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Entergy 639 Loyola Avenue New Orleans, LA 70113 |
Date: | July 31, 2019 | ||
For Release: | Immediately | ||
Contact: | Neal Kirby (Media) (504) 576-4238 nkirby@entergy.com | David Borde (Investor Relations) (504) 576-5668 dborde@entergy.com |
Entergy Reports Second Quarter Earnings
On target for 2019; raising outlook midpoints for 2020 and 2021
NEW ORLEANS - Entergy Corporation (NYSE: ETR) reported second quarter 2019 earnings per share of $1.22 on an as-reported basis and $1.35 on an adjusted basis (non-GAAP).
“Our results for the quarter keep us well-positioned to achieve our full-year financial guidance,” said Entergy Chairman and Chief Executive Officer Leo Denault. “With a track record of success, clarity in our vision, and confidence in our strategy going forward, we are raising our 2020 and 2021 adjusted EPS outlooks and narrowing our adjusted EPS ranges across our forecast period.”
Business highlights included the following:
• | Entergy narrowed its 2019 adjusted EPS guidance to $5.15 to $5.45 and raised and narrowed its 2020 and 2021 adjusted EPS outlooks to $5.45 to $5.75 and $5.80 to $6.10, respectively. |
• | The St. Charles Power Station was placed in service on budget and ahead of schedule. |
• | Phase 1 of the Western Region economic transmission project was placed in service. |
Table of Contents Page |
News Release1 Appendices7 A: Consolidated Results and Adjustments8 B: Earnings Variance Analysis11 C: Utility Financial and Operating Measures13 D: EWC Financial and Operating Measures14 E: Consolidated Financial Measures15 F: Definitions and Abbreviations and Acronyms16 G: GAAP to Non-GAAP Reconciliations20 Financial Statements23 |
• | The MPSC approved the settlement in Entergy Mississippi’s annual FRP filing. |
• | Entergy Louisiana and Entergy Arkansas each submitted annual FRP filings. |
• | Pilgrim Nuclear Power Station permanently shut down on May 31, 2019. |
• | The Edison Electric Institute awarded its Emergency Assistance Award to Entergy. |
• | For the fourth consecutive year, Entergy Corporation was named to The Civic 50, a Points of Light initiative honoring the 50 most community-minded companies in the United States. |
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
Second Quarter and Year-to-Date 2019 vs. 2018 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | ||||||
Second Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings | 236 | 245 | (9) | 491 | 378 | 113 |
Less adjustments | (26) | (14) | (12) | 71 | (32) | 103 |
Adjusted earnings (non-GAAP) | 262 | 259 | 3 | 420 | 410 | 10 |
Estimated weather in billed sales | 12 | 21 | (9) | (12) | 37 | (48) |
(After-tax, per share in $) | ||||||
As-reported earnings | 1.22 | 1.34 | (0.12) | 2.54 | 2.08 | 0.46 |
Less adjustments | (0.13) | (0.08) | (0.05) | 0.36 | (0.18) | 0.54 |
Adjusted earnings (non-GAAP) | 1.35 | 1.42 | (0.07) | 2.18 | 2.26 | (0.08) |
Estimated weather in billed sales | 0.06 | 0.11 | (0.05) | (0.06) | 0.20 | (0.26) |
Calculations may differ due to rounding
Consolidated Results
For second quarter 2019, the company reported earnings of $236 million, or $1.22 per share, on an as-reported basis and earnings of $262 million, or $1.35 per share, on an adjusted basis. This compared to second quarter 2018 earnings of $245 million, or $1.34 per share, on an as-reported basis and earnings of $259 million, or $1.42 per share on an adjusted basis.
Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances by business is provided in Appendix B.
Business Segment Results
Utility
For second quarter 2019, the Utility business reported earnings attributable to Entergy Corporation of $331 million, or $1.70 per share, on both an as-reported and an adjusted basis. This compared to second quarter 2018 earnings of $376 million, or $2.05 per share, on an as-reported basis and $333 million, or $1.82 per share, on an adjusted basis. Drivers for the quarter included:
• | rate activity at Entergy Arkansas, Entergy Louisiana, and Entergy Texas; |
• | second quarter 2018 regulatory charges to return benefits of the lower federal tax rate to customers; and |
• | higher other income largely due to higher AFUDC-equity funds. |
These increases were partially offset by:
• | less favorable weather in second quarter 2019 compared to a year ago; |
• | lower sales volume in the unbilled period; |
• | higher spending on nuclear operations, information technology, and initiatives to explore new customer products and services; and |
• | higher depreciation expense. |
On a per share basis, 2019 results reflected higher shares outstanding from settlement of the company’s equity forward.
Appendix C contains additional details on Utility financial and operating measures.
Parent & Other
For second quarter 2019, Parent & Other reported a loss of $(69 million), or (35) cents per share, on both an as-reported and an adjusted basis. This compared to a loss of $(73 million), or (40) cents per share, on both an as-reported and an adjusted basis in second quarter 2018.
Entergy Wholesale Commodities
For second quarter 2019, EWC recorded a loss attributable to Entergy Corporation of
$(26 million), or (13) cents per share on an as-reported basis. This compared to a second quarter 2018 loss of $(57 million), or (31) cents per share, on an as-reported basis.
Second quarter 2019 earnings reflected lower impairment charges as compared to a year ago. EWC also recorded higher gains on decommissioning trust funds. These items were partially offset by lower revenue due to the shutdown of Pilgrim and tax benefits incurred in second quarter 2018.
Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC adjusted EBITDA.
Earnings per Share Guidance and Outlook
Entergy narrowed its 2019 adjusted EPS guidance range to $5.15 to $5.45 per share from $5.10 to $5.50.
In addition, with its customers in mind, the company identified investment opportunities to improve reliability and enable new customer products and services. Combined with non-fuel O&M efficiencies, customers will receive an improved level of service with minimal bill impacts. As a result, the company is increasing its 2020 and 2021 adjusted EPS outlook ranges to $5.45 to $5.75 and $5.80 to $6.10, respectively.
See webcast presentation slides for additional details.
The company has provided 2019 earnings guidance and 2020 and 2021 outlooks with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under “Non-GAAP Financial Measures.” The company has not provided a reconciliation of such non-GAAP guidance or outlooks to guidance or outlooks presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the
periods. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy’s as-reported EPS will be approximately (95) cents, (35) cents and $(1.35) per share in 2019, 2020 and 2021, respectively. These estimates are subject to substantial uncertainty due to, among other things, the potential effects of the strategic decision to exit the EWC business.
Earnings Teleconference
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, July 31, 2019, to discuss Entergy’s quarterly earnings announcement and the company’s financial performance. The teleconference may be accessed by visiting Entergy’s website at www.entergy.com or by dialing 844-309-6569, conference ID 7299636, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy’s website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy’s website at www.entergy.com and by telephone. The telephone replay will be available through August 7, 2019, by dialing 855-859-2056, conference ID 7299636.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of approximately $11 billion and nearly 13,700 employees.
Entergy Corporation’s common stock is listed on the New York Stock Exchange and NYSE Chicago under the symbol “ETR.”
Details regarding Entergy’s results of operations, regulatory proceedings and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast slide presentation. Both documents are available on Entergy’s Investor Relations website at www.entergy.com/investor_relations.
Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory & Other Information, which provides investors with key updates of certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures, which are generally numerical measures of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain “adjustments,” including the removal of the Entergy Wholesale Commodities segment in light of the company’s decision to exit the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.
Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy’s business, comparing period to period results, and comparing Entergy’s financial performance to the financial performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy’s ongoing financial results and flexibility and assists investors in comparing Entergy’s credit and liquidity to the credit and liquidity of others in the Utility sector. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; return on average invested capital; and return on average common equity are included on both an adjusted and as-reported basis. In each case, the metrics defined as “adjusted” (other than EWC’s adjusted EBITDA) would exclude the effect of adjustments as defined above. EWC’s adjusted EBITDA represents EWC’s earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.
These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy’s operations that, when viewed with Entergy’s GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy’s business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy’s consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy’s performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
Cautionary Note Regarding Forward-Looking Statements
In this news release, and from time to time, Entergy Corporation makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy’s 2019 earnings guidance; its current financial and operational outlooks; and other statements of Entergy’s plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy’s nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy’s business or operations, and other catastrophic events.
Second Quarter 2019 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
A: Consolidated Results and Adjustments
B: Earnings Variance Analysis
C: Utility Financial and Operating Measures
D: EWC Financial and Operating Measures
E: Consolidated Financial Measures
F: Definitions and Abbreviations and Acronyms
G: GAAP to Non-GAAP Reconciliations
Financial Statements
Financial statements are presented in this section.
A: Consolidated Results and Adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Second Quarter and Year-to-Date 2019 vs. 2018 (See Appendix A-3 and Appendix A-4 for details on adjustments) | ||||||
Second Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
(After-tax, $ in millions) | ||||||
Earnings (loss) | ||||||
Utility | 331 | 376 | (44) | 562 | 591 | (29) |
Parent & Other | (69) | (73) | 4 | (141) | (137) | (4) |
EWC | (26) | (57) | 31 | 71 | (75) | 146 |
Consolidated | 236 | 245 | (9) | 491 | 378 | 113 |
Less adjustments | ||||||
Utility | — | 43 | (43) | — | 43 | (43) |
Parent & Other | — | — | — | — | — | — |
EWC | (26) | (57) | 31 | 71 | (75) | 146 |
Consolidated | (26) | (14) | (12) | 71 | (32) | 103 |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 331 | 333 | (1) | 562 | 548 | 14 |
Parent & Other | (69) | (73) | 4 | (141) | (137) | (4) |
EWC | — | — | — | — | — | — |
Consolidated | 262 | 259 | 3 | 420 | 410 | 10 |
Estimated weather in billed sales | 12 | 21 | (9) | (12) | 37 | (48) |
Diluted average number of common shares outstanding (in millions) | 194 | 183 | 193 | 182 | ||
(After-tax, per share in $) (a) | ||||||
Earnings (loss) | ||||||
Utility | 1.70 | 2.05 | (0.35) | 2.91 | 3.24 | (0.33) |
Parent & Other | (0.35) | (0.40) | 0.05 | (0.73) | (0.75) | 0.02 |
EWC | (0.13) | (0.31) | 0.18 | 0.36 | (0.41) | 0.77 |
Consolidated | 1.22 | 1.34 | (0.12) | 2.54 | 2.08 | 0.46 |
Less adjustments | ||||||
Utility | — | 0.23 | (0.23) | — | 0.23 | (0.23) |
Parent & Other | — | — | — | — | — | — |
EWC | (0.13) | (0.31) | 0.18 | 0.36 | (0.41) | 0.77 |
Consolidated | (0.13) | (0.08) | (0.05) | 0.36 | (0.18) | 0.54 |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 1.70 | 1.82 | (0.12) | 2.91 | 3.01 | (0.10) |
Parent & Other | (0.35) | (0.40) | 0.05 | (0.73) | (0.75) | 0.02 |
EWC | — | — | — | — | — | — |
Consolidated | 1.35 | 1.42 | (0.07) | 2.18 | 2.26 | (0.08) |
Estimated weather in billed sales | 0.06 | 0.11 | (0.05) | (0.06) | 0.20 | (0.26) |
Calculations may differ due to rounding
(a) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for adjustments by driver.
Appendix A-2 provides a comparative summary of OCF, by business.
Appendix A-2: Consolidated Operating Cash Flow | ||||||
Second Quarter and Year-to-Date 2019 vs. 2018 | ||||||
($ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
Utility | 699 | 626 | 73 | 1,154 | 1,149 | 5 |
Parent & Other | (45) | (58) | 13 | (123) | (115) | (8) |
EWC | (102) | (45) | (57) | 22 | 46 | (24) |
Consolidated | 552 | 523 | 29 | 1,053 | 1,080 | (27) |
Calculations may differ due to rounding
OCF increased quarter-over-quarter due primarily to a lower amount of unprotected excess ADIT returned to customers, lower nuclear refueling outage spending, and lower ARO spending at EWC. Higher severance and retention payments at EWC partially offset the increase.
Appendix A-3 and Appendix A-4 list adjustments by business. Amounts are shown on both an earnings and EPS basis. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.
Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
Second Quarter and Year-to-Date 2019 vs. 2018 | ||||||
(Pre-tax except for income tax effects and total, $ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
(Pre-tax except for income tax effects and total, $ in millions) | ||||||
Utility | ||||||
2012 / 2013 IRS settlement | — | 43 | (43) | — | 43 | (43) |
Total Utility | — | 43 | (43) | — | 43 | (43) |
EWC | ||||||
Income before income taxes | (35) | (86) | 52 | 128 | (105) | 234 |
Income taxes | 9 | 30 | (21) | (57) | 31 | (88) |
Preferred dividend requirements of subsidiaries | (1) | (1) | — | (1) | (1) | — |
Total EWC | (26) | (57) | 31 | 71 | (75) | 146 |
Total adjustments | (26) | (14) | (12) | 71 | (32) | 103 |
(After-tax, per share in $) (b) | ||||||
Utility | ||||||
2012 / 2013 IRS settlement | — | 0.23 | (0.23) | — | 0.23 | (0.23) |
Total Utility | — | 0.23 | (0.23) | — | 0.23 | (0.23) |
EWC | ||||||
Total EWC | (0.13) | (0.31) | 0.18 | 0.36 | (0.41) | 0.77 |
Total adjustments | (0.13) | (0.08) | (0.05) | 0.36 | (0.18) | 0.54 |
Calculations may differ due to rounding
(b) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
Second Quarter and Year-to-Date 2019 vs. 2018 | ||||||
(Pre-tax except for Income taxes and total, $ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
Utility | ||||||
Income taxes | — | 43 | (43) | — | 43 | (43) |
EWC | ||||||
Operating revenues | 290 | 309 | (19) | 723 | 728 | (5) |
Fuel and fuel-related expenses | (26) | (19) | (7) | (51) | (39) | (12) |
Purchased power | (15) | (18) | 3 | (31) | (35) | 4 |
Non-fuel O&M | (200) | (200) | 1 | (401) | (393) | (7) |
Asset write-off and impairments | (16) | (69) | 53 | (90) | (142) | 52 |
Decommissioning expense | (64) | (60) | (4) | (128) | (118) | (9) |
Taxes other than income taxes | (20) | (22) | 2 | (33) | (39) | 6 |
Depreciation/amortization exp. | (38) | (39) | 1 | (76) | (77) | 1 |
Other income (deductions)-other | 64 | 40 | 24 | 232 | 26 | 206 |
Interest exp. and other charges | (9) | (8) | — | (18) | (17) | (1) |
Income taxes | 9 | 30 | (21) | (57) | 31 | (88) |
Preferred dividend | (1) | (1) | — | (1) | (1) | — |
Total EWC | (26) | (57) | 31 | 71 | (75) | 146 |
Total adjustments (after-tax) | (26) | (14) | (12) | 71 | (32) | 103 |
Calculations may differ due to rounding
B: Earnings Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2019 versus 2018 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.
Appendix B: As-Reported and Adjusted Earnings Variance Analysis (c), (d) |
Second Quarter 2019 vs. 2018 |
(After-tax, per share in $)
Utility | Parent & Other | EWC | Consolidated | |||||||
As-Reported | Adjusted | As-Reported | Adjusted | As- Reported | As- Reported | Adjusted | ||||
2018 earnings | 2.05 | 1.82 | (0.40) | (0.40) | (0.31) | 1.34 | 1.42 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 0.18 | 0.18 | (e) | — | — | (0.10) | (f) | 0.08 | 0.18 | |
Non-fuel O&M | (0.11) | (0.11) | (g) | 0.03 | 0.03 | — | (0.08) | (0.08) | ||
Asset write-offs and impairments | — | — | — | — | 0.23 | (h) | 0.23 | — | ||
Decommissioning expense | (0.01) | (0.01) | — | — | (0.02) | (0.03) | (0.01) | |||
Taxes other than income taxes | (0.03) | (0.03) | — | — | 0.01 | (0.02) | (0.03) | |||
Depreciation/amortization exp. | (0.05) | (0.05) | (i) | — | — | — | (0.05) | (0.05) | ||
Other income (deductions)-other | 0.05 | 0.05 | (j) | (0.01) | (0.01) | 0.10 | (k) | 0.14 | 0.04 | |
Interest exp. and other charges | (0.03) | (0.03) | — | — | — | (0.03) | (0.03) | |||
Income taxes-other | (0.24) | (0.01) | (l) | 0.01 | 0.01 | (0.05) | (m) | (0.28) | — | |
Share effect | (0.11) | (0.11) | (n) | 0.02 | 0.02 | 0.01 | (0.08) | (0.09) | ||
2019 earnings | 1.70 | 1.70 | (0.35) | (0.35) | (0.13) | 1.22 | 1.35 | |||
Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d) |
Year-to-Date 2019 vs. 2018 |
(After-tax, per share in $)
Utility | Parent & Other | EWC | Consolidated | |||||||
As-Reported | Adjusted | As-Reported | Adjusted | As- Reported | As- Reported | Adjusted | ||||
2018 earnings | 3.24 | 3.01 | (0.75) | (0.75) | (0.41) | 2.08 | 2.26 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 0.25 | 0.25 | (e) | — | — | (0.06) | (f) | 0.19 | 0.25 | |
Non-fuel O&M | (0.09) | (0.09) | (g) | 0.02 | 0.02 | (0.03) | (0.10) | (0.07) | ||
Asset write-offs and impairments | — | — | — | — | 0.22 | (h) | 0.22 | — | ||
Decommissioning expense | (0.02) | (0.02) | — | — | (0.04) | (0.06) | (0.02) | |||
Taxes other than income taxes | (0.02) | (0.02) | — | — | 0.03 | 0.01 | (0.02) | |||
Depreciation/amortization exp. | (0.09) | (0.09) | (i) | — | — | — | (0.09) | (0.09) | ||
Other income (deductions)-other | 0.08 | 0.08 | (j) | (0.02) | (0.02) | 0.89 | (k) | 0.95 | 0.06 | |
Interest exp. and other charges | (0.05) | (0.05) | (o) | (0.03) | (0.03) | (0.01) | (0.09) | (0.08) | ||
Income taxes-other | (0.21) | 0.02 | (l) | 0.01 | 0.01 | (0.21) | (m) | (0.41) | 0.03 | |
Preferred dividend requirements | (0.01) | (0.01) | — | — | — | (0.01) | (0.01) | |||
Share effect | (0.17) | (0.17) | (n) | 0.04 | 0.04 | (0.02) | (0.15) | (0.13) | ||
2019 earnings | 2.91 | 2.91 | (0.73) | (0.73) | 0.36 | 2.54 | 2.18 | |||
Calculations may differ due to rounding.
(c) | Utility revenue and Utility income taxes exclude $61 million in second quarter 2019 and $278 million in second quarter 2018 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). On a year-to-date basis, Utility revenue and Utility income taxes exclude $122 million in 2019 and $278 million in 2018. |
(d) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes-other represents income tax differences other than the tax effect of individual line items. |
Utility As-Reported Operating revenue less Fuel, fuel-related expenses and gas purchased for resale; Purchased power; and Regulatory charges (credits) Variance Analysis 2019 vs. 2018 ($ EPS) | ||
2Q | YTD | |
Volume/weather | (0.17) | (0.33) |
Retail electric price Reg. charges for lower tax rate | 0.22 0.11 | 0.34 0.22 |
Other | 0.02 | 0.02 |
Total | 0.18 | 0.25 |
(e) | The second quarter and year-to-date earnings increases were primarily driven by rate activity from E-AR’s FRP, E-LA’s FRP, E-LA’s AMI rider, as well as E-TX’s base rate case. Second quarter 2019 also included recovery of the St. Charles Power Station. In addition, in the second quarter and year-to-date 2018, E-LA recorded regulatory charges to return the benefits of the lower effective federal tax rate to customers. Partially offsetting was the net effect of volume/weather primarily due to the effects of weather and lower volume in the unbilled period. |
(f) | The second quarter and year-to-date earnings decreases were due largely to lower revenues due to the shutdown of Pilgrim in May 2019, as well as impacts on fuel expense from EWC plant impairments. The year-to-date decrease was partially offset by higher nuclear energy volume. |
(g) | The second quarter and year-to-date earnings decreases from higher Utility non-fuel O&M reflected higher spending on information technology, initiatives to explore new customer products and services, and fossil-fueled generation due to higher scope of work during outages. These were partially offset by lower E-MS storm damage provisions (offset in operating revenue). The second quarter variance also included higher spending on nuclear operations, including higher outage costs and amortization. The year-to-date variance reflected lower nuclear spending in addition to the items previously noted. |
(h) | The second quarter and year-to-date earnings increases from lower EWC asset write-offs and impairments were due to lower refueling outage costs being impaired in 2019, as well as a gain on the sale of a switchyard at Pilgrim. |
(i) | The second quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including the St. Charles Power Station, partially offset by updated Grand Gulf depreciation rates. |
(j) | The second quarter and year-to date earnings increases from Utility other income (deductions)-other were due largely to higher AFUDC-equity funds from higher CWIP in 2019, including the Lake Charles Power Station, Montgomery County Power Station and New Orleans Power Station. Changes in decommissioning trust fund activity also contributed. |
(k) | The second quarter and year-to-date earnings increases from higher EWC other income (deductions)-other were due largely to gains on the decommissioning trust fund investments in 2019. |
(l) | The second quarter and year-to-date as-reported earnings decreases from higher Utility income taxes were primarily due to the settlement of the 2012 / 2013 IRS audit totaling $43 million in second quarter 2018. |
(m) | The second quarter and year-to-date earnings decreases from higher EWC income taxes were primarily due to $13 million in tax benefits from the settlement of the 2012 / 2013 IRS audit in second quarter 2018. The year-to date earnings decrease also reflected an accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019. |
(n) | The second quarter and year-to-date earnings per share decreases from share effect were due to settlement of the equity forward (6.8 million shares settled in December 2018 and 8.4 million shares settled in May 2019). |
(o) | The year-to-date earnings decrease from higher Utility interest expense was largely due to higher debt balances at E-AR and E-LA. |
C: Utility Financial and Operating Measures
Appendix C-1 and Appendix C-2 provides comparative summaries of Utility operating and financial measures.
Appendix C-1: Utility Operating and Financial Measures | |||||||||||
Second Quarter and Year-to-Date 2019 vs. 2018 | |||||||||||
Second Quarter | Year-to-Date | ||||||||||
2019 | 2018 | % Change | % Weather Adjusted (p) | 2019 | 2018 | % Change | % Weather Adjusted (p) | ||||
GWh billed | |||||||||||
Residential | 7,652 | 7,749 | (1.3) | 0.4 | 16,123 | 17,036 | (5.4) | — | |||
Commercial | 6,841 | 6,943 | (1.5) | (0.4) | 13,264 | 13,675 | (3.0) | (0.9) | |||
Governmental | 626 | 612 | 2.3 | 2.3 | 1,227 | 1,220 | 0.6 | 0.8 | |||
Industrial | 11,965 | 12,219 | (2.1) | (2.1) | 23,648 | 23,624 | 0.1 | 0.1 | |||
Total retail sales | 27,084 | 27,523 | (1.6) | (0.9) | 54,262 | 55,555 | (2.3) | (0.2) | |||
Wholesale | 3,170 | 2,566 | 23.5 | 6,984 | 5,810 | 20.2 | |||||
Total sales | 30,254 | 30,089 | 0.5 | 61,246 | 61,365 | (0.2) | |||||
Number of electric retail customers | |||||||||||
Residential | 2,489,842 | 2,479,833 | 0.4 | ||||||||
Commercial | 358,545 | 356,688 | 0.5 | ||||||||
Governmental | 17,906 | 17,966 | (0.3) | ||||||||
Industrial | 41,416 | 43,212 | (4.2) | ||||||||
Total retail customers | 2,907,709 | 2,897,699 | 0.3 | ||||||||
Non-fuel O&M per MWh | $22.79 | $22.05 | 3.4 | $21.44 | $21.05 | 1.8 | |||||
On a weather-adjusted basis for second quarter 2019, billed sales decreased (0.9) percent, including lower industrial and commercial sales. Industrial billed sales volume decreased (2.1) percent driven by lower sales to cogeneration customers as well as existing customers. This was partially offset by continued growth from new and expansion customers. Residential billed sales increased 0.4 percent.
Appendix C-2: Utility Operating Measures | ||||
Twelve Months Ended June 30, 2019 vs. 2018 | ||||
Twelve Months Ended June 30 | ||||
2019 | 2018 | % Change | % Weather Adjusted (p) | |
GWh billed | ||||
Residential | 36,194 | 35,893 | 0.8 | 0.3 |
Commercial | 29,015 | 29,096 | (0.3) | (0.4) |
Governmental | 2,588 | 2,529 | 2.3 | 1.9 |
Industrial | 48,408 | 48,067 | 0.7 | 0.7 |
Total retail sales | 116,205 | 115,585 | 0.5 | 0.3 |
Calculations may differ due to rounding
Certain prior year data has been reclassified to conform with current year presentation
(p) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).
Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
Second Quarter and Year-to-Date 2019 vs. 2018 | ||||||
($ in millions) | Second Quarter | Year-to-Date | ||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
Net income (loss) | (25) | (56) | 31 | 72 | (74) | 146 |
Add back: interest expense | 9 | 8 | 1 | 18 | 17 | 1 |
Add back: income taxes | (9) | (30) | 21 | 57 | (31) | 88 |
Add back: depreciation and amortization | 38 | 39 | (1) | 76 | 77 | (1) |
Subtract: interest and investment income | 75 | 58 | 17 | 257 | 56 | 201 |
Add back: decommissioning expense | 64 | 60 | 4 | 128 | 118 | 10 |
Adjusted EBITDA (non-GAAP) | 2 | (37) | 39 | 94 | 50 | 44 |
Calculations may differ due to rounding
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
Appendix D-2: EWC Operating and Financial Measures | ||||||
Second Quarter and Year-to-Date 2019 vs. 2018 | ||||||
Second Quarter | Year-to-Date | |||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | |
Owned capacity (MW) (q) | 3,274 | 3,962 | (17.4) | 3,274 | 3,962 | (17.4) |
GWh billed | 7,258 | 7,281 | (0.3) | 14,461 | 14,277 | 1.3 |
EWC Nuclear Fleet | ||||||
Capacity factor | 92% | 86% | 7.0 | 89% | 85% | 4.7 |
GWh billed | 6,703 | 6,713 | (0.1) | 13,392 | 13,121 | 2.1 |
Production cost per MWh | $24.82 | $17.15 | 44.7 | $21.92 | $17.93 | 22.3 |
Average energy/capacity revenue per MWh | $37.85 | $41.82 | (9.5) | $48.55 | $49.21 | (1.4) |
Refueling outage days | ||||||
Indian Point 2 | — | 20 | — | 33 | ||
Indian Point 3 | 8 | — | 29 | — | ||
Palisades | — | — | — | — | ||
Pilgrim | — | — | — | — | ||
Calculations may differ due to rounding
(q) | Second quarter and year-to-date 2019 exclude Pilgrim (688MW), which was shut down May 31, 2019. |
See the appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix E: GAAP and Non-GAAP Financial Measures | |||
Second Quarter 2019 vs. 2018 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending June 30 | 2019 | 2018 | Change |
GAAP Measures | |||
As-reported ROIC | 5.5% | 3.2% | 2.3% |
As-reported ROE | 10.8% | 3.6% | 7.2% |
Non-GAAP Measures | |||
Adjusted ROIC | 5.5% | 5.2% | 0.3% |
Adjusted ROE | 11.0% | 10.1% | 0.9% |
As of June 30 ($ in millions) | 2019 | 2018 | Change |
GAAP Measures | |||
Cash and cash equivalents | 636 | 813 | (177) |
Revolver capacity | 4,120 | 3,885 | 235 |
Commercial paper | 1,635 | 1,945 | (310) |
Total debt | 19,054 | 17,881 | 1,173 |
Securitization debt | 360 | 483 | (123) |
Debt to capital | 65.5% | 68.5% | (3)% |
Off-balance sheet liabilities: | |||
Debt of joint ventures - Entergy’s share | 58 | 64 | (6) |
Leases - Entergy’s share (r) | — | 429 | (429) |
Power purchase agreements accounted for as leases (r) | — | 136 | (136) |
Total off-balance sheet liabilities | 58 | 629 | (571) |
Non-GAAP Financial Measures | |||
Debt to capital, excluding securitization debt | 65.1% | 67.9% | (2.8%) |
Gross liquidity | 4,756 | 4,698 | 58 |
Net debt to net capital, excluding securitization debt | 64.3% | 66.9% | (2.6%) |
Parent debt to total debt, excluding securitization debt | 19.4% | 24.0% | (4.6%) |
FFO to debt, excluding securitization debt | 11.8% | 15.4% | (3.6%) |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 15.8% | 15.9% | (0.1%) |
(r) | As of January 1, 2019, Entergy adopted ASC 842, the new lease accounting standard. As a result, Entergy re-evaluated all agreements and put all agreements that qualified as operating leases on the balance sheet, and there are no longer any off-balance sheet liabilities for leases. |
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.
Appendix F-1: Definitions | |
Utility Operating and Financial Measures | |
GWh billed | Total number of GWh billed to retail and wholesale customers |
Non-fuel O&M | Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
Non-fuel O&M per MWh | Non-fuel O&M per MWh of billed sales |
Number of electric retail customers | Average number of customers for the quarter |
EWC Operating and Financial Measures | |
Adjusted EBITDA (non-GAAP) | Earnings before interest, depreciation and amortization and income taxes and excluding decommissioning expense |
Average revenue under contract per kW-month (applies to capacity contracts only) | Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
Average revenue per MWh on contracted volumes | Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades. Revenue will fluctuate due to factors including positive or negative basis differentials and other risk management costs |
Bundled capacity and energy contracts | A contract for the sale of installed capacity and related energy, priced per MWh sold |
Capacity contracts | A contract for the sale of the installed capacity product in regional markets managed by NYISO and MISO |
Capacity factor | Normalized percentage of the period that the nuclear plants generate power |
Expected sold and market total revenue per MWh | Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including positive or negative basis differentials and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
Firm LD | Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products |
Appendix F-1: Definitions | ||
EWC Operating and Financial Measures (continued) | ||
GWh billed | Total number of GWh billed to customers and financially-settled instruments | |
Owned capacity (MW) | Installed capacity owned by EWC | |
Percent of capacity sold forward | Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
Percent of planned generation under contract | Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
Planned net MW in operation | Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
Planned TWh of generation | Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
Production cost per MWh | Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation) | |
Refueling outage days | Number of days lost for a scheduled refueling and maintenance outage during the period | |
Unit-contingent | Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
Financial Measures - GAAP | ||
As-reported ROE | 12-months rolling net income attributable to Entergy Corporation divided by average common equity | |
As-reported ROIC | 12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
Debt of joint ventures - Entergy’s share | Entergy’s share of debt issued by business joint ventures at EWC | |
Debt to capital | Total debt divided by total capitalization | |
Leases - Entergy’s share | Operating leases held by subsidiaries capitalized at implicit interest rate | |
Revolver capacity | Amount of undrawn capacity remaining on corporate and subsidiary revolvers | |
Securitization debt | Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at E-TX and Hurricane Isaac at E-NO; the 2009 ice storm at E-AR and investment recovery of costs associated with the cancelled Little Gypsy repowering project at E-LA | |
Total debt | Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet | |
Appendix F-1: Definitions | |
Financial Measures - Non-GAAP | |
Adjusted EPS | As-reported EPS excluding adjustments |
Adjusted ROE | 12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity |
Adjusted ROIC | 12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
Adjustments | Unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items and other items such as certain costs, expenses, or other specified items |
Debt to capital, excluding securitization debt | Total debt divided by total capitalization, excluding securitization debt |
FFO | OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges |
FFO to debt, excluding securitization debt | 12-months rolling adjusted FFO as a percentage of end of period total debt excluding securitization debt |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 12-months rolling adjusted FFO as a percentage of end of period total debt excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC |
Gross liquidity | Sum of cash and revolver capacity |
Net debt to net capital, excluding securitization debt | Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
Parent debt to total debt, excluding securitization debt | End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
Appendix F-2: Abbreviations and Acronyms | |||
ADIT AFUDC - borrowed funds AFUDC - equity funds AMI ANO APSC ARO bps CCGT CCN CCNO COD CT CWIP DCRF E-AR E-LA E-MS E-NO E-TX EBITDA ENGC ENP EPS ETR EWC FERC FFO FRP GAAP Grand Gulf or GGNS Indian Point 1 Indian Point 2 or IP2 Indian Point 3 or IP3 IPEC ISES 2 IRS | Accumulated deferred income taxes Allowance for borrowed funds used during construction Allowance for equity funds used during construction Advanced metering infrastructure Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) Arkansas Public Service Commission Asset retirement obligation Basis points Combined cycle gas turbine Certificate of convenience & necessity Council of the City of New Orleans, Louisiana Commercial operation date Simple cycle combustion turbine Construction work in progress Distribution cost recovery factor Entergy Arkansas, LLC Entergy Louisiana, LLC Entergy Mississippi, LLC Entergy New Orleans, LLC Entergy Texas, Inc. Earnings before interest, income taxes, depreciation and amortization Entergy Nuclear Generation Company Entergy Nuclear Palisades, LLC Earnings per share Entergy Corporation Entergy Wholesale Commodities Federal Energy Regulatory Commission Funds from operations Formula rate plan U.S. generally accepted accounting principles Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974) Indian Point Energy Center Unit 2 (nuclear) Indian Point Energy Center Unit 3 (nuclear) Indian Point Energy Center (nuclear) Unit 2 of Independence Steam Electric Station (coal) Internal Revenue Service | ISO LPSC LTM LTSA MISO Moody’s MPSC MTEP Nelson 6 NEPOOL Ninemile 6 Non-fuel O&M NDT NRC NYISO NYPA NYSE O&M OCF OpCo OPEB P&O Palisades Pilgrim PPA PUCT RICE RFP ROE ROIC RS Cogen RSP S&P SCPS SEC SERI TCRF Union UPSA Vermont Yankee WACC | Independent system operator Louisiana Public Service Commission Last twelve months Long-term service agreement Midcontinent Independent System Operator, Inc. Moody’s Investor Service Mississippi Public Service Commission MISO Transmission Expansion Planning Unit 6 of Roy S. Nelson plant (coal) New England Power Pool Ninemile Point Unit 6 (CCGT) Non-fuel operation and maintenance expense Nuclear decommissioning trust Nuclear Regulatory Commission New York Independent System Operator, Inc. New York Power Authority New York Stock Exchange Operation and maintenance expense Net cash flow provided by operating activities Operating Company Other post-employment benefits Parent & Other Palisades Power Plant (nuclear) Pilgrim Nuclear Power Station (nuclear) Power purchase agreement or purchased power agreement Public Utility Commission of Texas Reciprocating Internal Combustion Engine Request for proposals Return on equity Return on invested capital RS Cogen facility (CCGT cogeneration) Rate Stabilization Plan (E-LA Gas) Standard & Poor’s St. Charles Power Station (CCGT) U.S. Securities and Exchange Commission System Energy Resources, Inc. Transmission cost recovery factor Union Power Station (CCGT) Unit Power Sales Agreement Vermont Yankee Nuclear Power Station (nuclear, sold January 11, 2019) Weighted-average cost of capital |
G: GAAP to Non-GAAP Reconciliations
Appendix G-1 and Appendix G-2 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
($ in millions except where noted) | Second Quarter | ||
2019 | 2018 | ||
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months | (A) | 961 | 297 |
Preferred dividends | 15 | 14 | |
Tax effected interest expense | 543 | 510 | |
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense | (B) | 1,519 | 821 |
Adjustments in prior quarters | 8 | (517) | |
Adjustments | (26) | (14) | |
Total adjustments | (C) | (18) | (531) |
EWC preferred dividends and tax-effected interest expense, rolling 12 months | 30 | 24 | |
Total adjustments, including preferred dividends and tax effected interest expense (non-GAAP) | (D) | 12 | (507) |
Adjusted earnings, rolling 12 months (non-GAAP) | (A-C) | 979 | 828 |
Adjusted earnings, rolling 12 months including preferred dividends and tax- effected interest expense (non-GAAP) | (B-D) | 1,507 | 1,328 |
Average invested capital | (E) | 27,586 | 25,480 |
Average common equity | (F) | 8,910 | 8,197 |
As-reported ROIC | (B/E) | 5.5% | 3.2% |
Adjusted ROIC (non-GAAP) | [(B-D)/E] | 5.5% | 5.2% |
As-reported ROE | (A/F) | 10.8% | 3.6% |
Adjusted ROE (non-GAAP) | [(A-C)/F] | 11.0% | 10.1% |
Calculations may differ due to rounding
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC | |||
($ in millions except where noted) | Second Quarter | ||
2019 | 2018 | ||
Total debt | (A) | 19,054 | 17,881 |
Less securitization debt | (B) | 360 | 483 |
Total debt, excluding securitization debt | (C) | 18,694 | 17,398 |
Less cash and cash equivalents | (D) | 636 | 813 |
Net debt, excluding securitization debt | (E) | 18,058 | 16,585 |
Total capitalization | (F) | 29,071 | 26,102 |
Less securitization debt | (B) | 360 | 483 |
Total capitalization, excluding securitization debt | (G) | 28,711 | 25,619 |
Less cash and cash equivalents | (D) | 636 | 813 |
Net capital, excluding securitization debt | (H) | 28,075 | 24,806 |
Debt to capital | (A/F) | 65.5% | 68.5% |
Debt to capital, excluding securitization debt (non-GAAP) | (C/G) | 65.1% | 67.9% |
Net debt to net capital, excluding securitization debt (non-GAAP) | (E/H) | 64.3% | 66.9% |
Revolver capacity | (I) | 4,120 | 3,885 |
Gross liquidity (non-GAAP) | (D+I) | 4,756 | 4,698 |
Entergy Corporation notes: | |||
Due September 2020 | 450 | 450 | |
Due July 2022 | 650 | 650 | |
Due September 2026 | 750 | 750 | |
Total parent long-term debt | (J) | 1,850 | 1,850 |
Revolver draw | (K) | 150 | 390 |
Commercial paper | (L) | 1,635 | 1,945 |
Unamortized debt issuance and discounts | (M) | (9) | (11) |
Total parent debt | (J+K+L+M) | 3,626 | 4,174 |
Parent debt to total debt, excluding securitization debt (non-GAAP) | [(J+K+L+M)/C] | 19.4% | 24.0% |
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC (continued) | |||
($ in millions except where noted) | Second Quarter | ||
2019 | 2018 | ||
Total debt | (A) | 19,054 | 17,881 |
Less securitization debt | (B) | 360 | 483 |
Total debt, excluding securitization debt | (C) | 18,694 | 17,398 |
Net cash flow provided by operating activities, rolling 12 months | (D) | 2,358 | 2,884 |
AFUDC - borrowed funds, rolling 12 months | (E) | (67) | (53) |
Working capital items in net cash flow provided by operating activities (rolling 12 months): | |||
Receivables | 17 | (149) | |
Fuel inventory | 24 | (1) | |
Accounts payable | (19) | 190 | |
Taxes accrued | 9 | 28 | |
Interest accrued | 7 | 3 | |
Other working capital accounts | (81) | (48) | |
Securitization regulatory charges | 121 | 123 | |
Total | (F) | 78 | 146 |
FFO, rolling 12 months (non-GAAP) | (G)=(D+E-F) | 2,213 | 2,685 |
FFO to debt, excluding securitization debt (non-GAAP) | (G/C) | 11.8% | 15.4% |
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax) | (H) | 651 | 76 |
Severance and retention payments associated with exit of EWC (rolling 12 months pre-tax) | (I) | 97 | — |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP) | [(G+H+I)/(C)] | 15.8% | 15.9% |
Calculations may differ due to rounding
Financial Statements
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
June 30, 2019 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 41,433 | $ | 6,270 | $ | 13,497 | $ | 61,200 | ||||||||
Temporary cash investments | 295,951 | 8,941 | 269,817 | 574,709 | ||||||||||||
Total cash and cash equivalents | 337,384 | 15,211 | 283,314 | 635,909 | ||||||||||||
Notes receivable | — | (511,494 | ) | 511,494 | — | |||||||||||
Accounts receivable: | ||||||||||||||||
Customer | 585,029 | — | 67,998 | 653,027 | ||||||||||||
Allowance for doubtful accounts | (6,965 | ) | — | — | (6,965 | ) | ||||||||||
Associated companies | 15,091 | (30,884 | ) | 15,793 | — | |||||||||||
Other | 118,342 | 27 | 12,114 | 130,483 | ||||||||||||
Accrued unbilled revenues | 458,079 | — | — | 458,079 | ||||||||||||
Total accounts receivable | 1,169,576 | (30,857 | ) | 95,905 | 1,234,624 | |||||||||||
Deferred fuel costs | 8,685 | — | — | 8,685 | ||||||||||||
Fuel inventory - at average cost | 125,245 | — | 5,405 | 130,650 | ||||||||||||
Materials and supplies - at average cost | 755,440 | — | 31,628 | 787,068 | ||||||||||||
Deferred nuclear refueling outage costs | 158,480 | — | 60,789 | 219,269 | ||||||||||||
Prepayments and other | 186,748 | (16,784 | ) | 97,339 | 267,303 | |||||||||||
TOTAL | 2,741,558 | (543,924 | ) | 1,085,874 | 3,283,508 | |||||||||||
OTHER PROPERTY AND INVESTMENTS | ||||||||||||||||
Investment in affiliates - at equity | 1,420,941 | (1,421,027 | ) | 86 | — | |||||||||||
Decommissioning trust funds | 3,479,584 | — | 3,589,680 | 7,069,264 | ||||||||||||
Non-utility property - at cost (less accumulated depreciation) | 312,600 | (9 | ) | 11,775 | 324,366 | |||||||||||
Other | 442,407 | — | 1,232 | 443,639 | ||||||||||||
TOTAL | 5,655,532 | (1,421,036 | ) | 3,602,773 | 7,837,269 | |||||||||||
PROPERTY, PLANT, AND EQUIPMENT | ||||||||||||||||
Electric | 51,026,818 | 10,323 | 978,232 | 52,015,373 | ||||||||||||
Natural gas | 517,044 | — | — | 517,044 | ||||||||||||
Construction work in progress | 2,652,919 | 319 | 25,443 | 2,678,681 | ||||||||||||
Nuclear fuel | 673,866 | — | 82,685 | 756,551 | ||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 54,870,647 | 10,642 | 1,086,360 | 55,967,649 | ||||||||||||
Less - accumulated depreciation and amortization | 21,679,131 | 1,072 | 742,711 | 22,422,914 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET | 33,191,516 | 9,570 | 343,649 | 33,544,735 | ||||||||||||
DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||||
Regulatory assets: | ||||||||||||||||
Other regulatory assets | 4,882,432 | — | — | 4,882,432 | ||||||||||||
Deferred fuel costs | 239,694 | — | — | 239,694 | ||||||||||||
Goodwill | 374,099 | — | 3,073 | 377,172 | ||||||||||||
Accumulated deferred income taxes | 55,041 | 2,749 | 10,090 | 67,880 | ||||||||||||
Other | 157,960 | 8,783 | 166,312 | 333,055 | ||||||||||||
TOTAL | 5,709,226 | 11,532 | 179,475 | 5,900,233 | ||||||||||||
TOTAL ASSETS | $ | 47,297,832 | $ | (1,943,858 | ) | $ | 5,211,771 | $ | 50,565,745 | |||||||
*Totals may not foot due to rounding. |
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
June 30, 2019 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Currently maturing long-term debt | $ | 150,010 | $ | — | $ | — | $ | 150,010 | ||||||||
Notes payable and commercial paper: | ||||||||||||||||
Associated companies | — | — | — | — | ||||||||||||
Other | — | 1,635,462 | — | 1,635,462 | ||||||||||||
Account payable: | ||||||||||||||||
Associated companies | 22,178 | (32,653 | ) | 10,475 | — | |||||||||||
Other | 1,119,821 | 245 | 292,541 | 1,412,607 | ||||||||||||
Customer deposits | 409,531 | — | — | 409,531 | ||||||||||||
Taxes accrued | 209,729 | (7,302 | ) | 13,628 | 216,055 | |||||||||||
Interest accrued | 165,334 | 26,420 | 1,293 | 193,047 | ||||||||||||
Deferred fuel costs | 65,823 | — | — | 65,823 | ||||||||||||
Pension and other postretirement liabilities | 42,735 | — | 12,319 | 55,054 | ||||||||||||
Current portion of unprotected excess accumulated deferred | ||||||||||||||||
income taxes | 189,273 | — | — | 189,273 | ||||||||||||
Other | 172,454 | 1,874 | 21,418 | 195,746 | ||||||||||||
TOTAL | 2,546,888 | 1,624,046 | 351,674 | 4,522,608 | ||||||||||||
NON-CURRENT LIABILITIES | ||||||||||||||||
Accumulated deferred income taxes and taxes accrued | 5,715,968 | (362,194 | ) | (962,524 | ) | 4,391,250 | ||||||||||
Accumulated deferred investment tax credits | 208,925 | — | — | 208,925 | ||||||||||||
Regulatory liability for income taxes - net | 1,726,770 | — | — | 1,726,770 | ||||||||||||
Other regulatory liabilities | 1,877,241 | — | — | 1,877,241 | ||||||||||||
Decommissioning and retirement cost liabilities | 3,602,275 | — | 3,186,088 | 6,788,363 | ||||||||||||
Accumulated provisions | 518,100 | — | 621 | 518,721 | ||||||||||||
Pension and other postretirement liabilities | 1,902,228 | — | 654,010 | 2,556,238 | ||||||||||||
Long-term debt | 15,074,241 | 1,991,047 | 139,000 | 17,204,288 | ||||||||||||
Other | 1,130,883 | (438,095 | ) | 61,623 | 754,411 | |||||||||||
TOTAL | 31,756,631 | 1,190,758 | 3,078,818 | 36,026,207 | ||||||||||||
Subsidiaries' preferred stock without sinking fund | 195,178 | — | 24,249 | 219,427 | ||||||||||||
COMMON EQUITY | ||||||||||||||||
Common stock, $.01 par value, authorized 500,000,000 shares; | ||||||||||||||||
issued 270,035,180 shares in 2019 | 1,973,748 | (2,172,151 | ) | 201,103 | 2,700 | |||||||||||
Paid-in capital | 3,855,088 | 1,082,780 | 1,601,665 | 6,539,533 | ||||||||||||
Retained earnings | 7,185,864 | 1,398,500 | 289,101 | 8,873,465 | ||||||||||||
Accumulated other comprehensive income (loss) | (95,565 | ) | — | (334,839 | ) | (430,404 | ) | |||||||||
Less - treasury stock, at cost (71,349,066 shares in 2019) | 120,000 | 5,067,791 | — | 5,187,791 | ||||||||||||
TOTAL | 12,799,135 | (4,758,662 | ) | 1,757,030 | 9,797,503 | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 47,297,832 | $ | (1,943,858 | ) | $ | 5,211,771 | $ | 50,565,745 | |||||||
*Totals may not foot due to rounding. |
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
December 31, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 52,362 | $ | 4,096 | $ | 232 | $ | 56,690 | ||||||||
Temporary cash investments | 207,590 | 3,792 | 212,903 | 424,285 | ||||||||||||
Total cash and cash equivalents | 259,952 | 7,888 | 213,135 | 480,975 | ||||||||||||
Notes receivable | — | (511,786 | ) | 511,786 | — | |||||||||||
Accounts receivable: | ||||||||||||||||
Customer | 481,059 | — | 77,435 | 558,494 | ||||||||||||
Allowance for doubtful accounts | (7,322 | ) | — | — | (7,322 | ) | ||||||||||
Associated companies | 28,949 | (32,855 | ) | 3,906 | — | |||||||||||
Other | 157,656 | — | 10,066 | 167,722 | ||||||||||||
Accrued unbilled revenues | 395,511 | — | — | 395,511 | ||||||||||||
Total accounts receivable | 1,055,853 | (32,855 | ) | 91,407 | 1,114,405 | |||||||||||
Deferred fuel costs | 27,251 | — | — | 27,251 | ||||||||||||
Fuel inventory - at average cost | 113,698 | — | 3,606 | 117,304 | ||||||||||||
Materials and supplies - at average cost | 719,438 | — | 33,405 | 752,843 | ||||||||||||
Deferred nuclear refueling outage costs | 147,796 | — | 83,164 | 230,960 | ||||||||||||
Prepayments and other | 171,199 | (16,113 | ) | 79,240 | 234,326 | |||||||||||
TOTAL | 2,495,187 | (552,866 | ) | 1,015,743 | 2,958,064 | |||||||||||
OTHER PROPERTY AND INVESTMENTS | ||||||||||||||||
Investment in affiliates - at equity | 1,430,792 | (1,430,878 | ) | 86 | — | |||||||||||
Decommissioning trust funds | 3,066,588 | — | 3,853,576 | 6,920,164 | ||||||||||||
Non-utility property - at cost (less accumulated depreciation) | 293,182 | (14 | ) | 11,214 | 304,382 | |||||||||||
Other | 436,981 | — | 284 | 437,265 | ||||||||||||
TOTAL | 5,227,543 | (1,430,892 | ) | 3,865,160 | 7,661,811 | |||||||||||
PROPERTY, PLANT, AND EQUIPMENT | ||||||||||||||||
Electric | 48,275,159 | 9,585 | 911,834 | 49,196,578 | ||||||||||||
Property under capital lease | 634,908 | — | — | 634,908 | ||||||||||||
Natural gas | 496,150 | — | — | 496,150 | ||||||||||||
Construction work in progress | 2,815,214 | 270 | 73,155 | 2,888,639 | ||||||||||||
Nuclear fuel | 753,513 | — | 107,759 | 861,272 | ||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 52,974,944 | 9,855 | 1,092,748 | 54,077,547 | ||||||||||||
Less - accumulated depreciation and amortization | 21,430,017 | 198 | 672,886 | 22,103,101 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET | 31,544,927 | 9,657 | 419,862 | 31,974,446 | ||||||||||||
DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||||
Regulatory assets: | ||||||||||||||||
Other regulatory assets | 4,746,496 | — | — | 4,746,496 | ||||||||||||
Deferred fuel costs | 239,496 | — | — | 239,496 | ||||||||||||
Goodwill | 374,099 | — | 3,073 | 377,172 | ||||||||||||
Accumulated deferred income taxes | 41,969 | 2,677 | 9,947 | 54,593 | ||||||||||||
Other | 107,450 | 10,048 | 145,490 | 262,988 | ||||||||||||
TOTAL | 5,509,510 | 12,725 | 158,510 | 5,680,745 | ||||||||||||
TOTAL ASSETS | $ | 44,777,167 | $ | (1,961,376 | ) | $ | 5,459,275 | $ | 48,275,066 | |||||||
*Totals may not foot due to rounding. |
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
December 31, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Currently maturing long-term debt | $ | 650,009 | $ | — | $ | — | $ | 650,009 | ||||||||
Notes payable and commercial paper: | ||||||||||||||||
Associated companies | — | (227,298 | ) | 227,298 | — | |||||||||||
Other | — | 1,942,339 | — | 1,942,339 | ||||||||||||
Account payable: | ||||||||||||||||
Associated companies | 29,135 | (51,435 | ) | 22,300 | — | |||||||||||
Other | 1,174,309 | 45 | 321,704 | 1,496,058 | ||||||||||||
Customer deposits | 411,505 | — | — | 411,505 | ||||||||||||
Taxes accrued | 267,678 | (18,490 | ) | 5,053 | 254,241 | |||||||||||
Interest accrued | 166,592 | 26,401 | 199 | 193,192 | ||||||||||||
Deferred fuel costs | 52,396 | — | — | 52,396 | ||||||||||||
Obligations under capital leases | 1,617 | — | — | 1,617 | ||||||||||||
Pension and other postretirement liabilities | 49,104 | — | 12,136 | 61,240 | ||||||||||||
Current portion of unprotected excess accumulated deferred | ||||||||||||||||
income taxes | 248,127 | — | — | 248,127 | ||||||||||||
Other | 92,168 | 1,638 | 39,014 | 132,820 | ||||||||||||
TOTAL | 3,142,640 | 1,673,200 | 627,704 | 5,443,544 | ||||||||||||
NON-CURRENT LIABILITIES | ||||||||||||||||
Accumulated deferred income taxes and taxes accrued | 5,458,667 | (317,012 | ) | (1,034,503 | ) | 4,107,152 | ||||||||||
Accumulated deferred investment tax credits | 213,101 | — | — | 213,101 | ||||||||||||
Obligations under capital leases | 20,378 | — | — | 20,378 | ||||||||||||
Regulatory liability for income taxes - net | 1,817,021 | — | — | 1,817,021 | ||||||||||||
Other regulatory liabilities | 1,620,254 | — | — | 1,620,254 | ||||||||||||
Decommissioning and retirement cost liabilities | 3,244,419 | — | 3,111,124 | 6,355,543 | ||||||||||||
Accumulated provisions | 513,489 | — | 618 | 514,107 | ||||||||||||
Pension and other postretirement liabilities | 1,937,884 | — | 678,201 | 2,616,085 | ||||||||||||
Long-term debt | 13,319,111 | 2,060,192 | 139,000 | 15,518,303 | ||||||||||||
Other | 740,865 | (397,003 | ) | 642,009 | 985,871 | |||||||||||
TOTAL | 28,885,189 | 1,346,177 | 3,536,449 | 33,767,815 | ||||||||||||
Subsidiaries' preferred stock without sinking fund | 195,153 | — | 24,249 | 219,402 | ||||||||||||
COMMON EQUITY | ||||||||||||||||
Common stock, $.01 par value, authorized 500,000,000 shares; | ||||||||||||||||
issued 261,587,009 shares in 2018 | 1,973,748 | (2,172,235 | ) | 201,103 | 2,616 | |||||||||||
Paid-in capital | 3,864,764 | 767,625 | 1,319,042 | 5,951,431 | ||||||||||||
Retained earnings | 6,931,882 | 1,577,576 | 211,692 | 8,721,150 | ||||||||||||
Accumulated other comprehensive income (loss) | (96,209 | ) | — | (460,964 | ) | (557,173 | ) | |||||||||
Less - treasury stock, at cost (72,530,866 shares in 2018) | 120,000 | 5,153,719 | — | 5,273,719 | ||||||||||||
TOTAL | 12,554,185 | (4,980,753 | ) | 1,270,873 | 8,844,305 | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 44,777,167 | $ | (1,961,376 | ) | $ | 5,459,275 | $ | 48,275,066 | |||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Three Months Ended June 30, 2019 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $ | 2,345,738 | $ | (11 | ) | $ | — | $ | 2,345,727 | |||||||
Natural gas | 30,699 | — | — | 30,699 | ||||||||||||
Competitive businesses | — | — | 289,783 | 289,783 | ||||||||||||
Total | 2,376,437 | (11 | ) | 289,783 | 2,666,209 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operating and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 441,613 | (13 | ) | 25,723 | 467,323 | |||||||||||
Purchased power | 330,727 | 13 | 15,121 | 345,861 | ||||||||||||
Nuclear refueling outage expenses | 39,000 | — | 11,962 | 50,962 | ||||||||||||
Other operation and maintenance | 650,574 | 3,572 | 187,724 | 841,870 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 16,419 | 16,419 | ||||||||||||
Decommissioning | 40,402 | — | 64,225 | 104,627 | ||||||||||||
Taxes other than income taxes | 142,763 | 413 | 20,232 | 163,408 | ||||||||||||
Depreciation and amortization | 324,856 | 733 | 37,907 | 363,496 | ||||||||||||
Other regulatory credits | (26,532 | ) | — | — | (26,532 | ) | ||||||||||
Total | 1,943,403 | 4,718 | 379,313 | 2,327,434 | ||||||||||||
OPERATING INCOME | 433,034 | (4,729 | ) | (89,530 | ) | 338,775 | ||||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 37,169 | — | — | 37,169 | ||||||||||||
Interest and investment income | 60,074 | (39,249 | ) | 75,393 | 96,218 | |||||||||||
Miscellaneous - net | (28,579 | ) | (5,638 | ) | (11,653 | ) | (45,870 | ) | ||||||||
Total | 68,664 | (44,887 | ) | 63,740 | 87,517 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 162,607 | 29,623 | 8,882 | 201,112 | ||||||||||||
Allowance for borrowed funds used during construction | (16,811 | ) | — | — | (16,811 | ) | ||||||||||
Total | 145,796 | 29,623 | 8,882 | 184,301 | ||||||||||||
INCOME BEFORE INCOME TAXES | 355,902 | (79,239 | ) | (34,672 | ) | 241,991 | ||||||||||
Income taxes | 21,150 | (10,402 | ) | (9,290 | ) | 1,458 | ||||||||||
CONSOLIDATED NET INCOME | 334,752 | (68,837 | ) | (25,382 | ) | 240,533 | ||||||||||
Preferred dividend requirements of subsidiaries | 3,562 | — | 547 | 4,109 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 331,190 | $ | (68,837 | ) | $ | (25,929 | ) | $ | 236,424 | ||||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $1.71 | ($0.36) | ($0.13) | $1.22 | ||||||||||||
DILUTED | $1.70 | ($0.35) | ($0.13) | $1.22 | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 193,019,269 | |||||||||||||||
DILUTED | 194,238,315 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Three Months Ended June 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $ | 2,330,265 | $ | (40 | ) | $ | — | $ | 2,330,225 | |||||||
Natural gas | 29,943 | — | — | 29,943 | ||||||||||||
Competitive businesses | — | — | 308,602 | 308,602 | ||||||||||||
Total | 2,360,208 | (40 | ) | 308,602 | 2,668,770 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operating and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 447,051 | (40 | ) | 18,791 | 465,802 | |||||||||||
Purchased power | 399,454 | 40 | 17,540 | 417,034 | ||||||||||||
Nuclear refueling outage expenses | 34,650 | — | 710 | 35,360 | ||||||||||||
Other operation and maintenance | 628,751 | 11,724 | 199,628 | 840,103 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 68,943 | 68,943 | ||||||||||||
Decommissioning | 37,285 | — | 60,320 | 97,605 | ||||||||||||
Taxes other than income taxes | 135,812 | 415 | 22,320 | 158,547 | ||||||||||||
Depreciation and amortization | 311,518 | 386 | 38,581 | 350,485 | ||||||||||||
Other regulatory charges | 143,294 | — | — | 143,294 | ||||||||||||
Total | 2,137,815 | 12,525 | 426,833 | 2,577,173 | ||||||||||||
OPERATING INCOME | 222,393 | (12,565 | ) | (118,231 | ) | 91,597 | ||||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 31,670 | — | — | 31,670 | ||||||||||||
Interest and investment income | 52,296 | (38,713 | ) | 57,551 | 71,134 | |||||||||||
Miscellaneous - net | (28,370 | ) | (2,786 | ) | (17,335 | ) | (48,491 | ) | ||||||||
Total | 55,596 | (41,499 | ) | 40,216 | 54,313 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 154,587 | 29,261 | 8,466 | 192,314 | ||||||||||||
Allowance for borrowed funds used during construction | (14,668 | ) | — | — | (14,668 | ) | ||||||||||
Total | 139,919 | 29,261 | 8,466 | 177,646 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 138,070 | (83,325 | ) | (86,481 | ) | (31,736 | ) | |||||||||
Income taxes | (240,324 | ) | (10,128 | ) | (30,144 | ) | (280,596 | ) | ||||||||
CONSOLIDATED NET INCOME | 378,394 | (73,197 | ) | (56,337 | ) | 248,860 | ||||||||||
Preferred dividend requirements of subsidiaries | 2,892 | — | 547 | 3,439 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 375,502 | $ | (73,197 | ) | $ | (56,884 | ) | $ | 245,421 | ||||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $2.07 | ($0.40) | ($0.31) | $1.36 | ||||||||||||
DILUTED | $2.05 | ($0.40) | ($0.31) | $1.34 | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 180,823,203 | |||||||||||||||
DILUTED | 182,982,630 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Six Months Ended June 30, 2019 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $ | 4,466,772 | $ | (21 | ) | $ | — | $ | 4,466,751 | |||||||
Natural gas | 85,647 | — | — | 85,647 | ||||||||||||
Competitive businesses | — | — | 723,394 | 723,394 | ||||||||||||
Total | 4,552,419 | (21 | ) | 723,394 | 5,275,792 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operating and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 894,742 | (23 | ) | 50,934 | 945,653 | |||||||||||
Purchased power | 654,451 | 23 | 30,894 | 685,368 | ||||||||||||
Nuclear refueling outage expenses | 77,243 | — | 24,160 | 101,403 | ||||||||||||
Other operation and maintenance | 1,235,944 | 12,613 | 376,364 | 1,624,921 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 90,397 | 90,397 | ||||||||||||
Decommissioning | 79,126 | — | 127,620 | 206,746 | ||||||||||||
Taxes other than income taxes | 288,487 | 528 | 32,968 | 321,983 | ||||||||||||
Depreciation and amortization | 643,421 | 1,404 | 75,945 | 720,770 | ||||||||||||
Other regulatory credits | (43,478 | ) | — | — | (43,478 | ) | ||||||||||
Total | 3,829,936 | 14,545 | 809,282 | 4,653,763 | ||||||||||||
OPERATING INCOME | 722,483 | (14,566 | ) | (85,888 | ) | 622,029 | ||||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 75,385 | — | — | 75,385 | ||||||||||||
Interest and investment income | 146,353 | (79,023 | ) | 257,037 | 324,367 | |||||||||||
Miscellaneous - net | (77,982 | ) | (7,776 | ) | (24,769 | ) | (110,527 | ) | ||||||||
Total | 143,756 | (86,799 | ) | 232,268 | 289,225 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 322,013 | 62,027 | 18,065 | 402,105 | ||||||||||||
Allowance for borrowed funds used during construction | (34,260 | ) | — | — | (34,260 | ) | ||||||||||
Total | 287,753 | 62,027 | 18,065 | 367,845 | ||||||||||||
INCOME BEFORE INCOME TAXES | 578,486 | (163,392 | ) | 128,315 | 543,409 | |||||||||||
Income taxes | 9,586 | (21,975 | ) | 56,618 | 44,229 | |||||||||||
CONSOLIDATED NET INCOME | 568,900 | (141,417 | ) | 71,697 | 499,180 | |||||||||||
Preferred dividend requirements of subsidiaries | 7,125 | — | 1,094 | 8,219 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 561,775 | $ | (141,417 | ) | $ | 70,603 | $ | 490,961 | |||||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $2.94 | ($0.74) | $0.37 | $2.57 | ||||||||||||
DILUTED | $2.91 | ($0.73) | $0.36 | $2.54 | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 191,306,742 | |||||||||||||||
DILUTED | 193,243,287 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Six Months Ended June 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $ | 4,578,559 | $ | (73 | ) | $ | — | $ | 4,578,486 | |||||||
Natural gas | 86,638 | — | — | 86,638 | ||||||||||||
Competitive businesses | — | — | 727,526 | 727,526 | ||||||||||||
Total | 4,665,197 | (73 | ) | 727,526 | 5,392,650 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operating and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 870,448 | (73 | ) | 38,723 | 909,098 | |||||||||||
Purchased power | 778,441 | 70 | 34,547 | 813,058 | ||||||||||||
Nuclear refueling outage expenses | 75,123 | — | 2,997 | 78,120 | ||||||||||||
Other operation and maintenance | 1,216,756 | 16,546 | 390,385 | 1,623,687 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 141,867 | 141,867 | ||||||||||||
Decommissioning | 73,550 | — | 118,455 | 192,005 | ||||||||||||
Taxes other than income taxes | 283,728 | 1,374 | 38,663 | 323,765 | ||||||||||||
Depreciation and amortization | 619,984 | 757 | 76,730 | 697,471 | ||||||||||||
Other regulatory charges | 186,319 | — | — | 186,319 | ||||||||||||
Total | 4,104,349 | 18,674 | 842,367 | 4,965,390 | ||||||||||||
OPERATING INCOME | 560,848 | (18,747 | ) | (114,841 | ) | 427,260 | ||||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 60,014 | — | — | 60,014 | ||||||||||||
Interest and investment income | 109,100 | (77,286 | ) | 56,191 | 88,005 | |||||||||||
Miscellaneous - net | (45,503 | ) | (4,387 | ) | (29,959 | ) | (79,849 | ) | ||||||||
Total | 123,611 | (81,673 | ) | 26,232 | 68,170 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 304,159 | 54,349 | 16,729 | 375,237 | ||||||||||||
Allowance for borrowed funds used during construction | (27,933 | ) | — | — | (27,933 | ) | ||||||||||
Total | 276,226 | 54,349 | 16,729 | 347,304 | ||||||||||||
INCOME BEFORE INCOME TAXES | 408,233 | (154,769 | ) | (105,338 | ) | 148,126 | ||||||||||
Income taxes | (188,100 | ) | (17,611 | ) | (31,222 | ) | (236,933 | ) | ||||||||
CONSOLIDATED NET INCOME | 596,333 | (137,158 | ) | (74,116 | ) | 385,059 | ||||||||||
Preferred dividend requirements of subsidiaries | 5,784 | — | 1,094 | 6,878 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 590,549 | $ | (137,158 | ) | $ | (75,210 | ) | $ | 378,181 | ||||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $3.27 | ($0.76) | ($0.42) | $2.09 | ||||||||||||
DILUTED | $3.24 | ($0.75) | ($0.41) | $2.08 | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 180,765,708 | |||||||||||||||
DILUTED | 182,208,328 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Twelve Months Ended June 30, 2019 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $ | 9,272,446 | $ | (70 | ) | $ | — | $ | 9,272,376 | |||||||
Natural gas | 155,445 | — | — | 155,445 | ||||||||||||
Competitive businesses | — | — | 1,464,773 | 1,464,773 | ||||||||||||
Total | 9,427,891 | (70 | ) | 1,464,773 | 10,892,594 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operating and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 2,094,971 | (72 | ) | 89,448 | 2,184,347 | |||||||||||
Purchased power | 1,419,481 | 72 | 111,557 | 1,531,110 | ||||||||||||
Nuclear refueling outage expenses | 152,374 | — | 24,734 | 177,108 | ||||||||||||
Other operation and maintenance | 2,520,558 | 33,395 | 793,679 | 3,347,632 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 480,851 | 480,851 | ||||||||||||
Decommissioning | 155,201 | — | 248,049 | 403,250 | ||||||||||||
Taxes other than income taxes | 566,744 | 950 | 72,476 | 640,170 | ||||||||||||
Depreciation and amortization | 1,241,756 | 1,921 | 149,064 | 1,392,741 | ||||||||||||
Other regulatory charges | 71,252 | — | — | 71,252 | ||||||||||||
Total | 8,222,337 | 36,266 | 1,969,858 | 10,228,461 | ||||||||||||
OPERATING INCOME | 1,205,554 | (36,336 | ) | (505,085 | ) | 664,133 | ||||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 144,973 | — | — | 144,973 | ||||||||||||
Interest and investment income | 241,189 | (156,351 | ) | 215,388 | 300,226 | |||||||||||
Miscellaneous - net | (94,505 | ) | (14,641 | ) | (51,287 | ) | (160,433 | ) | ||||||||
Total | 291,657 | (170,992 | ) | 164,101 | 284,766 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 631,747 | 128,413 | 35,030 | 795,190 | ||||||||||||
Allowance for borrowed funds used during construction | (67,301 | ) | — | — | (67,301 | ) | ||||||||||
Total | 564,446 | 128,413 | 35,030 | 727,889 | ||||||||||||
INCOME BEFORE INCOME TAXES | 932,765 | (335,741 | ) | (376,014 | ) | 221,010 | ||||||||||
Income taxes | (534,863 | ) | (39,617 | ) | (181,185 | ) | (755,665 | ) | ||||||||
CONSOLIDATED NET INCOME | 1,467,628 | (296,124 | ) | (194,829 | ) | 976,675 | ||||||||||
Preferred dividend requirements of subsidiaries | 13,047 | — | 2,188 | 15,235 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 1,454,581 | $ | (296,124 | ) | $ | (197,017 | ) | $ | 961,440 | ||||||
EARNINGS (LOSS) PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $7.79 | ($1.59) | ($1.05) | $5.15 | ||||||||||||
DILUTED | $7.69 | ($1.57) | ($1.04) | $5.08 | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 186,636,795 | |||||||||||||||
DILUTED | 189,184,138 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Twelve Months Ended June 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $ | 9,594,552 | $ | (130 | ) | $ | — | $ | 9,594,422 | |||||||
Natural gas | 152,068 | — | — | 152,068 | ||||||||||||
Competitive businesses | — | — | 1,513,633 | 1,513,633 | ||||||||||||
Total | 9,746,620 | (130 | ) | 1,513,633 | 11,260,123 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operating and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 2,015,657 | (130 | ) | 71,648 | 2,087,175 | |||||||||||
Purchased power | 1,403,391 | 127 | 63,225 | 1,466,743 | ||||||||||||
Nuclear refueling outage expenses | 158,070 | — | 7,348 | 165,418 | ||||||||||||
Other operation and maintenance | 2,480,323 | 32,208 | 784,600 | 3,297,131 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 274,877 | 274,877 | ||||||||||||
Decommissioning | 144,663 | — | 238,357 | 383,020 | ||||||||||||
Taxes other than income taxes | 553,496 | 1,704 | 76,505 | 631,705 | ||||||||||||
Depreciation and amortization | 1,222,693 | 1,678 | 165,327 | 1,389,698 | ||||||||||||
Other regulatory charges | 133,325 | — | — | 133,325 | ||||||||||||
Total | 8,111,618 | 35,587 | 1,681,887 | 9,829,092 | ||||||||||||
OPERATING INCOME (LOSS) | 1,635,002 | (35,717 | ) | (168,254 | ) | 1,431,031 | ||||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 113,718 | — | — | 113,718 | ||||||||||||
Interest and investment income | 215,809 | (154,523 | ) | 178,270 | 239,556 | |||||||||||
Miscellaneous - net | (77,387 | ) | (6,562 | ) | (69,631 | ) | (153,580 | ) | ||||||||
Total | 252,140 | (161,085 | ) | 108,639 | 199,694 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 607,729 | 102,308 | 27,946 | 737,983 | ||||||||||||
Allowance for borrowed funds used during construction | (53,237 | ) | — | — | (53,237 | ) | ||||||||||
Total | 554,492 | 102,308 | 27,946 | 684,746 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 1,332,650 | (299,110 | ) | (87,561 | ) | 945,979 | ||||||||||
Income taxes | 377,173 | (97,766 | ) | 355,580 | 634,987 | |||||||||||
CONSOLIDATED NET INCOME (LOSS) | 955,477 | (201,344 | ) | (443,141 | ) | 310,992 | ||||||||||
Preferred dividend requirements of subsidiaries | 11,540 | — | 2,187 | 13,727 | ||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 943,937 | $ | (201,344 | ) | $ | (445,328 | ) | $ | 297,265 | ||||||
EARNINGS (LOSS) PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $5.24 | ($1.12) | ($2.47) | $1.65 | ||||||||||||
DILUTED | $5.20 | ($1.11) | ($2.45) | $1.64 | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 180,346,266 | |||||||||||||||
DILUTED | 181,444,134 | |||||||||||||||
*Totals may not foot due to rounding. |
Entergy Corporation | ||||||||||||
Consolidated Cash Flow Statement | ||||||||||||
Six Months Ended June 30, 2019 vs. 2018 | ||||||||||||
(Dollars in thousands) | ||||||||||||
(Unaudited) | ||||||||||||
2019 | 2018 | Variance | ||||||||||
OPERATING ACTIVITIES | ||||||||||||
Consolidated net income | $ | 499,180 | $ | 385,059 | $ | 114,121 | ||||||
Adjustments to reconcile consolidated net income to net cash | ||||||||||||
flow provided by operating activities: | ||||||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 1,068,807 | 1,027,609 | 41,198 | |||||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued | 225,749 | 88,732 | 137,017 | |||||||||
Asset write-offs, impairments and related charges | 26,684 | 51,503 | (24,819 | ) | ||||||||
Changes in working capital: | ||||||||||||
Receivables | (127,259 | ) | (45,515 | ) | (81,744 | ) | ||||||
Fuel inventory | (13,346 | ) | 8,512 | (21,858 | ) | |||||||
Accounts payable | (18,832 | ) | 97,464 | (116,296 | ) | |||||||
Taxes accrued | (38,186 | ) | (8,092 | ) | (30,094 | ) | ||||||
Interest accrued | (144 | ) | (2,056 | ) | 1,912 | |||||||
Deferred fuel costs | 31,796 | (132,263 | ) | 164,059 | ||||||||
Other working capital accounts | (51,782 | ) | (134,982 | ) | 83,200 | |||||||
Changes in provisions for estimated losses | 4,719 | 27,443 | (22,724 | ) | ||||||||
Changes in other regulatory assets | (135,936 | ) | 106,712 | (242,648 | ) | |||||||
Changes in other regulatory liabilities | 107,882 | (247,239 | ) | 355,121 | ||||||||
Changes in pensions and other postretirement liabilities | (66,033 | ) | (181,278 | ) | 115,245 | |||||||
Other | (460,209 | ) | 38,314 | (498,523 | ) | |||||||
Net cash flow provided by operating activities | 1,053,090 | 1,079,923 | (26,833 | ) | ||||||||
INVESTING ACTIVITIES | ||||||||||||
Construction/capital expenditures | (2,095,520 | ) | (1,885,419 | ) | (210,101 | ) | ||||||
Allowance for equity funds used during construction | 75,607 | 60,335 | 15,272 | |||||||||
Nuclear fuel purchases | (54,523 | ) | (90,321 | ) | 35,798 | |||||||
Proceeds from sale of assets | 19,801 | 9,163 | 10,638 | |||||||||
Insurance proceeds received for property damages | 7,040 | 10,523 | (3,483 | ) | ||||||||
Changes in securitization account | 12,034 | 4,754 | 7,280 | |||||||||
Payments to storm reserve escrow account | (4,623 | ) | (2,744 | ) | (1,879 | ) | ||||||
Decrease (increase) in other investments | 51,073 | (10,769 | ) | 61,842 | ||||||||
Proceeds from nuclear decommissioning trust fund sales | 2,487,915 | 1,801,170 | 686,745 | |||||||||
Investment in nuclear decommissioning trust funds | (2,523,805 | ) | (1,826,384 | ) | (697,421 | ) | ||||||
Net cash flow used in investing activities | (2,025,001 | ) | (1,929,692 | ) | (95,309 | ) | ||||||
FINANCING ACTIVITIES | ||||||||||||
Proceeds from the issuance of: | ||||||||||||
Long-term debt | 5,391,547 | 3,359,193 | 2,032,354 | |||||||||
Treasury stock | 57,797 | 3,691 | 54,106 | |||||||||
Common stock | 607,650 | — | 607,650 | |||||||||
Retirement of long-term debt | (4,214,495 | ) | (2,569,131 | ) | (1,645,364 | ) | ||||||
Repurchase of preferred membership units | (50,000 | ) | — | (50,000 | ) | |||||||
Changes in credit borrowings and commercial paper - net | (306,877 | ) | 405,795 | (712,672 | ) | |||||||
Other | (5,106 | ) | 10,434 | (15,540 | ) | |||||||
Dividends paid: | ||||||||||||
Common stock | (345,452 | ) | (321,821 | ) | (23,631 | ) | ||||||
Preferred stock | (8,219 | ) | (6,878 | ) | (1,341 | ) | ||||||
Net cash flow provided by financing activities | 1,126,845 | 881,283 | 245,562 | |||||||||
Net increase in cash and cash equivalents | 154,934 | 31,514 | 123,420 | |||||||||
Cash and cash equivalents at beginning of period | 480,975 | 781,273 | (300,298 | ) | ||||||||
Cash and cash equivalents at end of period | $ | 635,909 | $ | 812,787 | $ | (176,878 | ) | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
Cash paid (received) during the period for: | ||||||||||||
Interest - net of amount capitalized | $388,566 | $362,629 | $25,937 | |||||||||
Income taxes | ($6,967) | $14,145 | ($21,112) |
Entergy Corporation | ||||||||||||
Consolidated Cash Flow Statement | ||||||||||||
Three Months Ended June 30, 2019 vs. 2018 | ||||||||||||
(Dollars in thousands) | ||||||||||||
(Unaudited) | ||||||||||||
2019 | 2018 | Variance | ||||||||||
OPERATING ACTIVITIES | ||||||||||||
Consolidated net income | $ | 240,533 | $ | 248,860 | $ | (8,327 | ) | |||||
Adjustments to reconcile consolidated net income to net cash | ||||||||||||
flow provided by operating activities: | ||||||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 538,583 | 502,428 | 36,155 | |||||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued | 120,865 | (15,875 | ) | 136,740 | ||||||||
Asset write-offs, impairments and related charges | 1,222 | 25,703 | (24,481 | ) | ||||||||
Changes in working capital: | ||||||||||||
Receivables | (166,956 | ) | (176,665 | ) | 9,709 | |||||||
Fuel inventory | (8,945 | ) | 24,773 | (33,718 | ) | |||||||
Accounts payable | 44,781 | 166,321 | (121,540 | ) | ||||||||
Taxes accrued | 5,897 | 48,209 | (42,312 | ) | ||||||||
Interest accrued | 20,402 | 7,955 | 12,447 | |||||||||
Deferred fuel costs | 11,595 | (56,025 | ) | 67,620 | ||||||||
Other working capital accounts | (9,766 | ) | (106,978 | ) | 97,212 | |||||||
Changes in provisions for estimated losses | (9,001 | ) | 16,699 | (25,700 | ) | |||||||
Changes in other regulatory assets | 26,256 | 22,363 | 3,893 | |||||||||
Changes in other regulatory liabilities | (23,042 | ) | (215,859 | ) | 192,817 | |||||||
Changes in pensions and other postretirement liabilities | (58,320 | ) | (83,860 | ) | 25,540 | |||||||
Other | (182,203 | ) | 114,481 | (296,684 | ) | |||||||
Net cash flow provided by operating activities | 551,901 | 522,530 | 29,371 | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Construction/capital expenditures | (1,143,891 | ) | (953,940 | ) | (189,951 | ) | ||||||
Allowance for equity funds used during construction | 37,285 | 31,823 | 5,462 | |||||||||
Nuclear fuel purchases | (16,078 | ) | (40,674 | ) | 24,596 | |||||||
Proceeds from sale of assets | 19,801 | 9,163 | 10,638 | |||||||||
Insurance proceeds received for property damages | 7,040 | 8,941 | (1,901 | ) | ||||||||
Changes in securitization account | 13,118 | 11,817 | 1,301 | |||||||||
Payments to storm reserve escrow account | (2,338 | ) | (1,569 | ) | (769 | ) | ||||||
Decrease (increase) in other investments | 12,028 | (10,363 | ) | 22,391 | ||||||||
Proceeds from nuclear decommissioning trust fund sales | 1,180,368 | 709,838 | 470,530 | |||||||||
Investment in nuclear decommissioning trust funds | (1,181,376 | ) | (720,290 | ) | (461,086 | ) | ||||||
Net cash flow used in investing activities | (1,074,043 | ) | (955,254 | ) | (118,789 | ) | ||||||
FINANCING ACTIVITIES | ||||||||||||
Proceeds from the issuance of: | ||||||||||||
Long-term debt | 1,947,317 | 853,467 | 1,093,850 | |||||||||
Treasury stock | 22,220 | 1,739 | 20,481 | |||||||||
Common stock | 607,650 | — | 607,650 | |||||||||
Retirement of long-term debt | (1,915,640 | ) | (1,835,131 | ) | (80,509 | ) | ||||||
Changes in credit borrowings and commercial paper - net | (306,860 | ) | 1,178,972 | (1,485,832 | ) | |||||||
Other | (3,161 | ) | 5,241 | (8,402 | ) | |||||||
Dividends paid: | ||||||||||||
Common stock | (172,861 | ) | (160,934 | ) | (11,927 | ) | ||||||
Preferred stock | (4,110 | ) | (3,439 | ) | (671 | ) | ||||||
Net cash flow provided by financing activities | 174,555 | 39,915 | 134,640 | |||||||||
Net decrease in cash and cash equivalents | (347,587 | ) | (392,809 | ) | 45,222 | |||||||
Cash and cash equivalents at beginning of period | 983,496 | 1,205,596 | (222,100 | ) | ||||||||
Cash and cash equivalents at end of period | $ | 635,909 | $ | 812,787 | $ | (176,878 | ) | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
Cash paid during the period for: | ||||||||||||
Interest - net of amount capitalized | $173,631 | $177,023 | ($3,392) | |||||||||
Income taxes | $6,877 | $18,442 | ($11,565) |
Entergy Corporation | ||||||||||||
Consolidated Cash Flow Statement | ||||||||||||
Twelve Months Ended June 30, 2019 vs. 2018 | ||||||||||||
(Dollars in thousands) | ||||||||||||
(Unaudited) | ||||||||||||
2019 | 2018 | Variance | ||||||||||
OPERATING ACTIVITIES | ||||||||||||
Consolidated net income | $ | 976,675 | $ | 310,992 | $ | 665,683 | ||||||
Adjustments to reconcile consolidated net income to net cash | ||||||||||||
flow provided by operating activities: | ||||||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 2,081,753 | 2,063,516 | 18,237 | |||||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued | (119,831 | ) | 942,012 | (1,061,843 | ) | |||||||
Asset write-offs, impairments and related charges | 466,920 | 187,926 | 278,994 | |||||||||
Changes in working capital: | ||||||||||||
Receivables | 16,802 | (149,243 | ) | 166,045 | ||||||||
Fuel inventory | 23,981 | (744 | ) | 24,725 | ||||||||
Accounts payable | (18,984 | ) | 189,579 | (208,563 | ) | |||||||
Taxes accrued | 9,178 | 27,963 | (18,785 | ) | ||||||||
Interest accrued | 7,132 | 2,633 | 4,499 | |||||||||
Deferred fuel costs | 138,230 | 51,972 | 86,258 | |||||||||
Other working capital accounts | (80,973 | ) | (47,808 | ) | (33,165 | ) | ||||||
Changes in provisions for estimated losses | 12,982 | 31,504 | (18,522 | ) | ||||||||
Changes in other regulatory assets | (53,455 | ) | 639,604 | (693,059 | ) | |||||||
Changes in other regulatory liabilities | (448,202 | ) | 2,676,806 | (3,125,008 | ) | |||||||
Deferred tax rate change recognized as regulatory liability / asset | — | (3,665,498 | ) | 3,665,498 | ||||||||
Changes in pensions and other postretirement liabilities | (189,696 | ) | (131,618 | ) | (58,078 | ) | ||||||
Other | (464,098 | ) | (245,856 | ) | (218,242 | ) | ||||||
Net cash flow provided by operating activities | 2,358,414 | 2,883,740 | (525,326 | ) | ||||||||
INVESTING ACTIVITIES | ||||||||||||
Construction/capital expenditures | (4,152,111 | ) | (3,773,239 | ) | (378,872 | ) | ||||||
Allowance for equity funds used during construction | 145,467 | 114,458 | 31,009 | |||||||||
Nuclear fuel purchases | (266,786 | ) | (257,889 | ) | (8,897 | ) | ||||||
Payment for purchase of plant or assets | (26,623 | ) | (16,762 | ) | (9,861 | ) | ||||||
Proceeds from sale of assets | 35,540 | 9,163 | 26,377 | |||||||||
Insurance proceeds received for property damages | 14,787 | 10,523 | 4,264 | |||||||||
Changes in securitization account | 1,436 | (3,951 | ) | 5,387 | ||||||||
Payments to storm reserve escrow account | (8,430 | ) | (4,498 | ) | (3,932 | ) | ||||||
Receipts from storm reserve escrow account | — | 2,487 | (2,487 | ) | ||||||||
Decrease (increase) in other investments | 7,342 | (11,396 | ) | 18,738 | ||||||||
Litigation proceeds for reimbursement of spent nuclear fuel storage costs | 59,643 | — | 59,643 | |||||||||
Proceeds from nuclear decommissioning trust fund sales | 7,171,536 | 3,501,219 | 3,670,317 | |||||||||
Investment in nuclear decommissioning trust funds | (7,183,097 | ) | (3,570,652 | ) | (3,612,445 | ) | ||||||
Net cash flow used in investing activities | (4,201,296 | ) | (4,000,537 | ) | (200,759 | ) | ||||||
FINANCING ACTIVITIES | ||||||||||||
Proceeds from the issuance of: | ||||||||||||
Long-term debt | 10,067,890 | 4,132,054 | 5,935,836 | |||||||||
Preferred stock of subsidiary | 73,330 | 14,399 | 58,931 | |||||||||
Treasury stock | 157,421 | 76,601 | 80,820 | |||||||||
Common stock | 1,106,922 | — | 1,106,922 | |||||||||
Retirement of long-term debt | (8,611,102 | ) | (3,288,475 | ) | (5,322,627 | ) | ||||||
Repurchase / redemption of preferred stock and preferred membership units | (103,868 | ) | (20,599 | ) | (83,269 | ) | ||||||
Changes in credit borrowings and commercial paper - net | (348,641 | ) | 735,134 | (1,083,775 | ) | |||||||
Other | 10,913 | (1,602 | ) | 12,515 | ||||||||
Dividends paid: | ||||||||||||
Common stock | (671,335 | ) | (638,497 | ) | (32,838 | ) | ||||||
Preferred stock | (15,526 | ) | (13,926 | ) | (1,600 | ) | ||||||
Net cash flow provided by financing activities | 1,666,004 | 995,089 | 670,915 | |||||||||
Net decrease in cash and cash equivalents | (176,878 | ) | (121,708 | ) | (55,170 | ) | ||||||
Cash and cash equivalents at beginning of period | 812,787 | 934,495 | (121,708 | ) | ||||||||
Cash and cash equivalents at end of period | $ | 635,909 | $ | 812,787 | $ | (176,878 | ) | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
Cash paid (received) during the period for: | ||||||||||||
Interest - net of amount capitalized | $760,782 | $706,445 | $54,337 | |||||||||
Income taxes | ($1,287) | $15,443 | ($16,730) |