SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [FEE REQUIRED]
For the Fiscal Year Ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [NO FEE REQUIRED]
Commission File Number 2-62223
SAVINGS PLAN OF ENTERGY CORPORATION AND SUBSIDIARIES
(Full title of the plan)
ENTERGY CORPORATION
639 Loyola Avenue
New Orleans, Louisiana 70113
(Issuer and address of principal executive office)
SAVINGS PLAN OF ENTERGY CORPORATION AND SUBSIDIARIES
Table of Contents
Page
Number
Herein
(a)Financial Statements:
Report of Independent Accountants 2
Statement of Net Assets Available for Benefits
with Fund Information as of December 31, 1997 3
Statement of Net Assets Available for Benefits
with Fund Information as of December 31, 1996 4
Statement of Changes in Net Assets Available for
Benefits with Fund Information for the Year
Ended December 31, 1997 5
Notes to Financial Statements 6
(b)Supplemental Schedules:
Item 27a - Schedule of Assets Held for Investment
Purposes - as of December 31, 1997 20
Item 27d - Schedule of Reportable Transactions
for the Year Ended December 31, 1997 25
Signature 26
(c)Exhibit:
Consent of Coopers & Lybrand L.L.P. 27
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustee and Participants of the Savings Plan of
Entergy Corporation and Subsidiaries:
We have audited the accompanying statements of net assets available for
benefits of the Savings Plan of Entergy Corporation and Subsidiaries (the
Plan) as of December 31, 1997 and 1996, and the related statement of
changes in net assets available for benefits for the year ended December 31,
1997. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as
of December 31, 1997 and 1996, and the changes in net assets available for
benefits for the year ended December 31, 1997 in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in
the table of contents on page 1 are presented for the purpose of additional
analysis and are not a required part of the basic financial statements but
are supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The Fund Information in the statements of net assets
available for benefits and statement of changes in net assets available for
benefits is presented for purposes of additional analysis rather than to
present the net assets available for plan benefits and changes in net assets
available for benefits of each fund. The supplemental schedules and Fund
Information have been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
COOPERS & LYBRAND L.L.P.
New Orleans, Louisiana
June 26, 1998
SAVINGS PLAN OF ENTERGY CORPORATION AND SUBSIDIARIES
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
As of December 31, 1997
PARTICIPANT DIRECTED FUND INFORMATION
Entergy Entergy
Corporation Stable Equity
Common Income Balanced Income
Total Stock Fund Fund Fund
Assets:
Investments:
Cash and temporary cash investments $28,067,680 $1,052,696 $26,815,816 - -
Equity securities:
Entergy Corporation common
stock - 13,784,066 shares 412,660,477 57,605,862 - - -
Mutual funds 307,721,468 - - $37,372,119 $120,337,455
Common trust funds 61,110,045 - - - -
Fixed income securities:
Guaranteed investment contracts 56,854,555 - 56,854,555 - -
Synthetic investment contracts 148,798,098 - 148,798,098 - -
Investments held by prior trustee 7,179,631 1,018,504 1,956,578 60,090 422,459
Loans to participants 24,129,072 - - - -
------------------------------------------------------------------------
Total investments 1,046,521,026 59,677,062 234,425,047 37,432,209 120,759,914
Contributions receivable 1,302,262 47,054 227,010 68,487 145,717
Investment income receivables and other 1,600,718 65,777 17,149 642,803 837,196
------------------------------------------------------------------------
Total assets 1,049,424,006 59,789,893 234,669,206 38,143,499 121,742,827
------------------------------------------------------------------------
Liabilities:
Other liabilities 140,976 29,746 - - 111,230
------------------------------------------------------------------------
Net Assets Available for Benefits $1,049,283,030 $59,760,147 $234,669,206 $38,143,499 $121,631,597
========================================================================
See Notes to Financial Statements.
SAVINGS PLAN OF ENTERGY CORPORATION AND SUBSIDIARIES
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
As of December 31, 1997
PARTICIPANT DIRECTED FUND INFORMATION
Equity
Index Blue Chip New New International
Trust Growth Horizons Income Stock
Fund Fund Fund Fund Fund
Assets:
Investments:
Cash and temporary cash investments - - - - -
Equity securities:
Entergy Corporation common
stock - 13,784,066 shares - - - - -
Mutual funds - $88,522,409 $51,913,913 $3,882,083 $5,693,489
Common trust funds $61,110,045 - - - -
Fixed income securities:
Guaranteed investment contracts - - - - -
Synthetic investment contracts - - - - -
Investments held by prior trustee 3,200,959
Loans to participants - - - - -
----------------------------------------------------------------
Total investments 61,110,045 88,522,409 55,114,872 3,882,083 5,693,489
Contributions receivable 113,561 175,218 141,642 8,602 19,143
Investment income receivables and other 1,826 3,852 8,418 173 222
----------------------------------------------------------------
Total assets 61,225,432 88,701,479 55,264,932 3,890,858 5,712,854
----------------------------------------------------------------
Liabilities:
Other liabilities - - - - -
----------------------------------------------------------------
Net Assets Available for Benefits $61,225,432 $88,701,479 $55,264,932 $3,890,858 $5,712,854
================================================================
See Notes to Financial Statements.
SAVINGS PLAN OF ENTERGY CORPORATION AND SUBSIDIARIES
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
As of December 31, 1997
PARTICIPANT
DIRECTED NON-PARTICIPANT
FUND DIRECTED
INFORMATION FUND INFORMATION
Entergy Employee
Corporation Stock
Participants' Common Ownership
Loans Stock Plan
Assets:
Investments:
Cash and temporary cash investments - $199,168 -
Equity securities:
Entergy Corporation common
stock - 13,784,066 shares - 243,867,095 $111,187,520
Mutual funds - - -
Common trust funds - - -
Fixed income securities:
Guaranteed investment contracts - - -
Synthetic investment contracts - - -
Investments held by prior trustee 521,041 -
Loans to participants 24,129,072 - -
---------------------------------------
Total investments 24,650,113 244,066,263 111,187,520
Contributions receivable - 355,828 -
Investment income receivables and other - 23,302 -
---------------------------------------
Total assets 24,650,113 244,445,393 111,187,520
---------------------------------------
Liabilities:
Other liabilities - - -
---------------------------------------
Net Assets Available for Benefits $24,650,113 $244,445,393 $111,187,520
=======================================
See Notes to Financial Statements.
SAVINGS PLAN OF ENTERGY CORPORATION AND SUBSIDIARIES
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
As of December 31, 1996
PARTICIPANT DIRECTED FUND INFORMATION
Entergy Entergy
Corporation Stable Stock
Common Income Balanced Income
Total Stock Fund Fund Fund
Assets:
Investments:
Cash and temporary cash investments $243,544,633 $65,574 $114,315,718 $6,189,331 $34,803,961
Equity securities:
Entergy Corporation common
stock - 10,208,842 shares 282,019,260 59,529,486 - - -
Other equity securities 118,417,941 - - 13,497,737 55,510,975
Fixed income securities:
U.S. Treasury and government
agency securities 7,840,843 - - 7,840,843 -
Guaranteed investment contracts 12,311,107 - 12,311,107 - -
Synthetic investment contracts 119,761,246 - 119,761,246 - -
American Express Trust Fund 14,122,430 - 14,122,430 - -
Other corporate securities 3,008,155 - 1,119,499 1,888,656 -
Loans to participants 19,200,985 - - - -
----------------------------------------------------------------
Total investments 820,226,600 59,595,060 261,630,000 29,416,567 90,314,936
Contributions receivable 3,970,290 216,882 994,285 204,629 469,483
Investment income receivables and other 3,327,078 43,402 464,105 330,126 1,938,003
----------------------------------------------------------------
Total assets 827,523,968 59,855,344 263,088,390 29,951,322 92,722,422
----------------------------------------------------------------
Liabilities:
Investment acquisition liabilities and other 3,043,269 319 1,155,478 525 1,859,756
----------------------------------------------------------------
Net Assets Available for Benefits $824,480,699 $59,855,025 $261,932,912 $29,950,797 $90,862,666
================================================================
See Notes to Financial Statements.
SAVINGS PLAN OF ENTERGY CORPORATION AND SUBSIDIARIES
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
As of December 31, 1996
NON-
PARTICIPANT
DIRECTED
FUND
INFORMATION
PARTICIPANT DIRECTED FUND INFORMATION
Entergy
Stock Stock Corporation
Index Growth Acorn Participants' Common
Fund Fund Fund Loans Stock
Assets:
Investments:
Cash and temporary cash investments $11,618,474 $31,613,679 $44,576,579 $116,235 $245,082
Equity securities:
Entergy Corporation common
stock - 10,208,842 shares - - - - 222,489,774
Other equity securities 23,634,131 25,775,098 - - -
Fixed income securities:
U.S. Treasury and government
agency securities - - - - -
Guaranteed investment contracts - - - - -
Synthetic investment contracts - - - - -
American Express Trust Fund - - - - -
Other corporate securities - - - - -
Loans to participants - - - 19,200,985 -
---------------------------------------------------------------
Total investments 35,252,605 57,388,777 44,576,579 19,317,220 222,734,856
Contributions receivable 303,400 507,064 283,474 - 991,073
Investment income receivables and other 57,438 155,862 68,711 - 269,431
---------------------------------------------------------------
Total assets 35,613,443 58,051,703 44,928,764 19,317,220 223,995,360
---------------------------------------------------------------
Liabilities:
Investment acquisition liabilities and other 314 308 - - 26,569
---------------------------------------------------------------
Net Assets Available for Benefits $35,613,129 $58,051,395 $44,928,764 $19,317,220 $223,968,791
===============================================================
See Notes to Financial Statements.
SAVINGS PLAN OF ENTERGY CORPORATION AND SUBSIDIARIES
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
For the Year Ended December 31, 1997
PARTICIPANT DIRECTED FUND INFORMATION
Entergy Entergy Equity
Corporation Stable Equity Index
Common Income Balanced Income Trust
Total Stock Fund Fund Fund Fund
Net Assets Available for Benefits -
Beginning of Year $824,480,699 $59,855,025 $261,932,912 $29,950,797 $90,862,666 $35,613,129
Increases:
Investment income:
Dividend 32,528,347 3,718,726 19,917 1,390,521 11,851,436 2,116
Interest 1,915,633 - - - - -
Net realized and unrealized appreciation/
(depreciation) of investments 91,093,311 4,681,902 15,140,484 4,415,364 14,771,930 13,339,549
-----------------------------------------------------------------------------------
Total investment income 125,537,291 8,400,628 15,160,401 5,805,885 26,623,366 13,341,665
-----------------------------------------------------------------------------------
Employee contributions 42,463,147 2,431,777 12,261,572 2,814,405 6,799,455 5,030,522
Employer contributions - net
of forfeitures 13,510,237 - - - - -
-----------------------------------------------------------------------------------
Total increases 181,510,675 10,832,405 27,421,973 8,620,290 33,422,821 18,372,187
-----------------------------------------------------------------------------------
Decreases:
Distributions to withdrawing
participants 76,584,804 4,638,032 32,566,522 2,401,391 8,545,481 3,470,414
-----------------------------------------------------------------------------------
Total decreases 76,584,804 4,638,032 32,566,522 2,401,391 8,545,481 3,470,414
-----------------------------------------------------------------------------------
Net increase (decrease) before transfers 104,925,871 6,194,373 (5,144,549) 6,218,899 24,877,340 14,901,773
Net transfers from affiliated plans 119,876,460 1,060,156 1,989,685 710,316 1,160,538 -
Net transfers between the funds - (7,349,407) (24,108,842) 1,263,487 4,731,053 10,710,530
-----------------------------------------------------------------------------------
Net increase (decrease) 224,802,331 (94,878) (27,263,706) 8,192,702 30,768,931 25,612,303
-----------------------------------------------------------------------------------
Net Assets Available for Benefits -
End of Year $1,049,283,030 $59,760,147 $234,669,206 $38,143,499 $121,631,597 $61,225,432
===================================================================================
See Notes to Financial Statements.
SAVINGS PLAN OF ENTERGY CORPORATION AND SUBSIDIARIES
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
For the Year Ended December 31, 1997
NON-PARTICIPANT
DIRECTED
PARTICIPANT DIRECTED FUND INFORMATION FUND INFORMATION
Entergy Employee
Blue Chip New New International Corporation Stock
Growth Horizons Income Stock Participants' Common Ownership
Fund Fund Fund Fund Loans Stock Plan
Net Assets Available for Benefits -
Beginning of Year $58,051,395 $44,928,764 - - $19,317,220 $223,968,791 -
Increases:
Investment income:
Dividend 513,832 1,266,823 $146,364 $299,923 - 13,318,689 -
Interest - - - - 1,915,633 - -
Net realized and unrealized appreciation/
(depreciation) of investments 17,288,444 3,443,191 72,826 (442,321) - 18,381,942 -
-----------------------------------------------------------------------------------------
Total investment income 17,802,276 4,710,014 219,190 (142,398) 1,915,633 31,700,631 -
-----------------------------------------------------------------------------------------
Employee contributions 7,912,827 4,119,203 327,857 765,529 - - -
Employer contributions - net
of forfeitures - - - - - 13,510,237 -
-----------------------------------------------------------------------------------------
Total increases 25,715,103 8,829,217 547,047 623,131 1,915,633 45,210,868 -
-----------------------------------------------------------------------------------------
Decreases:
Distributions to withdrawing
participants 4,245,878 2,801,089 52,628 221,021 547,762 17,094,586 -
-----------------------------------------------------------------------------------------
Total decreases 4,245,878 2,801,089 52,628 221,021 547,762 17,094,586 -
-----------------------------------------------------------------------------------------
Net increase (decrease) before transfers 21,469,225 6,028,128 494,419 402,110 1,367,871 28,116,282 -
Net transfers from affiliated plans - 3,247,204 - - 521,041 - $111,187,520
Net transfers between the funds 9,180,859 1,060,836 3,396,439 5,310,744 3,443,981 (7,639,680) -
-----------------------------------------------------------------------------------------
Net increase (decrease) 30,650,084 10,336,168 3,890,858 5,712,854 5,332,893 20,476,602 111,187,520
-----------------------------------------------------------------------------------------
Net Assets Available for Benefits -
End of Year $88,701,479 $55,264,932 $3,890,858 $5,712,854 $24,650,113 $244,445,393 $111,187,520
=========================================================================================
See Notes to Financial Statements.
SAVINGS PLAN OF ENTERGY CORPORATION AND SUBSIDIARIES
Notes to Financial Statements
1.Change in Trustee
On May 23, 1996, the Entergy Employee Benefits Committee approved the
decision to appoint T. Rowe Price Trust Company as the trustee and T.
Rowe Price Retirement Plan Services, Inc. as the recordkeeper of the
Savings Plan of Entergy Corporation and Subsidiaries (Entergy Savings
Plan), effective January 1, 1997. As of December 28, 1996, securities
within various funds had been converted to cash and temporary cash
investments, based on T. Rowe Price's recommendations, in order to
transition from one trustee to another in a cost effective manner. On
January 2, 1997, cash and temporary cash investments were used to
purchase mutual funds by T. Rowe Price Trust Company. The following
table represents the conversion for the transfer of funds between
trustees.
Hibernia Funds T. Rowe Price Funds
Entergy Corporation Common Stock Entergy Corporation Common Stock
Stable Income Fund Entergy Stable Income Fund
Balanced Fund Balanced Fund
Stock Income Fund Equity Income Fund
Stock Index Fund Equity Index Fund
Stock Growth Fund Blue Chip Growth Fund
Acorn Fund New Horizons Fund
N/A New Income Fund
N/A International Stock Fund
Participants' Loans Participants' Loans
2. GSU Thrift Plan and Entergy Savings Plan Merger
On December 31, 1993, Entergy Corporation and Gulf States Utilities
Company (Entergy Gulf States) consummated their merger. Entergy Gulf
States became a wholly owned subsidiary of Entergy Corporation (the
Company). On May 5, 1994, the Board of Directors of Entergy Corporation
approved the combination of the Entergy Savings Plan and the Gulf States
Utilities Company Employees' Thrift Plan (GSU Thrift Plan).
On January 1, 1995, the non-bargaining employees of Entergy Gulf States
began making new contributions to the Entergy Savings Plan. In April
1995, the non-bargaining employees' and inactive participants' assets
were transferred from the GSU Thrift Plan to the Entergy Savings Plan.
Bargaining unit employees of Entergy Gulf States, except for River Bend
Steam Electric Generating Station (River Bend) bargaining employees of
Entergy Operations, Inc., joined the Entergy Savings Plan on October 1,
1995 and their assets were transferred in October 1995. The River Bend
bargaining unit employees elected to remain in the GSU Thrift Plan.
During 1995, the Entergy Savings Plan received $71,777,638 in cash and
$39,867,964 in securities from the GSU Thrift Plan. During 1996, the
Entergy Savings Plan received the outstanding participants' loan balances
from the GSU Thrift Plan for bargaining unit employees of Entergy Gulf
States, other than River Bend.
Effective December 31, 1997, the GSU Thrift Plan was merged into the
Entergy Savings Plan. The merger resulted in the transfer of the
remaining assets from the respective funds in the GSU Thrift Plan to
similar funds available under the Entergy Savings Plan. The transfer had
no effect on participants' benefits. The table below represents the
conversion for the transfer of funds from the GSU Thrift Plan to the
Entergy Savings Plan:
From the GSU Thrift Plan To the Entergy Savings Plan
Entergy Corporation Common Stock Entergy Corporation Common Stock
Acorn Fund New Horizons Fund
Guardian Fund Equity Income Fund
Puritan Fund Balanced Fund
Savings Fund Entergy Stable Income Fund
Investment Contract Fund Entergy Stable Income Fund
Participants' Loans Participants' Loans
3.Entergy ESOP and Entergy Savings Plan Merger
Effective December 31, 1997, the Employee Stock Ownership Plan of Entergy
Corporation and Subsidiaries (Entergy ESOP) was merged into the Entergy
Savings Plan. The transfer had no effect on participants' benefits and
no changes were made to the participants' investments. The Entergy
Savings Plan was amended on December 12, 1997, as further discussed
below, to add certain provisions related to the Entergy ESOP in
anticipation of the upcoming merger.
4. Summary of Significant Accounting Policies
Basis of presentation: The accompanying financial statements have been
prepared on the accrual basis of accounting and present the Statement of
Net Assets Available for Benefits with Fund Information and the Statement
of Changes in Net Assets Available for Benefits with Fund Information for
the Entergy Savings Plan.
Benefits payable for terminations and withdrawals are included in net
assets available for benefits and are charged to net assets when paid.
This accounting method differs from that required in the Internal Revenue
Service and Department of Labor Form 5500 which requires benefits payable
to be accrued and charged to net assets in the period the liability
arises. Net assets available for benefits as of December 31, 1997 and
1996 and the net increase in net assets available for benefits for the
year ended December 31, 1997 differ from that reported in the Form 5500 as
follows:
Net Assets Available
for Benefits
1997 1996
As reported herein $1,049,283,030 $824,480,699
Accrued benefits payable - (39,300)
-------------- ------------
To be reported in Form 5500 $1,049,283,030 $824,441,399
============== ============
Net Increase in
Net Assets Available for Benefits
1997
As reported herein $ 224,802,331
Accrued benefits payable 39,300
-------------
To be reported in Form 5500 $ 224,841,631
=============
The Entergy Savings Plan presents in the Statement of Changes in Net
Assets Available for Benefits with Fund Information the net appreciation
(depreciation) in the fair value of its investments which consists of the
realized gains or losses and the unrealized appreciation (depreciation)
on those investments.
As discussed in Notes 2 and 3 above, the GSU Thrift Plan and the Entergy
ESOP were merged into the Entergy Savings Plan on December 31, 1997.
However, Hibernia National Bank, as the former trustee for the GSU
Thrift Plan, did not transfer the assets of the GSU Thrift Plan to the
trustee for the Entergy Savings Plan until January 1, 1998. As the merger
was effective December 31, 1997, these assets are presented on the
statement of net assets available for benefits as of December 31, 1997
as "investments held by prior trustee" and are comprised of the following:
Investments Cost Current Value
Cash and temporary cash investments $ 1,756,512 $ 1,610,704
Entergy Corporation Common Stock 805,318 1,018,504
Mutual Funds:
Acorn Investment Trust - Acorn Fund 2,494,920 1,819,827
American Express Trust Fund 714,829 714,233
Participants' Loans - 521,041
These investments are included on the Schedule of Assets Held for
Investment Purposes (Item 27a) as of December 31, 1997 in Entergy Savings
Plan's Form 5500.
Interest and Dividend Income: Interest income is recorded on the accrual
basis. Dividends are recorded on the ex-dividend date.
Investments: Cash equivalents are valued at cost, which approximates fair
value. Investments in equity and fixed income securities are stated at
their fair value as determined by quoted market prices on the valuation
date, in compliance with the Department of Labor Rules and Regulations
for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974 (ERISA), as amended. Purchases and sales of
securities are accounted for on the trade date.
The values of guaranteed investment contracts (GICs) are recorded at
contract value, which approximates fair market value. Contract value
represents amounts invested under the GICs, plus interest earned and
reinvested through the valuation date at the contracted rate. The values
of synthetic investment contracts (SICs) are recorded at contract value,
which approximates fair market value, because participants are guaranteed
a return of principal and accrued interest. SICs are similar to GICs
except the assets of a SIC are placed in a trust with ownership by the
Entergy Savings Plan and a financially responsible third party issues a
wrapper contract. A wrapper contract is an insurance policy that
guarantees a stated rate of return on specific Entergy Savings Plan
assets placed in the trust. The fair value of the SIC assets in trust at
December 31, 1997 is $149,791,203. Listed below are the GICs and SICs as
of December 31, 1997.
Guaranteed investment contracts:
Contract
Interest Rate Value
STABLE INCOME FUND:
New York Life Insurance Company 6.30% $4,048,498
Life of Virginia Insurance Company 6.50% 6,282,864
Pacific Mutual Insurance Company 6.28% 7,006,462
Protective Life Insurance Company 6.49% 5,848,884
Protective Life Insurance Company 6.60% 5,322,539
Protective Life Insurance Company 6.30% 6,274,231
Security Life of Denver 6.26% 7,624,040
Security Life of Denver 5.90% 8,249,828
Transamerica Life Insurance and Annuity Company 6.48% 6,197,209
-----------
Total guaranteed investment contracts $56,854,555
===========
Synthetic investment contracts:
Contract
Interest Rate Value
STABLE INCOME FUND:
Caisse des Depots et Consignations Investment
Management Corporation 6.49% $21,030,627
Commonwealth Life Insurance Company 6.73% 42,734,500
Rabobank Nederland 6.20% 42,339,134
Transamerica Life Insurance and Annuity Company 6.60% 42,693,837
------------
Total synthetic investment contracts $148,798,098
============
The carrying value of loans to participants approximates fair value.
Tax status: The Entergy Savings Plan obtained its latest determination
letter on March 26, 1997, in which the Internal Revenue Service stated
that the plan, as then designed, was in compliance with the applicable
requirements of the Internal Revenue Code. The Entergy Savings Plan has
been amended since receiving the determination letter. However, the plan
administrator and the plan's tax counsel believe that the Entergy Savings
Plan is currently designed and being operated in compliance with the
applicable requirements of the Internal Revenue Code. Accordingly, no
provision for income taxes has been included in the Entergy Savings
Plan's financial statements.
Use of estimates in the preparation of financial statements: The
preparation of the Entergy Savings Plan financial statements, in
conformity with generally accepted accounting principles, requires
management to make estimates and assumptions that affect reported amounts
in the Statement of Net Assets Available for Benefits with Fund
Information and the Statement of Changes in Net Assets Available for
Benefits with Fund Information. Adjustments to the reported amounts may
be necessary in the future to the extent that future estimates or actual
results are different from the estimates used in the 1997 financial
statements.
Concentration of credit risk: The Entergy Savings Plan invests in GICs
and SICs which are subject to credit risk with respect to the insurance
companies. The potential credit risk of the GICs as of December 31, 1997
is $56,854,555. The potential credit risk for the SICs represents the
amount by which the contract value exceeds the fair value of the SIC
assets in the trust. As of December 31, 1997, the fair value of the SIC
assets in the trust exceeded the contract value and no potential credit
risk existed. The Entergy Savings Plan provisions set investment
guidelines addressing investment diversification, quality, maturity and
performance standards prescribed to mitigate the potential credit risk.
5. Summary of Entergy Savings Plan Provisions
The following description of the Entergy Savings Plan is provided for
general information purposes only. Entergy Savings Plan participants
should refer to the Entergy Savings Plan document for a more complete
description of the Entergy Savings Plan's provisions.
General: The Entergy Savings Plan is a defined contribution plan of
Entergy Corporation and Subsidiaries subject to the provisions of ERISA.
The ERISA provisions set forth the requirements for participation,
vesting of benefits, fiduciary conduct for administering and handling of
assets, and disclosure of Entergy Savings Plan information. Subsequent
to the December 12, 1997 plan amendment and the mergers of the GSU Thrift
Plan and the Entergy ESOP into the Entergy Savings plan effective
December 31, 1997, the Entergy Savings Plan constitutes two plans
qualified under Internal Revenue Code Section 401 as follows:
- A Profit Sharing Plan which is a defined contribution plan and consists
of an Employee After-Tax Account, Employee Tax Deductible Account,
Deferral Account, Company Match Account, Rollover Account, Loan
Account, and Forfeiture Account; and
- An Employee Stock Ownership Plan (ESOP) which is a defined contribution
plan and consists of a non-participant directed Entergy Corporation
Common Stock Account, an After Tax Entergy Tax Credit ESOP Account and
a Before Tax Entergy Tax Credit ESOP Account. The ESOP portion of the
plan is designed to invest primarily in Entergy Corporation Common
Stock.
Eligibility: At December 31, 1997, the Profit Sharing Plan was available
to all employees of Entergy Corporation and its subsidiary companies
(System) who satisfy a six-month System service requirement.
The ESOP is available to all System employees. Employees become eligible
to participate the day on which the earlier of the following occurs: (a)
the end of the 12-month period following commencement of employment
during which the employee performs 1,000 or more hours of service; or (b)
the completion of 1,000 hours of service by the employee in a 12-month
period measured from the anniversary date of commencement of employment.
However, as a result of the Company fully utilizing all of its investment
tax credits during the year ended December 31, 1997, there will be no
future enrollments of eligible employees in the ESOP.
Contributions: Profit Sharing Plan Contributions made by or on behalf of
participants are deposited with T. Rowe Price as Trustee for the Entergy
Savings Plan. Participants may elect to contribute, through payroll
deductions, one to six percent of their base salary (basic). The
employing System company will make matching contributions to the Entergy
Savings Plan in an amount equal to fifty percent of a participant's basic
contribution (matching). Participants may contribute an additional one
to ten percent of their base salary (supplemental) for which there are no
matching contributions. Basic and supplemental contributions may be made
on a before-tax basis (401(k) contributions), an after-tax basis, or a
combination of both. Contributions are monitored and limited by federal
tax legislation. The limit for the 1997 401(k) contribution was $9,500
per participant.
The Entergy Savings Plan provides that certain taxable amounts received
by an employee which originated from an employee benefit plan qualified
under Section 401(a) of the Code may be accepted under the Entergy
Savings Plan as rollover contributions (Rollover). Prior to January 1,
1987, the Entergy Savings Plan accepted tax-deductible (IRA-type)
contributions as System Individual Retirement Account (SIRA)
contributions and continues to maintain such accounts under the Entergy
Savings Plan until distribution.
ESOP Contributions are accrued based on the expected utilization of
additional investment tax credits in the applicable Federal income tax
return of Entergy Corporation and its subsidiaries and on expected
voluntary participant contributions. The Company made no contributions
during 1997. The ESOP invests the contributions and any income thereon
in shares of Entergy Corporation common stock. Participants are fully
vested immediately in their account balances. However, as a result of the
Company fully utilizing all of its investment tax credits; there will be
no future contributions to the ESOP.
Investments: Matching contributions related to the Profit Sharing Plan
made on behalf of participants are invested by the Trustee in the non-
participant directed Entergy Corporation Common Stock Fund. Participant
contributions are invested as directed by participants in accordance with
the Profit Sharing Plan's investment options. Earnings on participant
contributions are allocated based on participants' account balances as of
the first day of each month.
Effective March 1996, a new diversification feature was added to the
Entergy Savings Plan. Under the Entergy Savings Plan, Company-matching
contributions are invested in Entergy common stock and generally can not
be moved to other Entergy Savings Plan investment funds. However, the
new diversification feature allows participants to transfer a portion of
their matching contributions into other Entergy Savings Plan investment
funds if they are at least 55 years of age and have 10 years of
participation in the Entergy Savings Plan. Years of participation in the
GSU Thrift Plan also count for this purpose.
The value of investments may fluctuate with changes in market conditions.
The amount of risk varies based on the fund's investment goals and
composition. Participants should realize the risk associated with each
investment when determining how to invest their contributions.
Upon enrollment in the Profit Sharing Plan, a participant may direct
contributions to any of the following funds. The investment strategies
and objectives of the funds are detailed below.
Entergy Corporation Common Stock Fund - Funds are invested in
common stock of Entergy Corporation.
Entergy Stable Income Fund - Funds are invested in high-
quality, fixed-income securities, stable value portfolios, and
investment contracts with insurance companies. These
investment contracts offer a specified annual interest rate
over a stated period of time. Investments in the Entergy
Stable Income Fund include SICs, as well as high quality GICs.
Balanced Fund - Funds are invested in a mix of common stocks,
fixed-income securities, and cash reserves for the purpose of
capital appreciation, current income, and preservation of
capital.
Equity Income Fund - Funds are invested in the common stocks
of large, well-established companies that pay above-average
dividends and have the potential for increased dividends for
the purpose of capital appreciation and a high level of
income.
Equity Index Fund - Funds are primarily invested in the
portfolio of common stocks that make up the Standard & Poor's
500 Composite Stock Index (S&P Index). The objective of these
investments is to provide long-term capital appreciation
equivalent to the performance of the S&P Index.
Blue Chip Growth Fund - Funds are invested in the common
stocks of large, well-established companies with favorable
long-term growth potential. Current income is a secondary
objective.
New Horizons Fund - Funds are invested in emerging growth
companies still in the early stages of their life cycle which
are expected to grow more rapidly than the economy as a whole.
Investments are made with the objective of long-term capital
growth.
New Income Fund - Funds are invested primarily in marketable
debt securities with the objective of providing the highest
level of income while preserving capital over time.
International Stock Fund - Funds are invested in well-
established, non-U.S. companies for the purpose of long-term
growth of capital and income. The fund's share price will
fluctuate with changes in market, political, economic, and
foreign currency exchange conditions.
As of December 31, 1997, the Entergy Savings Plan had the following
number of participants in each investment option:
Number of
Participants
Entergy Corporation Common Stock 2,933
Stable Income Fund 7,409
Balanced Fund 2,798
Equity Income Fund 5,211
Equity Index Fund 3,951
Blue Chip Growth Fund 5,062
New Horizons Fund 3,389
New Income Fund 436
International Stock Fund 893
Participants' Loans 3,291
Entergy Corporation Common Stock ESOP 11,093
Administrative Expenses: All costs and expenses of administering the
Profit Sharing Plan, except expenses incurred in the direct acquisition
or disposition of stock and investment manager fees, are paid first by
forfeitures of the Profit Sharing Plan and then by the Company.
The Entergy Savings Plan provisions related to the ESOP require the
Company to absorb all administrative costs of the investment tax credit
based contributions of the ESOP, but allows the Company to reduce its
contributions or dividends by, or recover from the ESOP, the amount of
such costs equal to the lesser of (1) $100,000 or (2) the sum of 10% of
the first $100,000 of dividends paid to the ESOP and 5% in excess of
$100,000. Unless the Company contributes an amount to cover
administration expenses for the non-tax based contributions of the ESOP,
expenses are to be paid out of the assets thereof.
Vesting: Amounts contributed by participants in the Profit Sharing Plan
are fully vested at all times. Profit Sharing Plan participants become
fully vested in the matching account upon completion of five years of
System service except for all Entergy Gulf States employees who were
eligible to participate in the GSU Thrift Plan and who transferred into
the Entergy Savings Plan on January 1, 1995 or December 31, 1997. These
employees were immediately vested in all past and future matching
contributions. See Note 2 for a discussion of the GSU Thrift Plan and
the Entergy Savings Plan merger.
Amounts contributed to the ESOP by participants and the Company are fully
vested at the time of deposit.
Entergy Savings Plan termination: Although it has not expressed any
intent to do so, the System has the right under the Entergy Savings Plan
to discontinue its contributions at any time and to terminate the Entergy
Savings Plan subject to the provisions of ERISA. In the event of a plan
termination, participants would receive the total value of their
accounts, determined as of the date of termination.
In-Service withdrawals: While employed, participants of the Profit
Sharing Plan may, with certain restrictions, withdraw all or a portion of
the value of their basic and supplemental contributions after-tax,
Rollover, and SIRA accounts. Such withdrawals may include all or a
portion of the value of their basic and supplemental before-tax accounts
if the participant has attained age 59-1/2. Withdrawals of before-tax
contributions may be subject to a ten percent premature distribution tax
unless the participant is age 59-1/2 or older. The Profit Sharing Plan
also has a financial hardship withdrawal provision.
Effective January 1, 1995, the dividend pass through feature was
added to the Profit Sharing Plan allowing eligible participants to
either receive a cash distribution of their Entergy Corporation
common stock dividends held in the non-participant directed Entergy
Corporation Common Stock Fund or reinvest it in the Profit Sharing
Plan. Eligible participants include all participants who are fully
vested in their balance in the non-participant directed Entergy
Corporation Common Stock Fund.
While employed, participants of the ESOP may, with certain
restrictions, withdraw a portion of their account after the
participant completes an 84-month holding period or after the
participant reaches age 55 and completes 10 years of Plan
participation. The amount of in-service withdrawal is limited by
provisions of the Internal Revenue Code of 1986, as amended (the
Code), applicable to the Plan and may be subject to an additional
10% premature distribution tax unless the participant is age 59-1/2
or older. Withdrawals from the Plan are in the form of stock
certificates, plus cash for the value of any fractional share.
Loans to participants: The Entergy Savings Plan has a loan
provision whereby participants who are actively employed may borrow
an amount from their eligible account(s) based on the balance of
such account(s). The amount borrowed is deducted from the
participant's eligible account(s) and repaid with interest in
accordance with an established schedule. If a participant with an
outstanding loan separates from service, the remaining principal
balance of the loan is treated as a taxable distribution to the
participant unless the amount is repaid in full within a specified
period from the date of separation.
Distributions upon separation from service: Upon leaving a System
company, participants of the Profit Sharing Plan become eligible to
receive a single-sum distribution of the entire vested value of the
Profit Sharing Plan accounts. There are certain provisions
regarding deferral of distributions, installment distributions for
certain retirees and disabled participants, minimum account
balances, and mandatory distributions.
Upon leaving a System company, participants of the ESOP become
eligible to receive a single-sum distribution of the entire share
balance of their ESOP account, with certain additional provisions
regarding distribution deferral of account balances in excess of
$3,500 and mandatory distribution upon attaining age 70-1/2.
Generally, there are tax consequences associated with receiving a
distribution from the Plan, unless the taxable portion is rolled
over to an individual retirement account or another retirement plan
account which qualifies under Internal Revenue Code Sections 401(a)
or 408(a). Additionally, a 10% penalty tax for early withdrawal
applies, unless the distribution is received after age 59-1/2 or
the participant satisfies one of the legal exemptions to such tax.
Distributions from the Plan are in the form of stock certificates,
plus cash for the value of any fractional share.
Asset value per unit: The number of units and net asset value per
unit for the funds as of December 31, 1997 and December 31, 1996
were as follows:
1997 1996 (2)
Entergy Corporation Common Stock:
Number of Units (1) 10,104,099 10,208,842
Net Asset Value per unit $30.11 $27.80
Stable Income Fund:
Number of Units 23,526,386 45,390,434
Net Asset Value per unit $9.97 $5.77
Balanced Fund:
Number of Units 2,677,989 21,644,851
Net Asset Value per unit $14.24 $1.38
Equity Income Fund:
Number of Units 5,254,182 8,999,982
Net Asset Value per unit $23.15 $10.10
Equity Index Fund:
Number of Units 2,466,104 22,478,489
Net Asset Value per unit $24.83 $1.58
Blue Chip Growth Fund:
Number of Units 3,662,491 35,878,105
Net Asset Value per unit $24.22 $1.62
New Horizons Fund:
Number of Units 3,959,355 30,510,644
Net Asset Value per unit $13.96 $1.47
New Income Fund:
Number of Units 428,014 N/A
Net Asset Value per unit $9.09 N/A
International Stock Fund:
Number of Units 424,254 N/A
Net Asset Value per unit $13.47 N/A
Entergy Corporation Common Stock ESOP:
Number of Units 3,713,988 N/A
Net Asset Value per unit $29.94 N/A
(1) - Number of units as of December 31, 1997 in the Entergy Corporation
Stock Fund includes 34,021 shares which are reflected as Investments
held by prior trustee in the 1997 Statement of Net Assets Available
for Plan Benefits with Fund Information.
(2) - See Note 2 for prior year fund mapping.
Inactive accounts: Participants are allowed, under the provisions
of the Entergy Savings Plan, to defer receipt of their vested
account balance upon separation from the Entergy Savings Plan until
age 70-1/2. The amount allocated to such participants was
$183,115,680 at December 31, 1997.
Forfeitures: Upon termination of employment for reasons other than
retirement, disability, or death, the portion of the employee's
account in which he/she is not vested at the time of termination
shall be forfeited and credited to the Profit Sharing Plan
Forfeiture Account. Contributions forfeited for the year ended
December 31, 1997 were $123,748.
Entergy Savings Plan amendments: The Entergy Savings Plan was
amended on December 12, 1997 to add certain provisions related to
the Entergy ESOP which was merged into the Entergy Savings Plan
effective December 31, 1997. See Note 3 for a discussion of the
Entergy ESOP and Entergy Savings Plan merger and Note 5 herein for
a discussion of the provisions added by the amendment.
Other: The following represents investments in excess of
five percent of the current value of net assets available for
benefits as of December 31, 1997 and 1996:
Investment December 31, 1997 December 31, 1996
Cash and temporary cash investments - $243,544,633
Entergy Corporation Common Stock $301,472,957 $282,019,260
Equity Index trust fund $61,110,045 -
Mutual Funds:
Equity Income Fund $120,337,455 -
Blue Chip Growth Fund $88,522,409 -
The following represents investments at cost as of December 31,
1997 and 1996:
Investment December 31, 1997 December 31, 1996
Cash and temporary cash investments $28,067,680 $243,544,633
Entergy Corporation Common Stock $321,682,911 $198,330,470
Mutual Funds:
Balanced Fund $33,480,221 -
Equity Income Fund $107,185,854 -
Blue Chip Growth Fund $72,787,698 -
New Horizons Fund $48,691,239 -
New Income Fund $3,813,104 -
International Stock Fund $6,151,424 -
Equity Index Trust Fund $49,269,678 -
Other equity securities - $99,573,945
Fixed Income Securities:
U.S. Treasury and government agency securities - $7,883,395
Guaranteed investment contracts $56,854,555 $12,311,107
Synthetic investment contracts $145,725,781 $118,316,665
American Express Trust Fund - $12,981,235
Other corporate securities - $3,020,028
Investments held by prior trustee:
Cash and temporary cash investments $1,756,512 -
Entergy Corporation Common Stock $805,318 -
Mutual Funds:
Acorn Investment Trust - Acorn Fund $2,494,920 -
American Express Trust Fund $714,829 -
SUPPLEMENTAL SCHEDULES
SAVINGS PLAN OF ENTERGY CORPORATION AND SUBSIDIARIES
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1997
E.I.N. 72-1229752 (Plan No. 003)
Number Current
Description of Shares Cost Value
Cash and temporary cash investments N/A $29,824,192 $29,824,192
============ ============
EQUITY SECURITIES:
Entergy Corporation common stock, $.01 par * 13,818,087 $322,488,229 $413,678,981
========== ============ ============
MUTUAL FUNDS:
Balanced Fund * 2,259,499 $33,480,221 $37,372,119
Equity Income Fund * 4,615,936 107,185,854 120,337,455
Blue Chip Growth Fund * 3,662,491 72,787,698 88,522,409
New Horizons Fund * 2,228,065 48,691,239 51,913,913
New Income Fund * 428,014 3,813,104 3,882,083
International Stock Fund * 424,254 6,151,424 5,693,489
Acorn Investment Trust - Acorn Fund 182,317 2,494,920 3,094,502
American Express Trust Fund 17,444 714,829 789,072
---------- ------------ ------------
TOTAL MUTUAL FUNDS 13,818,020 $275,319,289 $311,605,042
========== ============ ============
COMMON TRUST FUND:
Equity Index Trust Fund 2,466,104 $49,269,678 $61,110,045
========== ============ ============
ENTERGY STABLE INCOME FUND:
Interest Maturity
Guaranteed Investment Contracts (GICs): Rate Date
New York Life Insurance Company 6.30% 12/27/00 $4,048,498 $4,048,498
Life of Virginia Insurance Company 6.50% 12/22/98 6,282,864 6,282,864
Pacific Mutual Insurance Company 6.28% 3/17/99 7,006,462 7,006,462
Protective Life Insurance Company 6.49% 3/15/00 5,848,884 5,848,884
Protective Life Insurance Company 6.60% 3/20/01 5,322,539 5,322,539
Protective Life Insurance Company 6.30% 6/24/98 6,274,231 6,274,231
Security Life of Denver 6.26% 9/23/98 7,624,040 7,624,040
Security Life of Denver 5.90% 3/18/98 8,249,828 8,249,828
Transamerica Life Insurance and Annuity Company 6.48% 12/24/99 6,197,209 6,197,209
------------ ------------
Total GICs $56,854,555 $56,854,555
------------ ------------
Synthetic Investment Contracts (SICs):
Caisse des Depots et Cosignations Investment
Management Corporation SIC Assets:
Government obligations:
Federal Home Loan Mortgage Corporation 6.83% 8/15/25 $17,203,462 $17,359,271
GNMA GTD REMIC 6.75% 1/16/23 1,527,555 1,565,098
FNMA Pool 391277 6.77% 1/1/27 936,199 979,729
------------ ------------
Total Caisse des Depots et Cosignations Investment
Management Corporation SIC Assets: $19,667,216 $19,904,098
============ ============
Rabobank Nederland SIC Assets:
Money market funds:
STATE STREET SHORT TERM $66,716 $66,716
Non-government obligations:
ABBEY NATIONAL MTN 6.69% 10/17/05 $ 311,220 $306,733
ALLTEL CORP DEB 6.75% 9/15/05 277,150 281,528
AMERICAN HOME PRODUCTS 7.70% 2/15/00 316,050 317,538
ANZ BANKING GR 7.55% 9/15/06 499,240 538,920
AT&T CORP NT 7.00% 5/15/05 321,180 314,980
BANKAMERICA CORP 10.00% 2/1/03 571,705 598,418
BHP FINANCE USA 7.88% 12/1/02 392,273 400,351
CHASE MANHATTAN SUB NT 7.13% 6/15/09 516,110 519,823
COX COMMUNICATION NEW NT 6.38% 6/15/00 497,455 502,407
DAIMLER BENZ NO AMER MTN 7.38% 9/15/06 510,885 545,043
DEAN WITTER DISCVR NTS 6.00% 3/1/98 596,040 612,138
FARMERS INS EXCH 144A 8.50% 8/1/04 543,545 567,288
FORD MOTOR CREDIT CORP 6.63% 6/30/03 496,480 507,017
GMAC NOTE 5.63% 2/1/99 488,370 509,064
HELLER FINANCIAL INC NTS 6.44% 10/6/02 498,200 504,430
INGERSOLL-RAND CO 6.26% 2/15/01 1,000,000 1,008,121
INTL LEASE FIN CORP NT 5.75% 1/15/99 492,405 511,602
KANSALLIS-OSAKE-PANKKI 10.00% 5/1/02 566,925 576,528
LEHMAN BROS HLDGS MTN 7.00% 5/24/00 499,585 521,447
LIBERTY MUTUAL INS 144A 8.20% 5/4/07 536,300 560,617
MET LIFE 144A SURPLUS NT 6.30% 11/1/03 484,235 500,605
MORGAN STANLEY GROUP NTS 9.38% 6/15/01 542,145 548,753
NATIONWIDE MUTUAL LIFE 6.50% 2/15/04 495,100 514,448
NATL RURAL UTIL NTS 6.38% 10/15/04 1,003,480 1,015,198
PACIFIC GAS & ELECTRIC CO 7.88% 3/1/02 529,425 534,741
PENNEY JC & CO NT 7.60% 4/1/07 498,195 548,125
PHILIP MORRIS 6.80% 12/1/03 498,670 508,543
PUBLIC SERVICE ELECTRIC & GAS 8.88% 6/1/03 414,221 419,717
SANTANDER FIN ISS LTD 7.00% 4/1/06 498,390 519,845
SEARS ROEBUCK ACCEP CORP 6.75% 9/15/05 300,192 311,795
SOUTHERN CAL EDISON 6.38% 1/15/06 496,380 514,108
SOUTHWEST AIR DEB 8.75% 10/15/03 109,269 113,325
------------ ------------
Subtotal non-government obligations: $15,800,820 $16,253,196
Government obligations:
FED FARM CREDIT BANK MTN 8.80% 1/31/02 $326,016 $342,839
FED HOME LOAN MTG 6.55% 4/19/99 5,969,417 5,993,549
FNMA 8.90% 6/12/00 2,773,047 2,666,818
FNMA MTN 5.82% 12/5/00 979,766 1,003,893
FEDERAL HOME LOAN BANKS 7.56% 2/27/02 4,826,250 4,887,823
GNMA II 002359M 7.00% 1/20/27 1,064,131 1,090,008
GNMA I 392442X 8.00% 7/15/24 84,254 87,458
GNMA I 403923X 8.00% 7/15/24 456,564 473,926
GNMA I 414564X 7.50% 8/15/25 417,518 427,869
GNMA I 416123X 7.50% 1/15/26 311,088 325,640
GNMA I 317516X 8.50% 2/15/22 177,263 181,081
GNMA I 317696X 8.50% 2/15/22 228,761 233,688
GNMA I 336918X 8.50% 12/15/22 279,991 286,021
GNMA I 421739X 7.50% 6/15/26 397,761 418,088
GNMA I 424000X 7.50% 9/15/26 348,492 366,302
GNMA I NEW 387187X 6.50% 2/15/24 799,563 825,695
U.S. TREASURY BONDS 8.75% 11/15/08 569,531 569,765
U.S. TREASURY NOTES 6.38% 8/15/02 2,539,766 2,624,649
U.S. TREASURY NOTES 6.13% 9/30/00 3,513,164 3,591,417
------------ ------------
Subtotal government obligations: $26,062,343 $26,396,529
------------ ------------
Total Rabobank Nederland SIC Assets: $41,929,879 $42,716,441
============ ============
Commonwealth Life Insurance Company and Transamerica Life
Insurance and Annuity Company SIC Assets (1):
Money market funds:
STATE STREET SHORT TERM $26,109 $26,109
Non-government obligations:
ABN AMRO BK SUB NT 7.13% 6/18/07 $517,915 $524,021
ALLTEL CORP DEB 6.75% 9/15/05 698,006 709,033
ARISTAR INC SR NT 6.30% 7/15/00 980,950 1,030,540
BANC ONE CORP 7.60% 5/1/07 1,063,880 1,087,537
BANCBOSTON CORP 7.00% 9/15/07 1,019,990 1,052,667
BAXTER INTERNATIONAL INC 9.50% 6/15/08 1,222,290 1,229,562
BHP FINANCE USA 5.63% 11/1/00 956,850 993,465
BK OF NY 7.78% 12/1/26 771,975 784,345
BOEING CO DEB 8.75% 8/15/21 1,136,010 1,286,096
CITIZENS UTILITY DEB 7.00% 11/1/25 933,110 1,039,407
COX COMMUNICATION NEW NT 6.38% 6/15/00 497,455 502,407
DAIMLER BENZ NO AMER MTN 7.38% 9/15/06 1,021,770 1,090,085
ELI LILLY & CO NT 7.13% 6/1/25 933,470 1,071,168
FORD MOTOR CREDIT CORP 6.63% 6/30/03 992,960 1,014,034
GMAC 9.38% 4/1/00 1,062,750 1,087,578
GOLDMAN SACHS GR LP 6.38% 6/15/00 490,370 505,047
GTE CALIFORNIA DEB 6.70% 9/1/09 981,140 1,030,783
HOUSTON LTG & PWR 9.15% 3/15/21 1,141,340 1,288,512
LEHMAN BROS BLDGS MTN 9.17% 2/28/02 1,095,240 1,133,872
LIBERTY MUTUAL INS 8.20% 5/4/07 1,072,600 1,121,233
MATTEL INC NT 6.75% 5/15/00 1,172,603 1,199,387
MERRILL LYNCH NOTES 6.25% 10/15/08 971,340 990,624
NATIONWIDE MUTUAL LIFE 7.50% 2/15/24 935,820 1,036,683
PENNEY JC & CO NT 7.60% 4/1/07 996,390 1,096,250
PHILIP MORRIS COS INC 7.25% 9/15/01 798,080 836,718
PUB SVE ELEC & GAS CO FMG 6.25% 1/1/07 984,740 1,022,210
SANTANDER FIN ISSUE LTD 6.38% 2/15/11 944,230 992,253
SEARS ROEBUCK ACCEP CORP 6.75% 9/15/05 1,000,640 1,039,315
TRANSAMERICA FIN SUB NTS 6.75% 1/15/98 605,700 618,759
ZURICH REINS CENTRE BLDG 7.13% 10/15/23 989,667 1,090,573
------------ ------------
Subtotal non-government obligations: $27,989,281 $29,504,164
Government obligations:
FED HOME LOAN MTG 6.55% 4/19/99 $3,769,086 $3,784,323
FNMA 8.10% 8/12/19 2,275,625 2,488,170
FNMA 8.90% 6/12/00 1,333,125 1,280,073
FEDERAL HOME LOAN BANKS 7.56% 2/27/02 4,611,750 4,670,586
FHLM 6.00% 8/15/07 964,375 989,347
FICO STRIP PRN 0.00% 8/3/18 1,201,995 1,267,200
GNMA 780531X 8.00% 3/15/12 921,120 926,615
GNMA II 002359M 7.00% 1/20/27 1,183,023 1,211,781
GNMA II 002433M 8.00% 5/20/27 970,962 987,501
GNMA 344570X 6.00% 12/15/23 221,248 229,642
GNMA 354710X 6.00% 12/15/23 245,192 254,495
GNMA 357966X 6.00% 12/15/23 303,263 314,769
GNMA 359638X 6.00% 12/15/23 186,527 193,604
GNMA 359978X 6.00% 1/15/24 106,148 110,174
GNMA 372951X 6.00% 1/15/24 185,985 193,041
GNMA 375103X 6.00% 4/15/24 201,854 209,512
GNMA 381437X 6.00% 1/15/24 258,335 268,136
GNMA 405597X 8.00% 3/15/26 50,944 52,724
GNMA 314529X 6.00% 1/15/24 314,142 326,061
GNMA 780006X 8.50% 11/15/24 403,016 411,213
GNMA 780162X 8.50% 6/15/25 562,778 572,542
GNMA I 344710X 8.50% 2/15/23 40,109 40,973
GNMA I 349384X 7.50% 6/15/23 74,824 76,842
GNMA I 353245X 8.50% 4/15/23 32,518 33,219
GNMA I 354361X 7.50% 4/15/23 87,148 89,497
GNMA I 365444X 7.50% 9/15/25 41,997 43,038
GNMA I 366144X 8.00% 7/15/25 344,057 349,052
GNMA I 372172X 9.00% 11/15/24 24,062 24,743
GNMA I 387064X 8.00% 7/15/25 603,346 612,105
GNMA I 390328X 8.50% 2/15/25 210,813 214,470
GNMA I 390625X 9.00% 6/15/24 43,700 44,939
GNMA I 390628X 9.00% 7/15/24 47,152 48,488
GNMA I 391605X 8.00% 5/15/24 582,901 605,067
GNMA I 393816X 7.50% 7/15/25 30,642 31,402
GNMA I 394224X 8.00% 4/15/25 20,582 21,342
GNMA I 394783X 8.00% 7/15/25 17,143 17,392
GNMA I 400883X 8.00% 7/15/25 1,080,246 1,095,928
GNMA I 402013X 9.00% 12/15/24 82,689 85,032
GNMA I 402149X 8.00% 7/15/25 239,217 242,693
GNMA I 407187X 8.00% 4/15/25 699,884 725,633
GNMA I 408788X 7.00% 8/15/25 1,094,533 1,124,125
GNMA I 409485X 8.00% 7/15/25 188,651 191,390
GNMA I 409511X 7.50% 9/15/25 43,404 44,480
GNMA I 409912X 8.00% 7/15/25 743,857 754,656
GNMA I 409924X 7.00% 8/15/25 1,069,450 1,098,363
GNMA I 412044X 8.00% 7/15/25 72,448 73,500
GNMA I 412478X 7.50% 8/15/25 367,118 385,336
GNMA I 413401X 8.00% 7/15/25 172,232 174,732
GNMA I 418828X 7.50% 10/15/25 705,904 723,404
GNMA I 418836X 7.50% 10/15/25 744,740 763,203
GNMA I 419341X 7.50% 12/15/25 278,045 291,842
GNMA I 421168X 7.50% 2/15/26 317,870 335,501
GNMA I 312859X 8.50% 1/15/22 234,255 239,300
GNMA I 318023X 8.50% 5/15/22 312,772 319,508
GNMA I 320837X 8.50% 4/15/22 314,326 321,095
GNMA I 323079X 8.50% 5/15/22 308,516 315,160
GNMA I 339175X 8.50% 1/15/23 31,433 32,120
GNMA I 340414X 8.50% 12/15/22 305,414 311,991
GNMA I 341924X 8.50% 5/15/23 45,702 46,686
GNMA I 342527X 7.50% 2/15/23 31,993 32,855
GNMA I 342841X 8.50% 12/15/22 408,629 417,430
GNMA I 342846X 9.00% 1/15/23 199,143 205,121
GNMA I 780029X 9.00% 11/15/24 544,919 560,360
GNMA I 372358X 7.50% 6/15/26 222,436 234,774
GNMA I 423558X 7.50% 5/15/26 304,866 321,776
GNMA I 423781X 7.50% 5/15/26 253,935 268,020
GNMA I 400102X 7.00% 2/15/26 441,284 471,497
GNMA I 417290X 7.00% 3/15/26 83,117 88,808
GNMA I 421473X 7.00% 6/15/26 455,132 486,293
GNMA I 422305X 7.00% 2/15/26 85,857 91,735
GNMA I 437983X 7.50% 11/15/26 544,342 555,465
GNMA I 429541X 7.50% 10/15/26 218,851 223,323
GNMA I 429164X 7.50% 8/15/26 734,096 749,095
GNMA I NEW 347713X 6.50% 1/15/24 220,598 227,808
GNMA I NEW 355015X 6.50% 1/15/24 76,076 78,562
GNMA I NEW 364488X 6.50% 1/15/24 344,669 355,934
GNMA I NEW 366710X 6.50% 2/15/24 995,047 1,027,569
GNMA I NEW 375870X 6.50% 3/15/24 86,221 89,039
GNMA I NEW 376894X 6.50% 3/15/24 1,135,671 1,172,789
GNMA I NEW 387187X 6.50% 2/15/24 423,497 437,339
US TREASURY NOTES 7.50% 11/15/01 1,968,281 2,032,805
US TREASURY NOTES 6.38% 8/15/02 2,647,813 2,710,371
US TREASURY NOTES 7.25% 5/15/04 1,793,469 1,850,676
US TREASURY NOTES 6.13% 9/30/00 9,969,161 10,261,191
------------ ------------
Subtotal government obligations: $56,113,296 $57,640,391
Total Commonwealth Life Insurance Company and Transamerica Life ------------ ------------
Insurance and Annuity Company SIC Assets (1) $84,128,686 $87,170,664
------------ ------------
Grand total SIC Assets $145,725,781 $149,791,203
------------
Issuing agent's gain on guarantee of SICs (wrapper) ($993,105)
------------
Contract value of SICs $148,798,098
------------
TOTAL ENTERGY STABLE INCOME FUND GICs & SICs $202,580,336 $205,652,653
============ ============
Loans to participants (Bearing interest rates of prime +1% with terms N/A $24,650,113
of up to 20 years) ============ ============
Total Assets Held for Investment Purposes $879,481,724 $1,046,521,026
============ ==============
(1) Commonwealth Life Insurance Company and Transamerica Life Insurance
and Annuity Company jointly issued SIC wrappers over 50% of the Entergy
Lehman Aggregate Managed SIC.
* Denotes a party-in-interest to the Entergy Savings Plan
SAVINGS PLAN OF ENTERGY CORPORATION AND SUDSIDIARIES
ITEM 27 (d) - SCHEDULE OF REPORTABLE TRANSACTIONS
For the Year Ended December 31, 1997
E.I.N. 72-1229752 (Plan No. 003)
Selling or
Number of Purchase Redemption
Description Transactions Price Price Cost Gain/(Loss)
Purchase Transactions:
Entergy Corporation Common Stock * 131 $249,359,623
Entergy Stable Income Fund * 72 $274,135,221
Equity Index Trust Fund * 168 $53,525,678
New Horizons Fund * 121 $56,917,681
Balanced Fund * 129 $37,704,781
Equity Income Fund * 134 $114,981,758
Blue Chip Growth Fund * 160 $76,353,968
Selling Transactions:
Entergy Corporation Common Stock * 331 $36,752,715 $30,900,843 $5,851,872
Entergy Stable Income Fund * 161 $56,812,653 $55,440,946 $1,371,707
Equity Index Trust Fund * 64 $5,432,882 $5,074,516 $358,366
New Horizons Fund * 110 $8,448,520 $8,318,263 $130,257
Balanced Fund * 103 $4,749,277 $4,515,840 $233,437
Equity Income Fund * 97 $9,471,791 $8,786,833 $684,959
Blue Chip Growth Fund * 72 $5,120,011 $4,622,002 $498,009
* Denotes a party-in-interest to the Entergy Savings Plan
SIGNATURE
The Entergy Savings Plan. Pursuant to the requirements of the
Securities and Exchange Act of 1934, the Employee Benefits Committee
has duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
SAVINGS PLAN OF ENTERGY
CORPORATION AND SUBSIDIARIES
By: /s/ Richard N. Ferguson
Richard N. Ferguson
Director of Human
Resource Operations
Dated: June 29, 1998
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the registration
statement of Entergy Corporation on Form S-8 (File No. 33-54298) of our
report dated June 26, 1998, on our audits of the financial statements
and supplemental schedules of the Savings Plan of Entergy Corporation
and Subsidiaries as of December 31, 1997 and 1996 and for the year
ended December 31, 1997, which report is included in this Annual Report
on Form 11-K.
COOPERS & LYBRAND L.L.P.
New Orleans, Louisiana
June 26, 1998