05 | 2.4% | $20.16 | $21.06 | (4.3%) | ||
| Operational non-fuel O&M per MWh | $24.62 | $24.05 | 2.4% | $20.16 | $21.06 | (4.3%) | ||
The effects of weather were estimated using monthly heating degree days and cooling degree days from certain locations within each jurisdiction and comparing to “normal” weather based on 20 year historical data. The models used to estimate weather are updated periodically and subject to change.
D: EWC Financial and Operational Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA.
| Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
| Fourth Quarter and Year-to-Date 2016 vs. 2015 | ||||||
| ($ in millions) | Fourth Quarter | Year-to-Date | ||||
| 2016 | 2015 | Change | 2016 | 2015 | Change | |
| Net income | (1,832) | (154) | (1,678) | (1,493) | (1,066) | (427) |
| Add back: interest expense | 5 | 8 | (3) | 23 | 27 | (4) |
| Add back: income taxes | (1,016) | (123) | (893) | (1,192) | (610) | (582) |
| Add back: depreciation and amortization | 45 | 53 | (8) | 200 | 239 | (39) |
| Subtract: interest and investment income | 21 | 33 | (12) | 108 | 149 | (41) |
| Add back: decommissioning expense | 58 | 36 | 22 | 175 | 138 | 37 |
| Adjusted EBITDA | (2,761) | (213) | (2,548) | (2,396) | (1,421) | (975) |
| Add back pre-tax special items for: | ||||||
| EWC Nuclear plant impairments and costs associated with decisions to close or sell plants | 2,829 | 401 | 2,428 | 2,910 | 2,054 | 856 |
| Top Deer investment impairment | — | 37 | (37) | — | 37 | (37) |
| Gain on the sale of RISEC | — | (154) | 154 | — | (154) | 154 |
| DOE litigation awards for VY and FitzPatrick | — | — | — | (34) | — | (34) |
| Operational adjusted EBITDA | 68 | 70 | (2) | 480 | 515 | (35) |
Totals may not foot due to rounding
Appendix D-2 provides a comparative summary of EWC operational performance measures.
| Appendix D-2: EWC Operational Performance Measures | ||||||
| Fourth Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||
| Fourth Quarter | Year-to-Date | |||||
| 2016 | 2015 | % Change | 2016 | 2015 | % Change | |
| Owned capacity (MW) (v) | 4,800 | 4,880 | 0 | |||
| GWh billed | 9,397 | 10,135 | (7.3%) | 35,881 | 39,745 | (9.7%) |
| As-reported average total revenue per MWh | $54.07 | $45.21 | 19.6% | $51.55 | $51.88 | (0.6%) |
| Adjusted operational average total revenue per MWh | $43.72 | $44.83 | (2.5%) | $48.16 | $51.49 | (6.5%) |
| As-reported net revenue ($ in millions) | 387 | 379 | 2.1% | 1,542 | 1,666 | (7.4%) |
| As-reported non-fuel O&M per MWh | $33.86 | $27.67 | 22.4% | $27.75 | $25.99 | 6.8% |
| Operational non-fuel O&M per MWh | $27.74 | $27.06 | 2.5% | $25.65 | $25.57 | 0.3% |
| EWC Nuclear Fleet | ||||||
| Capacity factor | 91% | 94% | (3.2%) | 87% | 91% | (4.4%) |
| GWh billed | 8,881 | 9,561 | (7.1%) | 33,551 | 35,859 | (6.4%) |
| As-reported average total revenue per MWh | $54.25 | $44.71 | 21.3% | $51.90 | $51.49 | 0.8% |
| Adjusted operational average total revenue per MWh | $43.29 | $44.31 | (2.3%) | $48.28 | $51.07 | (5.5%) |
| Production cost per MWh | $23.00 | $22.63 | 1.6% | $22.93 | $25.30 | (9.4%) |
| As-reported net revenue ($ in millions) | 382 | 371 | 3.0% | 1,533 | 1,613 | (5.0%) |
| Refueling outage days | ||||||
| Indian Point 2 | — | — | 102 | — | ||
| Indian Point 3 | — | — | — | 23 | ||
| Palisades | — | 19 | — | 32 | ||
| Pilgrim | — | — | — | 34 | ||
| (v) | Investments in wind generation were sold in November 2016 |
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Performance Measures
Appendix E provides comparative financial performance measures for the current quarter. Financial performance measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.
As-reported measures are computed in accordance with GAAP as they include all components of net income, including special items. Operational measures are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items.
| Appendix E: GAAP and Non-GAAP Financial Performance Measures | |||
Fourth Quarter 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | |||
| For 12 months ending December 31 | 2016 | 2015 | Change |
| GAAP Measures | |||
| ROIC - as-reported | (0.7%) | 1.0% | (1.7%) |
| ROE - as-reported | (6.7%) | (1.8%) | (4.9%) |
| Book value per share | $45.12 | $51.89 | ($6.77) |
| End of period shares outstanding (millions) | 179.1 | 178.4 | 0.7 |
| Non-GAAP Measures | |||
| ROIC - operational | 7.2% | 6.3% | 0.9% |
| ROE - operational | 14.7% | 11.2% | 3.5% |
| As of December 31 ($ in millions) | 2016 | 2015 | Change |
| GAAP Measures | |||
| Cash and cash equivalents | 1,188 | 1,351 | (163) |
| Revolver capacity | 3,720 | 3,582 | 138 |
| Commercial paper | 344 | 422 | (78) |
| Total debt | 15,275 | 13,850 | 1,425 |
| Securitization debt | 661 | 775 | (114) |
| Debt to capital | 64.8% | 59.1% | 5.7% |
| Off-balance sheet liabilities: | |||
| Debt of joint ventures - Entergy’s share | 72 | 77 | (5) |
| Leases - Entergy’s share | 397 | 359 | 38 |
| Power purchase agreements accounted for as leases | 166 | 195 | (29) |
| Total off-balance sheet liabilities | 635 | 631 | 4 |
| Non-GAAP Measures | |||
| Debt to capital, excluding securitization debt | 63.8% | 57.7% | 6.1% |
| Gross liquidity | 4,908 | 4,933 | (25) |
| Net debt to net capital, excluding securitization debt | 61.8% | 55.0% | 6.8% |
| Parent debt to total debt, excluding securitization debt | 19.8% | 21.9% | (2.1%) |
| Debt to operational adjusted EBITDA, excluding securitization debt | 4.1x | 4.1x | — |
| Operational FFO to debt, excluding securitization debt | 18.8% | 25.7% | (6.9%) |
F: Definitions, Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures. Non-GAAP measures remove the effects of financial events that are not routine from commonly used financial measures.
| Appendix F-1: Definitions | ||
| Utility Operational Performance Measures | ||
| GWh billed | Total number of GWh billed to retail and wholesale customers | |
| Net revenue | Operating revenue less fuel, fuel related expenses and gas purchased for resale, purchased power and other regulatory charges (credits) - net | |
| Non-fuel O&M | Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power | |
| Non-fuel O&M per MWh | Non-fuel O&M per MWh of billed sales | |
| Number of retail customers | Number of customers at end of period | |
| EWC Operational Performance Measures | ||
| As-reported average total revenue per MWh | As-reported revenue per MWh billed (does not include revenue from investment in wind generation that was accounted for under the equity method of accounting, which was sold in November 2016 | |
| Adjusted average total revenue per MWh | As-reported average total revenue per MWh, excluding revenue from special items included in operating revenue and the amortization of the Palisades below-market PPA and VY capacity revenue | |
| Average revenue under contract per kW-month (applies to capacity contracts only) | Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards | |
| Average revenue per MWh on contracted volumes | Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs | |
| Bundled capacity and energy contracts | A contract for the sale of installed capacity and related energy, priced per MWh sold | |
| Capacity contracts | A contract for the sale of the installed capacity product in regional markets managed by ISO New England, NYISO and MISO | |
| Capacity factor | Normalized percentage of the period that the nuclear plants generate power | |
| Expected sold and market total revenue per MWh | Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA | |
| Firm LD | Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products | |
| Appendix F-1: Definitions | ||
| EWC Operational Performance Measures (continued) | ||
| GWh billed | Total number of GWh billed to customers and financially-settled instruments (does not include amounts from investment in wind generation that was accounted for under the equity method of accounting and which was sold in November 2016 | |
| Net revenue | Operating revenue less fuel, fuel-related expenses and purchased power | |
| Non-fuel O&M | Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale, purchased power (does not include amounts from investment in wind generation that was accounted for under the equity method of accounting and which was sold in November 2016 | |
| Non-fuel O&M per MWh | Non-fuel O&M per MWh billed | |
| Offsetting positions | Transactions for the purchase of energy, generally to offset a Firm LD transaction | |
| Owned capacity (MW) | Installed capacity owned and operated by EWC; RISEC (non-nuclear) was sold in December 2015 and investment in wind generation was sold in November 2016 | |
| Percent of capacity sold forward | Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
| Percent of planned generation under contract | Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
| Planned net MW in operation | Amount of installed capacity to generate power and/or sell capacity, assuming intent to sell FitzPatrick in first half of 2017 and shutdown Pilgrim (May 31, 2019), Palisades (Oct. 1, 2018), Indian Point 2 (April 30, 2020) and Indian Point 3 (April 30, 2021) | |
| Planned TWh of generation | Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to sell FitzPatrick in first half of 2017; to shutdown Pilgrim (May 31, 2019), Palisades (Oct. 1, 2018), Indian Point 2 (April 30, 2020) and Indian Point 3 (April 30, 2021); uninterrupted normal plant operation | |
| Production cost per MWh | Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items | |
| Refueling outage days | Number of days lost for scheduled refueling outage during the period | |
| Unit-contingent | Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
| Financial Measures - GAAP | ||
| Book value per share | End of period common equity divided by end of period shares outstanding | |
| Debt of joint ventures - Entergy’s share | Entergy’s share of debt issued by business joint ventures at EWC | |
| Debt to capital ratio | Total debt divided by total capitalization | |
| Leases - Entergy’s share | Operating leases held by subsidiaries capitalized at implicit interest rate | |
| Revolver capacity | Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee | |
| ROIC - as-reported | 12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
| ROE - as-reported | 12-months rolling net income attributable to Entergy Corporation divided by average common equity | |
| Securitization debt | Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI and Hurricane Isaac at ENOI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL | |
| Total debt | Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet | |
| Appendix F-1: Definitions | |
| Financial Measures - Non-GAAP | |
| Adjusted EBITDA | Earnings before interest, depreciation and amortization and income taxes excluding decommissioning expense; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds |
| Adjusted EPS | As-reported EPS excluding special items and weather and normalizing for income tax |
| Debt to capital ratio, excluding securitization debt | Total debt divided by total capitalization, excluding securitization debt |
| Debt to operational adjusted EBITDA, excluding securitization debt | End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA |
| FFO | OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges |
| Operational FFO to debt, excluding securitization debt | 12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
| Gross liquidity | Sum of cash and revolver capacity |
| Operational adjusted EBITDA | Adjusted EBITDA excluding effects of special items |
| Operational EPS | As-reported EPS adjusted to exclude the impact of special items |
| Operational FFO | FFO excluding effects of special items |
| Parent debt to total debt ratio, excluding securitization debt | End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of total debt excluding securitization debt |
| Net debt to net capital ratio, excluding securitization debt | Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
| ROIC - operational | 12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
| ROE - operational | 12-months rolling operational net income attributable to Entergy Corporation divided by average common equity |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
| Appendix F-2: Abbreviations and Acronyms | |||
ADIT AFUDC - borrowed funds AFUDC - equity funds ALJ AMI ANO APSC ARO CCGT CCNO COD Cooper CT CWIP CZM DCRF DOE EAI EBITDA EGSL ELL EMI ENOI ENVY ESI EPS ETI ETR EWC FERC FFO Firm LD FitzPatrick FRP GAAP Grand Gulf Indian Point 1 Indian Point 2 Indian Point 3 IPEC ISO ISES | Accumulated deferred income taxes Allowance for borrowed funds used during construction Allowance for equity funds used during construction Administrative law judge Advanced metering infrastructure Arkansas Nuclear One (nuclear) Arkansas Public Service Commission Asset retirement obligation Combined cycle gas turbine Council of the City of New Orleans, Louisiana Commercial operation date Cooper Nuclear Station Simple cycle combustion turbine Construction work in progress Coastal zone management Distribution cost recovery factor U.S. Department of Energy Entergy Arkansas, Inc. Earnings before interest, income taxes, depreciation and amortization Entergy Gulf States Louisiana, L.L.C. Entergy Louisiana, LLC Entergy Mississippi, Inc. Entergy New Orleans, Inc. Entergy Nuclear Vermont Yankee Entergy Services, Inc. Earnings per share Entergy Texas, Inc. Entergy Corporation Entergy Wholesale Commodities Federal Energy Regulatory Commission Funds from operations Firm liquidated damages James A. FitzPatrick Nuclear Power Plant (nuclear) Formula rate plan U.S. generally accepted accounting principles Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy Indian Point Energy Center Unit 1 (nuclear) Indian Point Energy Center Unit 2 (nuclear) Indian Point Energy Center Unit 3 (nuclear) Indian Point Energy Center (nuclear) Independent system operator Independence Steam Electric Station (coal) | ISFSI LPSC LTM MISO Moody’s MPSC MTEP NEPOOL Ninemile 6 Non-fuel O&M NDT NRC NYISO NYS NYSDEC NYSDOS NYPA NYPSC NYSE O&M OCF OPEB Palisades Pilgrim PPA PUCT RFP RISEC ROE ROIC RPCE RSP SEC SERI SPDES TCRF Top Deer Union UP&O VPSB VY WACC WQC YOY | Independent spent fuel storage installation Louisiana Public Service Commission Last twelve months Midcontinent Independent System Operator, Inc. Moody’s Investor Service Mississippi Public Service Commission MISO Transmission Expansion Planning New England Power Pool Ninemile Point Unit 6 Non-fuel operation and maintenance expense Nuclear decommissioning trust Nuclear Regulatory Commission New York Independent System Operator, Inc. New York State New York State Department of Environmental Conservation New York State Department of State New York Power Authority New York Public Service Commission New York Stock Exchange Operation and maintenance expense Net cash flow provided by operating activities Other post-employment benefits Palisades Power Plant (nuclear) Pilgrim Nuclear Power Station (nuclear) Power purchase agreement or purchased power agreement Public Utility Commission of Texas Request for proposal Rhode Island State Energy Center (CCGT) Return on equity Return on invested capital Rough production cost equalization Rate Stabilization Plan (ELL Gas) U.S. Securities and Exchange Commission System Energy Resources, Inc. State Pollutant Discharge Elimination System Transmission cost recovery factor Top Deer Wind Ventures, LLC Union Power Station (CCGT) Utility, Parent & Other Vermont Public Service Board Vermont Yankee Nuclear Power Station (nuclear) Weighted-average cost of capital Water Quality Certification Year-over-year |
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
| Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - Utility and EWC Non-fuel O&M per MWh, EWC and EWC Nuclear Average Total Revenue per MWh | |||||
| ($ in thousands except where noted) | Fourth Quarter | Year-to-Date | |||
| 2016 | 2015 | 2016 | 2015 | ||
| Utility | |||||
| As-reported Utility non-fuel O&M | (A) | 701,288 | 670,638 | 2,487,333 | 2,560,620 |
| Operational Utility non-fuel O&M | (B) | 701,288 | 670,638 | 2,487,333 | 2,560,620 |
| Utility billed sales (GWh) | (C) | 28,731 | 27,882 | 123,649 | 121,586 |
| As-reported Utility non-fuel O&M per MWh | (A/C) | $24.41 | $24.05 | $20.12 | $21.06 |
| Operational Utility non-fuel O&M per MWh | (B/C) | $24.41 | $24.05 | $20.12 | $21.06 |
| EWC | |||||
| As-reported EWC non-fuel O&M | (D) | 318,193 | 280,425 | 995,797 | 1,033,144 |
| Special items included in non-fuel O&M: | |||||
| EWC Nuclear costs associated with decisions to close or sell plants | 57,513 | 6,205 | 109,392 | 16,979 | |
| DOE litigation awards for VY and FitzPatrick | — | — | (33,823) | — | |
| Total special items included in non-fuel O&M | (E) | 57,513 | 6,205 | 75,569 | 16,979 |
| Operational EWC non-fuel O&M | (D-E) | 260,680 | 274,220 | 920,228 | 1,016,165 |
| EWC billed sales (GWh) | (F) | 9,397 | 10,135 | 35,881 | 39,745 |
| As-reported EWC non-fuel O&M per MWh | (D/F) | $33.86 | $27.67 | $27.75 | $25.99 |
| Operational EWC non-fuel O&M per MWh | [(D-E)/(F)] | $27.74 | $27.06 | $25.65 | $25.57 |
| As-reported EWC operating revenue | (G) | 508,104 | 458,184 | 1,849,638 | 2,061,827 |
| Special items included in operating revenue: | |||||
| Decision to sell FitzPatrick | (H) | 88,983 | — | 96,461 | — |
| Operational EWC operating revenue | (G-H) | 419,121 | 458,184 | 1,753,177 | 2,061,827 |
| Less Palisades below-market PPA amortization and VY capacity revenue (q) | (I) | 8,338 | 3,800 | 25,062 | 15,200 |
| Adjusted operational EWC operating revenue | [(G-H)]-(I) | 410,783 | 454,384 | 1,728,115 | 2,046,627 |
| As-reported EWC average total revenue per MWh | (G)/(F) | $54.07 | $45.21 | $51.55 | $51.88 |
| Adjusted operational EWC average total revenue per MWh | [[(G-H)]-(I)/(F)] | $43.72 | $44.83 | $48.16 | $51.49 |
| As-reported EWC nuclear operating revenue | (J) | 481,826 | 423,647 | 1,741,246 | 1,831,308 |
| Special items included in operating revenue: | |||||
| Decision to sell or close FitzPatrick | (K) | 88,983 | — | 96,461 | — |
| Operational EWC nuclear operating revenue | (J-K) | 392,843 | 427,447 | 1,644,785 | 1,846,508 |
| Less Palisades below-market PPA amortization and VY capacity revenue (q) | (L) | 8,338 | 3,800 | 25,062 | 15,200 |
| Adjusted operational EWC nuclear operating revenue | [(J-K)]-(L) | 384,505 | 456,164 | 1,619,723 | 1,407,660 |
| EWC nuclear billed sales (GWh) | (M) | 8,881 | 9,561 | 33,551 | 35,859 |
| As-reported EWC nuclear average total revenue per MWh | (J)/(M) | $54.25 | $44.71 | $51.90 | $51.49 |
| Adjusted operational EWC nuclear average total revenue per MWh | [[(J-K)]-(L)/(M)] | $43.29 | $44.31 | $48.28 | $51.07 |
Totals may not foot due to rounding
| (a) | VY capacity revenue which is largely offset by purchased capacity following decision to close VY |
| Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
| ($ in millions except where noted) | Fourth Quarter | ||
| 2016 | 2015 | ||
| As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months | (A) | (584) | (177) |
| Preferred dividends | 19 | 20 | |
| Tax effected interest expense | 410 | 396 | |
| As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense | (B) | (155) | 239 |
| Special items in prior quarters | (30) | (1,070) | |
| EWC Nuclear plant impairments and costs associated with decisions to close or sell plants | (1,825) | (259) | |
| Top Deer investment impairment | — | (24) | |
| Gain on the sale of RISEC | — | 100 | |
| Total special items, rolling 12 months | (C) | (1,855) | (1,253) |
| Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense | (B-C) | 1,700 | 1,492 |
| Operational earnings, rolling 12 months | (A-C) | 1,271 | 1,076 |
| Average invested capital | (D) | 23,492 | 23,827 |
| Average common equity | (E) | 8,669 | 9,632 |
| ROIC - as-reported | (B/D) | (0.7)% | 1.0% |
| ROIC - operational | [(B-C)/D] | 7.2% | 6.3% |
| ROE - as-reported | (A/E) | (6.7)% | (1.8)% |
| ROE - operational | [(A-C)/E] | 14.7% | 11.2% |
Totals may not foot due to rounding
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt | |||
| ($ in millions except where noted) | Fourth Quarter | ||
| 2016 | 2015 | ||
| Total debt | (A) | 15,275 | 13,850 |
| Less securitization debt | (B) | 661 | 775 |
| Total debt, excluding securitization debt | (C) | 14,614 | 13,075 |
| Less cash and cash equivalents | (D) | 1,188 | 1,351 |
| Net debt, excluding securitization debt | (E) | 13,426 | 11,724 |
| Total capitalization | (F) | 23,560 | 23,425 |
| Less securitization debt | (B) | 661 | 775 |
| Total capitalization, excluding securitization debt | (G) | 22,899 | 22,650 |
| Less cash and cash equivalents | (D) | 1,188 | 1,351 |
| Net capital, excluding securitization debt | (H) | 21,711 | 21,299 |
| Debt to capital | (A/F) | 64.8 | 59.1 |
| Debt to capital, excluding securitization debt | (C/G) | 63.8 | 57.7 |
| Net debt to net capital, excluding securitization debt | (E/H) | 61.8 | 55.0 |
| Revolver capacity | (I) | 3,720 | 3,582 |
| Gross liquidity | (D+I) | 4,908 | 4,933 |
| Entergy Corporation notes: | |||
| Due January 2017 | — | 500 | |
| Due September 2020 | 450 | 450 | |
| Due July 2022 | 650 | 650 | |
| Due September 2026 | 750 | — | |
| Total parent long-term debt | (J) | 1,850 | 1,600 |
| Revolver draw | (K) | 700 | 835 |
| Commercial paper | (L) | 344 | 422 |
| Total parent debt | (J)+(K)+(L) | 2,894 | 2,857 |
| Parent debt to total debt, excluding securitization debt | [((J)+(K)+(L))/(C)] | 19.8% | 21.9% |
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt (continued) | |||
| ($ in millions except where noted) | Fourth Quarter | ||
| 2016 | 2015 | ||
| Total debt | (A) | 15,275 | 13,850 |
| Less securitization debt | (B) | 661 | 775 |
| Total debt, excluding securitization debt | (C) | 14,614 | 13,075 |
| As-reported consolidated net income (loss), rolling 12 months | (565) | (157) | |
| Add back: interest expense, rolling 12 months | 666 | 643 | |
| Add back: income taxes, rolling 12 months | (817) | (643) | |
| Add back: depreciation and amortization, rolling 12 months | 1,347 | 1,337 | |
| Add back: regulatory charges (credits), rolling 12 months | 94 | 175 | |
| Subtract: securitization proceeds, rolling 12 months | 132 | 137 | |
| Subtract: interest and investment income, rolling 12 months | 145 | 187 | |
| Subtract: AFUDC-equity funds, rolling 12 months | 68 | 52 | |
| Add back: decommissioning expense, rolling 12 months | 327 | 280 | |
| Adjusted EBITDA, rolling 12 months | (D) | 707 | 1,259 |
| Add back: special item resulting from EWC Nuclear plant impairments and costs associated with decisions to close or sell plants (pre-tax) | 2,910 | 2,054 | |
| Add back: special item for DOE litigation awards for VY and FitzPatrick, rolling 12 months (pre-tax) | (34) | — | |
| Add back: special item for Top Deer investment impairment, rolling 12 months (pre-tax) | — | 37 | |
| Add back: special item for gain on the sale of RISEC, rolling 12 months (pre-tax) | — | (154) | |
| Operational adjusted EBITDA, rolling 12 months | (E) | 3,583 | 3,196 |
| Debt to operational adjusted EBITDA, excluding securitization debt | (C)/(E) | 4.1x | 4.1x |
| Net cash flow provided by operating activities, rolling 12 months | (F) | 2,999 | 3,291 |
| AFUDC-borrowed funds used during construction, rolling 12 months | (G) | (34) | (27) |
| Working capital items in net cash flow provided by operating activities, rolling 12 months: | |||
| Receivables | (97) | 38 | |
| Fuel inventory | 38 | (12) | |
| Accounts payable | 174 | (135) | |
| Prepaid taxes and taxes accrued | (29) | 82 | |
| Interest accrued | (7) | (11) | |
| Other working capital accounts | 31 | (114) | |
| Securitization regulatory charges | 114 | 107 | |
| Total | (H) | 224 | (45) |
| FFO, rolling 12 months | (F)+(G)-(H) | 2,741 | 3,309 |
| Add back: special item resulting from EWC Nuclear plant impairments and costs associated with decisions to close or sell plants (pre-tax) | 6 | 55 | |
| Operational FFO, rolling 12 months | (I) | 2,747 | 3,364 |
| Operational FFO to debt, excluding securitization debt | (I)/(C) | 18.8% | 25.7% |
Totals may not foot due to rounding
Financial Statements
| Entergy Corporation | ||||||||||||||||
| Consolidating Balance Sheet | ||||||||||||||||
| December 31, 2016 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
| ASSETS | ||||||||||||||||
| CURRENT ASSETS | ||||||||||||||||
| Cash and cash equivalents: | ||||||||||||||||
| Cash | $ | 123,956 | $ | 939 | $ | 4,684 | $ | 129,579 | ||||||||
| Temporary cash investments | 622,953 | 7,453 | 427,859 | 1,058,265 | ||||||||||||
| Total cash and cash equivalents | 746,909 | 8,392 | 432,543 | 1,187,844 | ||||||||||||
| Notes receivable | — | (528,459 | ) | 528,459 | — | |||||||||||
| Accounts receivable: | ||||||||||||||||
| Customer | 482,302 | — | 172,693 | 654,995 | ||||||||||||
| Allowance for doubtful accounts | (11,924 | ) | — | — | (11,924 | ) | ||||||||||
| Associated companies | 22,892 | (24,532 | ) | 1,640 | — | |||||||||||
| Other | 148,743 | — | 9,676 | 158,419 | ||||||||||||
| Accrued unbilled revenues | 368,677 | — | — | 368,677 | ||||||||||||
| Total accounts receivable | 1,010,690 | (24,532 | ) | 184,009 | 1,170,167 | |||||||||||
| Deferred fuel costs | 108,465 | — | — | 108,465 | ||||||||||||
| Fuel inventory - at average cost | 173,388 | — | 6,212 | 179,600 | ||||||||||||
| Materials and supplies - at average cost | 645,682 | — | 52,841 | 698,523 | ||||||||||||
| Deferred nuclear refueling outage costs | 128,577 | — | 17,644 | 146,221 | ||||||||||||
| Prepayments and other | 161,495 | (8,629 | ) | 40,582 | 193,448 | |||||||||||
| TOTAL | 2,975,206 | (553,228 | ) | 1,262,290 | 3,684,268 | |||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||||
| Investment in affiliates - at equity | 1,390,786 | (1,390,674 | ) | 86 | 198 | |||||||||||
| Decommissioning trust funds | 2,755,937 | — | 2,967,960 | 5,723,897 | ||||||||||||
| Non-utility property - at cost (less accumulated depreciation) | 224,148 | (11 | ) | 9,504 | 233,641 | |||||||||||
| Other | 466,599 | — | 3,065 | 469,664 | ||||||||||||
| TOTAL | 4,837,470 | (1,390,685 | ) | 2,980,615 | 6,427,400 | |||||||||||
| PROPERTY, PLANT, AND EQUIPMENT | ||||||||||||||||
| Electric | 44,173,933 | 3,690 | 1,013,593 | 45,191,216 | ||||||||||||
| Property under capital lease | 619,527 | — | — | 619,527 | ||||||||||||
| Natural gas | 413,224 | — | — | 413,224 | ||||||||||||
| Construction work in progress | 1,334,169 | 631 | 43,380 | 1,378,180 | ||||||||||||
| Nuclear fuel | 816,794 | — | 221,105 | 1,037,899 | ||||||||||||
| TOTAL PROPERTY, PLANT AND EQUIPMENT | 47,357,647 | 4,321 | 1,278,078 | 48,640,046 | ||||||||||||
| Less - accumulated depreciation and amortization | 20,290,630 | 197 | 427,812 | 20,718,639 | ||||||||||||
| PROPERTY, PLANT AND EQUIPMENT - NET | 27,067,017 | 4,124 | 850,266 | 27,921,407 | ||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||||
| Regulatory assets: | ||||||||||||||||
| Regulatory asset for income taxes - net | 761,280 | — | — | 761,280 | ||||||||||||
| Other regulatory assets | 4,769,913 | — | — | 4,769,913 | ||||||||||||
| Deferred fuel costs | 239,100 | — | — | 239,100 | ||||||||||||
| Goodwill | 374,099 | — | 3,073 | 377,172 | ||||||||||||
| Accumulated deferred income taxes | 15,415 | 40,309 | 62,161 | 117,885 | ||||||||||||
| Other | 59,251 | 9,125 | 1,537,633 | 1,606,009 | ||||||||||||
| TOTAL | 6,219,058 | 49,434 | 1,602,867 | 7,871,359 | ||||||||||||
| TOTAL ASSETS | $ | 41,098,751 | $ | (1,890,355 | ) | $ | 6,696,038 | $ | 45,904,434 | |||||||
| *Totals may not foot due to rounding. | ||||||||||||||||
| Entergy Corporation | ||||||||||||||||
| Consolidating Balance Sheet | ||||||||||||||||
| December 31, 2016 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||
| Currently maturing long-term debt | $ | 364,900 | $ | — | $ | — | $ | 364,900 | ||||||||
| Notes payable and commercial paper: | ||||||||||||||||
| Associated companies | — | (15,555 | ) | 15,555 | — | |||||||||||
| Other | 70,686 | 344,325 | — | 415,011 | ||||||||||||
| Account payable: | ||||||||||||||||
| Associated companies | 24,338 | (46,062 | ) | 21,724 | — | |||||||||||
| Other | 990,033 | 585 | 294,959 | 1,285,577 | ||||||||||||
| Customer deposits | 403,311 | — | — | 403,311 | ||||||||||||
| Taxes accrued | (27,752 | ) | 126,885 | 81,981 | 181,114 | |||||||||||
| Interest accrued | 159,300 | 27,882 | 47 | 187,229 | ||||||||||||
| Deferred fuel costs | 102,753 | — | — | 102,753 | ||||||||||||
| Obligations under capital leases | 2,423 | — | — | 2,423 | ||||||||||||
| Pension and other postretirement liabilities | 63,026 | — | 13,916 | 76,942 | ||||||||||||
| Other | 138,880 | 1,943 | 40,013 | 180,836 | ||||||||||||
| TOTAL | 2,291,898 | 440,003 | 468,195 | 3,200,096 | ||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||||
| Accumulated deferred income taxes and taxes accrued | 8,132,129 | 8,898 | (645,737 | ) | 7,495,290 | |||||||||||
| Accumulated deferred investment tax credits | 227,147 | — | — | 227,147 | ||||||||||||
| Obligations under capital leases | 24,582 | — | — | 24,582 | ||||||||||||
| Other regulatory liabilities | 1,572,929 | — | — | 1,572,929 | ||||||||||||
| Decommissioning and retirement cost liabilities | 2,879,307 | — | 3,113,169 | 5,992,476 | ||||||||||||
| Accumulated provisions | 480,474 | — | 1,162 | 481,636 | ||||||||||||
| Pension and other postretirement liabilities | 2,299,122 | — | 736,888 | 3,036,010 | ||||||||||||
| Long-term debt | 11,886,598 | 2,536,557 | 44,500 | 14,467,655 | ||||||||||||
| Other | 686,140 | (391,127 | ) | 826,606 | 1,121,619 | |||||||||||
| TOTAL | 28,188,428 | 2,154,328 | 4,076,588 | 34,419,344 | ||||||||||||
| Subsidiaries' preferred stock without sinking fund | 178,936 | — | 24,249 | 203,185 | ||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||
| Common stock, $.01 par value, authorized 500,000,000 shares; | ||||||||||||||||
| issued 254,752,788 shares in 2016 | 2,051,268 | (2,249,823 | ) | 201,103 | 2,548 | |||||||||||
| Paid-in capital | 2,799,315 | 953,993 | 1,663,937 | 5,417,245 | ||||||||||||
| Retained earnings | 5,834,123 | 2,189,728 | 171,720 | 8,195,571 | ||||||||||||
| Accumulated other comprehensive income (loss) | (125,217 | ) | — | 90,246 | (34,971 | ) | ||||||||||
| Less - treasury stock, at cost (75,623,363 shares in 2016) | 120,000 | 5,378,584 | — | 5,498,584 | ||||||||||||
| TOTAL | 10,439,489 | (4,484,686 | ) | 2,127,006 | 8,081,809 | |||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 41,098,751 | $ | (1,890,355 | ) | $ | 6,696,038 | $ | 45,904,434 | |||||||
| *Totals may not foot due to rounding. | ||||||||||||||||
| Entergy Corporation | ||||||||||||||||
| Consolidating Balance Sheet | ||||||||||||||||
| December 31, 2015 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
| ASSETS | ||||||||||||||||
| CURRENT ASSETS | ||||||||||||||||
| Cash and cash equivalents: | ||||||||||||||||
| Cash | $ | 57,098 | $ | 682 | $ | 5,717 | $ | 63,497 | ||||||||
| Temporary cash investments | 561,970 | 12,208 | 713,285 | 1,287,464 | ||||||||||||
| Total cash and cash equivalents | 619,068 | 12,890 | 719,002 | 1,350,961 | ||||||||||||
| Notes receivable | — | (513,778 | ) | 513,778 | — | |||||||||||
| Accounts receivable: | ||||||||||||||||
| Customer | 440,869 | — | 167,622 | 608,491 | ||||||||||||
| Allowance for doubtful accounts | (39,895 | ) | — | — | (39,895 | ) | ||||||||||
| Associated companies | 30,948 | (34,177 | ) | 3,230 | — | |||||||||||
| Other | 169,447 | — | 8,917 | 178,364 | ||||||||||||
| Accrued unbilled revenues | 321,940 | — | — | 321,940 | ||||||||||||
| Total accounts receivable | 923,309 | (34,177 | ) | 179,769 | 1,068,900 | |||||||||||
| Deferred fuel costs | — | — | — | — | ||||||||||||
| Fuel inventory - at average cost | 210,861 | — | 6,949 | 217,810 | ||||||||||||
| Materials and supplies - at average cost | 627,702 | — | 245,654 | 873,357 | ||||||||||||
| Deferred nuclear refueling outage costs | 140,423 | — | 71,089 | 211,512 | ||||||||||||
| Prepayments and other | 141,096 | (8,576 | ) | 212,352 | 344,872 | |||||||||||
| TOTAL | 2,662,459 | (543,641 | ) | 1,948,593 | 4,067,412 | |||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||||
| Investment in affiliates - at equity | 1,390,786 | (1,390,673 | ) | 4,228 | 4,341 | |||||||||||
| Decommissioning trust funds | 2,515,066 | — | 2,834,887 | 5,349,953 | ||||||||||||
| Non-utility property - at cost (less accumulated depreciation) | 212,997 | (10 | ) | 7,012 | 219,999 | |||||||||||
| Other | 460,322 | — | 8,382 | 468,704 | ||||||||||||
| TOTAL | 4,579,171 | (1,390,683 | ) | 2,854,509 | 6,042,997 | |||||||||||
| PROPERTY, PLANT, AND EQUIPMENT | ||||||||||||||||
| Electric | 41,079,998 | 3,579 | 3,383,581 | 44,467,159 | ||||||||||||
| Property under capital lease | 952,465 | — | — | 952,465 | ||||||||||||
| Natural gas | 392,032 | — | — | 392,032 | ||||||||||||
| Construction work in progress | 1,326,728 | 349 | 129,659 | 1,456,735 | ||||||||||||
| Nuclear fuel | 856,573 | — | 488,850 | 1,345,422 | ||||||||||||
| TOTAL PROPERTY, PLANT AND EQUIPMENT | 44,607,796 | 3,928 | 4,002,090 | 48,613,813 | ||||||||||||
| Less - accumulated depreciation and amortization | 19,654,374 | 198 | 1,134,880 | 20,789,452 | ||||||||||||
| PROPERTY, PLANT AND EQUIPMENT - NET | 24,953,422 | 3,730 | 2,867,210 | 27,824,361 | ||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||||
| Regulatory assets: | ||||||||||||||||
| Regulatory asset for income taxes - net | 775,528 | — | — | 775,528 | ||||||||||||
| Other regulatory assets | 4,704,796 | — | — | 4,704,796 | ||||||||||||
| Deferred fuel costs | 238,902 | — | — | 238,902 | ||||||||||||
| Goodwill | 374,099 | — | 3,073 | 377,172 | ||||||||||||
| Accumulated deferred income taxes | 15,888 | 1,206 | 37,809 | 54,903 | ||||||||||||
| Other | 52,641 | 9,980 | 498,989 | 561,610 | ||||||||||||
| TOTAL | 6,161,854 | 11,186 | 539,871 | 6,712,911 | ||||||||||||
| TOTAL ASSETS | $ | 38,356,906 | $ | (1,919,408 | ) | $ | 8,210,183 | $ | 44,647,681 | |||||||
| *Totals may not foot due to rounding. | ||||||||||||||||
| Entergy Corporation | ||||||||||||||||
| Consolidating Balance Sheet | ||||||||||||||||
| December 31, 2015 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||
| Currently maturing long-term debt | $ | 209,374 | $ | — | $ | 5,000 | $ | 214,374 | ||||||||
| Notes payable and commercial paper: | ||||||||||||||||
| Associated companies | — | (324,315 | ) | 324,315 | — | |||||||||||
| Other | 72,047 | 422,302 | — | 494,348 | ||||||||||||
| Account payable: | ||||||||||||||||
| Associated companies | 25,119 | (50,553 | ) | 25,433 | — | |||||||||||
| Other | 877,395 | 593 | 193,810 | 1,071,798 | ||||||||||||
| Customer deposits | 419,407 | — | — | 419,407 | ||||||||||||
| Taxes accrued | 159,650 | (105,466 | ) | 155,893 | 210,077 | |||||||||||
| Interest accrued | 163,391 | 31,161 | 13 | 194,565 | ||||||||||||
| Deferred fuel costs | 235,986 | — | — | 235,986 | ||||||||||||
| Obligations under capital leases | 2,709 | — | — | 2,709 | ||||||||||||
| Pension and other postretirement liabilities | 53,143 | — | 9,370 | 62,513 | ||||||||||||
| Other | 150,308 | 1,936 | 31,937 | 184,181 | ||||||||||||
| TOTAL | 2,368,529 | (24,342 | ) | 745,771 | 3,089,958 | |||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||||
| Accumulated deferred income taxes and taxes accrued | 7,459,787 | 300,243 | 546,835 | 8,306,865 | ||||||||||||
| Accumulated deferred investment tax credits | 234,300 | — | — | 234,300 | ||||||||||||
| Obligations under capital leases | 27,001 | — | — | 27,001 | ||||||||||||
| Other regulatory liabilities | 1,414,898 | — | — | 1,414,898 | ||||||||||||
| Decommissioning and retirement cost liabilities | 2,720,676 | — | 2,069,511 | 4,790,187 | ||||||||||||
| Accumulated provisions | 458,366 | — | 2,361 | 460,727 | ||||||||||||
| Pension and other postretirement liabilities | 2,423,018 | — | 764,339 | 3,187,357 | ||||||||||||
| Long-term debt | 10,643,726 | 2,426,571 | 41,259 | 13,111,556 | ||||||||||||
| Other | 736,685 | (594,523 | ) | 307,694 | 449,856 | |||||||||||
| TOTAL | 26,118,457 | 2,132,291 | 3,731,999 | 31,982,747 | ||||||||||||
| Subsidiaries' preferred stock without sinking fund | 293,936 | — | 24,249 | 318,185 | ||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||
| Common stock, $.01 par value, authorized 500,000,000 shares; | ||||||||||||||||
| issued 254,752,788 shares in 2015 | 2,091,268 | (2,289,823 | ) | 201,103 | 2,548 | |||||||||||
| Paid-in capital | 2,548,659 | 1,174,256 | 1,680,843 | 5,403,758 | ||||||||||||
| Retained earnings | 5,185,328 | 2,520,589 | 1,687,996 | 9,393,913 | ||||||||||||
| Accumulated other comprehensive income (loss) | (129,271 | ) | — | 138,222 | 8,951 | |||||||||||
| Less - treasury stock, at cost (76,363,763 shares in 2015) | 120,000 | 5,432,379 | — | 5,552,379 | ||||||||||||
| TOTAL | 9,575,984 | (4,027,357 | ) | 3,708,164 | 9,256,791 | |||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 38,356,906 | $ | (1,919,408 | ) | $ | 8,210,183 | $ | 44,647,681 | |||||||
| *Totals may not foot due to rounding. | ||||||||||||||||
| Entergy Corporation | ||||||||||||||||
| Consolidating Income Statement | ||||||||||||||||
| Three Months Ended December 31, 2016 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
| OPERATING REVENUES | ||||||||||||||||
| Electric | $ | 2,106,625 | $ | (21 | ) | $ | — | $ | 2,106,604 | |||||||
| Natural gas | 33,819 | — | — | 33,819 | ||||||||||||
| Competitive businesses | — | — | 508,104 | 508,104 | ||||||||||||
| Total | 2,140,444 | (21 | ) | 508,104 | 2,648,527 | |||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||
| Fuel, fuel related expenses, and gas purchased for resale | 354,112 | (20 | ) | 107,686 | 461,778 | |||||||||||
| Purchased power | 326,574 | 19 | 13,831 | 340,424 | ||||||||||||
| Nuclear refueling outage expenses | 29,824 | — | 23,903 | 53,727 | ||||||||||||
| Other operation and maintenance | 671,464 | 6,610 | 294,290 | 972,364 | ||||||||||||
| Asset write-offs, impairments and related charges | — | — | 2,802,466 | 2,802,466 | ||||||||||||
| Decommissioning | 38,940 | — | 57,966 | 96,906 | ||||||||||||
| Taxes other than income taxes | 124,026 | (226 | ) | 20,599 | 144,399 | |||||||||||
| Depreciation and amortization | 291,638 | 410 | 44,800 | 336,848 | ||||||||||||
| Other regulatory charges | 38,617 | — | — | 38,617 | ||||||||||||
| Total | 1,875,195 | 6,793 | 3,365,541 | 5,247,529 | ||||||||||||
| OPERATING INCOME (LOSS) | 265,249 | (6,814 | ) | (2,857,437 | ) | (2,599,002 | ) | |||||||||
| OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
| Allowance for equity funds used during construction | 19,320 | — | — | 19,320 | ||||||||||||
| Interest and investment income | 45,360 | (37,981 | ) | 21,086 | 28,465 | |||||||||||
| Miscellaneous - net | (6,150 | ) | (3,653 | ) | (6,111 | ) | (15,914 | ) | ||||||||
| Total | 58,530 | (41,634 | ) | 14,975 | 31,871 | |||||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Interest expense | 145,318 | 23,933 | 4,950 | 174,201 | ||||||||||||
| Allowance for borrowed funds used during construction | (9,655 | ) | — | — | (9,655 | ) | ||||||||||
| Total | 135,663 | 23,933 | 4,950 | 164,546 | ||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 188,116 | (72,381 | ) | (2,847,412 | ) | (2,731,677 | ) | |||||||||
| Income taxes | 64,735 | (15,237 | ) | (1,015,637 | ) | (966,139 | ) | |||||||||
| CONSOLIDATED NET INCOME (LOSS) | 123,381 | (57,144 | ) | (1,831,775 | ) | (1,765,538 | ) | |||||||||
| Preferred dividend requirements of subsidiaries | 2,982 | — | 547 | 3,529 | ||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 120,399 | $ | (57,144 | ) | $ | (1,832,322 | ) | $ | (1,769,067 | ) | |||||
| EARNINGS (LOSS) PER AVERAGE COMMON SHARE: | ||||||||||||||||
| BASIC | $0.67 | ($0.32) | ($10.23) | ($9.88) | ||||||||||||
| DILUTED | $0.67 | ($0.32) | ($10.23) | ($9.88) | ||||||||||||
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
| BASIC | 179,128,425 | |||||||||||||||
| DILUTED | 179,128,425 | |||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||
| Entergy Corporation | ||||||||||||||||
| Consolidating Income Statement | ||||||||||||||||
| Three Months Ended December 31, 2015 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
| OPERATING REVENUES | ||||||||||||||||
| Electric | $ | 2,019,409 | $ | (11 | ) | $ | — | $ | 2,019,398 | |||||||
| Natural gas | 30,941 | — | — | 30,941 | ||||||||||||
| Competitive businesses | — | — | 458,184 | 458,184 | ||||||||||||
| Total | 2,050,350 | (11 | ) | 458,184 | 2,508,523 | |||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Operating and Maintenance: | ||||||||||||||||
| Fuel, fuel related expenses, and gas purchased for resale | 478,902 | (11 | ) | 53,674 | 532,565 | |||||||||||
| Purchased power | 250,851 | 11 | 25,208 | 276,070 | ||||||||||||
| Nuclear refueling outage expenses | 27,904 | — | 22,838 | 50,741 | ||||||||||||
| Other operation and maintenance | 642,734 | 4,291 | 257,587 | 904,612 | ||||||||||||
| Asset write-offs, impairments and related charges | 68,672 | — | 394,030 | 462,702 | ||||||||||||
| Decommissioning | 36,520 | — | 36,136 | 72,656 | ||||||||||||
| Taxes other than income taxes | 119,959 | (84 | ) | 27,511 | 147,386 | |||||||||||
| Depreciation and amortization | 276,944 | 632 | 52,518 | 330,095 | ||||||||||||
| Other regulatory charges (credits) - net | 140,033 | — | — | 140,033 | ||||||||||||
| Total | 2,042,519 | 4,839 | 869,502 | 2,916,860 | ||||||||||||
| Gain on sale of asset | — | — | 154,037 | 154,037 | ||||||||||||
| OPERATING INCOME | 7,831 | (4,850 | ) | (257,281 | ) | (254,300 | ) | |||||||||
| OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
| Allowance for equity funds used during construction | 14,067 | — | — | 14,067 | ||||||||||||
| Interest and investment income | 48,826 | (41,460 | ) | 32,803 | 40,169 | |||||||||||
| Miscellaneous - net | (9,677 | ) | (7,016 | ) | (44,536 | ) | (61,229 | ) | ||||||||
| Total | 53,216 | (48,476 | ) | (11,733 | ) | (6,993 | ) | |||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Interest expense | 140,990 | 17,724 | 7,836 | 166,550 | ||||||||||||
| Allowance for borrowed funds used during construction | (7,177 | ) | — | — | (7,177 | ) | ||||||||||
| Total | 133,813 | 17,724 | 7,836 | 159,373 | ||||||||||||
| INCOME BEFORE INCOME TAXES | (72,766 | ) | (71,050 | ) | (276,850 | ) | (420,666 | ) | ||||||||
| Income taxes | (391,231 | ) | (11,567 | ) | (122,717 | ) | (525,515 | ) | ||||||||
| CONSOLIDATED NET INCOME | 318,465 | (59,483 | ) | (154,133 | ) | 104,849 | ||||||||||
| Preferred dividend requirements of subsidiaries | 4,729 | — | 547 | 5,276 | ||||||||||||
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 313,736 | $ | (59,483 | ) | $ | (154,680 | ) | $ | 99,573 | ||||||
| EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||
| BASIC | $1.76 | ($0.33) | ($0.87) | $0.56 | ||||||||||||
| DILUTED | $1.75 | ($0.33) | ($0.86) | $0.56 | ||||||||||||
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
| BASIC | 178,387,574 | |||||||||||||||
| DILUTED | 179,069,948 | |||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||
| Entergy Corporation | ||||||||||||||||
| Consolidating Income Statement | ||||||||||||||||
| Year to Date December 31, 2016 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
| OPERATING REVENUES | ||||||||||||||||
| Electric | $ | 8,866,758 | $ | (99 | ) | $ | — | $ | 8,866,659 | |||||||
| Natural gas | 129,348 | — | — | 129,348 | ||||||||||||
| Competitive businesses | — | — | 1,849,638 | 1,849,638 | ||||||||||||
| Total | 8,996,106 | (99 | ) | 1,849,638 | 10,845,645 | |||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||
| Fuel, fuel related expenses, and gas purchased for resale | 1,563,952 | (100 | ) | 245,348 | 1,809,200 | |||||||||||
| Purchased power | 1,158,498 | 101 | 61,929 | 1,220,527 | ||||||||||||
| Nuclear refueling outage expenses | 127,523 | — | 81,155 | 208,678 | ||||||||||||
| Other operation and maintenance | 2,359,810 | 22,259 | 914,642 | 3,296,711 | ||||||||||||
| Asset write-offs, impairments and related charges | — | — | 2,835,637 | 2,835,637 | ||||||||||||
| Decommissioning | 152,355 | — | 175,070 | 327,425 | ||||||||||||
| Taxes other than income taxes | 497,510 | 718 | 94,274 | 592,502 | ||||||||||||
| Depreciation and amortization | 1,145,688 | 1,646 | 199,852 | 1,347,187 | ||||||||||||
| Other regulatory charges | 94,243 | — | — | 94,243 | ||||||||||||
| Total | 7,099,579 | 24,624 | 4,607,907 | 11,732,110 | ||||||||||||
| OPERATING INCOME (LOSS) | 1,896,527 | (24,723 | ) | (2,758,269 | ) | (886,465 | ) | |||||||||
| OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
| Allowance for equity funds used during construction | 67,563 | — | — | 67,563 | ||||||||||||
| Interest and investment income | 189,994 | (153,332 | ) | 108,466 | 145,127 | |||||||||||
| Miscellaneous - net | (21,017 | ) | (7,874 | ) | (12,726 | ) | (41,617 | ) | ||||||||
| Total | 236,540 | (161,206 | ) | 95,740 | 171,073 | |||||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Interest expense | 591,721 | 85,966 | 22,858 | 700,545 | ||||||||||||
| Allowance for borrowed funds used during construction | (34,175 | ) | — | — | (34,175 | ) | ||||||||||
| Total | 557,546 | 85,966 | 22,858 | 666,370 | ||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 1,575,521 | (271,895 | ) | (2,685,387 | ) | (1,381,762 | ) | |||||||||
| Income taxes | 424,388 | (49,384 | ) | (1,192,263 | ) | (817,259 | ) | |||||||||
| CONSOLIDATED NET INCOME (LOSS) | 1,151,133 | (222,511 | ) | (1,493,124 | ) | (564,503 | ) | |||||||||
| Preferred dividend requirements of subsidiaries | 16,928 | — | 2,188 | 19,115 | ||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 1,134,205 | $ | (222,511 | ) | $ | (1,495,312 | ) | $ | (583,618 | ) | |||||
| EARNINGS (LOSS) PER AVERAGE COMMON SHARE: | ||||||||||||||||
| BASIC | $6.34 | ($1.24) | ($8.36) | ($3.26) | ||||||||||||
| DILUTED | $6.34 | ($1.24) | ($8.36) | ($3.26) | ||||||||||||
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
| BASIC | 178,885,660 | |||||||||||||||
| DILUTED | 178,885,660 | |||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||
| Entergy Corporation | ||||||||||||||||
| Consolidating Income Statement | ||||||||||||||||
| Year to Date December 31, 2015 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
| OPERATING REVENUES | ||||||||||||||||
| Electric | $ | 9,308,740 | $ | (62 | ) | $ | — | $ | 9,308,678 | |||||||
| Natural gas | 142,746 | — | — | 142,746 | ||||||||||||
| Competitive businesses | — | — | 2,061,827 | 2,061,827 | ||||||||||||
| Total | 9,451,486 | (62 | ) | 2,061,827 | 11,513,251 | |||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Operating and Maintenance: | ||||||||||||||||
| Fuel, fuel related expenses, and gas purchased for resale | 2,137,122 | (62 | ) | 315,111 | 2,452,171 | |||||||||||
| Purchased power | 1,310,175 | 66 | 80,564 | 1,390,805 | ||||||||||||
| Nuclear refueling outage expenses | 117,545 | — | 133,771 | 251,316 | ||||||||||||
| Other operation and maintenance | 2,443,075 | 12,533 | 899,373 | 3,354,981 | ||||||||||||
| Asset write-offs, impairments and related charges | 68,672 | — | 2,036,234 | 2,104,906 | ||||||||||||
| Decommissioning | 142,744 | — | 137,528 | 280,272 | ||||||||||||
| Taxes other than income taxes | 507,739 | 1,150 | 110,533 | 619,422 | ||||||||||||
| Depreciation and amortization | 1,096,088 | 2,156 | 239,032 | 1,337,276 | ||||||||||||
| Other regulatory charges (credits) - net | 175,304 | — | — | 175,304 | ||||||||||||
| Total | 7,998,464 | 15,843 | 3,952,146 | 11,966,453 | ||||||||||||
| Gain on sale of asset | — | — | 154,037 | 154,037 | ||||||||||||
| OPERATING INCOME (LOSS) | 1,453,022 | (15,905 | ) | (1,736,282 | ) | (299,165 | ) | |||||||||
| OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
| Allowance for equity funds used during construction | 51,908 | — | — | 51,908 | ||||||||||||
| Interest and investment income | 191,546 | (153,138 | ) | 148,654 | 187,062 | |||||||||||
| Miscellaneous - net | (22,067 | ) | (12,350 | ) | (61,580 | ) | (95,997 | ) | ||||||||
| Total | 221,387 | (165,488 | ) | 87,074 | 142,973 | |||||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Interest expense | 569,759 | 73,549 | 26,788 | 670,096 | ||||||||||||
| Allowance for borrowed funds used during construction | (26,627 | ) | — | — | (26,627 | ) | ||||||||||
| Total | 543,132 | 73,549 | 26,788 | 643,469 | ||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 1,131,277 | (254,942 | ) | (1,675,996 | ) | (799,661 | ) | |||||||||
| Income taxes | 16,761 | (49,349 | ) | (610,339 | ) | (642,927 | ) | |||||||||
| CONSOLIDATED NET INCOME (LOSS) | 1,114,516 | (205,593 | ) | (1,065,657 | ) | (156,734 | ) | |||||||||
| Preferred dividend requirements of subsidiaries | 17,641 | — | 2,187 | 19,828 | ||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 1,096,875 | $ | (205,593 | ) | $ | (1,067,844 | ) | $ | (176,562 | ) | |||||
| EARNINGS (LOSS) PER AVERAGE COMMON SHARE: | ||||||||||||||||
| BASIC | $6.12 | ($1.15) | ($5.96) | ($0.99) | ||||||||||||
| DILUTED | $6.12 | ($1.15) | ($5.96) | ($0.99) | ||||||||||||
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
| BASIC | 179,176,356 | |||||||||||||||
| DILUTED | 179,176,356 | |||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||
| Entergy Corporation | ||||||||||||
| Consolidated Cash Flow Statement | ||||||||||||
| Three Months Ended December 31, 2016 vs. 2015 | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| 2016 | 2015 | Variance | ||||||||||
| OPERATING ACTIVITIES | ||||||||||||
| Consolidated net income (loss) | $ | (1,765,538 | ) | $ | 104,849 | $ | (1,870,387 | ) | ||||
| Adjustments to reconcile consolidated net income (loss) to net cash | ||||||||||||
| flow provided by operating activities: | ||||||||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 574,419 | 504,546 | 69,873 | |||||||||
| Deferred income taxes, investment tax credits, and non-current taxes accrued | (955,860 | ) | (552,366 | ) | (403,494 | ) | ||||||
| Asset write-offs, impairments and related charges | 2,802,467 | 462,702 | 2,339,765 | |||||||||
| Gain on sale of asset | — | (154,037 | ) | 154,037 | ||||||||
| Changes in working capital: | ||||||||||||
| Receivables | 173,872 | 260,463 | (86,591 | ) | ||||||||
| Fuel inventory | 9,310 | (4,798 | ) | 14,108 | ||||||||
| Accounts payable | 74,488 | (44,902 | ) | 119,390 | ||||||||
| Prepaid taxes and taxes accrued | (58,392 | ) | (26,260 | ) | (32,132 | ) | ||||||
| Interest accrued | 6,152 | 22,923 | (16,771 | ) | ||||||||
| Deferred fuel costs | (82,304 | ) | 133,341 | (215,645 | ) | |||||||
| Other working capital accounts | 109,750 | 19,441 | 90,309 | |||||||||
| Changes in provisions for estimated losses | 18,145 | (12,611 | ) | 30,756 | ||||||||
| Changes in other regulatory assets | (213,185 | ) | 107,073 | (320,258 | ) | |||||||
| Changes in other regulatory liabilities | 47,032 | 156,568 | (109,536 | ) | ||||||||
| Changes in pensions and other postretirement liabilities | 168,281 | (138,780 | ) | 307,061 | ||||||||
| Other | (162,333 | ) | 103,387 | (265,720 | ) | |||||||
| Net cash flow provided by operating activities | 746,304 | 941,539 | (195,235 | ) | ||||||||
| INVESTING ACTIVITIES | ||||||||||||
| Construction/capital expenditures | (776,795 | ) | (799,102 | ) | 22,307 | |||||||
| Allowance for equity funds used during construction | 19,538 | 14,207 | 5,331 | |||||||||
| Nuclear fuel purchases | (154,363 | ) | (153,342 | ) | (1,021 | ) | ||||||
| Proceeds from sale of assets | — | 487,406 | (487,406 | ) | ||||||||
| Insurance proceeds received for property damages | 20,968 | 11,654 | 9,314 | |||||||||
| Changes in securitization account | 7,918 | 2,950 | 4,968 | |||||||||
| Payments to storm reserve escrow account | (341 | ) | (207 | ) | (134 | ) | ||||||
| Receipts from storm reserve escrow account | — | 5,916 | (5,916 | ) | ||||||||
| Decrease (increase) in other investments | (3,319 | ) | 15,894 | (19,213 | ) | |||||||
| Litigation proceeds for reimbursement of spent nuclear fuel storage costs | 46,597 | 18,296 | 28,301 | |||||||||
| Proceeds from nuclear decommissioning trust fund sales | 612,354 | 1,004,417 | (392,063 | ) | ||||||||
| Investment in nuclear decommissioning trust funds | (640,113 | ) | (1,030,497 | ) | 390,384 | |||||||
| Net cash flow used in investing activities | (867,556 | ) | (422,408 | ) | (445,148 | ) | ||||||
| FINANCING ACTIVITIES | ||||||||||||
| Proceeds from the issuance of: | ||||||||||||
| Long-term debt | 1,442,097 | 1,296,305 | 145,792 | |||||||||
| Preferred stock of subsidiary | — | 107,426 | (107,426 | ) | ||||||||
| Treasury stock | — | 148 | (148 | ) | ||||||||
| Retirement of long-term debt | (1,231,725 | ) | (1,166,400 | ) | (65,325 | ) | ||||||
| Repurchase / redemption of preferred stock | (30,000 | ) | — | (30,000 | ) | |||||||
| Changes in credit borrowings and commercial paper - net | (18,352 | ) | (287,674 | ) | 269,322 | |||||||
| Other | (674 | ) | (2,034 | ) | 1,360 | |||||||
| Dividends paid: | ||||||||||||
| Common stock | (155,842 | ) | (151,629 | ) | (4,213 | ) | ||||||
| Preferred stock | (3,842 | ) | (4,910 | ) | 1,068 | |||||||
| Net cash flow provided by (used in) financing activities | 1,662 | (208,768 | ) | 210,430 | ||||||||
| Net increase (decrease) in cash and cash equivalents | (119,590 | ) | 310,363 | (429,953 | ) | |||||||
| Cash and cash equivalents at beginning of period | 1,307,434 | 1,040,598 | 266,836 | |||||||||
| Cash and cash equivalents at end of period | $ | 1,187,844 | $ | 1,350,961 | $ | (163,117 | ) | |||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
| Cash paid (received) during the period for: | ||||||||||||
| Interest - net of amount capitalized | $162,417 | $140,141 | $22,276 | |||||||||
| Income taxes | $15,329 | $7,810 | $7,519 | |||||||||
| Entergy Corporation | ||||||||||||
| Consolidated Cash Flow Statement | ||||||||||||
| Year to Date December 31, 2016 vs. 2015 | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| 2016 | 2015 | Variance | ||||||||||
| OPERATING ACTIVITIES | ||||||||||||
| Consolidated net income (loss) | $ | (564,503 | ) | $ | (156,734 | ) | $ | (407,769 | ) | |||
| Adjustments to reconcile consolidated net income (loss) to net cash | ||||||||||||
| flow provided by operating activities: | ||||||||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 2,123,291 | 2,117,236 | 6,055 | |||||||||
| Deferred income taxes, investment tax credits, and non-current taxes accrued | (836,257 | ) | (820,350 | ) | (15,907 | ) | ||||||
| Asset write-offs, impairments and related charges | 2,835,637 | 2,104,906 | 730,731 | |||||||||
| Gain on sale of asset | — | (154,037 | ) | 154,037 | ||||||||
| Changes in working capital: | ||||||||||||
| Receivables | (96,975 | ) | 38,152 | (135,127 | ) | |||||||
| Fuel inventory | 38,210 | (12,376 | ) | 50,586 | ||||||||
| Accounts payable | 174,421 | (135,211 | ) | 309,632 | ||||||||
| Prepaid taxes and taxes accrued | (28,963 | ) | 81,969 | (110,932 | ) | |||||||
| Interest accrued | (7,335 | ) | (11,445 | ) | 4,110 | |||||||
| Deferred fuel costs | (241,896 | ) | 298,725 | (540,621 | ) | |||||||
| Other working capital accounts | 31,197 | (113,701 | ) | 144,898 | ||||||||
| Changes in provisions for estimated losses | 20,905 | 42,566 | (21,661 | ) | ||||||||
| Changes in other regulatory assets | (48,469 | ) | 262,317 | (310,786 | ) | |||||||
| Changes in other regulatory liabilities | 158,031 | 61,241 | 96,790 | |||||||||
| Changes in pensions and other postretirement liabilities | (136,919 | ) | (446,418 | ) | 309,499 | |||||||
| Other | (421,676 | ) | 134,344 | (556,020 | ) | |||||||
| Net cash flow provided by operating activities | 2,998,699 | 3,291,184 | (292,485 | ) | ||||||||
| INVESTING ACTIVITIES | ||||||||||||
| Construction/capital expenditures | (2,780,222 | ) | (2,500,860 | ) | (279,362 | ) | ||||||
| Allowance for equity funds used during construction | 68,345 | 53,635 | 14,710 | |||||||||
| Nuclear fuel purchases | (314,706 | ) | (493,604 | ) | 178,898 | |||||||
| Payment for purchase of plant | (949,329 | ) | — | (949,329 | ) | |||||||
| Proceeds from sale of assets | — | 487,406 | (487,406 | ) | ||||||||
| Insurance proceeds received for property damages | 20,968 | 24,399 | (3,431 | ) | ||||||||
| Changes in securitization account | 4,007 | (5,806 | ) | 9,813 | ||||||||
| NYPA value sharing payment | — | (70,790 | ) | 70,790 | ||||||||
| Payments to storm reserve escrow account | (1,544 | ) | (69,163 | ) | 67,619 | |||||||
| Receipts from storm reserve escrow account | — | 5,916 | (5,916 | ) | ||||||||
| Decrease (increase) in other investments | 9,055 | 571 | 8,484 | |||||||||
| Litigation proceeds for reimbursement of spent nuclear fuel storage costs | 169,085 | 18,296 | 150,789 | |||||||||
| Proceeds from nuclear decommissioning trust fund sales | 2,408,920 | 2,492,176 | (83,256 | ) | ||||||||
| Investment in nuclear decommissioning trust funds | (2,484,627 | ) | (2,550,958 | ) | 66,331 | |||||||
| Net cash flow used in investing activities | (3,850,048 | ) | (2,608,782 | ) | (1,241,266 | ) | ||||||
| FINANCING ACTIVITIES | ||||||||||||
| Proceeds from the issuance of: | ||||||||||||
| Long-term debt | 6,800,558 | 3,502,189 | 3,298,369 | |||||||||
| Preferred stock of subsidiary | — | 107,426 | (107,426 | ) | ||||||||
| Treasury stock | 33,114 | 24,366 | 8,748 | |||||||||
| Retirement of long-term debt | (5,311,324 | ) | (3,461,518 | ) | (1,849,806 | ) | ||||||
| Repurchase of common stock | — | (99,807 | ) | 99,807 | ||||||||
| Repurchase / redemption of preferred stock | (115,283 | ) | (94,285 | ) | (20,998 | ) | ||||||
| Changes in credit borrowings and commercial paper - net | (79,337 | ) | (104,047 | ) | 24,710 | |||||||
| Other | (6,872 | ) | (9,136 | ) | 2,264 | |||||||
| Dividends paid: | ||||||||||||
| Common stock | (611,835 | ) | (598,897 | ) | (12,938 | ) | ||||||
| Preferred stock | (20,789 | ) | (19,758 | ) | (1,031 | ) | ||||||
| Net cash flow provided by (used in) financing activities | 688,232 | (753,467 | ) | 1,441,699 | ||||||||
| Net decrease in cash and cash equivalents | (163,117 | ) | (71,065 | ) | (92,052 | ) | ||||||
| Cash and cash equivalents at beginning of period | 1,350,961 | 1,422,026 | (71,065 | ) | ||||||||
| Cash and cash equivalents at end of period | $ | 1,187,844 | $ | 1,350,961 | $ | (163,117 | ) | |||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
| Cash paid during the period for: | ||||||||||||
| Interest - net of amount capitalized | $ | 746,779 | $ | 663,630 | $ | 83,149 | ||||||
| Income taxes | $ | 95,317 | $ | 103,589 | $ | (8,272 | ) | |||||