Entergy Reports Second Quarter Earnings

Second Quarter

Year-to-Date

2018

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

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)

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

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.

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

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)

(0)

(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

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

(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.

(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.

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

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.

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: 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.

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%

(3.0%)

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%

(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.

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: Abbreviations and Acronyms 

ADIT

Accumulated deferred income taxes

ISO

Independent system operator

AFUDC – borrowed funds

Allowance for borrowed funds used during construction

LPSC

Louisiana Public Service Commission

AFUDC – equity funds

Allowance for equity funds used during construction

LTM

Last twelve months

AMI

Advanced metering infrastructure

LTSA

Long-term service agreement

ANO

Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear)

MISO

Midcontinent Independent System Operator, Inc.

APSC

Arkansas Public Service Commission

Moody's

Moody's Investor Service

ARO

Asset retirement obligation

MPSC

Mississippi Public Service Commission

bps

Basis points

MTEP

MISO Transmission Expansion Planning

CCGT

Combined cycle gas turbine

Nelson 6

Unit 6 of Roy S. Nelson plant (coal)

CCN

Certificate of convenience & necessity 

NEPOOL

New England Power Pool

CCNO

Council of the City of New Orleans, Louisiana

Ninemile 6

Ninemile Point Unit 6 (CCGT)

COD

Commercial operation date

Non-fuel O&M

Non-fuel operation and maintenance expense

CT

Simple cycle combustion turbine

NDT

Nuclear decommissioning trust

CWIP

Construction work in progress

NRC

Nuclear Regulatory Commission

DCRF

Distribution cost recovery factor

NYISO

New York Independent System Operator, Inc.

E-AR

Entergy Arkansas, LLC

NYPA

New York Power Authority

E-LA

Entergy Louisiana, LLC

NYSE

New York Stock Exchange

E-MS

Entergy Mississippi, LLC

O&M

Operation and maintenance expense

E-NO

Entergy New Orleans, LLC

OCF

Net cash flow provided by operating activities

E-TX

Entergy Texas, Inc.

OpCo

Operating Company

EBITDA

Earnings before interest, income taxes, depreciation and amortization

OPEB

Other post-employment benefits

ENGC

Entergy Nuclear Generation Company

P&O

Parent & Other

ENP

Entergy Nuclear Palisades, LLC

Palisades

Palisades Power Plant (nuclear)

EPS

Earnings per share

Pilgrim

Pilgrim Nuclear Power Station (nuclear)

ETR

Entergy Corporation

PPA

Power purchase agreement or purchased power agreement

EWC

Entergy Wholesale Commodities

PUCT

Public Utility Commission of Texas

FERC

Federal Energy Regulatory Commission

RICE

Reciprocating Internal Combustion Engine

FFO

Funds from operations

RFP

Request for proposals

FRP

Formula rate plan

ROE

Return on equity

GAAP

U.S. generally accepted accounting principles

ROIC

Return on invested capital

Grand Gulf or GGNS

Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI

RS Cogen

RS Cogen facility (CCGT cogeneration)

Indian Point 1

Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974)

RSP

Rate Stabilization Plan (E-LA Gas)

Indian Point 2 or IP2

Indian Point Energy Center Unit 2 (nuclear)

S&P

Standard & Poor's

Indian Point 3 or IP3

Indian Point Energy Center Unit 3 (nuclear)

SCPS

St. Charles Power Station (CCGT)

IPEC

Indian Point Energy Center (nuclear)

SEC

U.S. Securities and Exchange Commission

ISES 2

Unit 2 of Independence Steam Electric Station (coal)

SERI

System Energy Resources, Inc.

Internal Revenue Service 

TCRF

Transmission cost recovery factor

Union

Union Power Station (CCGT)

UPSA

Unit Power Sales Agreement

Vermont Yankee

Vermont Yankee Nuclear Power Station (nuclear, sold January 11, 2019)

WACC

Weighted-average cost of capital

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