ETR Entergy Corp

Consolidated Earnings (GAAP and Non-GAAP Measures)

Third Quarter and Year-to-Date 2020 vs. 2019 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments)

Year-to-Date

2020

2019

2020

2019

Change

(After-tax, $ in millions)

As-reported earnings

365

156

1,000

856

144

Less adjustments

30

(141)

171

4

(70)

74

Adjusted earnings (non-GAAP)

491

506

(15)

996

927

70

  Estimated weather in billed sales

1

13

(12)

(53)

1

(54)

(After-tax, per share in $)

As-reported earnings

2.59

1.82

0.77

4.98

4.38

0.60

Less adjustments

0.15

(0.70)

0.85

0.02

(0.36)

0.38

Adjusted earnings (non-GAAP)

2.44

2.52

(0.08)

4.96

4.74

0.22

  Estimated weather in billed sales

0.01

0.06

(0.05)

(0.26)

0.01

(0.27)

Calculations may differ due to rounding

Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures

Third Quarter and Year-to-Date 2020 vs. 2019 (See Appendix A-3 and Appendix A-4 for details on adjustments)

Third Quarter

Year-to-Date

2020

2019

Change

2020

2019

Change

(After-tax, $ in millions)

As-reported earnings (loss)

Utility

552

578

(27)

1,216

1,140

76

Parent & Other

(61)

(72)

11

(220)

(213)

(6)

EWC

30

(141)

171

4

(70)

74

Consolidated

521

365

156

1,000

856

144

Less adjustments

Utility

-

-

-

-

-

-

Parent & Other

-

-

-

-

-

-

EWC

30

(141)

171

4

(70)

74

Consolidated

30

(141)

171

4

(70)

74

Adjusted earnings (loss) (non-GAAP)

Utility

552

578

(27)

1,216

1,140

76

Parent & Other

(61)

(72)

11

(220)

(213)

(6)

EWC

-

-

-

-

-

-

Consolidated

491

506

(15)

996

927

70

Estimated weather in billed sales

1

13

(12)

(53)

1

(54)

Diluted average number of common shares outstanding (in millions)

201

200

201

196

(After-tax, per share in $) (a)

As-reported earnings (loss)

Utility

2.74

2.88

(0.14)

6.05

5.83

0.22

Parent & Other

(0.30)

(0.36)

0.06

(1.09)

(1.09)

(0.00)

EWC

0.15

(0.70)

0.85

0.02

(0.36)

0.38

Consolidated

2.59

1.82

0.77

4.98

4.38

0.60

Less adjustments

Utility

-

-

-

-

-

-

Parent & Other

-

-

-

-

-

-

EWC

0.15

(0.70)

0.85

0.02

(0.36)

0.38

Consolidated

0.15

(0.70)

0.85

0.02

(0.36)

0.38

Adjusted earnings (loss) (non-GAAP)

Utility

2.74

2.88

(0.14)

6.05

5.83

0.22

Parent & Other

(0.30)

(0.36)

0.06

(1.09)

(1.09)

(0.00)

EWC

-

-

-

-

-

-

Consolidated

2.44

2.52

(0.08)

4.96

4.74

0.22

Estimated weather in billed sales

0.01

0.06

(0.05)

(0.26)

0.01

(0.27)

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

Third Quarter and Year-to-Date 2020 vs. 2019

($ in millions)

Third Quarter

Year-to-Date

2020

2019

Change

2020

2019

Change

Utility

976

1,143

(168)

2,371

2,297

73

Parent & Other

(67)

(93)

26

(211)

(216)

5

EWC

13

15

(3)

211

37

174

Consolidated

922

1,065

(143)

2,370

2,118

252

Calculations may differ due to rounding

Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS) 

Third Quarter and Year-to-Date 2020 vs. 2019

Third Quarter

Year-to-Date

2020

2019

Change

2020

2019

Change

(Pre-tax except for income taxes, preferred dividend

requirements, and totals; $ in millions)

EWC

Income before income taxes

43

(171)

214

12

(43)

55

Income taxes

(12)

31

(43)

(6)

(26)

20

Preferred dividend requirements

(1)

(1)

-

(2)

(2)

-

Total EWC

30

(141)

171

4

(70)

74

Total adjustments

30

(141)

171

4

(70)

74

(After-tax, per share in $) (b)

EWC

Total EWC

0.15

(0.70)

0.85

0.02

(0.36)

0.38

Total adjustments

0.15

(0.70)

0.85

0.02

(0.36)

0.38

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) 

Third Quarter and Year-to-Date 2020 vs. 2019

(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)

Third Quarter

Year-to-Date

2020

2019

Change

2020

2019

Change

EWC

Operating revenues

214

300

(86)

747

1,024

(277)

Fuel and fuel-related expenses

(14)

(26)

11

(51)

(76)

25

Purchased power

(29)

(18)

(11)

(49)

(49)

(1)

Nuclear refueling outage expense

(11)

(12)

2

(35)

(36)

2

Other O&M

(114)

(136)

23

(385)

(513)

128

Asset write-off and impairments

(4)

(198)

194

(16)

(289)

272

Decommissioning expense

(51)

(60)

9

(152)

(187)

35

Taxes other than income taxes

(10)

(13)

3

(44)

(46)

1

Depreciation/amortization exp.

(21)

(38)

17

(81)

(114)

33

Other income (deductions)–other

87

34

53

97

266

(170)

Interest exp. and other charges

(5)

(6)

1

(17)

(24)

7

Income taxes

(12)

31

(43)

(6)

(26)

20

Preferred dividend requirements

(1)

(1)

-

(2)

(2)

-

Total EWC

30

(141)

171

4

(70)

74

Total adjustments

30

(141)

171

4

(70)

74

Calculations may differ due to rounding

Appendix B-1: As-Reported and Adjusted Earnings Variance Analysis (c), (d)

Third Quarter 2020 vs. 2019

(After-tax, per share in $)

Utility

Parent & Other

EWC

Consolidated

As-Reported

Adjusted

As-Reported

Adjusted

As-

Reported

As-

Reported

Adjusted

2019 earnings (loss)

2.88

2.88

(0.36)

(0.36)

(0.70)

1.82

2.52

Operating revenue less:

  Fuel, fuel-related expenses and

  gas purchased for resale,

  Purchased power, and

  Regulatory charges (credits)

0.12

0.12

(e)

-

-

(0.34)

(f)

(0.22)

0.12

Nuclear refueling outage expense

0.02

0.02

-

-

0.01

0.03

0.02

Other O&M

0.09

0.09

(g)

0.02

0.02

0.09

(h)

0.20

0.11

Asset write-offs and impairments

-

-

-

-

0.76

(i)

0.76

-

Decommissioning expense

(0.01)

(0.01)

-

-

0.04

0.03

(0.01)

Taxes other than income taxes

(0.03)

(0.03)

-

-

0.01

(0.02)

(0.03)

Depreciation/amortization exp.

(0.15)

(0.15)

(j)

-

-

0.07

(k)

(0.08)

(0.15)

Other income (deductions)–other

(0.12)

(0.12)

(l)

0.03

0.03

0.20

(m)

0.11

(0.09)

Interest exp. and other charges

(0.05)

(0.05)

(n)

0.02

0.02

-

(0.03)

(0.03)

Income taxes–other

-

-

(0.01)

(0.01)

0.01

-

(0.01)

Preferred dividend requirements

-

-

-

-

-

-

-

Share effect

(0.01)

(0.01)

-

-

-

(0.01)

(0.01)

2020 earnings (loss)

2.74

2.74

(0.30)

(0.30)

0.15

2.59

2.44

Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d)

Year-to-Date 2020 vs. 2019

(After-tax, per share in $)

Utility

Parent & Other

EWC

Consolidated

As-Reported

Adjusted

As-Reported

Adjusted

As-

Reported

As-

Reported

Adjusted

2019 earnings (loss)

5.83

5.83

(1.09)

(1.09)

(0.36)

4.38

4.74

Operating revenue less:

  Fuel, fuel-related expenses and

  gas purchased for resale,

  Purchased power, and

  Regulatory charges (credits)

0.53

0.53

(e)

-

-

(1.02)

(f)

(0.49)

0.53

Nuclear refueling outage expense

0.04

0.04

-

-

0.01

0.05

0.04

Other O&M

0.40

0.40

(g)

0.02

0.02

0.52

(h)

0.94

0.42

Asset write-offs and impairments

-

-

-

-

1.10

(i)

1.10

-

Decommissioning expense

(0.04)

(0.04)

-

-

0.14

(o)

0.10

(0.04)

Taxes other than income taxes

(0.06)

(0.06)

(p)

-

-

-

(0.06)

(0.06)

Depreciation/amortization exp.

(0.52)

(0.52)

(j)

-

-

0.13

(k)

(0.39)

(0.52)

Other income (deductions)–other

(0.16)

(0.16)

(l)

0.06

0.06

(q)

(0.69)

(m)

(0.79)

(0.10)

Interest exp. and other charges

(0.18)

(0.18)

(n)

0.02

0.02

0.03

(0.13)

(0.16)

Income taxes–other

0.38

0.38

(r)

(0.13)

(0.13)

(s)

0.16

(t)

0.41

0.25

Preferred dividend requirements

(0.01)

(0.01)

-

-

-

(0.01)

(0.01)

Share effect

(0.16)

(0.16)

(u)

0.03

0.03

-

(0.13)

(0.13)

2020 earnings (loss)

6.05

6.05

(1.09)

(1.09)

0.02

4.98

4.96

Calculations may differ due to rounding

(c) 

Utility operating revenue / regulatory charges, Utility other O&M, and Utility income taxes-other exclude $16 million, $- million, and $16 million respectively in third quarter 2020 and $93 million, $3 million, and $96 million respectively in third quarter 2019 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). On a year-to-date basis, Utility operating revenue / regulatory charges, Utility other O&M, and Utility income taxes-other exclude $61 million, $- million, and $61 million respectively in 2020 and $216 million, $3 million, and $219 million respectively in 2019 (net effect is neutral to earnings).

(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 third quarter and year-to-date earnings increases were primarily driven by E-AR's FRP; E-LA's FRP, including recovery of the LCPS; E-MS's FRP, vegetation rider, and recovery of Choctaw; and E-TX's TCRF. Partially offsetting was volume/weather, including the effects of COVID-19 and Hurricane Laura as well as E-NO's rate case. The year-to date variance also reflected recovery of the J. Wayne Leonard Power Station, a first quarter 2019 regulatory reserve at E-AR, and a regulatory liability for tax sharing with E-LA customers (this partially offsets the Hurricane Isaac Act 55 income tax item discussed in footnote r).

(f) 

The third quarter and year-to-date earnings decreases were due largely to lower revenues from the shutdown of Indian Point 2 in April 2020. The year-to-date variance also reflected lower revenues from the shutdown of Pilgrim in May 2019 and lower capacity and energy prices, partially offset by higher energy volume in the remaining EWC nuclear fleet.

(g) 

The third quarter and year-to-date earnings increases from lower Utility other O&M were due primarily to a decrease in loss provisions, lower contract costs related to new customer initiatives, and lower non-nuclear generation expenses related to long-term service agreements and the timing and scope of outages, including a delay in planned outages as a result of COVID-19. These were partially offset by higher compensation and benefits costs, primarily pension. The year-to-date variance also reflected lower nuclear generation expenses, higher nuclear insurance refunds, and higher E-MS storm damage provisions (offset in operating revenue).

(h) 

The third quarter and year-to-date earnings increases from lower EWC other O&M were due largely to the shutdown of Indian Point 2 in April 2020. The year-to-date variance also reflected the shutdown of Pilgrim in May 2019, as well as a decrease in severance and retention expense.

(i)

The third quarter and year-to-date earnings increases from lower EWC asset write-offs and impairments were due primarily to a $191 million loss (pre-tax) on the sale of Pilgrim in third quarter 2019. The year-to-date variance also reflected higher impairment charges in first quarter 2019, largely refueling outage costs at Indian Point.

(j) 

The third quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including the LCPS and Choctaw. The year-to-date variance also reflected the J. Wayne Leonard Power Station being placed in service in second quarter 2019, as well as higher depreciation rates at E-MS.

(k) 

The third quarter and year-to-date earnings increases from lower EWC depreciation expense were due primarily to the shutdown of Indian Point 2 in April 2020. The year-to-date variance also reflected the shutdown of Pilgrim in May 2019.

(l) 

The third quarter and year-to-date earnings decreases from lower Utility other income (deductions)–other were due largely to changes in decommissioning trust fund activity (based on regulatory treatment, decommissioning-related variances are largely earnings neutral). Lower AFUDC as a result of higher construction work in progress in 2019 also contributed.

(m) 

The third quarter earnings increase from higher EWC other income (deductions)–other was due largely to higher gains on decommissioning trust fund investments in 2020 as compared to 2019, as well as a $16 million pension settlement charge in third quarter 2019 related to the exit of the EWC business. The year-to-date earnings decrease was due largely to performance of nuclear decommissioning trust fund investments in 2020 as compared to 2019.

(n) 

 The third quarter and year-to-date earnings decreases from higher Utility interest expense were due primarily to higher debt balances at E-LA, E-TX, and E-MS. The year-to-date variance also reflected a higher debt balance at E-AR.

(o) 

The year-to-date earnings increase from lower EWC decommissioning expense was due to the sale of Pilgrim in 2019.

(p) 

The year-to-date earnings decrease from higher Utility taxes other than income taxes was due primarily to an increase in ad valorem taxes at E-LA.

(q) 

The year-to-date earnings increase from Parent & Other other income (deductions)–other was due primarily to intercompany interest.

(r)

The year-to-date earnings increase from Utility effective income tax rate reflected two first quarter 2020 items. A $55 million tax benefit was recorded as a result of an IRS settlement related to Act 55 financing of Hurricane Isaac costs (partly offset by customer sharing, recorded as a regulatory charge discussed in footnote e). In addition, an annual tax deduction related to stock-based compensation resulted in an income tax benefit of $22 million, $20 million greater than first quarter 2019.

(s) 

The year-to-date earnings decrease from Parent & Other effective income tax rate was due to an increase in income tax expense of $23 million as a result of the IRS settlement related to the Hurricane Isaac Act 55 financing (discussed in footnote r).

(t) 

The year-to-date earnings increase from EWC effective income tax rate is primarily due to a first quarter 2019 accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019.

(u) 

The earnings per share impacts from share effect were due to settlement of the equity forward (8.4 million shares settled in May 2019).

Appendix C-1: Utility Operating and Financial Measures

Third Quarter and Year-to-Date 2020 vs. 2019

Third Quarter

Year-to-Date

2020

2019

%
Change

% Weather Adjusted (v)

2020

2019

%
Change

% Weather Adjusted (v)

GWh billed

Residential

11,634

11,627

0.1

1.6

27,519

27,749

(0.8)

2.5

Commercial

7,791

8,499

(8.3)

(7.5)

20,106

21,764

(7.6)

(7.1)

Governmental

660

705

(6.4)

(6.2)

1,826

1,932

(5.5)

(5.8)

Industrial

11,994

12,861

(6.7)

(6.7)

35,655

36,509

(2.3)

(2.3)

Total retail sales

32,079

33,692

(4.8)

(4.1)

85,106

87,954

(3.2)

(2.1)

Wholesale

4,881

3,025

61.4

11,109

10,009

11.0

Total sales

36,960

36,717

0.7

96,215

97,963

(1.8)

Number of electric retail customers

Residential

2,530,150

2,500,653

1.2

Commercial

361,401

359,591

0.5

Governmental

17,653

17,860

(1.2)

Industrial

48,651

49,051

(0.8)

Total retail customers

2,957,855

2,927,155

1.0

Other O&M and refueling outage expense per MWh

$18.02

$19.02

(5.3)

$19.66

$20.53

(4.2)

Appendix C-2: Utility Operating Measures

Twelve Months Ended September 30, 2020 vs. 2019

Twelve Months Ended September 30

2020

2019

%
Change

% Weather Adjusted (v)

GWh billed

Residential

35,863

35,999

(0.4)

1.7

Commercial

27,098

28,789

(5.9)

(5.9)

Governmental

2,472

2,579

(4.1)

(4.4)

Industrial

47,629

48,390

(1.6)

(1.6)

Total retail sales

113,062

115,757

(2.3)

(1.7)

Calculations may differ due to rounding

(v) 

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

Third Quarter and Year-to-Date 2020 vs. 2019

($ in millions)

Third Quarter

Year-to-Date

2020

2019

Change

2020

2019

Change

Net income (loss)

31

(141)

171

6

(69)

74

Add back: interest expense

5

6

(1)

17

24

(7)

Add back: income taxes

12

(31)

43

6

26

(20)

Add back: depreciation and amortization

21

38

(17)

81

114

(33)

Subtract: interest and investment income

95

59

37

130

316

(185)

Add back: decommissioning expense

51

60

(9)

152

187

(35)

Adjusted EBITDA (non-GAAP)

24

(127)

151

132

(34)

166

Calculations may differ due to rounding

Appendix D-2: EWC Operating and Financial Measures

Third Quarter and Year-to-Date 2020 vs. 2019

Third Quarter

Year-to-Date

2020

2019

% Change

2020

2019

% Change

Owned capacity (MW) (w)

3,274

(31.4)

2,246

3,274

(31.4)

GWh billed

4,332

6,847

(36.7)

16,047

21,308

(24.7)

EWC Nuclear Fleet

Capacity factor

83%

98%

(15.3)

94%

91%

(3.3)

GWh billed

3,943

6,210

(36.5)

14,782

19,602

(24.6)

Production cost per MWh

$21.85

$16.27

34.3

$18.24

$18.48

(1.3)

Average energy/capacity revenue per MWh

$49.71

$42.15

17.9

$45.23

$46.53

(2.8)

Refueling outage days

Indian Point 3

-

-

-

29

Palisades

32

-

32

-

Calculations may differ due to rounding

(w)

2020 excludes IP2 (1,028MW), shut down April 30, 2020.

Appendix E: GAAP and Non-GAAP Financial Measures

Third Quarter 2020 vs. 2019 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures)

For 12 months ending September 30

2020

2019

Change

GAAP Measures

As-reported ROIC

6.3%

4.8%

1.5%

As-reported ROE

13.3%

8.6%

4.8%

Non-GAAP Financial Measures

Adjusted ROIC

5.4%

5.6%

(0.1)%

Adjusted ROE

10.9%

11.4%

(0.5)%

As of September 30 ($ in millions, except where noted)

2020

2019

Change

GAAP Measures

Cash and cash equivalents

1,240

956

284

Available revolver capacity 

4,125

4,115

10

Commercial paper

1,398

1,918

(520)

Total debt

22,127

19,441

2,686

Securitization debt

209

338

(129)

Debt to capital

66.7%

65.4%

1.4%

Off-balance sheet liabilities:

  Debt of joint ventures – Entergy's share

49

56

(7)

Total off-balance sheet liabilities

49

56

(7)

Storm escrows

373

410

(37)

Non-GAAP Financial Measures ($ in millions, except where noted)

Debt to capital, excluding securitization debt

66.5%

65.0%

1.5%

Net debt to net capital, excluding securitization debt

65.2%

63.8%

1.4%

Gross liquidity

5,364

5,071

293

Net liquidity

3,966

3,153

813

Net liquidity, including storm escrows

4,339

3,563

776

Parent debt to total debt, excluding securitization debt

22.4%

20.5%

1.9%

FFO to debt, excluding securitization debt

11.8%

14.2%

(2.3)%

FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC

12.5%

17.6%

(5.1)%

Calculations may differ due to rounding

Appendix F-1: Definitions 

Utility Financial and Operating Measures

GWh billed

Total number of GWh billed to retail and wholesale customers

Number of electric retail customers

Average number of electric customers over the period

Other O&M and refueling outage expense per MWh

Other operation and maintenance expense plus nuclear refueling outage expense per MWh of billed sales

EWC Financial and Operating Measures

Adjusted EBITDA (non-GAAP)

Earnings before interest, income taxes, and depreciation and amortization, and excluding decommissioning expense

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

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

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

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 (unit contingent)

Percent of planned generation output sold under contracts

Planned net MW in operation (average)

Average installed capacity to generate power and/or sell capacity, reflecting the shutdown of 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, reflecting the shutdown of Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022)

Production cost per MWh

Fuel and other 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

Appendix F-1: Definitions (continued)

EWC Financial and Operating Measures (continued)

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 Corp. divided by avg. 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

Available revolver capacity

Amount of undrawn capacity remaining on corporate and subsidiary revolvers

Securitization debt

Debt on the balance sheet associated with securitization bonds that is secured by certain future customer collections

Total debt

Sum of short-term and long-term debt, notes payable and commercial paper, and finance leases on the balance sheet

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, taxes accrued, interest accrued, and other working capital accounts), and securitization regulatory charges

FFO to debt, excluding securitization debt

12-months rolling FFO as a percentage of end of period total debt excluding securitization debt

FFO to debt, excl. securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC

12-months rolling FFO excluding return of unprotected excess ADIT and severance and retention payments associated with exit of EWC as a percentage of end of period total debt excluding securitization debt

Gross liquidity

Sum of cash and available revolver capacity

Net debt to net capital, excl. securitization debt

Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt

Net liquidity

Sum of cash and available revolver capacity less commercial paper borrowing

Net liquidity, including storm escrows

Sum of cash, available revolver capacity, and escrow accounts available for certain storm expenses, less commercial paper borrowing

Parent debt to total debt, excl. securitization debt

Entergy Corp. debt, incl. amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excl. securitization debt

Appendix F-2: Abbreviations and Acronyms

ADIT

AFUDC –
borrowed funds

ALJ

AMI

ANO

APSC

ARO

bps

CCGT

CCN

CCNO

Choctaw

COD

CT

CWIP

DCRF

DOE

E-AR

E-LA

E-MS

E-NO

E-TX

EBITDA

ENP

EPS

ETR

EWC

FERC

FFO

FIN 48

FRP

GAAP

GCRR

Grand Gulf or GGNS

IIRR-G

Indian Point 1

Indian Point 2
or IP2

Indian Point 3
or IP3

IPEC

Accumulated deferred income taxes

Allowance for borrowed funds used during
construction     

Administrative law judge

Advanced metering infrastructure

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

Arkansas Public Service Commission

Asset retirement obligation

Basis points

Combined cycle gas turbine

Certificate of convenience and necessity

Council of the City of New Orleans

Choctaw County Generating Station (CCGT)

Commercial operation date

Simple cycle combustion turbine

Construction work in progress

Distribution cost recovery factor

U.S. Department of Energy

Entergy Arkansas, LLC

Entergy Louisiana, LLC

Entergy Mississippi, LLC

Entergy New Orleans, LLC

Entergy Texas, Inc.

Earnings before interest, income taxes, and depreciation and amortization

Entergy Nuclear Palisades, LLC

Earnings per share

Entergy Corporation

Entergy Wholesale Commodities

Federal Energy Regulatory Commission

Funds from operations

FASB Interpretation No.48, "Accounting for Uncertainty in Income Taxes"

Formula rate plan

U.S. generally accepted accounting principles

Generation Cost Recovery Rider

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

Infrastructure investment recovery rider - gas

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

Indian Point Energy Center Unit 2 (nuclear)  
(shut down 4/30/20)

Indian Point Energy Center Unit 3 (nuclear)

Indian Point Energy Center (nuclear)

ISES 2

IRS

ISO

LCPS

LPSC

LTM

MCPS

MISO

Moody's

MPSC

MTEP

Nelson 6

NDT

NOPS

NRC

NY PSC

NYISO

NYSE

OCF

OpCo

OPEB

Other O&M

P&O

Palisades

Pilgrim

PMR

PPA

PSC

PUCT

RICE

RFP

ROE

ROIC

RS Cogen

RSP

S&P

SEC

SERI

TCRF

UPSA

Vermont
Yankee

WACC

WPEC

Unit 2 of Independence Steam Electric Station (coal)

Internal Revenue Service

Independent system operator

Lake Charles Power Station (CCGT)

Louisiana Public Service Commission

Last twelve months

Montgomery County Power Station (CCGT)

Midcontinent Independent System Operator, Inc.

Moody's Investor Service

Mississippi Public Service Commission

MISO Transmission Expansion Plan

Unit 6 of Roy S. Nelson plant (coal)

Nuclear decommissioning trust

New Orleans Power Station

U.S. Nuclear Regulatory Commission

New York Public Service Commission

New York Independent System Operator, Inc.

New York Stock Exchange

Net cash flow provided by operating activities

Utility operating company

Other post-employment benefits

Other non-fuel operation and maintenance expense

Parent & Other

Palisades Power Plant (nuclear)

Pilgrim Nuclear Power Station (nuclear, sold
August 26, 2019)

Performance Management Rider

Power purchase agreement or purchased power
agreement

Public service commission

Public Utility Commission of Texas

Reciprocating internal combustion engine

Request for proposals

Return on equity

Return on invested capital

RS Cogen facility (CCGT cogeneration)

Rate Stabilization Plan (E-LA Gas)

Standard & Poor's

U.S. Securities and Exchange Commission

System Energy Resources, Inc.

Transmission cost recovery factor

Unit Power Sales Agreement

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

Weighted-average cost of capital

Washington Parish Energy Center

Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE

(LTM $ in millions except where noted)

Third Quarter

2020

2019

As-reported net income (loss) attributable to Entergy Corporation

(A)

1,385

790

Preferred dividends

18

16

Tax-effected interest expense

582

548

As-reported net income (loss) attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense

(B)

1,985

1,354

Adjustments

(C)

252

(264)

EWC preferred dividends and tax-effected interest expense included in adjustments

20

27

Total adjustments, excluding EWC preferred dividends and tax-effected interest expense (non-GAAP)

(D)

272

(237)

Adjusted earnings (non-GAAP)

(A-C)

1,134

1,054

Adjusted earnings, excluding preferred dividends and tax- effected interest expense (non-GAAP)

(B-D)

1,713

1,591

Average invested capital (average of beginning and ending balances)

(E)

31,442

28,413

Average common equity (average of beginning and ending balances)

(F)

10,403

9,224

As-reported ROIC

(B/E)

6.3%

4.8%

Adjusted ROIC (non-GAAP)

[(B-D)/E]

5.4%

5.6%

As-reported ROE

(A/F)

13.3%

8.6%

Adjusted ROE (non-GAAP)

[(A-C)/F]

10.9%

11.4%

Calculations may differ due to rounding

Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt ratios excluding securitization debt; gross liquidity; net liquidity; net liquidity, including storm escrows

($ in millions except where noted)

Third Quarter

2020

2019

Total debt

(A)

22,127

19,441

Less securitization debt

(B)

209

338

Total debt, excluding securitization debt

(C)

21,918

19,103

Less cash and cash equivalents

(D)

1,240

956

Net debt, excluding securitization debt

(E)

20,678

18,147

Commercial paper

(F)

1,398

1,918

Total capitalization

(G)

33,153

29,730

Less securitization debt

(B)

209

338

Total capitalization, excluding securitization debt

(H)

32,944

29,392

Less cash and cash equivalents

(D)

1,240

956

Net capital, excluding securitization debt

(I)

31,704

28,436

Debt to capital

(A/G)

66.7%

65.4%

Debt to capital, excluding securitization debt (non-GAAP)

(C/H)

66.5%

65.0%

Net debt to net capital, excluding securitization debt (non-GAAP)

(E/I)

65.2%

63.8%

Available revolver capacity

(J)

4,125

4,115

Storm escrows

(K)

373

410

Gross liquidity (non-GAAP)

(D+J)

5,364

5,071

Net liquidity (non-GAAP)

(D+J-F)

3,966

3,153

Net liquidity, including storm escrows (non-GAAP)

(D+J-F+K)

4,339

3,563

Entergy Corporation notes:

Due September 2020

-

450

Due July 2022

650

650

Due September 2025

800

-

Due September 2026

750

750

Due June 2030

600

-

Due June 2050

600

-

Total Entergy Corporation notes

(L)

3,400

1,850

Revolver draw

(M)

150

155

Unamortized debt issuance costs and discounts

(N)

(40)

(9)

Total parent debt

(F+L+M+N)

4,909

3,914

Parent debt to total debt, excluding securitization debt (non-GAAP)

[(F+L+M+N)/C]

22.4%

20.5%

Calculations may differ due to rounding

Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – 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)

Third Quarter

2020

2019

Total debt

(A)

22,127

19,441

Less securitization debt

(B)

209

338

Total debt, excluding securitization debt

(C)

21,918

19,103

Net cash flow provided by operating activities, LTM

(D)

3,069

2,644

AFUDC – borrowed funds, LTM

(E)

(55)

(67)

Working capital items in net cash flow provided by operating activities, LTM:

Receivables

(71)

21

Fuel inventory

(14)

(18)

Accounts payable

277

(158)

Taxes accrued

188

(7)

Interest accrued

14

12

Other working capital accounts

(98)

(97)

Securitization regulatory charges, LTM

125

120

Total

(F)

421

(127)

FFO, LTM (non-GAAP)

(G)=(D+E-F)

2,594

2,704

FFO to debt, excluding securitization debt (non-GAAP)

(G/C)

11.8%

14.2%

Estimated return of unprotected excess ADIT, LTM

(H)

119

469

Severance and retention payments associated with exit of EWC, LTM pre-tax

(I)

17

183

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)]

12.5%

17.6%

Calculations may differ due to rounding