Retirement And Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2021 |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $38,531 $40,366 Interest cost on projected benefit obligation 49,222 59,930 Expected return on assets (106,684) (103,534) Amortization of net loss 69,386 87,516 Settlement charges 44,718 32,429 Net pension costs $95,173 $116,707 Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $126,722 $121,124 Interest cost on projected benefit obligation 142,702 181,528 Expected return on assets (318,437) (310,664) Amortization of net loss 266,576 262,034 Settlement charges 156,266 32,429 Net pension costs $373,829 $286,451 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,966 $9,230 $2,197 $735 $1,680 $2,141 Interest cost on projected benefit obligation 9,396 10,270 2,735 1,156 2,213 2,379 Expected return on assets (19,585) (22,466) (5,629) (2,678) (5,341) (4,853) Amortization of net loss 16,100 15,201 4,580 1,656 2,815 4,135 Settlement charges 7,238 13,209 3,685 1,107 1,634 4,086 Net pension cost $20,115 $25,444 $7,568 $1,976 $3,001 $7,888 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,580 $8,788 $2,015 $663 $1,529 $1,970 Interest cost on projected benefit obligation 11,054 12,614 3,234 1,457 2,686 2,753 Expected return on assets (19,531) (22,415) (5,783) (2,627) (5,483) (4,687) Amortization of net loss 17,092 16,663 4,747 2,005 3,295 4,277 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $34,903 $22,177 $6,512 $1,498 $5,922 $4,313 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $21,640 $29,033 $6,865 $2,304 $5,237 $6,707 Interest cost on projected benefit obligation 26,488 29,695 7,769 3,264 6,215 6,757 Expected return on assets (58,896) (67,521) (16,815) (7,941) (15,851) (14,436) Amortization of net loss 53,652 52,294 15,556 5,996 9,941 14,393 Settlement charges 31,624 48,201 11,447 4,691 8,261 8,725 Net pension cost $74,508 $91,702 $24,822 $8,314 $13,803 $22,146 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $19,712 $26,376 $6,061 $1,989 $4,621 $5,900 Interest cost on projected benefit obligation 33,920 38,296 9,914 4,369 8,250 8,381 Expected return on assets (58,775) (67,219) (17,297) (7,881) (16,455) (14,013) Amortization of net loss 50,886 49,917 14,243 6,015 9,825 12,835 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $65,451 $53,897 $15,220 $4,492 $10,136 $13,103 Non-Qualified Net Pension Cost Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $86 $192 $91 $7 $115 2020 $83 $37 $90 $7 $118 Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $266 $280 $283 $23 $345 2020 $249 $111 $270 $21 $354 Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost (Income) Entergy’s other postretirement benefit income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $6,645 $6,231 Interest cost on accumulated postretirement benefit obligation (APBO) 5,320 6,888 Expected return on assets (10,805) (10,182) Amortization of prior service credit (8,267) (8,985) Amortization of net loss 713 1,005 Net other postretirement benefit income ($6,394) ($5,043) Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $19,935 $18,263 Interest cost on accumulated postretirement benefit obligation (APBO) 15,960 21,708 Expected return on assets (32,415) (30,692) Amortization of prior service credit (24,801) (23,892) Amortization of net loss 2,139 2,478 Net other postretirement benefit income ($19,182) ($12,135) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,034 $1,544 $362 $109 $346 $335 Interest cost on APBO 932 1,130 278 130 317 220 Expected return on assets (4,505) — (1,384) (1,438) (2,548) (789) Amortization of prior service credit (280) (1,230) (444) (229) (936) (109) Amortization of net (gain) loss 49 (91) 19 (178) 100 15 Net other postretirement benefit cost (income) ($2,770) $1,353 ($1,169) ($1,606) ($2,721) ($328) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $933 $1,524 $372 $114 $306 $321 Interest cost on APBO 1,164 1,497 372 186 477 276 Expected return on assets (4,260) — (1,287) (1,344) (2,403) (735) Amortization of prior service credit (396) (1,695) (444) (228) (939) (282) Amortization of net (gain) loss 162 (81) 48 9 231 33 Net other postretirement benefit cost (income) ($2,397) $1,245 ($939) ($1,263) ($2,328) ($387) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $3,102 $4,632 $1,086 $327 $1,038 $1,005 Interest cost on APBO 2,796 3,390 834 390 951 660 Expected return on assets (13,515) — (4,152) (4,314) (7,644) (2,367) Amortization of prior service credit (840) (3,690) (1,332) (687) (2,808) (327) Amortization of net (gain) loss 147 (273) 57 (534) 300 45 Net other postretirement benefit cost (income) ($8,310) $4,059 ($3,507) ($4,818) ($8,163) ($984) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,761 $2,947 $723 $219 $609 $615 Interest cost on APBO 2,381 3,220 794 413 1,059 583 Expected return on assets (8,586) — (2,594) (2,699) (4,838) (1,483) Amortization of prior service credit (1,057) (2,784) (765) (304) (1,489) (501) Amortization of net (gain) loss 217 (280) 77 (29) 443 53 Net other postretirement benefit cost (income) ($5,284) $3,103 ($1,765) ($2,400) ($4,216) ($733) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,288 ($40) $5,248 Amortization of net loss (12,439) (496) (555) (13,490) Settlement loss (2,731) — (461) (3,192) ($15,170) $4,792 ($1,056) ($11,434) Entergy Louisiana Amortization of prior service credit $— $1,230 $— $1,230 Amortization of net gain (loss) (609) 91 (1) (519) Settlement loss (528) — (6) ($534) ($1,137) $1,321 ($7) $177 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,739 ($57) $5,682 Amortization of net loss (26,462) (327) (831) (27,620) Settlement loss (196) — — (196) ($26,658) $5,412 ($888) ($22,134) Entergy Louisiana Amortization of prior service credit $— $1,695 $— $1,695 Amortization of net gain (loss) (497) 81 (1) (417) Settlement loss (196) — — (196) ($693) $1,776 ($1) $1,082 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,864 ($120) $15,744 Amortization of net loss (72,322) (1,486) (1,745) (75,553) Settlement loss (8,774) — (461) (9,235) ($81,096) $14,378 ($2,326) ($69,044) Entergy Louisiana Amortization of prior service credit $— $3,690 $— $3,690 Amortization of net gain (loss) (2,093) 273 (4) (1,824) Settlement loss (1,928) — (6) (1,934) ($4,021) $3,963 ($10) ($68) 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,255 ($172) $15,083 Amortization of net loss (79,387) (680) (2,494) (82,561) Settlement loss (196) — — (196) ($79,583) $14,575 ($2,666) ($67,674) Entergy Louisiana Amortization of prior service credit $— $4,479 $— $4,479 Amortization of net gain (loss) (1,495) 361 (3) (1,137) Settlement loss (196) — — (196) ($1,691) $4,840 ($3) $3,146 Accounting for Pension and Other Postretirement Benefits In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Other Postretirement Benefits In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation. Qualified Pension Settlement Cost Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. Entergy Texas Reserve In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At September 30, 2021, the balance in this reserve was approximately $11.8 million. Employer Contributions Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021. As of September 30, 2021, Entergy had contributed $347.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2021 pension contributions $66,649 $59,882 $13,715 $5,395 $6,955 $18,663 Pension contributions made through September 2021 $64,666 $59,422 $13,715 $5,395 $6,631 $18,006 Remaining estimated pension contributions to be made in 2021 $1,983 $460 $— $— $324 $657 In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions. |
Entergy Arkansas [Member] | |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $38,531 $40,366 Interest cost on projected benefit obligation 49,222 59,930 Expected return on assets (106,684) (103,534) Amortization of net loss 69,386 87,516 Settlement charges 44,718 32,429 Net pension costs $95,173 $116,707 Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $126,722 $121,124 Interest cost on projected benefit obligation 142,702 181,528 Expected return on assets (318,437) (310,664) Amortization of net loss 266,576 262,034 Settlement charges 156,266 32,429 Net pension costs $373,829 $286,451 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,966 $9,230 $2,197 $735 $1,680 $2,141 Interest cost on projected benefit obligation 9,396 10,270 2,735 1,156 2,213 2,379 Expected return on assets (19,585) (22,466) (5,629) (2,678) (5,341) (4,853) Amortization of net loss 16,100 15,201 4,580 1,656 2,815 4,135 Settlement charges 7,238 13,209 3,685 1,107 1,634 4,086 Net pension cost $20,115 $25,444 $7,568 $1,976 $3,001 $7,888 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,580 $8,788 $2,015 $663 $1,529 $1,970 Interest cost on projected benefit obligation 11,054 12,614 3,234 1,457 2,686 2,753 Expected return on assets (19,531) (22,415) (5,783) (2,627) (5,483) (4,687) Amortization of net loss 17,092 16,663 4,747 2,005 3,295 4,277 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $34,903 $22,177 $6,512 $1,498 $5,922 $4,313 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $21,640 $29,033 $6,865 $2,304 $5,237 $6,707 Interest cost on projected benefit obligation 26,488 29,695 7,769 3,264 6,215 6,757 Expected return on assets (58,896) (67,521) (16,815) (7,941) (15,851) (14,436) Amortization of net loss 53,652 52,294 15,556 5,996 9,941 14,393 Settlement charges 31,624 48,201 11,447 4,691 8,261 8,725 Net pension cost $74,508 $91,702 $24,822 $8,314 $13,803 $22,146 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $19,712 $26,376 $6,061 $1,989 $4,621 $5,900 Interest cost on projected benefit obligation 33,920 38,296 9,914 4,369 8,250 8,381 Expected return on assets (58,775) (67,219) (17,297) (7,881) (16,455) (14,013) Amortization of net loss 50,886 49,917 14,243 6,015 9,825 12,835 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $65,451 $53,897 $15,220 $4,492 $10,136 $13,103 Non-Qualified Net Pension Cost Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $86 $192 $91 $7 $115 2020 $83 $37 $90 $7 $118 Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $266 $280 $283 $23 $345 2020 $249 $111 $270 $21 $354 Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost (Income) Entergy’s other postretirement benefit income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $6,645 $6,231 Interest cost on accumulated postretirement benefit obligation (APBO) 5,320 6,888 Expected return on assets (10,805) (10,182) Amortization of prior service credit (8,267) (8,985) Amortization of net loss 713 1,005 Net other postretirement benefit income ($6,394) ($5,043) Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $19,935 $18,263 Interest cost on accumulated postretirement benefit obligation (APBO) 15,960 21,708 Expected return on assets (32,415) (30,692) Amortization of prior service credit (24,801) (23,892) Amortization of net loss 2,139 2,478 Net other postretirement benefit income ($19,182) ($12,135) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,034 $1,544 $362 $109 $346 $335 Interest cost on APBO 932 1,130 278 130 317 220 Expected return on assets (4,505) — (1,384) (1,438) (2,548) (789) Amortization of prior service credit (280) (1,230) (444) (229) (936) (109) Amortization of net (gain) loss 49 (91) 19 (178) 100 15 Net other postretirement benefit cost (income) ($2,770) $1,353 ($1,169) ($1,606) ($2,721) ($328) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $933 $1,524 $372 $114 $306 $321 Interest cost on APBO 1,164 1,497 372 186 477 276 Expected return on assets (4,260) — (1,287) (1,344) (2,403) (735) Amortization of prior service credit (396) (1,695) (444) (228) (939) (282) Amortization of net (gain) loss 162 (81) 48 9 231 33 Net other postretirement benefit cost (income) ($2,397) $1,245 ($939) ($1,263) ($2,328) ($387) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $3,102 $4,632 $1,086 $327 $1,038 $1,005 Interest cost on APBO 2,796 3,390 834 390 951 660 Expected return on assets (13,515) — (4,152) (4,314) (7,644) (2,367) Amortization of prior service credit (840) (3,690) (1,332) (687) (2,808) (327) Amortization of net (gain) loss 147 (273) 57 (534) 300 45 Net other postretirement benefit cost (income) ($8,310) $4,059 ($3,507) ($4,818) ($8,163) ($984) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,761 $2,947 $723 $219 $609 $615 Interest cost on APBO 2,381 3,220 794 413 1,059 583 Expected return on assets (8,586) — (2,594) (2,699) (4,838) (1,483) Amortization of prior service credit (1,057) (2,784) (765) (304) (1,489) (501) Amortization of net (gain) loss 217 (280) 77 (29) 443 53 Net other postretirement benefit cost (income) ($5,284) $3,103 ($1,765) ($2,400) ($4,216) ($733) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,288 ($40) $5,248 Amortization of net loss (12,439) (496) (555) (13,490) Settlement loss (2,731) — (461) (3,192) ($15,170) $4,792 ($1,056) ($11,434) Entergy Louisiana Amortization of prior service credit $— $1,230 $— $1,230 Amortization of net gain (loss) (609) 91 (1) (519) Settlement loss (528) — (6) ($534) ($1,137) $1,321 ($7) $177 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,739 ($57) $5,682 Amortization of net loss (26,462) (327) (831) (27,620) Settlement loss (196) — — (196) ($26,658) $5,412 ($888) ($22,134) Entergy Louisiana Amortization of prior service credit $— $1,695 $— $1,695 Amortization of net gain (loss) (497) 81 (1) (417) Settlement loss (196) — — (196) ($693) $1,776 ($1) $1,082 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,864 ($120) $15,744 Amortization of net loss (72,322) (1,486) (1,745) (75,553) Settlement loss (8,774) — (461) (9,235) ($81,096) $14,378 ($2,326) ($69,044) Entergy Louisiana Amortization of prior service credit $— $3,690 $— $3,690 Amortization of net gain (loss) (2,093) 273 (4) (1,824) Settlement loss (1,928) — (6) (1,934) ($4,021) $3,963 ($10) ($68) 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,255 ($172) $15,083 Amortization of net loss (79,387) (680) (2,494) (82,561) Settlement loss (196) — — (196) ($79,583) $14,575 ($2,666) ($67,674) Entergy Louisiana Amortization of prior service credit $— $4,479 $— $4,479 Amortization of net gain (loss) (1,495) 361 (3) (1,137) Settlement loss (196) — — (196) ($1,691) $4,840 ($3) $3,146 Accounting for Pension and Other Postretirement Benefits In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Other Postretirement Benefits In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation. Qualified Pension Settlement Cost Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. Entergy Texas Reserve In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At September 30, 2021, the balance in this reserve was approximately $11.8 million. Employer Contributions Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021. As of September 30, 2021, Entergy had contributed $347.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2021 pension contributions $66,649 $59,882 $13,715 $5,395 $6,955 $18,663 Pension contributions made through September 2021 $64,666 $59,422 $13,715 $5,395 $6,631 $18,006 Remaining estimated pension contributions to be made in 2021 $1,983 $460 $— $— $324 $657 In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions. |
Entergy Louisiana [Member] | |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $38,531 $40,366 Interest cost on projected benefit obligation 49,222 59,930 Expected return on assets (106,684) (103,534) Amortization of net loss 69,386 87,516 Settlement charges 44,718 32,429 Net pension costs $95,173 $116,707 Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $126,722 $121,124 Interest cost on projected benefit obligation 142,702 181,528 Expected return on assets (318,437) (310,664) Amortization of net loss 266,576 262,034 Settlement charges 156,266 32,429 Net pension costs $373,829 $286,451 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,966 $9,230 $2,197 $735 $1,680 $2,141 Interest cost on projected benefit obligation 9,396 10,270 2,735 1,156 2,213 2,379 Expected return on assets (19,585) (22,466) (5,629) (2,678) (5,341) (4,853) Amortization of net loss 16,100 15,201 4,580 1,656 2,815 4,135 Settlement charges 7,238 13,209 3,685 1,107 1,634 4,086 Net pension cost $20,115 $25,444 $7,568 $1,976 $3,001 $7,888 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,580 $8,788 $2,015 $663 $1,529 $1,970 Interest cost on projected benefit obligation 11,054 12,614 3,234 1,457 2,686 2,753 Expected return on assets (19,531) (22,415) (5,783) (2,627) (5,483) (4,687) Amortization of net loss 17,092 16,663 4,747 2,005 3,295 4,277 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $34,903 $22,177 $6,512 $1,498 $5,922 $4,313 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $21,640 $29,033 $6,865 $2,304 $5,237 $6,707 Interest cost on projected benefit obligation 26,488 29,695 7,769 3,264 6,215 6,757 Expected return on assets (58,896) (67,521) (16,815) (7,941) (15,851) (14,436) Amortization of net loss 53,652 52,294 15,556 5,996 9,941 14,393 Settlement charges 31,624 48,201 11,447 4,691 8,261 8,725 Net pension cost $74,508 $91,702 $24,822 $8,314 $13,803 $22,146 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $19,712 $26,376 $6,061 $1,989 $4,621 $5,900 Interest cost on projected benefit obligation 33,920 38,296 9,914 4,369 8,250 8,381 Expected return on assets (58,775) (67,219) (17,297) (7,881) (16,455) (14,013) Amortization of net loss 50,886 49,917 14,243 6,015 9,825 12,835 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $65,451 $53,897 $15,220 $4,492 $10,136 $13,103 Non-Qualified Net Pension Cost Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $86 $192 $91 $7 $115 2020 $83 $37 $90 $7 $118 Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $266 $280 $283 $23 $345 2020 $249 $111 $270 $21 $354 Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost (Income) Entergy’s other postretirement benefit income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $6,645 $6,231 Interest cost on accumulated postretirement benefit obligation (APBO) 5,320 6,888 Expected return on assets (10,805) (10,182) Amortization of prior service credit (8,267) (8,985) Amortization of net loss 713 1,005 Net other postretirement benefit income ($6,394) ($5,043) Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $19,935 $18,263 Interest cost on accumulated postretirement benefit obligation (APBO) 15,960 21,708 Expected return on assets (32,415) (30,692) Amortization of prior service credit (24,801) (23,892) Amortization of net loss 2,139 2,478 Net other postretirement benefit income ($19,182) ($12,135) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,034 $1,544 $362 $109 $346 $335 Interest cost on APBO 932 1,130 278 130 317 220 Expected return on assets (4,505) — (1,384) (1,438) (2,548) (789) Amortization of prior service credit (280) (1,230) (444) (229) (936) (109) Amortization of net (gain) loss 49 (91) 19 (178) 100 15 Net other postretirement benefit cost (income) ($2,770) $1,353 ($1,169) ($1,606) ($2,721) ($328) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $933 $1,524 $372 $114 $306 $321 Interest cost on APBO 1,164 1,497 372 186 477 276 Expected return on assets (4,260) — (1,287) (1,344) (2,403) (735) Amortization of prior service credit (396) (1,695) (444) (228) (939) (282) Amortization of net (gain) loss 162 (81) 48 9 231 33 Net other postretirement benefit cost (income) ($2,397) $1,245 ($939) ($1,263) ($2,328) ($387) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $3,102 $4,632 $1,086 $327 $1,038 $1,005 Interest cost on APBO 2,796 3,390 834 390 951 660 Expected return on assets (13,515) — (4,152) (4,314) (7,644) (2,367) Amortization of prior service credit (840) (3,690) (1,332) (687) (2,808) (327) Amortization of net (gain) loss 147 (273) 57 (534) 300 45 Net other postretirement benefit cost (income) ($8,310) $4,059 ($3,507) ($4,818) ($8,163) ($984) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,761 $2,947 $723 $219 $609 $615 Interest cost on APBO 2,381 3,220 794 413 1,059 583 Expected return on assets (8,586) — (2,594) (2,699) (4,838) (1,483) Amortization of prior service credit (1,057) (2,784) (765) (304) (1,489) (501) Amortization of net (gain) loss 217 (280) 77 (29) 443 53 Net other postretirement benefit cost (income) ($5,284) $3,103 ($1,765) ($2,400) ($4,216) ($733) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,288 ($40) $5,248 Amortization of net loss (12,439) (496) (555) (13,490) Settlement loss (2,731) — (461) (3,192) ($15,170) $4,792 ($1,056) ($11,434) Entergy Louisiana Amortization of prior service credit $— $1,230 $— $1,230 Amortization of net gain (loss) (609) 91 (1) (519) Settlement loss (528) — (6) ($534) ($1,137) $1,321 ($7) $177 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,739 ($57) $5,682 Amortization of net loss (26,462) (327) (831) (27,620) Settlement loss (196) — — (196) ($26,658) $5,412 ($888) ($22,134) Entergy Louisiana Amortization of prior service credit $— $1,695 $— $1,695 Amortization of net gain (loss) (497) 81 (1) (417) Settlement loss (196) — — (196) ($693) $1,776 ($1) $1,082 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,864 ($120) $15,744 Amortization of net loss (72,322) (1,486) (1,745) (75,553) Settlement loss (8,774) — (461) (9,235) ($81,096) $14,378 ($2,326) ($69,044) Entergy Louisiana Amortization of prior service credit $— $3,690 $— $3,690 Amortization of net gain (loss) (2,093) 273 (4) (1,824) Settlement loss (1,928) — (6) (1,934) ($4,021) $3,963 ($10) ($68) 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,255 ($172) $15,083 Amortization of net loss (79,387) (680) (2,494) (82,561) Settlement loss (196) — — (196) ($79,583) $14,575 ($2,666) ($67,674) Entergy Louisiana Amortization of prior service credit $— $4,479 $— $4,479 Amortization of net gain (loss) (1,495) 361 (3) (1,137) Settlement loss (196) — — (196) ($1,691) $4,840 ($3) $3,146 Accounting for Pension and Other Postretirement Benefits In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Other Postretirement Benefits In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation. Qualified Pension Settlement Cost Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. Entergy Texas Reserve In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At September 30, 2021, the balance in this reserve was approximately $11.8 million. Employer Contributions Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021. As of September 30, 2021, Entergy had contributed $347.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2021 pension contributions $66,649 $59,882 $13,715 $5,395 $6,955 $18,663 Pension contributions made through September 2021 $64,666 $59,422 $13,715 $5,395 $6,631 $18,006 Remaining estimated pension contributions to be made in 2021 $1,983 $460 $— $— $324 $657 In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions. |
Entergy Mississippi [Member] | |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $38,531 $40,366 Interest cost on projected benefit obligation 49,222 59,930 Expected return on assets (106,684) (103,534) Amortization of net loss 69,386 87,516 Settlement charges 44,718 32,429 Net pension costs $95,173 $116,707 Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $126,722 $121,124 Interest cost on projected benefit obligation 142,702 181,528 Expected return on assets (318,437) (310,664) Amortization of net loss 266,576 262,034 Settlement charges 156,266 32,429 Net pension costs $373,829 $286,451 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,966 $9,230 $2,197 $735 $1,680 $2,141 Interest cost on projected benefit obligation 9,396 10,270 2,735 1,156 2,213 2,379 Expected return on assets (19,585) (22,466) (5,629) (2,678) (5,341) (4,853) Amortization of net loss 16,100 15,201 4,580 1,656 2,815 4,135 Settlement charges 7,238 13,209 3,685 1,107 1,634 4,086 Net pension cost $20,115 $25,444 $7,568 $1,976 $3,001 $7,888 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,580 $8,788 $2,015 $663 $1,529 $1,970 Interest cost on projected benefit obligation 11,054 12,614 3,234 1,457 2,686 2,753 Expected return on assets (19,531) (22,415) (5,783) (2,627) (5,483) (4,687) Amortization of net loss 17,092 16,663 4,747 2,005 3,295 4,277 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $34,903 $22,177 $6,512 $1,498 $5,922 $4,313 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $21,640 $29,033 $6,865 $2,304 $5,237 $6,707 Interest cost on projected benefit obligation 26,488 29,695 7,769 3,264 6,215 6,757 Expected return on assets (58,896) (67,521) (16,815) (7,941) (15,851) (14,436) Amortization of net loss 53,652 52,294 15,556 5,996 9,941 14,393 Settlement charges 31,624 48,201 11,447 4,691 8,261 8,725 Net pension cost $74,508 $91,702 $24,822 $8,314 $13,803 $22,146 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $19,712 $26,376 $6,061 $1,989 $4,621 $5,900 Interest cost on projected benefit obligation 33,920 38,296 9,914 4,369 8,250 8,381 Expected return on assets (58,775) (67,219) (17,297) (7,881) (16,455) (14,013) Amortization of net loss 50,886 49,917 14,243 6,015 9,825 12,835 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $65,451 $53,897 $15,220 $4,492 $10,136 $13,103 Non-Qualified Net Pension Cost Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $86 $192 $91 $7 $115 2020 $83 $37 $90 $7 $118 Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $266 $280 $283 $23 $345 2020 $249 $111 $270 $21 $354 Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost (Income) Entergy’s other postretirement benefit income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $6,645 $6,231 Interest cost on accumulated postretirement benefit obligation (APBO) 5,320 6,888 Expected return on assets (10,805) (10,182) Amortization of prior service credit (8,267) (8,985) Amortization of net loss 713 1,005 Net other postretirement benefit income ($6,394) ($5,043) Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $19,935 $18,263 Interest cost on accumulated postretirement benefit obligation (APBO) 15,960 21,708 Expected return on assets (32,415) (30,692) Amortization of prior service credit (24,801) (23,892) Amortization of net loss 2,139 2,478 Net other postretirement benefit income ($19,182) ($12,135) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,034 $1,544 $362 $109 $346 $335 Interest cost on APBO 932 1,130 278 130 317 220 Expected return on assets (4,505) — (1,384) (1,438) (2,548) (789) Amortization of prior service credit (280) (1,230) (444) (229) (936) (109) Amortization of net (gain) loss 49 (91) 19 (178) 100 15 Net other postretirement benefit cost (income) ($2,770) $1,353 ($1,169) ($1,606) ($2,721) ($328) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $933 $1,524 $372 $114 $306 $321 Interest cost on APBO 1,164 1,497 372 186 477 276 Expected return on assets (4,260) — (1,287) (1,344) (2,403) (735) Amortization of prior service credit (396) (1,695) (444) (228) (939) (282) Amortization of net (gain) loss 162 (81) 48 9 231 33 Net other postretirement benefit cost (income) ($2,397) $1,245 ($939) ($1,263) ($2,328) ($387) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $3,102 $4,632 $1,086 $327 $1,038 $1,005 Interest cost on APBO 2,796 3,390 834 390 951 660 Expected return on assets (13,515) — (4,152) (4,314) (7,644) (2,367) Amortization of prior service credit (840) (3,690) (1,332) (687) (2,808) (327) Amortization of net (gain) loss 147 (273) 57 (534) 300 45 Net other postretirement benefit cost (income) ($8,310) $4,059 ($3,507) ($4,818) ($8,163) ($984) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,761 $2,947 $723 $219 $609 $615 Interest cost on APBO 2,381 3,220 794 413 1,059 583 Expected return on assets (8,586) — (2,594) (2,699) (4,838) (1,483) Amortization of prior service credit (1,057) (2,784) (765) (304) (1,489) (501) Amortization of net (gain) loss 217 (280) 77 (29) 443 53 Net other postretirement benefit cost (income) ($5,284) $3,103 ($1,765) ($2,400) ($4,216) ($733) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,288 ($40) $5,248 Amortization of net loss (12,439) (496) (555) (13,490) Settlement loss (2,731) — (461) (3,192) ($15,170) $4,792 ($1,056) ($11,434) Entergy Louisiana Amortization of prior service credit $— $1,230 $— $1,230 Amortization of net gain (loss) (609) 91 (1) (519) Settlement loss (528) — (6) ($534) ($1,137) $1,321 ($7) $177 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,739 ($57) $5,682 Amortization of net loss (26,462) (327) (831) (27,620) Settlement loss (196) — — (196) ($26,658) $5,412 ($888) ($22,134) Entergy Louisiana Amortization of prior service credit $— $1,695 $— $1,695 Amortization of net gain (loss) (497) 81 (1) (417) Settlement loss (196) — — (196) ($693) $1,776 ($1) $1,082 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,864 ($120) $15,744 Amortization of net loss (72,322) (1,486) (1,745) (75,553) Settlement loss (8,774) — (461) (9,235) ($81,096) $14,378 ($2,326) ($69,044) Entergy Louisiana Amortization of prior service credit $— $3,690 $— $3,690 Amortization of net gain (loss) (2,093) 273 (4) (1,824) Settlement loss (1,928) — (6) (1,934) ($4,021) $3,963 ($10) ($68) 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,255 ($172) $15,083 Amortization of net loss (79,387) (680) (2,494) (82,561) Settlement loss (196) — — (196) ($79,583) $14,575 ($2,666) ($67,674) Entergy Louisiana Amortization of prior service credit $— $4,479 $— $4,479 Amortization of net gain (loss) (1,495) 361 (3) (1,137) Settlement loss (196) — — (196) ($1,691) $4,840 ($3) $3,146 Accounting for Pension and Other Postretirement Benefits In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Other Postretirement Benefits In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation. Qualified Pension Settlement Cost Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. Entergy Texas Reserve In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At September 30, 2021, the balance in this reserve was approximately $11.8 million. Employer Contributions Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021. As of September 30, 2021, Entergy had contributed $347.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2021 pension contributions $66,649 $59,882 $13,715 $5,395 $6,955 $18,663 Pension contributions made through September 2021 $64,666 $59,422 $13,715 $5,395 $6,631 $18,006 Remaining estimated pension contributions to be made in 2021 $1,983 $460 $— $— $324 $657 In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions. |
Entergy New Orleans [Member] | |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $38,531 $40,366 Interest cost on projected benefit obligation 49,222 59,930 Expected return on assets (106,684) (103,534) Amortization of net loss 69,386 87,516 Settlement charges 44,718 32,429 Net pension costs $95,173 $116,707 Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $126,722 $121,124 Interest cost on projected benefit obligation 142,702 181,528 Expected return on assets (318,437) (310,664) Amortization of net loss 266,576 262,034 Settlement charges 156,266 32,429 Net pension costs $373,829 $286,451 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,966 $9,230 $2,197 $735 $1,680 $2,141 Interest cost on projected benefit obligation 9,396 10,270 2,735 1,156 2,213 2,379 Expected return on assets (19,585) (22,466) (5,629) (2,678) (5,341) (4,853) Amortization of net loss 16,100 15,201 4,580 1,656 2,815 4,135 Settlement charges 7,238 13,209 3,685 1,107 1,634 4,086 Net pension cost $20,115 $25,444 $7,568 $1,976 $3,001 $7,888 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,580 $8,788 $2,015 $663 $1,529 $1,970 Interest cost on projected benefit obligation 11,054 12,614 3,234 1,457 2,686 2,753 Expected return on assets (19,531) (22,415) (5,783) (2,627) (5,483) (4,687) Amortization of net loss 17,092 16,663 4,747 2,005 3,295 4,277 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $34,903 $22,177 $6,512 $1,498 $5,922 $4,313 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $21,640 $29,033 $6,865 $2,304 $5,237 $6,707 Interest cost on projected benefit obligation 26,488 29,695 7,769 3,264 6,215 6,757 Expected return on assets (58,896) (67,521) (16,815) (7,941) (15,851) (14,436) Amortization of net loss 53,652 52,294 15,556 5,996 9,941 14,393 Settlement charges 31,624 48,201 11,447 4,691 8,261 8,725 Net pension cost $74,508 $91,702 $24,822 $8,314 $13,803 $22,146 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $19,712 $26,376 $6,061 $1,989 $4,621 $5,900 Interest cost on projected benefit obligation 33,920 38,296 9,914 4,369 8,250 8,381 Expected return on assets (58,775) (67,219) (17,297) (7,881) (16,455) (14,013) Amortization of net loss 50,886 49,917 14,243 6,015 9,825 12,835 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $65,451 $53,897 $15,220 $4,492 $10,136 $13,103 Non-Qualified Net Pension Cost Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $86 $192 $91 $7 $115 2020 $83 $37 $90 $7 $118 Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $266 $280 $283 $23 $345 2020 $249 $111 $270 $21 $354 Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost (Income) Entergy’s other postretirement benefit income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $6,645 $6,231 Interest cost on accumulated postretirement benefit obligation (APBO) 5,320 6,888 Expected return on assets (10,805) (10,182) Amortization of prior service credit (8,267) (8,985) Amortization of net loss 713 1,005 Net other postretirement benefit income ($6,394) ($5,043) Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $19,935 $18,263 Interest cost on accumulated postretirement benefit obligation (APBO) 15,960 21,708 Expected return on assets (32,415) (30,692) Amortization of prior service credit (24,801) (23,892) Amortization of net loss 2,139 2,478 Net other postretirement benefit income ($19,182) ($12,135) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,034 $1,544 $362 $109 $346 $335 Interest cost on APBO 932 1,130 278 130 317 220 Expected return on assets (4,505) — (1,384) (1,438) (2,548) (789) Amortization of prior service credit (280) (1,230) (444) (229) (936) (109) Amortization of net (gain) loss 49 (91) 19 (178) 100 15 Net other postretirement benefit cost (income) ($2,770) $1,353 ($1,169) ($1,606) ($2,721) ($328) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $933 $1,524 $372 $114 $306 $321 Interest cost on APBO 1,164 1,497 372 186 477 276 Expected return on assets (4,260) — (1,287) (1,344) (2,403) (735) Amortization of prior service credit (396) (1,695) (444) (228) (939) (282) Amortization of net (gain) loss 162 (81) 48 9 231 33 Net other postretirement benefit cost (income) ($2,397) $1,245 ($939) ($1,263) ($2,328) ($387) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $3,102 $4,632 $1,086 $327 $1,038 $1,005 Interest cost on APBO 2,796 3,390 834 390 951 660 Expected return on assets (13,515) — (4,152) (4,314) (7,644) (2,367) Amortization of prior service credit (840) (3,690) (1,332) (687) (2,808) (327) Amortization of net (gain) loss 147 (273) 57 (534) 300 45 Net other postretirement benefit cost (income) ($8,310) $4,059 ($3,507) ($4,818) ($8,163) ($984) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,761 $2,947 $723 $219 $609 $615 Interest cost on APBO 2,381 3,220 794 413 1,059 583 Expected return on assets (8,586) — (2,594) (2,699) (4,838) (1,483) Amortization of prior service credit (1,057) (2,784) (765) (304) (1,489) (501) Amortization of net (gain) loss 217 (280) 77 (29) 443 53 Net other postretirement benefit cost (income) ($5,284) $3,103 ($1,765) ($2,400) ($4,216) ($733) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,288 ($40) $5,248 Amortization of net loss (12,439) (496) (555) (13,490) Settlement loss (2,731) — (461) (3,192) ($15,170) $4,792 ($1,056) ($11,434) Entergy Louisiana Amortization of prior service credit $— $1,230 $— $1,230 Amortization of net gain (loss) (609) 91 (1) (519) Settlement loss (528) — (6) ($534) ($1,137) $1,321 ($7) $177 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,739 ($57) $5,682 Amortization of net loss (26,462) (327) (831) (27,620) Settlement loss (196) — — (196) ($26,658) $5,412 ($888) ($22,134) Entergy Louisiana Amortization of prior service credit $— $1,695 $— $1,695 Amortization of net gain (loss) (497) 81 (1) (417) Settlement loss (196) — — (196) ($693) $1,776 ($1) $1,082 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,864 ($120) $15,744 Amortization of net loss (72,322) (1,486) (1,745) (75,553) Settlement loss (8,774) — (461) (9,235) ($81,096) $14,378 ($2,326) ($69,044) Entergy Louisiana Amortization of prior service credit $— $3,690 $— $3,690 Amortization of net gain (loss) (2,093) 273 (4) (1,824) Settlement loss (1,928) — (6) (1,934) ($4,021) $3,963 ($10) ($68) 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,255 ($172) $15,083 Amortization of net loss (79,387) (680) (2,494) (82,561) Settlement loss (196) — — (196) ($79,583) $14,575 ($2,666) ($67,674) Entergy Louisiana Amortization of prior service credit $— $4,479 $— $4,479 Amortization of net gain (loss) (1,495) 361 (3) (1,137) Settlement loss (196) — — (196) ($1,691) $4,840 ($3) $3,146 Accounting for Pension and Other Postretirement Benefits In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Other Postretirement Benefits In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation. Qualified Pension Settlement Cost Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. Entergy Texas Reserve In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At September 30, 2021, the balance in this reserve was approximately $11.8 million. Employer Contributions Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021. As of September 30, 2021, Entergy had contributed $347.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2021 pension contributions $66,649 $59,882 $13,715 $5,395 $6,955 $18,663 Pension contributions made through September 2021 $64,666 $59,422 $13,715 $5,395 $6,631 $18,006 Remaining estimated pension contributions to be made in 2021 $1,983 $460 $— $— $324 $657 In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions. |
Entergy Texas [Member] | |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $38,531 $40,366 Interest cost on projected benefit obligation 49,222 59,930 Expected return on assets (106,684) (103,534) Amortization of net loss 69,386 87,516 Settlement charges 44,718 32,429 Net pension costs $95,173 $116,707 Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $126,722 $121,124 Interest cost on projected benefit obligation 142,702 181,528 Expected return on assets (318,437) (310,664) Amortization of net loss 266,576 262,034 Settlement charges 156,266 32,429 Net pension costs $373,829 $286,451 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,966 $9,230 $2,197 $735 $1,680 $2,141 Interest cost on projected benefit obligation 9,396 10,270 2,735 1,156 2,213 2,379 Expected return on assets (19,585) (22,466) (5,629) (2,678) (5,341) (4,853) Amortization of net loss 16,100 15,201 4,580 1,656 2,815 4,135 Settlement charges 7,238 13,209 3,685 1,107 1,634 4,086 Net pension cost $20,115 $25,444 $7,568 $1,976 $3,001 $7,888 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,580 $8,788 $2,015 $663 $1,529 $1,970 Interest cost on projected benefit obligation 11,054 12,614 3,234 1,457 2,686 2,753 Expected return on assets (19,531) (22,415) (5,783) (2,627) (5,483) (4,687) Amortization of net loss 17,092 16,663 4,747 2,005 3,295 4,277 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $34,903 $22,177 $6,512 $1,498 $5,922 $4,313 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $21,640 $29,033 $6,865 $2,304 $5,237 $6,707 Interest cost on projected benefit obligation 26,488 29,695 7,769 3,264 6,215 6,757 Expected return on assets (58,896) (67,521) (16,815) (7,941) (15,851) (14,436) Amortization of net loss 53,652 52,294 15,556 5,996 9,941 14,393 Settlement charges 31,624 48,201 11,447 4,691 8,261 8,725 Net pension cost $74,508 $91,702 $24,822 $8,314 $13,803 $22,146 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $19,712 $26,376 $6,061 $1,989 $4,621 $5,900 Interest cost on projected benefit obligation 33,920 38,296 9,914 4,369 8,250 8,381 Expected return on assets (58,775) (67,219) (17,297) (7,881) (16,455) (14,013) Amortization of net loss 50,886 49,917 14,243 6,015 9,825 12,835 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $65,451 $53,897 $15,220 $4,492 $10,136 $13,103 Non-Qualified Net Pension Cost Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $86 $192 $91 $7 $115 2020 $83 $37 $90 $7 $118 Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $266 $280 $283 $23 $345 2020 $249 $111 $270 $21 $354 Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost (Income) Entergy’s other postretirement benefit income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $6,645 $6,231 Interest cost on accumulated postretirement benefit obligation (APBO) 5,320 6,888 Expected return on assets (10,805) (10,182) Amortization of prior service credit (8,267) (8,985) Amortization of net loss 713 1,005 Net other postretirement benefit income ($6,394) ($5,043) Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $19,935 $18,263 Interest cost on accumulated postretirement benefit obligation (APBO) 15,960 21,708 Expected return on assets (32,415) (30,692) Amortization of prior service credit (24,801) (23,892) Amortization of net loss 2,139 2,478 Net other postretirement benefit income ($19,182) ($12,135) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,034 $1,544 $362 $109 $346 $335 Interest cost on APBO 932 1,130 278 130 317 220 Expected return on assets (4,505) — (1,384) (1,438) (2,548) (789) Amortization of prior service credit (280) (1,230) (444) (229) (936) (109) Amortization of net (gain) loss 49 (91) 19 (178) 100 15 Net other postretirement benefit cost (income) ($2,770) $1,353 ($1,169) ($1,606) ($2,721) ($328) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $933 $1,524 $372 $114 $306 $321 Interest cost on APBO 1,164 1,497 372 186 477 276 Expected return on assets (4,260) — (1,287) (1,344) (2,403) (735) Amortization of prior service credit (396) (1,695) (444) (228) (939) (282) Amortization of net (gain) loss 162 (81) 48 9 231 33 Net other postretirement benefit cost (income) ($2,397) $1,245 ($939) ($1,263) ($2,328) ($387) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $3,102 $4,632 $1,086 $327 $1,038 $1,005 Interest cost on APBO 2,796 3,390 834 390 951 660 Expected return on assets (13,515) — (4,152) (4,314) (7,644) (2,367) Amortization of prior service credit (840) (3,690) (1,332) (687) (2,808) (327) Amortization of net (gain) loss 147 (273) 57 (534) 300 45 Net other postretirement benefit cost (income) ($8,310) $4,059 ($3,507) ($4,818) ($8,163) ($984) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,761 $2,947 $723 $219 $609 $615 Interest cost on APBO 2,381 3,220 794 413 1,059 583 Expected return on assets (8,586) — (2,594) (2,699) (4,838) (1,483) Amortization of prior service credit (1,057) (2,784) (765) (304) (1,489) (501) Amortization of net (gain) loss 217 (280) 77 (29) 443 53 Net other postretirement benefit cost (income) ($5,284) $3,103 ($1,765) ($2,400) ($4,216) ($733) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,288 ($40) $5,248 Amortization of net loss (12,439) (496) (555) (13,490) Settlement loss (2,731) — (461) (3,192) ($15,170) $4,792 ($1,056) ($11,434) Entergy Louisiana Amortization of prior service credit $— $1,230 $— $1,230 Amortization of net gain (loss) (609) 91 (1) (519) Settlement loss (528) — (6) ($534) ($1,137) $1,321 ($7) $177 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,739 ($57) $5,682 Amortization of net loss (26,462) (327) (831) (27,620) Settlement loss (196) — — (196) ($26,658) $5,412 ($888) ($22,134) Entergy Louisiana Amortization of prior service credit $— $1,695 $— $1,695 Amortization of net gain (loss) (497) 81 (1) (417) Settlement loss (196) — — (196) ($693) $1,776 ($1) $1,082 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,864 ($120) $15,744 Amortization of net loss (72,322) (1,486) (1,745) (75,553) Settlement loss (8,774) — (461) (9,235) ($81,096) $14,378 ($2,326) ($69,044) Entergy Louisiana Amortization of prior service credit $— $3,690 $— $3,690 Amortization of net gain (loss) (2,093) 273 (4) (1,824) Settlement loss (1,928) — (6) (1,934) ($4,021) $3,963 ($10) ($68) 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,255 ($172) $15,083 Amortization of net loss (79,387) (680) (2,494) (82,561) Settlement loss (196) — — (196) ($79,583) $14,575 ($2,666) ($67,674) Entergy Louisiana Amortization of prior service credit $— $4,479 $— $4,479 Amortization of net gain (loss) (1,495) 361 (3) (1,137) Settlement loss (196) — — (196) ($1,691) $4,840 ($3) $3,146 Accounting for Pension and Other Postretirement Benefits In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Other Postretirement Benefits In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation. Qualified Pension Settlement Cost Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. Entergy Texas Reserve In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At September 30, 2021, the balance in this reserve was approximately $11.8 million. Employer Contributions Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021. As of September 30, 2021, Entergy had contributed $347.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2021 pension contributions $66,649 $59,882 $13,715 $5,395 $6,955 $18,663 Pension contributions made through September 2021 $64,666 $59,422 $13,715 $5,395 $6,631 $18,006 Remaining estimated pension contributions to be made in 2021 $1,983 $460 $— $— $324 $657 In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions. |
System Energy [Member] | |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $38,531 $40,366 Interest cost on projected benefit obligation 49,222 59,930 Expected return on assets (106,684) (103,534) Amortization of net loss 69,386 87,516 Settlement charges 44,718 32,429 Net pension costs $95,173 $116,707 Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $126,722 $121,124 Interest cost on projected benefit obligation 142,702 181,528 Expected return on assets (318,437) (310,664) Amortization of net loss 266,576 262,034 Settlement charges 156,266 32,429 Net pension costs $373,829 $286,451 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,966 $9,230 $2,197 $735 $1,680 $2,141 Interest cost on projected benefit obligation 9,396 10,270 2,735 1,156 2,213 2,379 Expected return on assets (19,585) (22,466) (5,629) (2,678) (5,341) (4,853) Amortization of net loss 16,100 15,201 4,580 1,656 2,815 4,135 Settlement charges 7,238 13,209 3,685 1,107 1,634 4,086 Net pension cost $20,115 $25,444 $7,568 $1,976 $3,001 $7,888 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,580 $8,788 $2,015 $663 $1,529 $1,970 Interest cost on projected benefit obligation 11,054 12,614 3,234 1,457 2,686 2,753 Expected return on assets (19,531) (22,415) (5,783) (2,627) (5,483) (4,687) Amortization of net loss 17,092 16,663 4,747 2,005 3,295 4,277 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $34,903 $22,177 $6,512 $1,498 $5,922 $4,313 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $21,640 $29,033 $6,865 $2,304 $5,237 $6,707 Interest cost on projected benefit obligation 26,488 29,695 7,769 3,264 6,215 6,757 Expected return on assets (58,896) (67,521) (16,815) (7,941) (15,851) (14,436) Amortization of net loss 53,652 52,294 15,556 5,996 9,941 14,393 Settlement charges 31,624 48,201 11,447 4,691 8,261 8,725 Net pension cost $74,508 $91,702 $24,822 $8,314 $13,803 $22,146 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $19,712 $26,376 $6,061 $1,989 $4,621 $5,900 Interest cost on projected benefit obligation 33,920 38,296 9,914 4,369 8,250 8,381 Expected return on assets (58,775) (67,219) (17,297) (7,881) (16,455) (14,013) Amortization of net loss 50,886 49,917 14,243 6,015 9,825 12,835 Settlement charges 19,708 6,527 2,299 — 3,895 — Net pension cost $65,451 $53,897 $15,220 $4,492 $10,136 $13,103 Non-Qualified Net Pension Cost Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $86 $192 $91 $7 $115 2020 $83 $37 $90 $7 $118 Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2021 and 2020: Entergy Entergy Entergy Entergy Entergy (In Thousands) 2021 $266 $280 $283 $23 $345 2020 $249 $111 $270 $21 $354 Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost (Income) Entergy’s other postretirement benefit income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $6,645 $6,231 Interest cost on accumulated postretirement benefit obligation (APBO) 5,320 6,888 Expected return on assets (10,805) (10,182) Amortization of prior service credit (8,267) (8,985) Amortization of net loss 713 1,005 Net other postretirement benefit income ($6,394) ($5,043) Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components: 2021 2020 (In Thousands) Service cost - benefits earned during the period $19,935 $18,263 Interest cost on accumulated postretirement benefit obligation (APBO) 15,960 21,708 Expected return on assets (32,415) (30,692) Amortization of prior service credit (24,801) (23,892) Amortization of net loss 2,139 2,478 Net other postretirement benefit income ($19,182) ($12,135) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,034 $1,544 $362 $109 $346 $335 Interest cost on APBO 932 1,130 278 130 317 220 Expected return on assets (4,505) — (1,384) (1,438) (2,548) (789) Amortization of prior service credit (280) (1,230) (444) (229) (936) (109) Amortization of net (gain) loss 49 (91) 19 (178) 100 15 Net other postretirement benefit cost (income) ($2,770) $1,353 ($1,169) ($1,606) ($2,721) ($328) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $933 $1,524 $372 $114 $306 $321 Interest cost on APBO 1,164 1,497 372 186 477 276 Expected return on assets (4,260) — (1,287) (1,344) (2,403) (735) Amortization of prior service credit (396) (1,695) (444) (228) (939) (282) Amortization of net (gain) loss 162 (81) 48 9 231 33 Net other postretirement benefit cost (income) ($2,397) $1,245 ($939) ($1,263) ($2,328) ($387) The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components: 2021 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $3,102 $4,632 $1,086 $327 $1,038 $1,005 Interest cost on APBO 2,796 3,390 834 390 951 660 Expected return on assets (13,515) — (4,152) (4,314) (7,644) (2,367) Amortization of prior service credit (840) (3,690) (1,332) (687) (2,808) (327) Amortization of net (gain) loss 147 (273) 57 (534) 300 45 Net other postretirement benefit cost (income) ($8,310) $4,059 ($3,507) ($4,818) ($8,163) ($984) 2020 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $1,761 $2,947 $723 $219 $609 $615 Interest cost on APBO 2,381 3,220 794 413 1,059 583 Expected return on assets (8,586) — (2,594) (2,699) (4,838) (1,483) Amortization of prior service credit (1,057) (2,784) (765) (304) (1,489) (501) Amortization of net (gain) loss 217 (280) 77 (29) 443 53 Net other postretirement benefit cost (income) ($5,284) $3,103 ($1,765) ($2,400) ($4,216) ($733) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,288 ($40) $5,248 Amortization of net loss (12,439) (496) (555) (13,490) Settlement loss (2,731) — (461) (3,192) ($15,170) $4,792 ($1,056) ($11,434) Entergy Louisiana Amortization of prior service credit $— $1,230 $— $1,230 Amortization of net gain (loss) (609) 91 (1) (519) Settlement loss (528) — (6) ($534) ($1,137) $1,321 ($7) $177 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $5,739 ($57) $5,682 Amortization of net loss (26,462) (327) (831) (27,620) Settlement loss (196) — — (196) ($26,658) $5,412 ($888) ($22,134) Entergy Louisiana Amortization of prior service credit $— $1,695 $— $1,695 Amortization of net gain (loss) (497) 81 (1) (417) Settlement loss (196) — — (196) ($693) $1,776 ($1) $1,082 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2021 and 2020: 2021 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,864 ($120) $15,744 Amortization of net loss (72,322) (1,486) (1,745) (75,553) Settlement loss (8,774) — (461) (9,235) ($81,096) $14,378 ($2,326) ($69,044) Entergy Louisiana Amortization of prior service credit $— $3,690 $— $3,690 Amortization of net gain (loss) (2,093) 273 (4) (1,824) Settlement loss (1,928) — (6) (1,934) ($4,021) $3,963 ($10) ($68) 2020 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost) credit $— $15,255 ($172) $15,083 Amortization of net loss (79,387) (680) (2,494) (82,561) Settlement loss (196) — — (196) ($79,583) $14,575 ($2,666) ($67,674) Entergy Louisiana Amortization of prior service credit $— $4,479 $— $4,479 Amortization of net gain (loss) (1,495) 361 (3) (1,137) Settlement loss (196) — — (196) ($1,691) $4,840 ($3) $3,146 Accounting for Pension and Other Postretirement Benefits In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. Other Postretirement Benefits In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation. Qualified Pension Settlement Cost Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred. Entergy Texas Reserve In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At September 30, 2021, the balance in this reserve was approximately $11.8 million. Employer Contributions Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021. As of September 30, 2021, Entergy had contributed $347.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021: Entergy Entergy Entergy Entergy Entergy System (In Thousands) Expected 2021 pension contributions $66,649 $59,882 $13,715 $5,395 $6,955 $18,663 Pension contributions made through September 2021 $64,666 $59,422 $13,715 $5,395 $6,631 $18,006 Remaining estimated pension contributions to be made in 2021 $1,983 $460 $— $— $324 $657 In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions. |