EX-99 2 a01706991.htm

For further information:
Michele Lopiccolo, VP, Investor Relations
Phone 601/339-2816, Fax 601/339-2388
mlopicc@entergy.com

INVESTOR NEWS

Exhibit 99.1

January 31, 2006

ENTERGY REPORTS FOURTH QUARTER EARNINGS

CLINTON, MISS - Entergy Corporation reported fourth quarter 2005 earnings of $0.43 per share on an as-reported basis and $0.59 per share on an operational basis, as shown in Table 1 below. A more detailed discussion of quarterly results begins on page 2 of this release.

Table 1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures

Fourth Quarter and Year-to-Date 2005 vs. 2004

(Per share in U.S. $)

 

Fourth Quarter

Year-to-Date
 

2005

2004

Change

2005

2004

Change

As-Reported Earnings

0.43

0.68

(0.25)

4.19

3.93

0.26

Less Special Items

(0.16)

0.18

(0.34)

(0.21)

0.13

(0.34)

Operational Earnings

0.59

0.50

0.09

4.40

3.80

0.60

Weather Impact

0.05

-

0.05

0.10

(0.11)

0.21

Operational Earnings Highlights for Fourth Quarter 2005

  • Utility, Parent & Other continued to be negatively affected by two hurricanes resulting in lower sales primarily in the industrial sector partially offset by lower operation and maintenance expense.
  • Entergy Nuclear results increased as the result of higher generation due to uprates and fewer planned outages during the current quarter, higher pricing, lower operation and maintenance expense and accretion.
  • Entergy's non-nuclear wholesale assets business had improved results due to the sale of SO2 allowances.

"The post-hurricane rebuilding process continues with marked progress being advanced at various levels," said J. Wayne Leonard, Entergy's chief executive officer. "Entergy continues to conduct its business with the goal of providing a safe environment for our employees, a high level of service to our customers, and top quartile returns to our shareholders."

Other Quarterly Highlights:

  • Entergy completed key elements of its financing plan including the issuance of $0.5 billion of new debt financing, the syndication of a new $1.5 billion corporate revolver and the successful marketing of $0.5 billion of equity units.
  • Filings for recovery of storm costs were made in two jurisdictions with updated information on storm costs supplied in a third jurisdiction.
  • Entergy Nuclear successfully completed the refueling outage at Vermont Yankee in 19 days.
  • New contracts signed at Entergy Nuclear raised the average sold price for its energy by $3-$7 per megawatt hour for the years 2007-2009.

Entergy will host a teleconference to discuss this release at 10:00 a.m. CST on Tuesday, January 31, 2006, with access by telephone, 719-457-2621, confirmation code 3816450. The call and presentation slides can also be accessed via Entergy's web site at www.entergy.com. A replay of the teleconference will be available for the following seven days by dialing 719-457-0820, confirmation code 3816450. The replay will also be available on Entergy's web site at www.entergy.com.

 

I. Consolidated Results

Consolidated Earnings

Table 2 provides a comparative summary of consolidated earnings per share for fourth quarter and year-to-date 2005 versus 2004, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.

Table 2: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
(see appendix G for definitions of certain measures)

Fourth Quarter and Year-to-Date 2005 vs. 2004

(Per share in U.S. $)
 

Fourth Quarter

Year-to-Date
 

2005

2004

Change

2005

2004

Change

As-Reported

Utility, Parent & Other

-

0.36

(0.36)

2.82

2.86

(0.04)

Entergy Nuclear

0.37

0.22

0.15

1.32

1.06

0.26

Energy Commodity Services

  Non-nuclear wholesale assets

0.06

0.25

(0.19)

0.05

0.23

(0.18)

  Entergy-Koch Trading

-

(0.21)

0.21

-

(0.35)

0.35

  Gulf South Pipeline

-

0.06

(0.06)

-

0.13

(0.13)

     Total Energy Commodity Services

0.06

0.10

(0.04)

0.05

0.01

0.04

Consolidated As-Reported Earnings

0.43

0.68

(0.25)

4.19

3.93

0.26

Less Special Items

Utility, Parent & Other

(0.16)

0.07

(0.23)

(0.21)

0.07

(0.28)

Entergy Nuclear

-

-

-

-

-

-

Energy Commodity Services

  Non-nuclear wholesale assets

-

0.26

(0.26)

-

0.28

(0.28)

  Entergy-Koch Trading

-

(0.21)

0.21

-

(0.35)

0.35

  Gulf South Pipeline

-

0.06

(0.06)

-

0.13

(0.13)

     Total Energy Commodity Services

-

0.11

(0.11)

-

0.06

(0.06)

Consolidated Special Items

(0.16)

0.18

(0.34)

(0.21)

0.13

(0.34)

Operational

Utility, Parent & Other

0.16

0.29

(0.13)

3.03

2.79

0.24

Entergy Nuclear

0.37

0.22

0.15

1.32

1.06

0.26

Energy Commodity Services

  Non-nuclear wholesale assets

0.06

(0.01)

0.07

0.05

(0.05)

0.10

  Entergy-Koch Trading

-

-

-

-

-

-

  Gulf South Pipeline

-

-

-

-

-

-

     Total Energy Commodity Services

0.06

(0.01)

0.07

0.05

(0.05)

0.10

Consolidated Operational Earnings

0.59

0.50

0.09

4.40

3.80

0.60

Weather Impact

0.05

-

0.05

0.10

(0.11)

0.21

Detailed earnings variance analysis is included in appendices B-1 and B-2 to this release. In addition, appendix B-3 provides details of special items shown in Table 2 above.

Consolidated Net Cash Flow Provided by Operating Activities

Entergy's net cash flow provided by operating activities in fourth quarter 2005 was $361 million compared to $1.2 billion generated in fourth quarter 2004. The decrease was due primarily to:

  • The absence in the current period of $503 million in dividends paid by Entergy-Koch, LP following the sales of Entergy-Koch Trading and Gulf South Pipeline.
  • Storm spending and lost margins at Utility, Parent & Other due to storms amounting to $309 million.
  • Changes in Utility, Parent & Other working capital of approximately $112 million.

The above reductions in net cash flow provided by operating activities were partially offset by higher revenue and lower refueling outage spending at Entergy Nuclear resulting in additional cash flow of $110 million.

Table 3 provides the components of net cash flow provided by operating activities contributed by each business with quarter-to-quarter and year-to-date comparisons.

Table 3: Consolidated Net Cash Flow Provided by Operating Activities

Fourth Quarter and Year-to-Date 2005 vs. 2004

(U.S. $ in millions)

Fourth Quarter

Year-to-Date

2005

2004

Change

2005

2004

Change

Utility, Parent & Other (a)

195

717

(522)

935

2,035

(1,100)

Entergy Nuclear

157

(10)

167

551

414

137

Energy Commodity Services

9

509

(500)

(18)

480

(498)

   Total Net Cash Flow Provided by Operating Activities

361

1,216

(855)

1,468

2,929

(1,461)

(a) Fourth quarter 2005 and full year 2005 reflect the deconsolidation of Entergy New Orleans; fourth quarter 2004 and full year 2004 have not been revised to reflect the deconsolidation of Entergy New Orleans.

II. Utility, Parent & Other Results

In fourth quarter 2005, Utility, Parent & Other had no earnings on an as-reported basis and $0.16 per share on an operational basis compared to $0.36 per share on an as-reported basis and $0.29 per share in operational earnings in fourth quarter 2004. As-reported 2005 earnings reflect a $(0.16) per share special item resulting from the planned sale of the competitive retail business in Texas, comprised of a $(0.12) impairment reserve and $(0.04) per share operating loss in this non-core business, with these amounts being reflected as discontinued operations in the financial statements.

Entergy New Orleans, Inc. (ENOI) results for the quarter are included in Utility, Parent & Other as-reported and operational earnings. However, ENOI is de-consolidated for fourth quarter 2005 reporting purposes as explained in Appendix A of this release. Accordingly, revenue and expense explanations that follow exclude the revenues and expenses of ENOI. Earnings in fourth quarter 2005, exclusive of ENOI, reflect:

  • Hurricane related outages which were extended due to significant customer property damage and longer lead times for restoration, both of which reduced overall customer usage and revenues.
  • Materially lower industrial usage, particularly in chemical and refining sectors, due to industry concentration along the hurricane-stricken gulf coast.
  • Lower operation and maintenance expense due to timing differences in spending anticipated in late 2005, and to a lesser extent, resources normally dedicated to operation and maintenance tasks being shifted to storm restoration work.

ENOI results for fourth quarter 2005 reflect a loss of $(0.08) per share, compared to a loss of $(0.02) per share one year ago. The decrease, due to outages caused by Hurricane Katrina, reflects $44 million of lower net revenue compared to one year ago with reduced operation and maintenance expense and lower interest expense partially offsetting the impact of lower revenues.

 

Electricity usage excluding ENOI, in gigawatt-hour sales by customer segment, is included in Table 4. Current quarter sales reflect the following:

  • Residential sales in fourth quarter 2005, on a weather-adjusted basis, were down 2 percent compared to fourth quarter 2004.
  • Commercial and governmental sales, on a weather-adjusted basis, were down 4 percent.
  • Industrial sales, after adjusting for the planned loss of one customer to cogeneration, experienced a decrease of more than 12 percent in fourth quarter 2005 compared to the same period a year ago.

Weather-adjusted sales usage was lower in the current period due primarily to customer outages in all customer classes caused by two major hurricanes during third quarter 2005. The significant decline in the industrial sector in fourth quarter reflects the storm-related impact that was concentrated in the chemical and refining sectors which made up more than 50 percent of Entergy's industrial sales in 2005. One large chemical customer in Louisiana will not return to service while three others affected by the storms will remain out of service in the near-term. High gas prices have placed some strain on the chemical and paper sectors, but large scale disruptions have not been experienced to date.

For the year 2005, Utility, Parent & Other earned $2.82 per share on an as-reported basis, compared with $2.86 per share for 2004. Operational earnings in 2005 were $3.03 per share compared to $2.79 per share for 2004. The higher operational earnings in 2005 were due primarily to warmer-than-normal weather and the impact of accretion, both of which offset the negative effects of the storms on Utility, Parent & Other results.

Table 4 provides a comparative summary of the Utility's operational performance measures.

Table 4: Utility Operational Performance Measures excluding Entergy New Orleans

Fourth Quarter and Year-to-Date 2005 vs. 2004 (see appendix G for definitions of measures)

Fourth Quarter

Year-to-Date
 

2005

2004

% Change

% Weather Adjusted

2005

2004

% Change

% Weather Adjusted

GWh billed

  Residential

7,212

7,010

2.9%

-2.1%

31,569

30,757

2.6%

-1.1%

  Commercial and governmental

6,277

6,428

-2.3%

-3.9%

25,969

25,695

1.1%

-0.5%

  Industrial

8,778

10,268

-14.5%

-14.5%

37,615

39,718

-5.3%

-5.3%

  Total Retail Sales

22,267

23,706

-6.1%

-8.0%

95,153

96,170

-1.1%

-2.7%

  Wholesale

1,549

1,795

-13.7%

7,435

8,599

-13.5%

  Total Sales

23,816

25,501

-6.6%

102,588

104,769

-2.1%

O&M expense

$17.43

$17.19

1.4%

$15.06

$14.64

2.9%

Number of retail customers

  Residential

2,111,421

2,117,444

-0.3%

  Commercial and governmental

309,006

314,687

-1.8%

  Industrial

39,287

41,674

-5.7%

Appendix C provides information on selected pending local and federal regulatory cases.

III. Competitive Businesses Results

Entergy's competitive businesses include Entergy Nuclear and Energy Commodity Services. Table 5 provides a summary of Competitive Businesses' capacity and generation sold forward as of the end of the fourth quarter 2005.

Entergy Nuclear has sold 91%, 81%, and 57% of planned generation at average prices per megawatt-hour of $41, $45 and $49, for the years 2006, 2007 and 2008, respectively. Energy Commodity Services has contracted for 25%, 23% and 26% of its planned energy and capacity revenues at average prices per megawatt-hour of $26, $28 and $28, for the same periods.

Table 5: Competitive Businesses Capacity and Generation Sold Forward

2006 through 2010 (see appendix G for definitions of measures)

 

2006

2007

2008

2009

2010

Entergy Nuclear (EN)

Energy

Planned TWh of generation

35

34

34

35

34

Percent of EN's planned generation sold forward (b)

  Unit-contingent

34%

32%

25%

19%

12%

  Unit-contingent with availability guarantees

53%

47%

32%

13%

5%

  Firm liquidated damages (LD)

4%

2%

0%

0%

0%

  Total

91%

81%

57%

32%

17%

Average contract price per MWh (c)

$41

$45

$49

$54

$45

Capacity

Planned net MW in operation

4,184

4,200

4,200

4,200

4,200

Percent of EN's capacity sold forward

  Bundled capacity and energy contracts

12%

12%

12%

12%

12%

  Capacity contracts

77%

46%

36%

24%

3%

  Total

89%

58%

48%

36%

15%

Average capacity contract price per kW per month

$1.0

$1.1

$1.1

$1.0

$0.9

Blended Capacity and Energy Recap (based on revenues)

Percent of EN's planned energy and capacity sold forward

82%

71%

47%

27%

12%

Average contract revenue per MWh (c)

$42

$46

$50

$55

$46

Energy Commodity Services (ECS)

Capacity

Net MW in operation

1,578

1,578

1,578

1,578

1,578

Percent of ECS's capacity sold forward

33%

29%

29%

19%

17%

Energy

Planned TWh of generation

4

4

4

4

4

Percent of ECS's planned generation sold forward

  Unit-contingent

7%

7%

7%

6%

6%

  Unit-contingent with availability guarantees

40%

34%

36%

30%

30%

  Firm liquidated damages (LD)

0%

0%

0%

0%

0%

  Total

47%

41%

43%

36%

36%

Blended Capacity and Energy Recap (based on revenues)

Percent of ECS's planned energy and capacity sold forward

25%

23%

26%

17%

17%

Average contract revenue per MWh

$26

$28

$28

$21

$20

 

  1. A portion of EN's total planned generation sold forward for the years 2006-2010 is associated with the Vermont Yankee contract for which pricing may be adjusted.
  2. Average contract prices exclude potential payments that may be owed under the value sharing agreement with the New York Power Authority.

Entergy Nuclear

Entergy Nuclear (EN) earned $0.37 per share on both as-reported and operational bases in fourth quarter 2005, compared to $0.22 in fourth quarter 2004. In fourth quarter 2005 EN had higher generation resulting from uprates, one planned refueling outage compared to two in fourth quarter 2004, and higher contract pricing. In addition, operation and maintenance expense decreased quarter to quarter due primarily to timing. Also, accretion impacted EN's earnings during the current period.

For the year 2005, Entergy Nuclear earned $1.32 per share on both an as-reported and operational bases, compared with $1.06 per share for 2004. The increase in 2005 earnings was due primarily to increased revenue from higher contract pricing and higher generation due to fewer planned and unplanned outage days, and accretion.

Table 6 provides a comparative summary of EN's operational performance measures.

Table 6: Entergy Nuclear Operational Performance Measures

Fourth Quarter and Year-to-Date 2005 vs. 2004 (see appendix G for definitions of measures)
 

Fourth Quarter

Year-to-Date
 

2005

2004

% Change

2005

2004

% Change

Net MW in operation

4,105

4,058

1%

4,105

4,058

1%

Average realized price per MWh

$42.75

$40.69

5%

$42.39

$41.26

3%

Production cost per MWh

$19.48

$22.28

-13%

$19.39

$20.16

-4%

Generation in GWh

8,643

7,567

14%

33,539

32,524

3%

Capacity factor

95%

85%

12%

93%

92%

1%

Refueling outage days:

  FitzPatrick (d)

-

24

-

30

  Indian Point 2

-

31

-

31

  Indian Point 3

-

-

27

-

  Pilgrim

-

-

25

-

  Vermont Yankee

19

-

19

30

(d) The planned refueling outage at FitzPatrick began in September 2004 and was completed in fourth quarter 2004 in a total of 30 days.

Energy Commodity Services

Fourth quarter 2005 results for Energy Commodity Services (ECS) include only earnings from Entergy's non-nuclear wholesale assets business. ECS as-reported results in fourth quarter 2004 included earnings from both the non-nuclear wholesale assets business and Entergy-Koch, LP (EKLP).

As-reported results for ECS in fourth quarter 2005 were $0.06 per share compared to $0.10 per share in fourth quarter 2004. As-reported results in the current period reflect the absence of a $(0.15) loss in fourth quarter 2004 incurred by EKLP. The trading and pipeline businesses of EKLP were sold in late 2004. Operational results for ECS were also $0.06 per share in fourth quarter 2005 compared to a loss of $(0.01) per share on an operational basis one year ago. The earnings in the current period reflect the sale of SO2 allowances during fourth quarter.

For the year 2005, ECS earned $0.05 per share on both as-reported and operational bases, compared with $0.01 per share in as-reported earnings and an operational loss of $(0.05) per share in 2004. The higher operational results in 2005 were due primarily to the sales of SO2 allowances at various times during the year.

IV. Earnings Guidance

Entergy is initiating as-reported earnings guidance for 2006 in the range of $4.78 to $5.08 per share; 2006 operational earnings guidance is $4.50 to $4.80 per share. Earnings guidance ranges exclude Entergy New Orleans given the uncertainty that remains for this business as it works toward emerging from bankruptcy. During 2006, actual results for Entergy New Orleans will be separately identified as a special item for earnings release purposes.

Guidance ranges for 2006 are detailed in Table 7 and are based on the following key assumptions:

Utility, Parent & Other

  • Normal weather
  • Sales growth of approximately 4%, weighted in the months September - December 2006 due to absence of 2005 hurricane effect
  • Non-storm related rate actions, including carryover effects of 2005 rate actions and 2006 rate action for Attala
  • Increased non-fuel operation and maintenance expense, including effects of inflation, benefits costs, supply plan, and Independent Coordinator of Transmission implementation along with the absence of 2005 offsets relating to storm restoration work
  • Increased interest expense from higher financing requirements

Entergy Nuclear

  • 35 TWh of total output, reflecting an approximate 94% capacity factor, including 30 day refueling outages at Indian Point 2 (spring 2006) and FitzPatrick (fall 2006) and implementation of 95 MW uprate at Vermont Yankee at end of first quarter 2006
  • 91% energy sold under existing contracts; 9% sold into the spot market
  • $41/MWh average energy contract price, average price of $83/MWh for unsold energy based on published market prices in January 2006
  • $20.50/MWh non-fuel operation and maintenance expense reflecting inflation and higher benefits expense; $19/MWh production cost
  • Increased interest expense due to increased collateral requirements driven by higher market prices
  • Increased depreciation and other expenses

 

Non-Nuclear Wholesale Assets

  • Reduced sales of emissions allowances
  • Increased year over year losses from non-nuclear wholesale assets

Special Items

  • Receipt of additional proceeds from the 2004 sale of EKLP and recognition of gain contingency
  • Absence of 2005 results from discontinued competitive retail operation (a 2006 estimate is not presented as ultimate amount depends on timing of sale)

Share Repurchase Program

  • The share repurchase program remains suspended following the hurricanes through the end of 2006, resulting in end of year fully diluted shares outstanding of approximately 213 million

The above assumptions assume no regulatory disallowances are ordered by retail regulators for $1.5 billion storm restoration costs ($0.8 billion capital, $0.7 billion regulatory assets). Any such disallowances would be shown as special items.

Earnings guidance details are provided in Table 7. This table demonstrates how 2006 results are expected to differ from 2005 based on the quantification of assumptions described above. For presentation simplicity purposes, year-over-year changes are shown as point estimates and are applied to 2005 actuals to compute the 2006 guidance midpoint. Because there is a range of possible outcomes associated with each driver, a range is applied to the calculated guidance midpoints to produce Entergy's guidance ranges for as-reported and operational earnings excluding Entergy New Orleans.

Table 7. 2006 Earnings Per Share Guidance excluding Entergy New Orleans

(Per share in U.S. $)



Segment



Description of Drivers

2005 Earnings per Share

Expected Change

2006
Guidance
Midpoint

2006 Guidance Range

Utility, Parent & Other

2005 Operational Earnings per Share

3.03

Adjustment to normalize weather

(0.10)

Increased revenue due to non-storm rate actions and sales growth

0.50

Increased non-fuel O&M expense

(0.25)

Increased interest expense

(0.10)

Other

(0.03)

Subtotal

3.03

0.02

3.05

Entergy Nuclear

2005 Operational Earnings per Share

1.32

Higher contract and market energy pricing

0.42

Increased generation from uprates and fewer outages

0.10

Increased non-fuel O&M expense

(0.10)

Increased interest expense

(0.05)

Increased depreciation and other

(0.09)

Subtotal

1.32

0.28

1.60

Non-Nuclear Wholesale Assets

2005 Operational Earnings per Share

0.05

Reduced sales of emissions allowances

(0.04)

Increased losses from non-nuclear wholesale assets

(0.01)

Subtotal

0.05

(0.05)

0.00

Consolidated Operational

2005 Operational Earnings per Share

4.40

Changes detailed above

0.25

2006 Operational Earnings per Share

4.40

0.25

4.65

4.50 - 4.80

Consolidated As-Reported

2005 As Reported Earnings per Share

4.19

Changes detailed above

0.25

Special items:

2006 Gain on sale of Entergy-Koch, LP

0.28

2005 results from discontinued competitive retail operation, including impairment loss

0.21

2006 As-Reported Earnings per Share

4.19

0.74

4.93

4.78 - 5.08

Earnings guidance should be considered in association with earnings sensitivities as shown in Table 8. These sensitivities illustrate the estimated change in operational earnings resulting from changes in various revenue and expense drivers. Utility sales growth is expected to be the most significant driver of results in 2006 for Utility, Parent & Other due to normal growth in customer usage and the recovery of some portion of load impacted by hurricanes. At Entergy Nuclear, energy prices are expected to be the most significant driver of results in 2006, given the size of EN's unsold position. In 2005, Entergy modified its contracting strategy to provide the flexibility to retain a larger unsold position. This modification provides EN the opportunity to capture higher spot market prices while also increasing volatility of expected results. Estimated annual impacts shown in the Table 8 are intended to be indicative rather than precise guidance.

Table 8: Earnings Sensitivities excluding Entergy New Orleans

(Per share in U.S. $)

Variable

2006 Guidance Assumption

Description of Change

Estimated Annual Impact

Utility, Parent & Other

Sales growth
   Residential
   Commercial/Governmental
   Industrial
Total


Approximately 4% total sales growth weighted in Sept.-Dec. 2006


1% change in Residential MWh sold
1% change in Comm/Govt MWh sold
1% change in Industrial MWh sold
1% change in Total MWh sold


- / + 0.04
- / + 0.03
- / + 0.03
- / + 0.10

Extended outages for Entergy Louisiana customers

31,000 customers of Entergy Louisiana

10,000 return to service

n/a / + 0.03

Rate base

Stable rate base

$100 million change in rate base

- / + 0.02

Return on equity

See Appendix C

1% change in allowed ROE

- / + 0.28

Interest expense

Additional $550M average debt at 6% average interest rate

$100M change in debt

- / + 0.02

Entergy Nuclear

Capacity factor

94% capacity factor

1% change in capacity factor

- / + 0.04

Energy price

9% energy unsold at $83/MWh in 2006

$10/MWh change for unsold energy

- / + 0.09

 

Non-fuel operation and maintenance expense

$20.50/MWh non-fuel operation and maintenance expense

$1 change per MWh

- / + 0.10

Outage (lost revenue only)

94% capacity factor, including refueling outages at Indian Point 2 and J.A. FitzPatrick

1,000 MW plant for 10 days at average portfolio energy price of $41/MWh for sold and $83/MWh for unsold volumes in 2006

- 0.03 / n/a
       

  1. Based on 2005 average fully diluted shares of approximately 214 million.

V. Forward-looking Financial Data and Aspirations

Entergy continues to focus on resolving challenges and uncertainties brought on by the hurricanes that severely affected its business operations in August and September of 2005. While these issues may affect near-term financial performance, the company's long-term aspirations remain in tact. Specifically, Entergy aspires to deliver average annual earnings per share growth of 5-6%, to achieve a 9% return on invested capital, and to continue to improve the company's overall credit quality over the long-term. The company's ability to achieve these aspirations over time will be based upon a combination of factors which include but are not limited to intrinsic growth, the recovery of storm-related restoration costs, the return of customers and load to portions of the Entergy service territory, and the amount of cash that is available for capital deployment in investments, share repurchases, dividends or debt retirement.

Table 9 provides details on Entergy's projected cash available for capital redeployment for the period 2006 through 2008 excluding Entergy New Orleans. Entergy expects to have $2.3 billion of cash available over this period for several potential uses: investments in new businesses or assets, repayment of debt or equity, or dividend increases. Net cash flow provided by operating activities shown in the table includes the recovery of fuel costs deferred in periods prior to 2006, and revenue enhancement realized at Entergy Nuclear by capturing opportunities through favorable market pricing. Cash flows from other storm recovery initiatives, such as insurance, regulatory rate relief, or federal relief, are not included because they are not known at this time. Sources of cash also include debt that Entergy believes it could issue in association with new investments while maintaining a debt ratio of 50% or less. The amount of additional debt could vary depending upon the type of new investment and the credit market environment. Uses of cash shown on the table reflect current estimates of storm restoration spending and share repurchases based on resumption of the $1.5 billion share repurchase program approved in 2004. The amount of repurchases may vary as a result of material changes in business results or capital spending or material new investment opportunities.

Table 9: Projected Cash Available for Capital Redeployment excluding Entergy New Orleans
2006 through 2008 - Reconciliation of GAAP to Non-GAAP Measures
(see appendix G for definitions of measures)

($ in billions)

2006-2008

Net cash flow provided by operating activities

7.3

Less:

  Net nuclear fuel purchases

(0.4)

  Decommissioning trust contributions

(0.4)

  Planned capital expenditures

(3.6)

  Preferred dividends

(0.1)

Free cash flow

2.8

Common dividends

(1.5)

Net share repurchases (includes repurchases under existing program net of equity units conversion and remaining sale proceeds)

0.2

Additional debt capacity (net of maturities)

0.8

Net Cash Available for New Investment, Debt or Equity Repayment, Dividend Increase

2.3

Appendix E provides details on planned capital expenditures by business, and appendices F-1 and F-2 include summarized schedules of financing authority and debt maturities, respectively.

 

VI. Appendices

Eight appendices are presented in this section as follows:

  • Appendix A includes information on Entergy New Orleans, Inc.'s filing for protection under Chapter 11 of the U.S. Bankruptcy Code.
  • Appendix B includes earnings per share variance analyses and details on special items that relate to the current quarter and year-to-date periods.
  • Appendix C provides information on selected pending local and federal regulatory cases.
  • Appendix D provides financial metrics for both current and historical periods. In addition, historical financial and operating performance metrics are included for the trailing eight quarters.
  • Appendix E provides a summary of planned capital expenditures for the next three years.
  • Appendix F provides a summary of Entergy Corporation's financing authority and that of its operating subsidiaries as well as a summary schedule of debt maturities by business.
  • Appendix G provides definitions of the operational performance measures and GAAP and non-GAAP financial measures that are used in this release.
  • Appendix H provides a reconciliation of GAAP to non-GAAP financial measures used in this release.

 

Appendix A provides information on the petition filed by Entergy New Orleans, Inc. for protection under Chapter 11 of the U.S. Bankruptcy Code as well as related activities subsequent to the initial filing.

Appendix A: Entergy New Orleans, Inc. Bankruptcy

Bankruptcy Filing

To protect its customers and ensure continued progress in restoring power and gas service to New Orleans after Hurricane Katrina, on September 23, 2005, Entergy New Orleans, Inc. (ENOI) filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Important decisions were rendered by the bankruptcy court on December 7, 2005 when the court authorized the debtor-in-possession (DIP) financing (described below), approved the priming lien for DIP financing, and ordered that use of insurance proceeds would be determined by ENOI. Numerous motions have been filed with additional motions expected as the bankruptcy proceeding continues. The exclusivity period for filing a final plan of reorganization by ENOI was originally established by the Bankruptcy court as January 23, 2006, but has been extended to April 21, 2006, with solicitation of acceptances of the plan to be completed by June 20. For more information on documents filed in this proceeding go to www.entergy.com/investor_relations/enoi.aspx.

Debtor-in-Possession Financing

Simultaneously with the filing on September 23, 2005, ENOI filed a motion with the Court for "debtor-in-possession" (DIP) financing that contemplated Entergy Corporation making loans up to $200 million to ENOI to address ENOI's current liquidity crisis. These funds were requested to enable ENOI to meet its near-term obligations, including employee wages and benefits, payments under power purchase and gas supply agreements, and its existing efforts to repair and restore the facilities needed to serve its electric and gas customers. On September 26, 2005, the bankruptcy court approved interim DIP financing up to $100 million, and on October 26, 2005 approved ENOI's request for additional interim DIP financing increasing the limit to $200 million. Entergy and ENOI also received approval from the Securities and Exchange Commission (SEC) in December 2005 to increase the interim DIP financing to $200 million. The approvals by the Court and the SEC will allow Entergy Corporation to provide additional funding through DIP financing but such funding will be provided by Entergy Corporation at its discretion.

Accounting

Entergy owns 100 percent of the common stock of ENOI and has, subject to the rules and requirements of Chapter 11 of the U.S. Bankruptcy Code, continued to supply operating management to ENOI. However, uncertainties surrounding the nature, timing and specifics of the bankruptcy proceedings caused Entergy to de-consolidate ENOI for financial reporting purposes beginning in third quarter 2005 with ENOI's financial results being recorded under the equity method of accounting. Under this methodology, earnings from ENOI are now reflected in Entergy's income statement as equity in the earnings of unconsolidated affiliates.  Because Entergy owns all of the common stock of ENOI, this change has not impacted the amount of net income Entergy has recorded in the current period or any historical period but has resulted in ENOI's net income being presented in one line item rather than included in each individual income statement line item presented. In addition, various line items of Entergy's consolidated balance sheet and cash flow statement have been revised to reflect the impact of de-consolidating ENOI.

Entergy also noted that events related to Hurricanes Katrina and Rita and the bankruptcy proceeding for ENOI noted above, among other things, that occur prior to the filing of the 2005 financial statements under Form 10-K, could result in a subsequent event(s) that need to be reflected in the Form 10-K in accordance with generally accepted accounting principles. This subsequent event(s) might materially change the accounting disclosures and/or the reported income of Entergy and one or more of its operating subsidiaries. Examples of events that might result in subsequent event accounting and disclosure could include a determination as to the permanent loss of certain customers, finalization of insurance proceeds, potential regulatory outcomes and/or other potential adverse events related to ENOI's filing for bankruptcy protection, among other things.

 

Appendix B-1 and B-2 provide details of fourth quarter and year-to-date 2005 vs. 2004 earnings variance analyses for "Utility, Parent & Other," "Competitive Businesses," and "Consolidated."

Appendix B-1: As-Reported Earnings Per Share Variance Analysis

Fourth Quarter 2005 vs. 2004

(Per share in U.S. $, sorted in consolidated

column, most to least favorable)

Utility,

Competitive

Parent & Other

Businesses

Consolidated

2004 earnings

0.36

0.32

0.68

Other income (deductions)

(0.02)

0.14

(f)

0.12

Other operation & maintenance expense

0.08

(g)

0.02

0.10

Asset impairments

(0.12)

(h)

0.16

(i)

0.04

Share repurchase effect

-

0.03

0.03

Net revenue

(0.12)

(j)

0.15

(k)

0.03

Depreciation/amortization expense

0.03

(0.02)

0.01

Decommissioning expense

0.01

-

0.01

Interest expense and other charges

(0.05)

(l)

0.02

(0.03)

Retail business discontinued operations

(0.04)

-

(0.04)

Taxes other than income taxes

(0.03)

(0.01)

(0.04)

Income taxes - other

(0.10)

(m)

(0.38)

(n)

(0.48)

2005 earnings

-

0.43

0.43

Appendix B-2: As-Reported Earnings Per Share Variance Analysis

Year-to-Date 2005 vs. 2004

(Per share in U.S. $, sorted in consolidated

column, most to least favorable)

Utility,

Competitive

Parent & Other

Businesses

Consolidated

2004 earnings

2.86

1.07

3.93

Share repurchase effect

0.20

(o)

0.10

(o)

0.30

Net revenue

0.17

(j)

0.12

(k)

0.29

Other operation & maintenance expense

0.05

(g)

0.07

(p)

0.12

Other income (deductions)

(0.07)

(q)

0.19

(f)

0.12

Asset impairments

(0.12)

(h)

0.15

(i)

0.03

Depreciation/amortization expense

0.02

-

0.02

Decommissioning expense

0.02

-

0.02

Nuclear refueling outage expense

(0.02)

0.03

0.01

Preferred dividend requirements

-

(0.01)

(0.01)

Interest expense and other charges

(0.08)

(l)

0.04

(0.04)

Taxes other than income taxes

(0.06)

(r)

-

(0.06)
Retail business discontinued operations

(0.09)

 (s)  

-

    

(0.09)

Income taxes - other

(0.06)

(m)

(0.39)

(n)

(0.45)

2005 earnings

2.82

1.37

4.19

Utility Net Revenue Variance Analysis
2005 vs. 2004 ($ EPS)

Fourth Quarter

Year-to-Date

Weather

0.05

Weather

0.21

Sales growth/pricing

(0.11)

Sales growth/pricing

(0.16)

Other

(0.06)

Other

0.12

Total

(0.12)

Total

0.17
  1. Other income (deductions) increased in fourth quarter 2005 and on a year-to-date basis due primarily to the absence in 2005 of losses from Entergy-Koch, LP $(0.15) for the quarter and $(0.22) year to date. Also, the sale of SO2 allowances at the non-nuclear wholesale assets business increased other income in both periods of 2005.
  2. Other operation and maintenance expense decreased due primarily to timing and resources deployed to storm restoration projects.
  3. Asset impairment reflects the impairment reserve recorded in connection with the planned sale of the competitive retail business.
  4. Asset impairment reflects the absence of an impairment reserve recorded for the Warren Plant in fourth quarter 2004.
  5. Net revenue decreased due primarily to lower usage across all customer sectors during fourth quarter 2005 compared to one year ago. Storms reduced usage particularly in the industrial sector with warmer-than-normal weather early in the quarter partially offsetting this decline. The year-to-date increase in net revenues is due primarily to warmer-than-normal weather and higher unbilled revenues compared to one year ago, both partially offset by lower sales volumes.
  6. Net revenue increased due to higher revenues at Entergy Nuclear as a result of higher contract pricing and fewer outages.
  7. Interest expense and other charges increased due primarily to higher borrowings under credit lines.
  8. Income taxes-other increased due primarily to the absence in the current period of tax benefits recorded in fourth quarter 2004 associated with the Entergy-Koch, LP investment.
  9. Income taxes-other increased due primarily to the absence in the current period of tax benefits recorded in fourth quarter 2004 associated with the restructuring of the non-nuclear wholesale assets business.
  10. Share repurchase effect reflects the impact of Entergy's repurchase activity.
  11. Other operation and maintenance expense decreased due primarily to lower operating costs at both Entergy Nuclear and the non-nuclear wholesale assets business.
  12. Other income (deductions) decreased in the year-to-date period due to the absence of a 2004 adjustment recorded to revalue River Bend's decommissioning liability and lower earnings from Entergy New Orleans, partially offset by higher interest income.
  13. Taxes other than income taxes increased due primarily to higher franchise and ad valorem taxes due to higher property assessments and millage rates.
  14. Retail business discontinued operations reflects losses incurred by this business during 2005.

Appendix B-3 lists special items by business with quarter-to-quarter and year-to-date comparisons. Amounts are shown on both earnings per share and net income bases. Special items are those events that are less routine, are related to prior periods, or are related to discontinued businesses. Special items are included in as-reported earnings per share consistent with generally accepted accounting principles (GAAP), but are excluded from operational earnings per share. As a result, operational earnings per share is considered a non-GAAP measure.

Appendix B-3: Special Items (shown as positive / (negative) impact on earnings)

Fourth Quarter and Year-to-Date 2005 vs. 2004

(Per share in U.S. $)
 

Fourth Quarter

Year-to-Date
 

2005

2004

Change

2005

2004

Change

Utility, Parent & Other

  Tax benefits - Entergy-Koch investment

-

0.07

(0.07)

-

0.07

(0.07)

  Retail business impairment reserve

(0.12)

-

(0.12)

(0.12)

-

(0.12)

  Retail business discontinued operations

(0.04)

-

(0.04)

(0.09)

-

(0.09)

    Total Utility, Parent & Other

(0.16)

0.07

(0.23)

(0.21)

0.07

(0.28)

Competitive Businesses

  Entergy Nuclear

-

-

-

-

-

-

  Energy Commodity Services

    Entergy-Koch Trading earnings

-

(0.21)

0.21

-

(0.35)

0.35

    Gulf South Pipeline earnings

-

0.06

(0.06)

-

0.13

(0.13)

    Tax benefits on restructuring

-

0.42

(0.42)

-

0.41

(0.41)

    Asset impairment reserve

-

(0.16)

0.16

-

(0.15)

0.15

    Reduction in asset sale reserve

-

-

-

-

0.02

(0.02)

      Total Energy Commodity Services

-

0.11

(0.11)

-

0.06

(0.06)

Total Competitive Businesses

-

0.11

(0.11)

-

0.06

(0.06)

Total Special Items

(0.16)

0.18

(0.34)

(0.21)

0.13

(0.34)

(U.S. $ in millions)
 

Fourth Quarter

Year-to-Date

2005

2004

Change

2005

2004

Change

Utility, Parent & Other

  Tax benefits - Entergy-Koch investment

-

16.7

(16.7)

-

16.7

(16.7)

  Retail business impairment reserve

(25.8)

-

(25.8)

(25.8)

-

(25.8)

  Retail business discontinued operations

(7.6)

-

(7.6)

(18.9)

-

(18.9)

     Total Utility, Parent & Other

(33.4)

16.7

(50.1)

(44.7)

16.7

(61.4)

Competitive Businesses

  Entergy Nuclear

-

-

-

-

-

-

  Energy Commodity Services

    Entergy-Koch Trading earnings

-

(47.4)

47.4

-

(79.4)

79.4

    Gulf South Pipeline earnings

-

14.3

(14.3)

-

29.3

(29.3)

    Tax benefits on restructuring

-

93.6

(93.6)

-

93.6

(93.6)

    Asset impairment reserve

-

(35.8)

35.8

-

(35.8)

35.8

    Reduction in asset sale reserves

-

-

-

-

5.6

(5.6)

       Total Energy Commodity Services

-

24.7

(24.7)

-

13.3

(13.3)

Total Competitive Businesses

-

24.7

(24.7)

-

13.3

(13.3)

Total Special Items

(33.4)

41.3

(74.7)

(44.7)

30.0

(74.7)
             

Appendix C provides a summary of selected regulatory cases and events that are pending.

Appendix C: Regulatory Summary Table

Company/ Proceeding

Authorized ROE

Pending Cases/Events

Retail Regulation

Entergy Arkansas

11.00%

Recent activity: In December 2005, EAI provided notice of its intent to terminate participation in the Entergy System Agreement, following a final order from FERC establishing terms under which EAI may be required to make payments to other operating companies to achieve rough production cost equalization.

Background: EAI's base rates have been in effect since 1998.  The timing of its next general rate case will depend in part upon the mechanism that the FERC approves for recovery of any payments required to achieve rough production cost equalization pursuant to its order in the System Agreement case.  Any base rate proceeding will include an adjustment to storm reserves to reflect recent storm restoration costs.
   

Storm Cost Recovery: EAI has not yet filed for storm cost recovery. The company's estimated storm costs are significantly less than the other Entergy subsidiaries.

     

Entergy Gulf States - TX

10.95%

Recent activity: In December 2005, the Public Utilities Commission of Texas (PUCT) approved, subject to reconciliation, the recovery of $18 million annually beginning in December 2005, in response EGSI-TX's request for recovery of $23 million of projected incremental purchased power capacity costs for the twelve months ending June 30, 2006. In January 2006, an ALJ approved in the company's transition to competition cost case a unanimous settlement for interim rates in the amount of $18 million annually, beginning on March 1, 2006.  The case filed in August 2005 requests recovery of $189 million in transition costs to be amortized over a 15 year period, with an annual revenue requirement of $25.1 million.  A final decision in this proceeding is expected by mid-year 2006.

Background: EGSI-TX has operated under a base rate freeze since 1999. In July 2004, the PUCT effectively rejected the company's proposal to advance to Retail Open Access and as a result, the company filed a rate case which was dismissed by the PUCT. The company's appeal of this dismissal is still pending. Legislation was subsequently enacted in June 2005 which allows EGSI-TX to file for rate relief through riders for transition costs and incremental capacity costs. The legislation also extended to mid 2008 the base rate freeze EGSI-TX has been in since 1999.

Storm Cost Recovery: In response to procedural recommendations of the PUCT staff EGSI-TX filed updated storm cost estimates in January 2006. Additional updates are to be provided on March 15, and May 15, with a final accounting filing expected on June 1, 2006. At that time, the company will likely make a formal request for recovery of costs.
     

Entergy Gulf States - LA

9.90% - 11.40%

Recent activity: In January 2006, the Louisiana Public Service Commission (LPSC) Staff recommended a $0.5 million refund for the two-year period 2004 and 2005 to be applied to future capacity deferrals and a $36.8 million rate increase effective October 2005. These recommendations were in response to the company's 2005 formula rate plan (FRP) filing which indicated that a $37.2 million rate increase was required to recover (1) $21.1 million FRP increase and (2) $16.1 million in Perryville costs.

Background: In March 2005 the LPSC approved a Global Settlement which included among other things, the establishment of a FRP with a 10.65% ROE midpoint and a +/- 75 basis point bandwidth and a recovery mechanism for Commission approved capacity additions. Earnings outside the bandwidth are allocated 60% to customers and 40% to the company. The next filing will be made in May 2006 based on a 2005 test year.

   

Storm Cost Recovery: In December 2005, EGSI-LA filed for interim recovery of $141 million storm costs. Phase I of the filing proposes implementing an $18.7 million annual interim surcharge on March 1, 2006 based on a 10 year recovery period. The Company has requested that a full review of the costs and any offsets from the receipt of insurance or federal aid be addressed in Phase II of the proceeding. Hearings are expected to occur in February 2006.

     

Entergy Louisiana

9.45% - 11.05%

Recent activity: None.

Background: In May 2005, the LPSC approved a modified settlement in response to ELI's January 2004 request for a $167 million base rate increase. The settlement included, among other things, a rate reduction of $6.7 million which was subsequently reduced to $0.8 million, and an FRP with a 10.25% ROE midpoint and a +/- 80 basis point bandwidth and a recovery mechanism for Commission approved capacity additions. Earnings outside the bandwidth are allocated 60% to customers and 40% to the company. The first filing will be made in May 2006 based on a 2005 test year.

Storm Restoration Recovery: In December 2005, ELI filed for interim recovery of $355 million storm costs. Phase I of the filing proposes implementing a $45.1 million annual interim surcharge on March 1, 2006 based on a 10 year recovery period. The Company has requested that a full review of the costs and any offsets from the receipt of insurance or federal aid be addressed in Phase II of the proceeding. Hearings are expected to occur in February 2006.
Entergy Mississippi 9.10% - 11.90%

Recent activity: In December 2005, EMI received final order from MPSC approving purchase of Attala facility.

Background: EMI has been operating under a formula rate plan last approved in December 2002. The FRP allows the company's earned ROE to increase or decrease within a bandwidth with no change in rates; earnings outside the bandwidth are allocated 50% to customers and 50% to the company, but on a prospective basis only. The plan also provides for performance incentives that can increase or decrease the benchmark ROE by as much as 100 basis points. The current mid-point of the ROE bandwidth, including performance incentives, is 10.5%. The next filing will be in March 2006 based on a 2005 test year.

Storm Cost Recovery: In December 2005, EMI requested recovery of $84 million in storm costs, the amount that was identified through November 2005. The filing proposes recovery over a five-year period, beginning in May 2006, resulting in an annual rate increase of approximately $14.7 million. The filing also contains provisions for making a supplemental filing in June 2006 to reflect cost revisions as well as the receipt of insurance or federal aid. The hearing in the matter has been set for April 5, 2006.

 

Appendix C: Regulatory Summary Table (continued)

Company/ Proceeding

Authorized ROE

Pending Cases/Events

Entergy New Orleans

9.75% - 11.75% (electric)
10.25% - 11.25%
(gas)
10.75% in 2006 with no bandwidth (gas)

Recent activity: None

Background:  In September 2005, the City Council of New Orleans approved a two year extension of ENOI's FRP with a ROE mid-point of 10.75%, a 45% hypothetical equity ratio, and electric and gas ROE bandwidths of 100 and 50 basis points, respectively. The Council's order also decoupled the company's Generation Performance-Based Rate (G-PBR) from its electric FRP, thereby allowing ENOI to earn up to $4.5 million annually under the G-PBR. However, the G-PBR has been temporarily suspended due to effects from Hurricane Katrina.
   

Storm Cost Recovery: ENOI has not yet filed for storm cost recovery. The timing and components of such a filing are subject to other recovery initiatives.

Bankruptcy activity: The current schedule proposed by the Bankruptcy Court calls for the plan of reorganization to be filed in April 2006, such filing date having been extended from the original date in January 2006.

Wholesale Regulation (FERC)

System Energy Resources, Inc.

10.94%

Recent activity: None

Background: ROE approved by July 2001 FERC order. No cases pending.
     

System Agreement

NA

Recent activity: In December 2005, the FERC issued an order in response to various requests for rehearing following its June 2005 order. The December order established, among other things, that 1) the bandwidth would be applied to calendar year 2006 actual production costs and 2) 2007 would be the first possible year of payments among Entergy's operating companies.

Background: The system agreement case, originally filed in 2001, addresses reallocation of production costs among the utility operating subsidiaries. In June 2005, the FERC issued a decision stating that rough production cost equalization did not exist in the Entergy system. The FERC established a bandwidth of +/- 11 % to reallocate production costs and ordered that this approach be applied prospectively.
     

Independent Coordinator of Transmission
(ICT)

 

NA

 

Recent activity: None.

Background: Entergy initially filed for FERC approval of its alternative transmission structure in April 2004. In that and subsequent filings, Entergy proposed that an independent entity (the ICT) perform certain transmission functions, oversee other aspects of the operation of the transmission system, and implement a more efficient expansion pricing policy. Based on a positive Declaratory Order issued by the FERC in March 2005, Entergy filed for approval of the ICT in May 2005.

 
     

Appendix D-1 provides comparative financial performance measures for the current quarter. Appendix D-2 provides historical financial performance measures and operating performance metrics for the trailing eight quarters. Financial performance measures in both tables include those calculated and presented in accordance with generally accepted accounting principles (GAAP), as well as those that are considered non-GAAP measures.

As-reported measures are computed in accordance with GAAP as they include all components of earnings, including special items. Operational measures are non-GAAP measures as they are calculated using operational earnings, which excludes the impact of special items. A reconciliation of operational earnings per share to as-reported earnings per share is provided in Appendix H-1.

Appendix D-1: GAAP and Non-GAAP Financial Performance Measures

Fourth Quarter 2005 vs. 2004 (see appendix G for definitions of certain measures)

For 12 months ending December 31

2005

2004

Change

GAAP Measures

Return on average invested capital - as-reported

7.22%

7.29%

(0.07)%

Return on average common equity - as-reported

11.19%

10.70%

0.49%

Net margin - as-reported

8.89%

9.39%

(0.50)%

Cash flow interest coverage

4.01

7.13

(3.12)

Book value per share

$37.38

$38.26

$(0.88)

End of period shares outstanding (millions)

207.5

216.8

(9.3)

Non-GAAP Measures

Return on average invested capital - operational

7.48%

7.11%

0.37%

Return on average common equity - operational

11.75%

10.35%

1.40%

Net margin - operational

9.33%

9.08%

(0.25)%

As of December 31 ($ in millions)

2005

2004

Change

GAAP Measures

Revolver capacity

2,545

1,490

1,055

Total debt

9,288

7,807

1,481

Debt to capital ratio

53.1%

47.4%

5.7%

Off-balance sheet liabilities:

Debt of joint ventures - Entergy's share

214

173

41

Leases - Entergy's share

564

596

(32)

Total off-balance sheet liabilities

778

769

9

Non-GAAP Measures

Total gross liquidity

3,128

2,102

1,026

Net debt to net capital ratio

51.5%

45.4%

6.1%

Net debt ratio including off-balance sheet liabilities

53.6%

47.9%

5.7%

 

Appendix D-2: Historical Performance Measures (see appendix G for definitions of measures)

1Q04(t)

2Q04(t)

3Q04(t)

4Q04(t)

1Q05(t)

2Q05(t)

3Q05

4Q05

FY04

FY05

Financial

EPS - as-reported ($)

0.88

1.14

1.22

0.68

0.79

1.33

1.65

0.43

3.93

4.19

Less - special items ($)

0.07

0.06

-0.17

0.18

-0.01

-0.01

-0.03

-0.16

0.13

(0.21)

EPS - operational ($)

0.81

1.08

1.39

0.50

0.80

1.34

1.68

0.59

3.80

4.40

Trailing Twelve Months

ROIC - as-reported (%)

6.19

6.38

5.90

7.29

6.97

7.07

7.49

7.22

7.29

7.22

ROIC - operational (%)

7.22

6.95

6.70

7.11

6.89

7.08

7.32

7.48

7.11

7.48

ROE - as-reported (%)

8.63

9.27

8.12

10.70

10.35

10.73

11.53

11.19

10.70

11.19

ROE - operational (%)

10.71

10.43

9.71

10.35

10.19

10.75

11.17

11.75

10.35

11.75

Cash Flow Interest Coverage

5.77

5.96

6.40

7.13

7.43

6.94

5.91

4.01

7.13

4.01

Debt to capital ratio (%)

47.3

47.4

46.8

47.4

49.6

50.6

51.9

53.1

47.4

53.1

Net debt/net capital ratio (%)

44.8

45.6

45.1

45.4

48.1

48.7

50.2

51.5

45.4

51.5

Utility

GWh billed

  Residential

7,726

6,911

9,977

7,010

7,570

7,005

10,630

7,212

30,757

31,569

  Commercial & Gov't

6,487

6,829

7,490

6,428

6,599

6,907

7,725

6,277

25,695

25,969

  Industrial

9,490

9,922

10,288

10,268

9,596

9,810

9,736

8,778

39,718

37,615

  Wholesale

2,418

2,367

2,034

1,795

1,732

1,938

2,227

1,549

8,599

7,435

O&M expense/MWh

$13.31

$15.62

$12.94

$17.19

$14.99

$17.56

$11.35

$17.43

$14.64

$15.06

Reliability

  SAIFI

1.7

1.9

1.8

1.9

1.5

1.8

1.8

1.7

1.9

1.7(u)

  SAIDI

143

162

159

169

136

157

158

161

169

161(u)

Nuclear

Net MW in operation

4,001

4,001

4,001

4,058

4,058

4,105

4,105

4,105

4,058

4,105

Avg. realized price per MWh

$39.70

$41.33

$43.38

$40.69

$41.56

$42.63

$42.58

$42.75

$41.26

$42.39

Production cost/MWh

$18.57

$18.33

$21.68

$22.28

$18.71

$19.22

$20.14

$19.48

$20.16

$19.39

Generation in GWh

8,687

8,196

8,075

7,567

8,267

8,156

8,474

8,643

32,524

33,539

Capacity factor

99%

94%

92%

85%

93%

91%

95%

95%

92%

93%

  1. Data has not been restated for the de-consolidation of ENOI which was the accounting adopted by Entergy in third quarter 2005.
  2. Excludes impact of major storm activity.

Appendix E provides a summary of planned capital expenditures. Entergy's capital plan from 2006 through 2008 includes $3.6 billion for investment; more than $2.2 billion of this amount is associated with capital to maintain Entergy's existing assets. Approximately $1.1 billion is associated with specific investments such as transmission upgrades, dry cask storage and license renewal projects at certain nuclear sites, and other investments, such as the purchase of the Attala plant, that support the utility's ability to meet load growth.

Appendix E: Planned Capital Expenditures excluding Entergy New Orleans

2006-2008

($ in millions)

2006

2007

2008

Total

Storm capital

304

4

-

308

Maintenance capital

        

  Utility, Parent & Other

604

713

719

2,036

  Entergy Nuclear

62

64

50

176

  Non-nuclear wholesale assets

2

2

2

6

    Subtotal

668

779

771

2,218

Other capital commitments

        

  Utility, Parent & Other

277

203

301

781

  Entergy Nuclear

143

96

86

325

  Non-nuclear wholesale assets

6

6

5

17

    Subtotal

426

305

392

1,123

Total Planned Capital Expenditures

1,398

1,088

1,163

3,649

Entergy New Orleans' planned capital expenditures for the years 2006-2008 total $177 million, including $72 million of storm capital.

Appendix F-1 provides details on the financing authority of Entergy Corporation and each of its operating companies at December 31, 2005. Short-term authority may be for secured or unsecured financing and varies by company. Long-term borrowing authority is limited by approvals obtained from the Securities and Exchange Commission (SEC) under the Public Utility Holding Company Act of 1935 (PUHCA). The Federal Energy Regulatory Commission (FERC) has adopted rules to continue these authorizations for at least 22 months after PUHCA repeal becomes effective on February 8, 2006. Entergy and the operating companies have filed requests with the FERC to increase certain financing authorizations. Further restrictions may be imposed by local regulatory authorities.

Appendix F-1: Financing Authority

as of 12/31/2005

Short-term

Long-term

($ in millions)

Limit
(SEC or other)

Available
as of 12/31/05

1935 Act Authority

Entergy Corporation

2,500

1,055

390

Entergy Arkansas

200

173

815(v)

Entergy Gulf States

340

340

590

Entergy Louisiana

209

116

210

Entergy Mississippi

133

49

690

Entergy New Orleans (w)

-

-

-

System Energy Resources

140

140

280

Total

3,522

1,873

2,975
       

    1. Authority granted by local regulator.
    2. Liquidity data for Entergy New Orleans is not included due to its filing for protection under Chapter 11 of the U.S. Bankruptcy Code and the subsequent decision by Entergy to de-consolidate Entergy New Orleans for financial reporting purposes.

 

Entergy recently put into place major components of a financing plan it announced in November 2005 to source $2.5 billion through a combination of debt and equity units. The plan included 1) increasing the capacity on Entergy Corporation's liquidity revolver by $1.5 billion; 2) issuing $0.5 billion of equity units; 3) issuing $0.5 billion of new debt at Entergy Louisiana and Entergy Gulf States; and 4) providing equity funding in the amount of $300 million from the parent company to Entergy Gulf States.

This financing plan is primarily designed to provide adequate liquidity to Entergy and its subsidiaries while storm restoration cost recovery is pursued. In addition, the plan will ensure adequate liquidity is available to support Entergy Nuclear. Depending on prevailing market prices, this business may be required to provide assurances in the form of corporate guarantees, lines of credit or cash to counterparties to demonstrate their commitments to deliver physical power at previously-established contract prices even if those prices are below market. As of December 31, 2005, Entergy provided approximately $1.6 billion of assurances to various counterparties primarily in the form of corporate guarantees. The assurance requirement associated with Entergy Nuclear is estimated to increase by an amount up to $400 million if gas prices increase $1 per MMBtu across the entire forward curve.

Appendix F-2 provides details on scheduled long-term debt maturities including currently maturing portions.

Appendix F-2: Debt Maturity Schedule excluding Entergy New Orleans

Maturities as of 12/31/2005

($ in millions)

2006

2007

2008

2009-2010

2011+

Total

Utility, Parent & Other

23

93

1,074

2,073

5,292

8,555

Entergy Nuclear

81

80

20

43

149

373

Total

104

173

1,094

2,116

5,441

8,928

Appendix G provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures, all of which are referenced in this release.

Appendix G: Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures

Utility

GWh billed

Total number of GWh billed to all retail and wholesale customers

Operation & maintenance expense

Operation, maintenance and refueling expenses per MWh of billed sales, excluding fuel

SAIFI

System average interruption frequency index; average number per customer per year

SAIDI

System average interruption duration index; average minutes per customer per year

Number of customers

Number of customers at end of period

Competitive Businesses

Planned TWh of generation

Amount of output expected to be generated by Entergy Nuclear for nuclear units, or by non-nuclear wholesale assets for fossil and wind units, considering plant operating characteristics, outage schedules, and expected market conditions which impact dispatch

Percent of planned generation sold forward

Percent of planned generation output sold forward under contracts, forward physical contracts or forward financial contracts (consistent with assumptions used in earnings guidance) that may or may not require regulatory approval

Unit-contingent

Transaction under which power is supplied from a specific generation asset; if the asset is unavailable, seller is not liable to buyer for any damages

Unit-contingent with availability guarantees

Transaction under which power is supplied from a specific generation asset; if the asset is unavailable, seller is not liable to buyer for any damages, unless the actual availability over a specified period of time is below an availability threshold specified in the contract

Firm liquidated damages (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); if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract

Planned net MW in operation

Amount of capacity to be available to generate power considering uprates planned to be completed within the calendar year

Bundled energy & capacity contract

A contract for the sale of installed capacity and related energy, priced per megawatt-hour sold

Capacity contract

For Entergy Nuclear, a contract for the sale of the installed capacity product in regional markets managed by ISO New England and the New York Independent System Operator

For Energy Commodity Services, a contract for the sale of capacity and related energy, in which capacity and energy are priced separately

Average contract price per MWh or per kW per month

Price at which generation output and/or capacity is expected to be sold to third parties, given existing contract prices based on expected dispatch or capacity

Average contract revenue per MWh

Price at which the combination of generation output and capacity are expected to be sold to third parties, given existing contract prices based on expected dispatch

Entergy Nuclear

Net MW in operation

Installed capacity owned or operated by Entergy Nuclear

Average realized price per MWh

As-reported revenue per MWh generated for all non-utility nuclear operations

Production cost per MWh

Fuel and non-fuel operation and maintenance expenses according to accounting standards that directly relate to the production of electricity per MWh

Generation in GWh

Total number of GWh produced by all non-utility nuclear facilities

Capacity factor

Normalized percentage of the period that the plant generates power

Refueling outage duration

Number of days lost for scheduled refueling outage during the period

Financial measures defined in the below table include measures prepared in accordance with generally accepted accounting principles, (GAAP), as well as non-GAAP measures. Non-GAAP measures are included in this release in order to provide metrics that remove the effect of less routine financial impacts from commonly used financial metrics.

Appendix G: Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures (continued)

Financial Measures - GAAP

Return on average invested capital - as-reported

12-months rolling earnings adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital

Return on average common equity - as-reported

12-months rolling earnings divided by average common equity

Net margin - as-reported

12-months rolling earnings divided by 12 months rolling revenue

Cash flow interest coverage

12-months cash flow from operating activities plus 12-months rolling interest paid, divided by interest expense

Book value per share

Common equity divided by end of period shares outstanding

Revolver capacity

Amount of undrawn capacity remaining on corporate and subsidiary revolvers

Total debt

Sum of short-term and long-term debt, notes payable, capital leases, and preferred stock with sinking fund on the balance sheet less non-recourse debt, if any

Debt of joint ventures (Entergy's share)

Debt issued by Entergy-Koch, LP and non-nuclear wholesale assets business joint ventures for periods through third quarter 2004. Only non-nuclear wholesale assets business joint ventures debt included for periods thereafter.

Leases (Entergy's share)

Operating leases held by subsidiaries capitalized at implicit interest rate

Debt to capital

Gross debt divided by total capitalization

Financial Measures - Non-GAAP

Operational earnings

As-reported earnings applicable to common stock adjusted to exclude the impact of special items

Return on average invested capital - operational

12-months rolling operational earnings adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital

Return on average common equity - operational

12-months rolling operational earnings divided by average common equity

Net margin - operational

12-months rolling operational earnings divided by 12 months rolling revenue

Total gross liquidity

Sum of cash and revolver capacity

Net debt to net capital

Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents

Net debt including off-balance sheet liabilities

Sum of gross debt and off-balance sheet debt less cash and cash equivalents divided by sum of total capitalization and off-balance sheet debt less cash and cash equivalents

 

Appendices H-1 and H-2 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure. Appendices H-3 through H-9 provide reconciliations of 2004 pro-forma financial statements to 2004 GAAP financial statements due to the deconsolidation of Entergy New Orleans.

Appendix H-1: Reconciliation of GAAP to Non-GAAP Financial Measures - Return on Equity, Return on Invested Capital and Net Margin Metrics

($ in millions)

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

3Q05

4Q05

As-reported earnings-rolling 12 months (A)

739

799

715

910

874

895

963

898

Preferred dividends

23

23

23

23

24

25

25

25

Tax effected interest expense

307

303

293

295

293

288

288

294

As-reported earnings, rolling 12 months including preferred dividends and tax effected interest expense (B)

1,069

1,125

1,031

1,228

1,191

1,208

1,276

1,217

Special items in prior quarters

(193)

(113)

(100)

(11)

15

0

37

(11)

Special items 1Q04 thru 4Q05

Utility, Parent & Other
  Tax benefits- Entergy Koch

17

Energy Commodity Services
  Gain (loss) on disposition of assets

15

13

(40)

60

Energy Commodity Services asset and contract impairments

(36)

Utility, Parent & Other
  Comp Retail asset impairments

(26)

  Comp Retail discontinued operations

(1)

(3)

(7)

(8)

Total special items (C)

(178)

(100)

(140)

30

14

(3)

30

(45)

Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C)

1,247

1,225

1,171

1,198

1,177

1,211

1,246

1,262

Operational earnings, rolling 12 months (A-C)

917

899

855

880

860

898

933

943

Average invested capital (D)

17,257

17,638

17,462

16,845

17,072

17,069

17,033

16,856

Average common equity (E)

8,565

8,619

8,806

8,500

8,452

8,347

8,350

8,027

Operating revenues (F)

9,327

9,353

9,485

9,686

9,728

9,905

10,277

10,106

ROIC - as-reported (B/D)

6.19

6.38

5.90

7.29

6.97

7.07

7.49

7.22

ROIC - operational ((B-C)/D)

7.22

6.95

6.70

7.11

6.89

7.08

7.32

7.48

ROE - as-reported (A/E)

8.63

9.27

8.12

10.70

10.35

10.73

11.53

11.19

ROE - operational ((A-C)/E)

10.71

10.43

9.71

10.35

10.19

10.75

11.17

11.75

Net margin - as-reported (A/F)

7.92

8.54

7.54

9.39

8.99

9.04

9.37

8.89

Net margin - operational ((A-C)/F)

9.83

9.61

9.01

9.08

8.85

9.06

9.08

9.33

 

 

Appendix H-2: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics

($ in millions)

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

3Q05

4Q05

Gross debt (A)

8,282

8,173

8,070

7,807

8,260

8,540

8,865

9,288

Less cash and cash equivalents (B)

808

558

541

620

479

615

598

583

  Net debt (C)

7,474

7,615

7,528

7,187

7,781

7,925

8,267

8,705

Total capitalization (D)

17,505

17,252

17,245

16,469

16,640

16,886

17,070

17,490

Less cash and cash equivalents (B)

808

558

541

620

479

615

598

583

  Net capital (E)

16,697

16,694

16,704

15,849

16,161

16,271

16,472

16,907

Debt to capital ratio % (A/D)

47.3

47.4

46.8

47.4

49.6

50.6

51.9

53.1

Net debt to net capital ratio % (C/E)

44.8

45.6

45.1

45.4

48.1

48.7

50.2

51.5

Off-balance sheet liabilities (F)

1,029

1,037

1,030

769

771

780

779

778

Net debt to net capital ratio including off-balance sheet liabilities % ((C+F)/(E+F))

48.0

48.8

48.3

47.9

50.5

51.1

52.4

53.6

Revolver capacity (G)

1,553

1,280

1,310

1,490

1,070

1,407

791

2,545

Gross liquidity (B+G)

2,361

1,838

1,851

2,110

1,549

2,022

1,389

3,128

 

Appendix H-3: Reconciliation of GAAP to Non-GAAP Balance Sheet
December 31, 2004

($ in thousands)

U.S. Utilities/Parent/Other

Consolidated

GAAP

ENOI
Adjustment*

Pro-forma

GAAP

ENOI
Adjustment*

Pro-forma

ASSETS

CURRENT ASSETS

Cash and cash equivalents:

  Cash

62,001 

(2,998)

59,003 

79,136 

(2,998)

76,138 

  Temporary cash investments - at cost,

 

- 

   which approximates market

558,971 

(4,956)

554,015 

540,650 

(4,956)

535,694 

     Total cash and cash equivalents

620,972 

(7,954)

613,018 

619,786 

(7,954)

611,832 

Other temporary investments

2,236 

- 

2,236 

187,950 

- 

187,950 

Notes receivable

- 

- 

- 

3,092 

- 

3,092 

Accounts receivable:

  Customer

435,191 

(16,793)

418,398 

435,191 

(16,793)

418,398 

  Allowance for doubtful accounts

(21,576)

3,492 

(18,084)

(23,758)

3,492 

(20,266)

  Associated companies

7,144 

- 

7,144 

- 

- 

- 

  Other

185,899 

(7,328)

178,571 

342,289 

(7,329)

334,960 

  Accrued unbilled revenues

460,039 

(24,848)

435,191 

460,039 

(24,848)

435,191 

     Total receivables

1,066,697 

(45,477)

1,021,220 

1,213,761 

(45,478)

1,168,283 

Deferred fuel costs

85,911 

(2,559)

83,352 

85,911 

(2,559)

 83,352 

Accumulated deferred income taxes

76,899 

1,906 

78,805 

76,899 

1,906 

78,805 

Fuel inventory - at average cost

125,454 

(4,181)

121,273 

127,251 

(4,181)

123,070 

Materials and supplies - at average cost

345,688 

(9,149)

336,539 

569,407 

(9,150)

560,257 

Deferred nuclear refueling outage costs

31,601 

- 

31,601 

107,782 

- 

107,782 

Prepayments and other

89,105 

(3,468)

85,637 

116,279 

(3,469)

112,810 

TOTAL

2,444,563 

(70,882)

2,373,681 

3,108,118 

(70,885)

3,037,233 

OTHER PROPERTY AND INVESTMENTS

Investment in affiliates - at equity

8,054,793 

154,461 

8,209,254 

231,779 

154,461 

386,240 

Decommissioning trust funds

1,051,901 

- 

1,051,901 

2,453,406 

- 

2,453,406 

Non-utility property - at cost (less accumulated depreciation)

217,906 

(1)

217,905 

219,717 

- 

219,717 

Other

33,682 

- 

33,682 

90,992 

- 

90,992 

TOTAL

9,358,282 

154,460 

9,512,742 

2,995,894 

154,461 

3,150,355 

PROPERTY, PLANT, AND EQUIPMENT

Electric

27,193,633 

(699,072)

26,494,561 

29,053,340 

(699,072)

28,354,268 

Property under capital lease

738,554 

- 

738,554 

738,554 

- 

738,554 

Natural gas

262,787 

(183,728)

79,059 

262,787 

(183,728)

79,059 

Construction work in progress

952,092 

(33,274)

918,818 

1,197,551 

(33,273)

1,164,278 

Nuclear fuel under capital lease

262,469 

- 

262,469 

262,469 

- 

262,469 

Nuclear fuel

34,326 

- 

34,326 

320,813 

- 

320,813 

TOTAL PROPERTY, PLANT AND EQUIPMENT

29,443,861 

(916,074)

28,527,787 

31,835,514 

(916,073)

30,919,441 

Less - accumulated depreciation and amortization

12,905,551 

(435,519)

12,470,032 

13,139,883 

(435,519)

12,704,364 

PROPERTY, PLANT AND EQUIPMENT - NET

16,538,310 

(480,555)

16,057,755 

18,695,631 

(480,554)

18,215,077 

DEFERRED DEBITS AND OTHER ASSETS

Regulatory assets:

  SFAS 109 regulatory asset - net

746,413 

46,406 

792,819 

746,413 

46,406 

792,819 

  Other regulatory assets

1,429,261 

(35,489)

1,393,772 

1,429,261 

(35,489)

1,393,772 

Long-term receivables

39,417 

(2,492)

36,925 

39,417 

(2,492)

36,925 

Goodwill

374,099 

- 

374,099 

377,172 

- 

377,172 

Other

796,166 

(8,884)

787,282 

918,871 

(8,884)

909,987 

TOTAL

3,385,356 

(459)

3,384,897 

3,511,134 

(459)

3,510,675 

- 

 

- 

TOTAL ASSETS

31,726,511 

(397,436)

31,329,075 

28,310,777 

(397,437)

27,913,340 

*Adjustment to reflect ENOI deconsolidation

Totals may not foot due to rounding

 

Appendix H-3: Reconciliation of GAAP to Non-GAAP Balance Sheet (continued)
December 31, 2004

($ in thousands)

U.S. Utilities/Parent/Other

Consolidated

GAAP

ENOI
Adjustment*

Pro-forma

GAAP

ENOI
Adjustment*

Pro-forma

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Currently maturing long-term debt

415,266

(29,999)

385,267

492,564 

(30,000)

462,564 

Notes payable:

  Associated companies

770,623

1 

770,624

- 

- 

- 

  Other

43

- 

43

193 

- 

193 

Account payable:

  Associated companies

14,781

- 

14,781

- 

- 

- 

  Other

722,148

(31,926)

690,222

896,528 

(31,926)

864,602 

Customer deposits

222,157

(17,186)

204,971

222,320 

(17,187)

205,133 

Taxes accrued

178,671

( 2,592)

176,079

224,011 

(2,592)

221,419 

Accumulated deferred income taxes

-

- 

-

- 

- 

- 

Nuclear refueling outage costs

-

- 

-

- 

- 

- 

Interest accrued

142,329

(4,757)

137,572

144,478 

(4,757)

139,721 

Obligations under capital leases

133,847

- 

133,847

133,847 

- 

133,847 

Other

83,478

(10,089)

73,389

218,442 

(10,088)

208,354 

TOTAL

2,683,343

(96,548)

2,586,795

2,332,383 

(96,550)

2,235,833 

NON-CURRENT LIABILITIES

Accumulated deferred income taxes and taxes accrued

5,205,074

(47,062)

5,158,012

5,067,381 

(47,062)

5,020,319 

Accumulated deferred investment tax credits

399,228

(3,997)

395,231

399,228 

(3,997)

395,231 

Obligations under capital leases

146,060

- 

146,060

146,060 

- 

146,060 

Other regulatory liabilities

329,767

- 

329,767

329,767 

- 

329,767 

Decommissioning and retirement cost liabilities

1,327,988

- 

1,327,988

2,066,277 

- 

2,066,277 

Transition to competition

79,101

- 

79,101

79,101 

- 

79,101 

Regulatory reserves

103,061

(233)

102,828

103,061 

(233)

102,828 

Accumulated provisions

346,614

1,042 

347,656

549,914 

1,042 

550,956 

Long-term debt

6,648,504

(196,647)

6,451,857

7,016,831 

(196,646)

6,820,185 

Preferred stock with sinking fund

17,400

- 

17,400

17,400 

- 

17,400 

Other

1,597,079

(34,213)

1,562,866

1,541,331 

(34,211)

1,507,120 

TOTAL

16,199,876

(281,110)

15,918,766

17,316,351 

(281,107)

17,035,244 

- 

Preferred stock without sinking fund

330,831

(19,780)

311,051

365,356 

(19,780)

345,576 

SHAREHOLDERS' EQUITY

Common stock, $.01 par value, authorized 500,000,000 shares;

 issued 248,174,087 shares in 2004

2,205,191

1 

2,205,192

2,482 

- 

2,482 

Paid-in capital

5,940,702

- 

5,940,702

4,835,375 

- 

4,835,375 

Retained earnings

5,913,815

1 

5,913,816

4,984,302 

- 

4,984,302 

Accumulated other comprehensive income (loss)

4,772

- 

4,772

(93,453)

- 

(93,453)

Less - treasury stock, at cost (31,345,028 shares in 2004)

1,552,019

- 

1,552,019

1,432,019 

- 

1,432,019 

TOTAL

12,512,461

2 

12,512,463

8,296,687 

- 

8,296,687 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

31,726,511

(397,436)

31,329,075

28,310,777 

(397,437)

27,913,340 

*Adjustment to reflect ENOI deconsolidation

Totals may not foot due to rounding

 

Appendix H-4: Reconciliation of GAAP to Non-GAAP Income Statement

Three Months Ended December 31, 2004 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

U.S. Utilities/Parent/Other

Consolidated

 

GAAP

ENOI Adjustment*

Pro-forma

GAAP

ENOI Adjustment*

Pro-forma

 

 

 

 

 

 

 

OPERATING REVENUES

 

 

 

 

 

 

Domestic electric

1,890,376 

(57,315)

1,833,061 

1,889,926 

(57,315)

1,832,611 

Natural gas

52,908 

(38,728)

14,180 

52,908 

(38,728)

14,180 

Competitive businesses

15,395 

- 

15,395 

360,394 

- 

360,394 

     Total

1,958,679 

(96,043)

1,862,636 

2,303,228 

(96,043)

2,207,185 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

Operating and Maintenance:

 

 

 

 

 

 

  Fuel, fuel related expenses, and gas
   purchased for resale

594,717 

(67,501)

527,216 

643,827 

(67,501)

576,326 

  Purchased power

383,915 

18,676 

402,591 

381,890 

18,676 

400,566 

  Nuclear refueling outage expenses

18,101 

- 

18,101 

41,988 

- 

41,988 

  Provision for turbine commitments, asset
   impairments, and restructuring charges

- 

- 

- 

55,000 

- 

55,000 

  Other operation and maintenance

457,124 

(32,306)

424,818 

640,952 

(32,306)

608,646 

Decommissioning

21,875 

- 

21,875 

36,337 

- 

36,337 

Taxes other than income taxes

81,447 

(10,536)

70,911 

95,078 

(10,536)

84,542 

Depreciation and amortization

222,036 

(8,054)

213,982 

232,188 

(8,054)

224,134 

Other regulatory charges (credits) - net

(33,601)

(1,202)

(34,803)

(33,601)

(1,202)

(34,803)

     Total

1,745,614 

(100,923)

1,644,691 

2,093,659 

(100,923)

1,992,736 

 

 

 

 

 

 

OPERATING INCOME

213,065 

4,880 

217,945 

209,569 

4,880 

214,449 

 

 

 

 

 

 

 

OTHER INCOME (DEDUCTIONS)

 

 

 

 

 

 

Allowance for equity funds used during
 construction

11,010 

(228)

10,782 

11,010 

(228)

10,782 

Interest and dividend income

26,080 

(106)

25,974 

34,659 

(106)

34,553 

Equity in earnings (loss) of unconsolidated
 equity affiliates

(4)

(4,791)

(4,795)

(46,820)

(4,791)

(51,611)

Miscellaneous - net

(44)

337 

293 

(4,486)

337 

(4,149)

Total

37,042 

(4,788)

32,254 

(5,637)

(4,788)

(10,425)

 

 

 

 

 

 

 

INTEREST AND OTHER CHARGES

 

 

 

 

 

 

Interest on long-term debt

110,413 

(3,485)

106,928 

114,224 

(3,485)

110,739 

Other interest - net

14,777 

202 

14,979 

14,416 

202 

14,618 

Allowance for borrowed funds used during
 construction

(7,222)

219 

(7,003)

(7,222)

219 

(7,003)

Total

117,968 

(3,064)

114,904 

121,418 

(3,064)

118,354 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

132,139 

3,156 

135,295 

82,514 

3,156 

85,670 

 

 

 

  

 

 

 

Income taxes

41,805 

3,397 

45,202 

(80,662)

3,397 

(77,265)

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS

90,334 

(241)

90,093 

163,176 

(241)

162,935 

 

 

 

 

 

 

LOSS FROM DISCONTINUED OPERATIONS
(net of taxes of ($399))

(2,202)

 - 

(2,202)

(2,202)

- 

(2,202)

 

 

 

 

 

 

CONSOLIDATED NET INCOME

88,132 

(241)

87,891 

160,974 

(241)

160,733 

 

 

 

 

 

 

 

Preferred dividend requirements and other

5,795 

(241)

5,554 

6,037 

(241)

5,796 

 

 

 

 

 

 

 

EARNINGS APPLICABLE TO COMMON STOCK

82,337 

- 

82,337 

154,937 

- 

154,937 

 

 

 

 

 

 

 

*Adjustment to reflect ENOI deconsolidation

 

 

 

 

 

 

Totals may not foot due to rounding

 

 

 

 

 

 

 

 

Appendix H-5: Reconciliation of GAAP to Non-GAAP Income Statement

Year to Date December 31, 2004

($ in thousands)

 

 

 

 

 

 

 

U.S. Utilities/Parent/Other

Consolidated

 

GAAP

ENOI Adjustment*

Pro-forma

GAAP

ENOI Adjustment*

Pro-forma

 

 

 

 

 

 

 

OPERATING REVENUES

 

 

 

 

 

 

Domestic electric

7,934,312 

(287,783)

7,646,529

7,932,577 

(287,783)

7,644,794 

Natural gas

208,499 

(147,411)

61,088

208,499 

(147,411)

61,088 

Competitive businesses

48,601 

- 

48,601

1,544,445 

- 

1,544,445 

   Total

8,191,412 

(435,194)

7,756,218

9,685,521 

(435,194)

9,250,327 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

Operating and Maintenance:

 

 

 

 

 

 

  Fuel, fuel related expenses, and gas purchased for resale

2,272,610 

(245,301)

2,027,309

2,488,208 

(245,301)

2,242,907 

  Purchased power

1,716,848 

39,061 

1,755,909

1,701,610 

39,061 

1,740,671 

  Nuclear refueling outage expenses

66,824 

- 

66,824

166,072 

- 

166,072 

  Provision for turbine commitments, asset
   impairments, and restructuring charges

- 

- 

-

55,000 

- 

55,000 

  Other operation and maintenance

1,578,842 

(102,451)

1,476,391

2,268,332 

(102,450)

2,165,882 

Decommissioning

91,939 

- 

91,939

149,529 

- 

149,529 

Taxes other than income taxes

348,376 

(43,577)

304,799

403,635 

(43,577)

360,058 

Depreciation and amortization

828,445 

(29,657)

798,788

893,574 

(29,657)

863,917 

Other regulatory credits - net

(90,611)

4,670 

(85,941)

(90,611)

4,670 

(85,941)

     Total

6,813,273 

(377,255)

6,436,018

8,035,349 

(377,254)

7,658,095 

 

 

 

 

 

 

 

OPERATING INCOME

1,378,139 

(57,939)

1,320,200

1,650,172 

(57,940)

1,592,232 

 

 

 

 

 

 

 

OTHER INCOME (DEDUCTIONS)

 

 

 

 

 

 

Allowance for equity funds used during construction

39,582 

(1,378)

38,204

39,582 

(1,378)

38,204 

Interest and dividend income

83,386 

(396)

82,990

109,635 

(396)

109,239 

Equity in earnings (loss) of unconsolidated equity
affiliates

(3)

27,107 

27,104

(78,727)

27,107 

(51,620)

Miscellaneous - net

25,460 

(270)

25,190

55,509 

(270)

55,240 

     Total

148,425 

25,063 

173,488

125,999 

25,064 

151,063 

 

INTEREST AND OTHER CHARGES

Interest on long-term debt

447,510 

(15,357)

432,153

463,384 

(15,357)

448,027 

Other interest - net

41,932 

(929)

41,003

40,133 

(929)

39,204 

Allowance for borrowed funds used during
construction

(25,741)

1,243 

(24,498)

(25,741)

1,243 

(24,498)

     Total

463,701 

(15,043)

448,658

477,776

(15,043)

462,733 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

1,062,863 

(17,833)

1,045,030 

1,298,395 

(17,833)

1,280,562 

 

 

 

 

 

 

Income taxes

378,526 

(16,868)

361,658 

365,305 

(16,868)

348,437 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS

684,337 

(965)

683,372 

933,090 

(965)

932,125 

 

 

 

 

 

 

LOSS FROM DISCONTINUED OPERATIONS
(net of taxes of ($603))

(41)

- 

(41)

(41)

- 

(41)

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME

684,296 

(965)

683,331 

933,049 

(965)

932,084 

 

 

 

 

 

 

 

Preferred dividend requirements and other

23,283 

(965)

22,318 

23,525 

(965)

22,560 

 

 

 

 

 

 

 

EARNINGS APPLICABLE TO COMMON STOCK

661,013 

- 

661,013 

909,524 

- 

909,524 

 

 

 

 

 

 

 

*Adjustment to reflect ENOI deconsolidation

 

 

 

 

 

 

Totals may not foot due to rounding

 

 

Appendix H-6: Reconciliation of GAAP to Non-GAAP Cash Flow Statement

Three Months Ended December 31, 2004

($ in thousands)

Consolidated

GAAP

ENOI

Adjustment*

Pro-forma

OPERATING ACTIVITIES

Consolidated net income

160,974 

(241)

160,733 

Adjustments to reconcile consolidated net income to net cash flow

provided by operating activities:

Reserve for regulatory adjustments

27,974 

193 

28,167 

Other regulatory credits - net

(33,601)

(1,202)

(34,803)

Depreciation, amortization, and decommissioning

269,316 

(8,054)

261,262 

Deferred income taxes and investment tax credits

128,822 

(15,521)

113,301 

Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends

549,950 

4,791 

554,741 

Provision for turbine commitments, asset impairments, and restructuring charges

55,000 

- 

55,000 

Changes in working capital:

  Receivables

132,516 

(24,314)

108,202 

  Fuel inventory

3,940 

(1,769)

2,171 

  Accounts payable

110,091 

(2,850)

107,241 

  Taxes accrued

(239,686)

15,448 

(224,238)

  Interest accrued

(8,755)

(2,321)

(11,076)

  Deferred fuel

33,202 

14,497 

47,699 

  Other working capital accounts

48,391 

(9,140)

39,251 

Provision for estimated losses and reserves

(3,120)

1,043 

(2,077)

Changes in other regulatory assets

40,272 

(610)

39,662 

Other

(59,632)

7,167 

(52,465)

Net cash flow provided by operating activities

1,215,654 

(22,883)

1,192,771 

INVESTING ACTIVITIES

Construction/capital expenditures

(465,798)

14,868 

(450,930)

Allowance for equity funds used during construction

11,010 

(228)

10,782 

Nuclear fuel purchases

(86,088)

- 

(86,088)

Proceeds from sale/leaseback of nuclear fuel

35,209 

- 

35,209 

Proceeds from sale of assets and businesses

53,452 

- 

53,452 

Investment in nonutility properties

13,712 

- 

13,712 

Decrease (increase) in other investments

394,838 

- 

394,838 

Purchase of other temporary investments

(1,025,600)

- 

(1,025,600)

Liquidation of other temporary investments

884,150 

- 

884,150 

Decommissioning trust contributions and realized change in trust assets

(23,811)

- 

(23,811)

Other regulatory investments

8,965 

- 

8,965 

Net cash flow used in investing activities

(199,961)

14,640 

(185,321)

FINANCING ACTIVITIES

Proceeds from the issuance of:

  Long-term debt

2,212,918 

85 

2,213,003 

  Preferred stock

- 

- 

- 

  Common stock and treasury stock

29,892 

- 

29,892 

Retirement of long-term debt

(2,338,078)

- 

(2,338,078)

Repurchase of common stock

(601,727)

- 

(601,727)

Changes in credit line borrowings - net

(110,079)

- 

(110,079)

Dividends paid:

  Common stock

(123,392)

- 

(123,392)

  Preferred stock

(6,037)

241 

(5,796)

Net cash flow provided by (used in) financing activities

(936,503)

326 

(936,177)

Effect of exchange rates on cash and cash equivalents

(745)

(1)

(746)

Net increase (decrease) in cash and cash equivalents

78,445 

(7,918)

70,527 

Cash and cash equivalents at beginning of period

541,341 

(36)

541,305 

Cash and cash equivalents at end of period

619,786 

(7,954)

611,832 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

  Cash paid (received) during the period for:

    Interest - net of amount capitalized.

131,630 

405 

132,035 

    Income taxes

(4,561)

726 

(3,835)

*Adjustment to reflect ENOI deconsolidation

Totals may not foot due to rounding

 

 

Appendix H-7: Reconciliation of GAAP to Non-GAAP Cash Flow Statement

Year to Date December 31, 2004

($ in thousands)

Consolidated

GAAP

ENOI Adjustment*

Pro-forma

OPERATING ACTIVITIES

Consolidated net income

933,049 

(965)

932,084 

Adjustments to reconcile consolidated net income to net cash flow

provided by operating activities:

Reserve for regulatory adjustments

33,533 

7,363 

40,896 

Other regulatory credits - net

(90,611)

4,670 

(85,941)

Depreciation, amortization, and decommissioning

1,045,122 

(29,657)

1,015,465 

Deferred income taxes and investment tax credits

275,458 

(39,782)

235,676 

Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends

608,141 

(21,907)

586,234 

Provision for turbine commitments, asset impairments, and restructuring charges

55,000 

- 

55,000 

Changes in working capital:

  Receivables

(210,419)

7,757 

(202,662)

  Fuel inventory

(16,769)

(1,399)

(18,168)

  Accounts payable

95,306 

(13,905)

81,401 

  Taxes accrued

75,055 

13,056 

88,111 

  Interest accrued

5,269 

1,455 

6,724 

  Deferred fuel

213,627 

5,279 

218,906 

  Other working capital accounts

41,008 

(2,123)

38,885 

Provision for estimated losses and reserves

(18,041)

1,863 

(16,178)

Changes in other regulatory assets

48,626 

5,380 

54,006 

Other

(164,035)

4,539 

(159,496)

Net cash flow provided by operating activities

2,929,319 

(58,376)

2,870,943 

INVESTING ACTIVITIES

Construction/capital expenditures

(1,410,610)

51,264 

(1,359,346)

Allowance for equity funds used during construction

39,582 

(1,378)

38,204 

Nuclear fuel purchases

(238,170)

- 

(238,170)

Proceeds from sale/leaseback of nuclear fuel

109,988 

- 

109,988 

Proceeds from sale of assets and businesses

75,430 

- 

75,430 

Investment in nonutility properties

(6,420)

- 

(6,420)

Decrease (increase) in other investments

383,498 

- 

383,498 

Purchase of other temporary investments

(1,629,500)

- 

(1,629,500)

Liquidation of other temporary investments

1,676,350 

(606)

1,675,744 

Decommissioning trust contributions and realized change in trust assets

(89,807)

- 

(89,807)

Other regulatory investments

(53,566)

- 

(53,566)

Net cash flow used in investing activities

(1,143,225)

49,280 

(1,093,945)

FINANCING ACTIVITIES

Proceeds from the issuance of:

  Long-term debt

3,653,478 

(72,640)

3,580,838 

  Common stock and treasury stock

170,237 

- 

170,237 

Retirement of long-term debt

(4,022,548)

77,487 

(3,945,061)

Repurchase of common stock

(1,017,996)

- 

(1,017,996)

Redemption of preferred stock

(3,450)

- 

(3,450)

Changes in credit line borrowings - net

(154)

- 

(154)

Dividends paid:

 

 

  Common stock

(427,901)

- 

(427,901)

  Preferred stock

(23,525)

965 

(22,560)

Net cash flow used in financing activities

(1,671,859)

5,812 

(1,666,047)

Effect of exchange rates on cash and cash equivalents

(1,882)

- 

(1,882)

Net increase (decrease) in cash and cash equivalents

112,353 

(3,284)

109,069 

Cash and cash equivalents at beginning of period

507,433 

(4,670)

502,763 

Cash and cash equivalents at end of period

619,786 

(7,954)

611,832 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

  Cash paid (received) during the period for:

    Interest - net of amount capitalized

477,768 

(16,172)

461,596 

    Income taxes

28,241 

5,736 

33,977 

*Adjustment to reflect ENOI deconsolidation

Totals may not foot due to rounding

 

 

Entergy's common stock is listed on the New York, Chicago, and Pacific exchanges under the symbol "ETR".

Additional investor information can be accessed on-line at
www.entergy.com/earnings

*********************************************************************************************************************************

In this release and from time to time, Entergy makes statements concerning its expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although Entergy believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that they will prove correct. Except to the extent required by federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements involve a number of risks and uncertainties, and there are factors that could cause actual results to differ materially from those expressed or implied in these statements. Some of those factors include, but are not limited to: resolution of pending and future rate cases and other proceedings at local and federal regulatory agencies, Entergy's ability to manage its operation and maintenance costs, the performance of Entergy's generating plants, and particularly the capacity factor at its nuclear generating facilities, prices for power generated by Entergy's unregulated generating facilities, and the prices and availability of power Entergy must purchase for its utility customers, uncertainty regarding establishment of sites for spent nuclear fuel storage and disposal, Entergy's ability to develop and execute on a point of view regarding prices of electricity, natural gas, and other energy-related commodities, changes in the financial markets, particularly those affecting the availability of capital and Entergy's ability to refinance existing debt, execute its share repurchase program, and fund investments and acquisitions, actions of rating agencies, including changes in the ratings of debt and preferred stock, Entergy's ability to purchase and sell assets at attractive prices and on other attractive terms, changes in utility regulation and in regulation of the nuclear industry, the success of Entergy's strategies to reduce tax payments, the effects of litigation and weather, and uncertainties associated with efforts to remediate the effects of Hurricanes Katrina and Rita and recovery of costs associated with restoration including Entergy's ability to obtain financial assistance from governmental authorities in connection with these storms, the outcome of the Chapter 11 bankruptcy proceeding of Entergy New Orleans, Inc. and the impact, if any, of this proceeding on other Entergy companies.

 

Entergy Corporation 
 
Consolidating Balance Sheet 
December 31, 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ 109,140    $ 14,638    $ -    $ 123,778 
  Temporary cash investments - at cost,               
   which approximates market 127,786    233,261    -    361,047 
  Special deposits 97,995    -    -    97,995 
     Total cash and cash equivalents 334,921    247,899    -    582,820 
Other temporary investments -    -    -    - 
Notes receivable 665,873    1,144,505    (1,717,151)   93,227 
Accounts receivable:              
  Customer 732,455    -    -    732,455 
  Allowance for doubtful accounts (28,635)   (2,170)   -    (30,805)
  Associated companies 33,851    69,719    (103,570)   - 
  Other 193,548    162,866    -    356,414 
  Accrued unbilled revenues 477,570    -    -    477,570 
     Total receivables 1,408,789    230,415    (103,570)   1,535,634 
Deferred fuel costs 664,416    -    -    664,416 
Accumulated deferred income taxes -    -    -    - 
Fuel inventory - at average cost 204,382    1,813    -    206,195 
Materials and supplies - at average cost 369,397    241,535    -    610,932 
Deferred nuclear refueling outage costs 64,157    93,607    -    157,764 
Prepayments and other 59,436    24,408    -    83,844 
TOTAL 3,771,371    1,984,182    (1,820,721)   3,934,832 
               
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity 8,198,240    428,006    (8,329,462)   296,784 
Decommissioning trust funds 1,136,006    1,470,759    -    2,606,765 
Non-utility property - at cost (less accumulated depreciation) 226,264    2,569    -    228,833 
Other 35,594    45,941    -    81,535 
TOTAL 9,596,104    1,947,275    (8,329,462)   3,213,917 
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 27,176,956    1,987,079    (3,008)   29,161,027 
Property under capital lease 727,565    -    -    727,565 
Natural gas 86,794    -    -    86,794 
Construction work in progress 1,291,374    232,711    -    1,524,085 
Nuclear fuel under capital lease 271,615    -    -    271,615 
Nuclear fuel 101,403    335,243    -    436,646 
TOTAL PROPERTY, PLANT AND EQUIPMENT 29,655,707    2,555,033    (3,008)   32,207,732 
Less - accumulated depreciation and amortization 12,730,545    280,142    -    13,010,687 
PROPERTY, PLANT AND EQUIPMENT - NET 16,925,162    2,274,891    (3,008)   19,197,045 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net 735,221    -    -    735,221 
  Other regulatory assets 1,926,376    -    -    1,926,376 
Long-term receivables 25,572    -    -    25,572 
Goodwill 374,099    3,073    -    377,172 
Other 831,846    797,515    (650,820)   978,541 
TOTAL 3,893,114    800,588    (650,820)   4,042,882 
               
TOTAL ASSETS $ 34,185,751    $ 7,006,936    $ (10,804,011)   $ 30,388,676 
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Consolidating Balance Sheet 
December 31, 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES              
               
Currently maturing long-term debt $ 22,989    $ 80,528    $ -    $ 103,517 
Notes payable:              
  Associated companies 926,271    530,880    (1,457,151)   - 
  Other 40,041    -    -    40,041 
Account payable:              
  Associated companies 77,793    23,393    (101,186)   - 
  Other 1,494,385    161,402    -    1,655,787 
Customer deposits 222,044    162    -    222,206 
Taxes accrued 316,659    (128,500)   -    188,159 
Accumulated deferred income taxes 143,409    -    -    143,409 
Nuclear refueling outage costs 15,548    -    -    15,548 
Interest accrued 153,269    1,586    -    154,855 
Obligations under capital leases 130,882    -    -    130,882 
Other 66,367    407,143    -    473,510 
TOTAL 3,609,657    1,076,594    (1,558,337)   3,127,914 
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 5,009,448    35,661    -    5,045,109 
Accumulated deferred investment tax credits 376,550    -    -    376,550 
Obligations under capital leases 175,005    -    -    175,005 
Other regulatory liabilities 408,667    -    -    408,667 
Decommissioning and retirement cost liabilities 1,161,830    762,141    -    1,923,971 
Transition to competition 79,101    -    -    79,101 
Regulatory reserves 18,624    -    -    18,624 
Accumulated provisions 350,265    205,763    -    556,028 
Long-term debt 8,791,811    349,073    (316,391)   8,824,493 
Preferred stock with sinking fund 13,950    -    -    13,950 
Other 1,495,060    741,786    (600,021)   1,636,825 
TOTAL 17,880,311    2,094,424    (916,412)   19,058,323 
               
Preferred stock without sinking fund 411,321    426,590    (391,937)   445,974 
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
  issued 248,174,087 shares in 2005 2,205,192    1,091,856    (3,294,566)   2,482 
Paid-in capital 6,653,879    1,565,320    (3,401,562)   4,817,637 
Retained earnings 5,712,395    1,121,151    (1,405,139)   5,428,407 
Accumulated other comprehensive income (loss) (5,044)   (325,683)   626    (330,101)
Less - treasury stock, at cost (40,644,602 shares in 2005) 2,281,960    43,316    (163,316)   2,161,960 
TOTAL 12,284,462    3,409,328    (7,937,325)   7,756,465 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 34,185,751    $ 7,006,936    $ (10,804,011)   $ 30,388,676 
               
*Totals may not foot due to rounding.              

 

Entergy Corporation 
 
Consolidating Balance Sheet 
December 31, 2004 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ 62,001    $ 17,135    $ -    $ 79,136 
  Temporary cash investments - at cost,              
   which approximates market 558,971    167,393    (185,714)   540,650 
     Total cash and cash equivalents 620,972    184,528    (185,714)   619,786 
Other temporary investments 2,236    -    185,714    187,950 
Notes receivable -    1,183,043    (1,179,951)   3,092 
Accounts receivable:               
  Customer 435,191    -    -    435,191 
  Allowance for doubtful accounts (21,576)   (2,182)   -    (23,758)
  Associated companies 7,144    22,510    (29,654)   - 
  Other 185,899    156,389    -    342,289 
  Accrued unbilled revenues 460,039    -    -    460,039 
     Total receivables 1,066,697    176,717    (29,654)   1,213,761 
Deferred fuel costs 85,911    -    -    85,911 
Accumulated deferred income taxes 76,899    -    -    76,899 
Fuel inventory - at average cost 125,454    1,797    -    127,251 
Materials and supplies - at average cost 345,688    223,718    -    569,407 
Deferred nuclear refueling outage costs 31,601    76,181    -    107,782 
Prepayments and other 89,105    27,173    -    116,279 
TOTAL 2,444,563    1,873,157    (1,209,605)   3,108,118 
               
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity 8,054,793    512,571    (8,335,585)   231,779 
Decommissioning trust funds 1,051,901    1,401,505    -    2,453,406 
Non-utility property - at cost (less accumulated depreciation) 217,906    1,812    -    219,717 
Other 33,682    57,310    -    90,992 
TOTAL 9,358,282    1,973,198    (8,335,585)   2,995,894 
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 27,193,633    1,863,661    (3,954)   29,053,340 
Property under capital lease 738,554    -    -    738,554 
Natural gas 262,787    -    -    262,787 
Construction work in progress 952,092    245,460    -    1,197,551 
Nuclear fuel under capital lease 262,469    -    -    262,469 
Nuclear fuel 34,326    286,487    -    320,813 
TOTAL PROPERTY, PLANT AND EQUIPMENT 29,443,861    2,395,608    (3,954)   31,835,514 
Less - accumulated depreciation and amortization 12,905,551    234,332    -    13,139,883 
PROPERTY, PLANT AND EQUIPMENT - NET 16,538,310    2,161,276    (3,954)   18,695,631 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net 746,413    -    -    746,413 
  Other regulatory assets 1,429,261    -    -    1,429,261 
Long-term receivables 39,417    -    -    39,417 
Goodwill 374,099    3,073    -    377,172 
Other 796,166    744,861    (622,156)   918,871 
TOTAL 3,385,356    747,934    (622,156)   3,511,134 
               
TOTAL ASSETS $ 31,726,511    $ 6,755,565    $ (10,171,300)   $ 28,310,777 
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Consolidating Balance Sheet 
December 31, 2004 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES              
               
Currently maturing long-term debt $ 415,266   $ 77,297    $ -    $ 492,564 
Notes payable:              
  Associated companies 770,623   409,356    (1,179,980)   - 
  Other 43   150    -    193 
Account payable:              
  Associated companies 14,781   10,811    (25,592)   - 
  Other 722,148   174,380    -    896,528 
Customer deposits 222,157   162    -    222,320 
Taxes accrued 178,671   45,340    -    224,011 
Nuclear refueling outage costs               
Interest accrued 142,329   2,149    -    144,478 
Obligations under capital leases 133,847   -    -    133,847 
Other 83,478   134,965    -    218,442 
TOTAL 2,683,343   854,610    (1,205,572)   2,332,383 
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 5,205,074   (137,693)   -    5,067,381 
Accumulated deferred investment tax credits 399,228   -    -    399,228 
Obligations under capital leases 146,060   -    -    146,060 
Other regulatory liabilities 329,767   -    -    329,767 
Decommissioning and retirement cost liabilities 1,327,988   738,289    -    2,066,277 
Transition to competition 79,101   -    -    79,101 
Regulatory reserves 103,061   -    -    103,061 
Accumulated provisions 346,614   203,300    -    549,914 
Long-term debt 6,648,504   409,719    (41,391)   7,016,831 
Preferred stock with sinking fund 17,400   -    -    17,400 
Other 1,597,079   533,237    (588,983)   1,541,331 
TOTAL 16,199,876   1,746,852    (630,374)   17,316,351 
               
Preferred stock without sinking fund 330,831   426,462    (391,937)   365,356 
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
  issued 248,174,087 shares in 2004 2,205,191   1,091,856    (3,294,566)   2,482 
Paid-in capital 5,940,702   1,978,925    (3,084,252)   4,835,375 
Retained earnings 5,913,815   799,027    (1,728,541)   4,984,302 
Accumulated other comprehensive income (loss) 4,772   (98,851)   626    (93,453)
Less - treasury stock, at cost (31,345,028 shares in 2004) 1,552,019   43,316    (163,316)   1,432,019 
TOTAL 12,512,461   3,727,641    (7,943,417)   8,296,687 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 31,726,511   $ 6,755,565    $ (10,171,300)   $ 28,310,777 
               
*Totals may not foot due to rounding.              

 

Entergy Corporation 
 
Pro Forma Consolidating Balance Sheet 
(Reflects Deconsolidation of Entergy New Orleans) 
December 31, 2004 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ 59,003    $ 17,135    $ -    $ 76,138 
  Temporary cash investments - at cost,              
   which approximates market 554,015    167,393    (185,714)   535,694 
  Special deposits -    -    -    - 
     Total cash and cash equivalents 613,018    184,528    (185,714)   611,832 
Other temporary investments 2,236    -    185,714    187,950 
Notes receivable -    1,183,043    (1,179,951)   3,092 
Accounts receivable:              
  Customer 418,398    -    -    418,398 
  Allowance for doubtful accounts (18,084)   (2,182)   -    (20,266)
  Associated companies 7,144    22,510    (29,654)   - 
  Other 178,571    156,389    -    334,960 
  Accrued unbilled revenues 435,191    -    -    435,191 
     Total receivables 1,021,220    176,717    (29,654)   1,168,283 
Deferred fuel costs 83,352    -    -    83,352 
Accumulated deferred income taxes 78,805    -    -    78,805 
Fuel inventory - at average cost 121,273    1,797    -    123,070 
Materials and supplies - at average cost 336,539    223,718    -    560,257 
Deferred nuclear refueling outage costs 31,601    76,181    -    107,782 
Prepayments and other 85,637    27,173    -    112,810 
TOTAL 2,373,681    1,873,157    (1,209,605)   3,037,233 
               
OTHER PROPERTY AND INVESTMENTS              
                
Investment in affiliates - at equity 8,209,254    512,571    (8,335,585)   386,240 
Decommissioning trust funds 1,051,901    1,401,505    -    2,453,406 
Non-utility property - at cost (less accumulated depreciation) 217,905    1,812    -    219,717 
Other 33,682    57,310    -    90,992 
TOTAL 9,512,742    1,973,198    (8,335,585)   3,150,355 
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 26,494,561    1,863,661    (3,954)   28,354,268 
Property under capital lease 738,554    -    -    738,554 
Natural gas 79,059    -    -    79,059 
Construction work in progress 918,818    245,460    -    1,164,278 
Nuclear fuel under capital lease 262,469    -    -    262,469 
Nuclear fuel 34,326    286,487    -    320,813 
TOTAL PROPERTY, PLANT AND EQUIPMENT 28,527,787    2,395,608    (3,954)   30,919,441 
Less - accumulated depreciation and amortization 12,470,032    234,332    -    12,704,364 
PROPERTY, PLANT AND EQUIPMENT - NET 16,057,755    2,161,276    (3,954)   18,215,077 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net 792,819    -    -    792,819 
  Other regulatory assets 1,393,772    -    -    1,393,772 
Long-term receivables 36,925    -    -    36,925 
Goodwill 374,099    3,073    -    377,172 
Other 787,282    744,861    (622,156)   909,987 
TOTAL 3,384,897    747,934    (622,156)   3,510,675 
               
TOTAL ASSETS $ 31,329,075    $ 6,755,565    $ (10,171,300)   $ 27,913,340 
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Pro Forma Consolidating Balance Sheet 
(Reflects Deconsolidation of Entergy New Orleans) 
December 31, 2004 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES              
               
Currently maturing long-term debt $ 385,267    $ 77,297    $ -    $ 462,564 
Notes payable:              
  Associated companies 770,624    409,356    (1,179,980)   - 
  Other 43    150    -    193 
Account payable:              
  Associated companies 14,781    10,811    (25,592)   - 
  Other 690,222    174,380    -    864,602 
Customer deposits 204,971    162    -    205,133 
Taxes accrued 176,079    45,340    -    221,419 
Accumulated deferred income taxes -    -    -    - 
Nuclear refueling outage costs -    -    -    - 
Interest accrued 137,572    2,149    -    139,721 
Obligations under capital leases 133,847    -    -    133,847 
Other 73,389    134,965    -    208,354 
TOTAL 2,586,795    854,610    (1,205,572)   2,235,833 
                
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 5,158,012    (137,693)   -    5,020,319 
Accumulated deferred investment tax credits 395,231    -    -    395,231 
Obligations under capital leases 146,060    -    -    146,060 
Other regulatory liabilities 329,767    -    -    329,767 
Decommissioning and retirement cost liabilities 1,327,988    738,289    -    2,066,277 
Transition to competition 79,101    -    -    79,101 
Regulatory reserves 102,828    -    -    102,828 
Accumulated provisions 347,656    203,300    -    550,956 
Long-term debt 6,451,857    409,719    (41,391)   6,820,185 
Preferred stock with sinking fund 17,400    -    -    17,400 
Other 1,562,866    533,237    (588,983)   1,507,120 
TOTAL 15,918,766    1,746,852    (630,374)   17,035,244 
                
Preferred stock without sinking fund 311,051    426,462    (391,937)   345,576 
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
  issued 248,174,087 shares in 2004 2,205,192    1,091,856    (3,294,566)   2,482 
Paid-in capital 5,940,702    1,978,925    (3,084,252)   4,835,375 
Retained earnings 5,913,816    799,027    (1,728,541)   4,984,302 
Accumulated other comprehensive income (loss) 4,772    (98,851)   626    (93,453)
Less - treasury stock, at cost (31,345,028 shares in 2004) 1,552,019    43,316    (163,316)   1,432,019 
TOTAL 12,512,463    3,727,641    (7,943,417)   8,296,687 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 31,329,075    $ 6,755,565    $ (10,171,300)   $ 27,913,340 
               
*Totals may not foot due to rounding.              

 

Entergy Corporation 
 
Pro Forma Consolidating Balance Sheet 
(Reflects Deconsolidation of Entergy New Orleans) 
December 31, 2005 vs December 31, 2004 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ 50,137    $ (2,497)   $ -    $ 47,640 
  Temporary cash investments - at cost,              
   which approximates market (426,229)   65,868    185,714    (174,647)
  Special deposits 97,995    -    -    97,995 
     Total cash and cash equivalents (278,097)   63,371    185,714    (29,012)
Other temporary investments (2,236)   -    (185,714)   (187,950)
Notes receivable 665,873    (38,538)   (537,200)   90,135 
Accounts receivable:              
  Customer 314,057    -    -    314,057 
  Allowance for doubtful accounts (10,551)   12    -    (10,539)
  Associated companies 26,707    47,209    (73,916)   - 
  Other 14,977    6,477    -    21,454 
  Accrued unbilled revenues 42,379    -    -    42,379 
     Total receivables 387,569    53,698    (73,916)   367,351 
Deferred fuel costs 581,064    -    -    581,064 
Accumulated deferred income taxes (78,805)   -    -    (78,805)
Fuel inventory - at average cost 83,109    16    -    83,125 
Materials and supplies - at average cost 32,858    17,817    -    50,675 
Deferred nuclear refueling outage costs 32,556    17,426    -    49,982 
Prepayments and other (26,201)   (2,765)   -    (28,966)
TOTAL 1,397,690    111,025    (611,116)   897,599 
               
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity (11,014)   (84,565)   6,123    (89,456)
Decommissioning trust funds 84,105    69,254    -    153,359 
Non-utility property - at cost (less accumulated depreciation) 8,359    757    -    9,116 
Other 1,912    (11,369)   -    (9,457)
TOTAL 83,362    (25,923)   6,123    63,562 
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 682,395    123,418    946    806,759 
Property under capital lease (10,989)   -    -    (10,989)
Natural gas 7,735    -    -    7,735 
Construction work in progress 372,556    (12,749)   -    359,807 
Nuclear fuel under capital lease 9,146    -    -    9,146 
Nuclear fuel 67,077    48,756    -    115,833 
TOTAL PROPERTY, PLANT AND EQUIPMENT 1,127,920    159,425    946    1,288,291 
Less - accumulated depreciation and amortization 260,513    45,810    -    306,323 
PROPERTY, PLANT AND EQUIPMENT - NET 867,407    113,615    946    981,968 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net (57,598)   -    -    (57,598)
  Other regulatory assets 532,604    -    -    532,604 
Long-term receivables (11,353)   -    -    (11,353)
Goodwill -    -    -    - 
Other 44,564    52,654    (28,664)   68,554 
TOTAL 508,217    52,654    (28,664)   532,207 
               
TOTAL ASSETS $ 2,856,676    $ 251,371    $ (632,711)   $ 2,475,336 
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Pro Forma Consolidating Balance Sheet 
(Reflects Deconsolidation of Entergy New Orleans) 
December 31, 2005 vs December 31, 2004 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES              
               
Currently maturing long-term debt $ (362,278)   $ 3,231    $ -    $ (359,047)
Notes payable:              
  Associated companies 155,647    121,524    (277,171)   - 
  Other 39,998    (150)   -    39,848 
Account payable:              
  Associated companies 63,012    12,582    (75,594)   - 
  Other 804,163    (12,978)   -    791,185 
Customer deposits 17,073    -    -    17,073 
Taxes accrued 140,580    (173,840)   -    (33,260)
Accumulated deferred income taxes 143,409    -    -    143,409 
Nuclear refueling outage costs 15,548    -    -    15,548 
Interest accrued 15,697    (563)   -    15,134 
Obligations under capital leases (2,965)   -    -    (2,965)
Other (7,022)   272,178    -    265,156 
TOTAL 1,022,862    221,984    (352,765)   892,081 
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued (148,564)   173,354    -    24,790 
Accumulated deferred investment tax credits (18,681)   -    -    (18,681)
Obligations under capital leases 28,945    -    -    28,945 
Other regulatory liabilities 78,900    -    -    78,900 
Decommissioning and retirement cost liabilities (166,158)   23,852    -    (142,306)
Transition to competition -    -    -    - 
Regulatory reserves (84,204)   -    -    (84,204)
Accumulated provisions 2,609    2,463    -    5,072 
Long-term debt 2,339,954    (60,646)   (275,000)   2,004,308 
Preferred stock with sinking fund (3,450)   -    -    (3,450)
Other (67,806)   208,549    (11,038)   129,705 
TOTAL 1,961,545    347,572    (286,038)   2,023,079 
               
Preferred stock without sinking fund 100,270    128    -    100,398 
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
  issued 248,174,087 shares in 2005 and 2004 -    -    -    - 
Paid-in capital 713,177    (413,605)   (317,310)   (17,738)
Retained earnings (201,421)   322,124    323,402    444,105 
Accumulated other comprehensive income (loss) (9,816)   (226,832)   -    (236,648)
Less - treasury stock, at cost 729,941    -    -    729,941 
TOTAL (228,001)   (318,313)   6,092    (540,222)
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,856,676    $ 251,371    $ (632,711)   $ 2,475,336 
               
*Totals may not foot due to rounding.              

 

Entergy Corporation 
 
Consolidating Income Statement 
Three Months Ended December 31, 2005 
(Dollars in thousands) 
(Unaudited) 
 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 2,211,147    $ -    $ (1,266)   $ 2,209,881 
Natural gas   25,931    -    -    25,931 
Competitive businesses   11,343    425,860    (20,598)   416,605 
     Total   2,248,421    425,860    (21,864)   2,652,417 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   587,139    63,224    -    650,363 
  Purchased power   744,153    9,457    (21,100)   732,510 
  Nuclear refueling outage expenses   19,867    22,394    -    42,261 
  Provision for turbine commitments, asset impairments                
   and restructuring charges   -    -    -    - 
  Other operation and maintenance   394,535    175,689    (879)   569,345 
Decommissioning   19,433    15,109    -    34,542 
Taxes other than income taxes   83,436    14,736    -    98,173 
Depreciation and amortization   203,265    15,956    -    219,221 
Other regulatory charges (credits) - net   (5,067)   -    -    (5,067)
     Total   2,046,761    316,565    (21,979)   2,341,348 
                 
OPERATING INCOME   201,660    109,295    115    311,069 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   16,322    -    -    16,322 
Interest and dividend income   33,776    24,592    (23,511)   34,857 
Equity in earnings (loss) of unconsolidated equity affiliates   (13,692)   (7,336)   -    (21,028)
Miscellaneous - net   (5,475)   15,240    (115)   9,650 
     Total   30,931    32,496    (23,626)   39,801 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   113,868    2,317    -    116,185 
Other interest - net   28,702    16,004    (23,497)   21,208 
Allowance for borrowed funds used during construction   (9,587)   -    -    (9,587)
     Total   132,983    18,321    (23,497)   127,806 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   99,608    123,470    (14)   223,064 
                 
Income taxes   60,900    32,213    -    93,113 
                 
INCOME FROM CONTINUING OPERATIONS   38,708    91,257    (14)   129,951 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $ (17,995))   (33,508)   -    -    (33,508)
                 
CONSOLIDATED NET INCOME   5,200    91,257    (14)   96,443 
                 
Preferred dividend requirements and other   5,355    869    (14)   6,210 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ (155)   $ 90,388    $ -    $ 90,233 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $0.16    $0.43        $0.59 
  DILUTED   $0.16    $0.43        $0.59 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.16)   $0.00        ($0.16)
  DILUTED   ($0.16)   $0.00        ($0.16)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   ($0.00)   $0.43        $0.43 
  DILUTED   ($0.00)   $0.43        $0.43 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               207,495,740 
  DILUTED               211,267,191 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation 
 
Consolidating Income Statement 
Three Months Ended December 31, 2004 
(Dollars in thousands) 
(Unaudited) 
               
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 1,890,376    $ -    $ (450)   $ 1,889,926 
Natural gas   52,908    -    -    52,908 
Competitive businesses   15,395    358,891    (13,891)   360,394 
     Total   1,958,679    358,891    (14,341)   2,303,228 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   594,717    49,110    -    643,827 
  Purchased power   383,915    11,951    (13,975)   381,890 
  Nuclear refueling outage expenses   18,101    23,887    -    41,988 
  Provision for turbine commitments, asset impairments                 
   and restructuring charges   -    55,000    -    55,000 
  Other operation and maintenance   457,124    184,325    (497)   640,952 
Decommissioning   21,875    14,462    -    36,337 
Taxes other than income taxes   81,447    13,631    -    95,078 
Depreciation and amortization   222,036    10,151    -    232,188 
Other regulatory charges (credits) - net   (33,601)   -    -    (33,601)
     Total   1,745,614    362,517    (14,472)   2,093,659 
                 
OPERATING INCOME   213,065    (3,626)   131    209,569 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   11,010    -    -    11,010 
Interest and dividend income   26,080    23,446    (14,866)   34,659 
Equity in earnings (loss) of unconsolidated equity affiliates   (4)   (46,816)   -    (46,820)
Miscellaneous - net   (44)   (4,311)   (131)   (4,486)
      Total   37,042    (27,681)   (14,997)   (5,637)
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   110,413    3,810    -    114,224 
Other interest - net   14,777    14,451    (14,812)   14,416 
Allowance for borrowed funds used during construction   (7,222)   -    -    (7,222)
     Total   117,968    18,261    (14,812)   121,418 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   132,139    (49,568)   (55)   82,514 
                 
Income taxes   41,805    (122,467)   -    (80,662)
                 
INCOME FROM CONTINUING OPERATIONS   90,334    72,899    (55)   163,176 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $ (399))   (2,202)   -   -    (2,202)
                 
CONSOLIDATED NET INCOME   88,132    72,899    (55)   160,974 
                 
Preferred dividend requirements and other   5,795    297    (55)   6,037 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 82,337    $ 72,602    $ -    $ 154,937 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $0.38    $0.33        $0.71 
  DILUTED   $0.37    $0.32        $0.69 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.01)   $0.00        ($0.01)
  DILUTED   ($0.01)   $0.00        ($0.01)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $0.37    $0.33        $0.70 
  DILUTED   $0.36    $0.32        $0.68 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               221,650,353 
  DILUTED               226,218,648 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
 
Pro Forma Consolidating Income Statement 
(Reflects Deconsolidation of Entergy New Orleans) 
Three Months Ended December 31, 2004 
(Dollars in thousands) 
(Unaudited) 
 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 1,833,061    $ -    $ (450)   $ 1,832,611 
Natural gas   14,180    -    -    14,180 
Competitive businesses   15,395    358,891    (13,891)   360,394 
     Total   1,862,636    358,891    (14,341)   2,207,185 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   527,216    49,110    -    576,326 
  Purchased power   402,591    11,951    (13,975)   400,566 
  Nuclear refueling outage expenses   18,101    23,887    -    41,988 
  Provision for turbine commitments, asset impairments                
   and restructuring charges   -    55,000    -    55,000 
  Other operation and maintenance   424,818    184,325    (497)   608,646 
Decommissioning   21,875    14,462    -    36,337 
Taxes other than income taxes   70,911    13,631    -    84,542 
Depreciation and amortization   213,982    10,151    -    224,134 
Other regulatory charges (credits) - net   (34,803)   -    -    (34,803)
     Total   1,644,691    362,517    (14,472)   1,992,736 
                 
OPERATING INCOME   217,945    (3,626)   131    214,449 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   10,782    -    -    10,782 
Interest and dividend income   25,974    23,446    (14,866)   34,553 
Equity in earnings (loss) of unconsolidated equity affiliates   (4,795)   (46,816)   -    (51,611)
Miscellaneous - net   293    (4,311)   (131)   (4,149)
     Total   32,254    (27,681)   (14,997)   (10,425)
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   106,928    3,810    -    110,739 
Other interest - net   14,979    14,451    (14,812)   14,618 
Allowance for borrowed funds used during construction   (7,003)   -    -    (7,003)
     Total   114,904    18,261    (14,812)   118,354 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   135,295    (49,568)   (55)   85,670 
                 
Income taxes   45,202    (122,467)   -    (77,265)
                 
INCOME FROM CONTINUING OPERATIONS   90,093    72,899    (55)   162,935 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $ (399))   (2,202)   -    -    (2,202)
                 
CONSOLIDATED NET INCOME   87,891    72,899    (55)   160,733 
                 
Preferred dividend requirements and other   5,554    297    (55)   5,796 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 82,337    $ 72,602    $ -    $ 154,937 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $0.38    $0.33        $0.71 
  DILUTED   $0.37    $0.32        $0.69 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.01)   $0.00        ($0.01)
  DILUTED   ($0.01)   $0.00        ($0.01)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $0.37    $0.33        $0.70 
  DILUTED   $0.36    $0.32        $0.68 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               221,650,353 
  DILUTED               226,218,648 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation 
 
Pro Forma Consolidating Income Statement 
(Reflects Deconsolidation of Entergy New Orleans) 
Three Months Ended December 31, 2005 vs. 2004 
(Dollars in thousands) 
(Unaudited) 
 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 378,086    $ -    $ (816)   $ 377,270 
Natural gas   11,751    -    -    11,751 
Competitive businesses   (4,052)   66,969    (6,707)   56,211 
     Total   385,785    66,969    (7,523)   445,232 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   59,923    14,114    -    74,037 
  Purchased power   341,562    (2,494)   (7,125)   331,944 
  Nuclear refueling outage expenses   1,766    (1,493)   -    273 
  Provision for turbine commitments, asset impairments                
   and restructuring charges   -    (55,000)   -    (55,000)
  Other operation and maintenance   (30,283)   (8,636)   (382)   (39,301)
Decommissioning   (2,442)   647    -    (1,795)
Taxes other than income taxes   12,525    1,105    -    13,631 
Depreciation and amortization   (10,717)   5,805    -    (4,913)
Other regulatory charges (credits )- net   29,736    -    -    29,736 
     Total   402,070    (45,952)   (7,507)   348,612 
                 
OPERATING INCOME   (16,285)   112,921    (16)   96,620 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   5,540    -    -    5,540 
Interest and dividend income   7,802    1,146    (8,645)   304 
Equity in earnings (loss) of unconsolidated equity affiliates   (8,897)   39,480    -    30,583 
Miscellaneous - net   (5,768)   19,551    16    13,799 
     Total   (1,323)   60,177    (8,629)   50,226 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   6,940    (1,493)   -    5,447 
Other interest - net   13,723    1,553    (8,685)   6,590 
Allowance for borrowed funds used during construction   (2,584)   -    -    (2,584)
      Total   18,079    60    (8,685)   9,453 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   (35,687)   173,038    40    137,394 
                 
Income taxes   15,698    154,680    -    170,378 
                 
INCOME FROM CONTINUING OPERATIONS   (51,385)   18,358    40    (32,985)
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes)   (31,306)   -    -    (31,306)
                 
CONSOLIDATED NET INCOME   (82,691)   18,358    40    (64,291)
                 
Preferred dividend requirements and other   (199)   572    40    414 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ (82,492)   $ 17,786    $ -    $ (64,705)
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   ($0.22)   $0.10        ($0.12)
  DILUTED   ($0.22)   $0.11        ($0.11)
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.15)   ($0.00)       ($0.15)
  DILUTED   ($0.15)   $0.00        ($0.15)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   ($0.37)   $0.10        ($0.27)
  DILUTED   ($0.36)   $0.11        ($0.25)
                 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation 
 
Consolidating Income Statement 
Year to Date December 31, 2005 
(Dollars in thousands) 
(Unaudited) 
 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 8,449,281    $ -    $ (2,452)   $ 8,446,830 
Natural gas   77,660    -    -    77,660 
Competitive businesses   46,003    1,613,280    (77,526)   1,581,757 
     Total   8,572,944    1,613,280    (79,978)   10,106,247 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   1,941,887    234,128    -    2,176,015 
  Purchased power   2,559,536    40,092    (78,382)   2,521,247 
  Nuclear refueling outage expenses   73,966    88,688    -    162,653 
  Provision for turbine commitments, asset impairments                
   and restructuring charges   -    -    -    - 
  Other operation and maintenance   1,458,596    665,660    (2,051)   2,122,206 
Decommissioning   83,910    59,212    -    143,121 
Taxes other than income taxes   325,766    56,756    -    382,521 
Depreciation and amortization   789,654    66,723    -    856,377 
Other regulatory charges (credits) - net   (49,882)   -    -    (49,882)
     Total   7,183,433    1,211,259    (80,433)   8,314,258 
                 
OPERATING INCOME   1,389,511    402,021    455    1,791,989 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   45,736    -    -    45,736 
Interest and dividend income   125,237    95,520    (70,279)   150,479 
Equity in earnings (loss) of unconsolidated equity affiliates   10,462    (9,477)   -    985 
Miscellaneous - net   (19,030)   33,740    (456)   14,251 
     Total   162,405    119,783    (70,734)   211,451 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   427,055    13,279    -    440,334 
Other interest - net   79,612    55,259    (70,224)   64,646 
Allowance for borrowed funds used during construction   (29,376)   -    -    (29,376)
     Total   477,291    68,538    (70,224)   475,604 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   1,074,625    453,266    (55)   1,527,836 
                 
Income taxes   403,671    155,613    -    559,284 
                 
INCOME FROM CONTINUING OPERATIONS   670,954    297,653    (55)   968,552 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $ (24,051))   (44,794)   -    -    (44,794)
                 
CONSOLIDATED NET INCOME   626,160    297,653    (55)   923,758 
                 
Preferred dividend requirements and other   22,007    3,475    (55)   25,427 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 604,153    $ 294,178    $ -    $ 898,331 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $3.09    $1.40        $4.49 
  DILUTED   $3.03    $1.37        $4.40 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.21)   $0.00        ($0.21)
  DILUTED   ($0.21)   $0.00        ($0.21)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $2.87    $1.40        $4.27 
  DILUTED   $2.82    $1.37        $4.19 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               210,141,887 
  DILUTED               214,441,362 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
 
Consolidating Income Statement 
Year to Date December 31, 2004 
(Dollars in thousands) 
(Unaudited) 
 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 7,934,312    $ -    $ (1,735)   $ 7,932,577 
Natural gas   208,499    -    -    208,499 
Competitive businesses   48,601    1,558,302    (62,458)   1,544,445 
     Total   8,191,412    1,558,302    (64,193)   9,685,521 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   2,272,610    215,598    -    2,488,208 
  Purchased power   1,716,848    48,132    (63,370)   1,701,610 
  Nuclear refueling outage expenses   66,824    99,248    -    166,072 
  Provision for turbine commitments, asset impairments                
   and restructuring charges   -    55,000    -    55,000 
  Other operation and maintenance   1,578,842    690,957    (1,468)   2,268,332 
Decommissioning   91,939    57,590    -    149,529 
Taxes other than income taxes   348,376    55,260    -    403,635 
Depreciation and amortization   828,445    65,130    -    893,574 
Other regulatory charges (credits) - net   (90,611)   -    -    (90,611)
     Total   6,813,273    1,286,915    (64,838)   8,035,349 
                 
OPERATING INCOME   1,378,139    271,387    645    1,650,172 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   39,582    -    -    39,582 
Interest and dividend income   83,386    81,444    (55,195)   109,635 
Equity in earnings (loss) of unconsolidated equity affiliates   (3)   (78,724)   -    (78,727)
Miscellaneous - net   25,460    30,695    (646)   55,509 
     Total   148,425    33,415    (55,841)   125,999 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   447,510    15,874    -    463,384 
Other interest - net   41,932    53,342    (55,141)   40,133 
Allowance for borrowed funds used during construction   (25,741)   -    -    (25,741)
     Total   463,701    69,216    (55,141)   477,776 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   1,062,863    235,586    (55)   1,298,395 
                 
Income taxes   378,526    (13,221)   -    365,305 
                 
INCOME FROM CONTINUING OPERATIONS   684,337    248,807    (55)   933,090 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $603)   (41)   -    -    (41)
                 
CONSOLIDATED NET INCOME   684,296    248,807    (55)   933,049 
                 
Preferred dividend requirements and other   23,283    297    (55)   23,525 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 661,013    $ 248,510    $ -    $ 909,524 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $2.91    $1.10        $4.01 
  DILUTED   $2.86    $1.07        $3.93 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.00)   $0.00        ($0.00)
  DILUTED   ($0.00)   $0.00        ($0.00)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $2.91    $1.10        $4.01 
  DILUTED   $2.86    $1.07        $3.93 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               226,863,758 
  DILUTED               231,193,686 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
 
Pro Forma Consolidating Income Statement 
(Reflects Deconsolidation of Entergy New Orleans) 
Year to Date December 31, 2004 
(Dollars in thousands) 
(Unaudited) 
 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 7,646,529    $ -    $ (1,735)   $ 7,644,794 
Natural gas   61,088    -    -    61,088 
Competitive businesses   48,601    1,558,302    (62,458)   1,544,445 
     Total   7,756,218    1,558,302    (64,193)   9,250,327 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   2,027,309    215,598    -    2,242,907 
  Purchased power   1,755,909    48,132    (63,370)   1,740,671 
  Nuclear refueling outage expenses   66,824    99,248    -    166,072 
  Provision for turbine commitments, asset impairments                
   and restructuring charges   -    55,000    -    55,000 
  Other operation and maintenance   1,476,391    690,957    (1,468)   2,165,882 
Decommissioning   91,939    57,590    -    149,529 
Taxes other than income taxes   304,799    55,260    -    360,058 
Depreciation and amortization   798,788    65,130    -    863,917 
Other regulatory charges (credits) - net   (85,941)   -    -    (85,941)
     Total   6,436,018    1,286,915    (64,838)   7,658,095 
                 
OPERATING INCOME   1,320,200    271,387    645    1,592,232 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   38,204    -    -    38,204 
Interest and dividend income   82,990    81,444    (55,195)   109,239 
Equity in earnings (loss) of unconsolidated equity affiliates   27,104    (78,724)   -    (51,620)
Miscellaneous - net   25,190    30,695    (646)   55,240 
     Total   173,488    33,415    (55,841)   151,063 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   432,153    15,874    -    448,027 
Other interest - net   41,003    53,342    (55,141)   39,204 
Allowance for borrowed funds used during construction   (24,498)   -    -    (24,498)
     Total   448,658    69,216    (55,141)   462,733 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   1,045,030    235,586    (55)   1,280,562 
                 
Income taxes   361,658    (13,221)   -    348,437 
                 
INCOME FROM CONTINUING OPERATIONS   683,372    248,807    (55)   932,125 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $603)   (41)   -    -    (41)
                 
CONSOLIDATED NET INCOME   683,331    248,807    (55)   932,084 
                  
Preferred dividend requirements and other   22,318    297    (55)   22,560 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 661,013    $ 248,510    $ -    $ 909,524 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $2.91    $1.10        $4.01 
  DILUTED   $2.86    $1.07        $3.93 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.00)   $0.00        ($0.00)
  DILUTED   ($0.00)   $0.00        ($0.00)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $2.91    $1.10        $4.01 
  DILUTED   $2.86    $1.07        $3.93 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               226,863,758 
  DILUTED               231,193,686 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
 
Pro Forma Consolidating Income Statement 
(Reflects Deconsolidation of Entergy New Orleans) 
Year to Date December 31, 2005 vs. 2004 
(Dollars in thousands) 
(Unaudited) 
 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 802,752    $ -    $ (717)   $ 802,036 
Natural gas   16,572    -    -    16,572 
Competitive businesses   (2,598)   54,978    (15,068)   37,312 
     Total   816,726    54,978    (15,785)   855,920 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   (85,422)   18,530    -    (66,892)
  Purchased power   803,627    (8,040)   (15,012)   780,576 
  Nuclear refueling outage expenses   7,142    (10,560)   -    (3,419)
  Provision for turbine commitments, asset impairments                
   and restructuring charges   -    (55,000)   -    (55,000)
  Other operation and maintenance   (17,795)   (25,297)   (583)   (43,676)
Decommissioning   (8,029)   1,622    -    (6,408)
Taxes other than income taxes   20,967    1,496    -    22,463 
Depreciation and amortization   (9,134)   1,593    -    (7,540)
Other regulatory charges (credits) - net   36,059    -    -    36,059 
     Total   747,415    (75,656)   (15,595)   656,163 
                 
OPERATING INCOME   69,311    130,634    (190)   199,757 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   7,532    -    -    7,532 
Interest and dividend income   42,247    14,076    (15,084)   41,240 
Equity in earnings (loss) of unconsolidated equity affiliates   (16,642)   69,247    -    52,605 
Miscellaneous - net   (44,220)   3,045    191    (40,988)
     Total   (11,083)   86,368    (14,893)   60,388 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   (5,098)   (2,595)   -    (7,693)
Other interest - net   38,609    1,917    (15,083)   25,442 
Allowance for borrowed funds used during construction   (4,878)   -    -    (4,878)
     Total   28,633    (678)   (15,083)   12,871 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   29,595    217,680    -    247,273 
                 
Income taxes   42,013    168,834    -    210,847 
                 
INCOME FROM CONTINUING OPERATIONS   (12,418)   48,846    -    36,426 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes)   (44,753)   -    -    (44,753)
                 
CONSOLIDATED NET INCOME   (57,171)   48,846    -    (8,327)
                 
Preferred dividend requirements and other   (311)   3,178    -    2,867 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ (56,860)   $ 45,668    $ -    $ (11,194)
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $0.17    $0.30        $0.48 
  DILUTED   $0.17    $0.30        $0.46 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.21)   $0.00        ($0.21)
  DILUTED   ($0.21)   $0.00        ($0.21)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   ($0.04)   $0.30        $0.26 
  DILUTED   ($0.04)   $0.30        $0.26 
                 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
 
Consolidated Cash Flow Statement 
Three Months Ended December 31, 2005 vs. 2004 
(Dollars in thousands) 
(Unaudited) 
             
    2005   2004   Variance
             
   
OPERATING ACTIVITIES            
Consolidated net income   $96,443    $160,974    ($64,531)
Adjustments to reconcile consolidated net income to net cash flow            
provided by operating activities:            
  Reserve for regulatory adjustments   3,179    27,974    (24,795)
  Other regulatory credits - net   (5,067)   (33,601)   28,534 
  Depreciation, amortization, and decommissioning   254,455    269,316    (14,861)
  Deferred income taxes and investment tax credits   422,516    128,822    293,694 
  Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends   21,027    549,950    (528,923)
  Provision for turbine commitments, asset impairments and restructuring charges   39,767    55,000    (15,233)
Changes in working capital:            
  Receivables   308,576    132,516    176,060 
  Fuel inventory   (72,718)   3,940    (76,658)
  Accounts payable   (205,454)   110,091    (315,545)
  Taxes accrued   (359,118)   (239,686)   (119,432)
  Interest accrued   (98)   (8,755)   8,657 
  Deferred fuel   30,640    33,202    (2,562)
  Other working capital accounts   18,422    48,391    (29,969)
Provision for estimated losses and reserves   (9,459)   (3,120)   (6,339)
Changes in other regulatory assets   4,393    40,272    (35,879)
Other   (186,644)   (59,632)   (127,012)
Net cash flow provided by operating activities   360,860    1,215,654    (854,794)
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (580,921)   (465,798)   (115,123)
Allowance for equity funds used during construction   16,322    11,010    5,312 
Nuclear fuel purchases   (53,827)   (86,088)   32,261 
Proceeds from sale/leaseback of nuclear fuel   10,263    35,209    (24,946)
Proceeds from sale of assets and businesses   -    53,452    (53,452)
Investment in nonutility properties   -    13,712    (13,712)
Decrease (increase) in other investments   (9,793)   394,838    (404,631)
Purchase of other temporary investments   -    (1,025,600)   1,025,600 
Liquidation of other temporary investments   -    884,150    (884,150)
Decommissioning trust contributions and realized change in trust assets   (20,430)   (23,811)   3,381 
Other regulatory investments   (150,224)   8,965    (159,189)
Net cash flow used in investing activities   (788,610)   (199,961)   (588,649)
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   1,763,594    2,212,918    (449,324)
  Preferred stock   97,997    -    97,997 
  Common stock and treasury stock   (8,484)   29,892    (38,376)
Retirement of long-term debt   (1,322,297)   (2,338,078)   1,015,781 
Repurchase of common stock   -    (601,727)   601,727 
Changes in credit line borrowings - net   -    (110,079)   110,079 
Dividends paid:            
  Common stock   (112,071)   (123,392)   11,321 
  Preferred stock   (6,385)   (6,037)   (348)
Net cash flow provided by (used in) financing activities   412,354    (936,503)   1,348,857 
             
Effect of exchange rates on cash and cash equivalents   185    (745)   930 
             
Net increase (decrease) in cash and cash equivalents   (15,211)   78,445    (93,656)
             
Cash and cash equivalents at beginning of period   598,031    541,341    56,690 
             
Cash and cash equivalents at end of period   $582,820    $619,786    ($36,966)
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $109,223    $131,630    ($22,407)
    Income taxes   ($2,917)   ($4,561)   $1,644 
             
             

 

Entergy Corporation
 
Pro Forma Consolidated Cash Flow Statement 
(Reflects Deconsolidation of Entergy New Orleans) 
Three Months Ended December 31, 2005 vs. 2004 
(Dollars in thousands) 
(Unaudited) 
             
    2005   2004   Variance
             
   
OPERATING ACTIVITIES            
Consolidated net income   $96,443    $160,733    ($64,290)
Adjustments to reconcile consolidated net income to net cash flow            
provided by operating activities:            
  Reserve for regulatory adjustments   3,179    28,167    (24,988)
  Other regulatory credits - net   (5,067)   (34,803)   29,736 
  Depreciation, amortization, and decommissioning   254,455    261,262    (6,807)
  Deferred income taxes and investment tax credits   422,516    113,301    309,215 
  Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends   21,027    554,741    (533,714)
  Provision for turbine commitments, asset impairments and restructuring charges   39,767    55,000    (15,233)
  Changes in working capital:            
    Receivables   308,576    108,202    200,374 
    Fuel inventory   (72,718)   2,171    (74,889)
    Accounts payable   (205,454)   107,241    (312,695)
    Taxes accrued   (359,118)   (224,238)   (134,880)
    Interest accrued   (98)   (11,076)   10,978 
    Deferred fuel   30,640    47,699    (17,059)
    Other working capital accounts   18,422    39,251    (20,829)
  Provision for estimated losses and reserves   (9,459)   (2,077)   (7,382)
  Changes in other regulatory assets   4,393    39,662    (35,269)
  Other   (186,644)   (52,465)   (134,179)
Net cash flow provided by operating activities   360,860    1,192,771    (831,911)
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (580,921)   (450,930)   (129,991)
Allowance for equity funds used during construction   16,322    10,782    5,540 
Nuclear fuel purchases   (53,827)   (86,088)   32,261 
Proceeds from sale/leaseback of nuclear fuel   10,263    35,209    (24,946)
Proceeds from sale of assets and businesses   -    53,452    (53,452)
Investment in nonutility properties   -    13,712    (13,712)
Decrease (increase) in other investments   (9,793)   394,838    (404,631)
Purchase of other temporary investments   -    (1,025,600)   1,025,600 
Liquidation of other temporary investments   -    884,150    (884,150)
Decommissioning trust contributions and realized change in trust assets   (20,430)   (23,811)   3,381 
Other regulatory investments   (150,224)   8,965    (159,189)
Net cash flow used in investing activities   (788,610)   (185,321)   (603,289)
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   1,763,594    2,213,003    (449,409)
  Preferred stock   97,997    -    97,997 
  Common stock and treasury stock   (8,484)   29,892    (38,376)
Retirement of long-term debt   (1,322,297)   (2,338,078)   1,015,781 
Repurchase of common stock   -    (601,727)   601,727 
Changes in credit line borrowings - net   -    (110,079)   110,079 
Dividends paid:            
  Common stock   (112,071)   (123,392)   11,321 
  Preferred stock   (6,385)   (5,796)   (589)
Net cash flow provided by (used in) financing activities   412,354    (936,177)   1,348,531 
             
Effect of exchange rates on cash and cash equivalents   185    (746)   931 
             
Net increase (decrease) in cash and cash equivalents   (15,211)   70,527    (85,738)
             
Cash and cash equivalents at beginning of period   598,031    541,305    56,726 
             
Cash and cash equivalents at end of period   $582,820    $611,832    ($29,012)
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $109,223     $132,035    ($22,812)
    Income taxes   ($2,917)   ($3,835)   $918 
             
             

 

Entergy Corporation 
 
Consolidated Cash Flow Statement 
Year to Date December 31, 2005 vs. 2004 
(Dollars in thousands) 
(Unaudited) 
             
    2005   2004   Variance
             
   
OPERATING ACTIVITIES            
Consolidated net income   $923,758    $933,049    ($9,291)
Adjustments to reconcile consolidated net income to net cash flow            
provided by operating activities:            
  Reserve for regulatory adjustments   (82,033)   33,533    (115,566)
  Other regulatory credits - net   (49,882)   (90,611)   40,729 
  Depreciation, amortization, and decommissioning   1,001,852    1,045,122    (43,270)
  Deferred income taxes and investment tax credits   626,813    275,458    351,355 
  Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends   4,315    608,141    (603,826)
  Provision for turbine commitments, asset impairments and restructuring charges   39,767    55,000    (15,233)
  Changes in working capital:            
    Receivables   (367,351)   (210,419)   (156,932)
    Fuel inventory   (83,125)   (16,769)   (66,356)
    Accounts payable   303,194    95,306    207,888 
    Taxes accrued   (172,315)   75,055    (247,370)
    Interest accrued   15,133    5,269    9,864 
    Deferred fuel   (236,801)   213,627    (450,428)
    Other working capital accounts   (45,653)   41,008    (86,661)
  Provision for estimated losses and reserves   (3,704)   (18,041)   14,337 
  Changes in other regulatory assets   (311,934)   48,626    (360,560)
  Other   (94,226)   (164,035)   69,809 
Net cash flow provided by operating activities   1,467,808    2,929,319    (1,461,511)
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (1,458,086)   (1,410,610)   (47,476)
Allowance for equity funds used during construction   45,736    39,582    6,154 
Nuclear fuel purchases   (314,414)   (238,170)   (76,244)
Proceeds from sale/leaseback of nuclear fuel   184,403    109,988    74,415 
Proceeds from sale of assets and businesses   -    75,430    (75,430)
Payment for purchase of plant   (162,075)   -    (162,075)
Investment in nonutility properties   -    (6,420)   6,420 
Decrease (increase) in other investments   9,905    383,498    (373,593)
Purchase of other temporary investments   (1,591,025)   (1,629,500)   38,475 
Liquidation of other temporary investments   1,778,975    1,676,350    102,625 
Decommissioning trust contributions and realized change in trust assets   (95,571)   (89,807)   (5,764)
Other regulatory investments   (390,456)   (53,566)   (336,890)
Net cash flow used in investing activities   (1,992,608)   (1,143,225)   (849,383)
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   4,302,570    3,653,478    649,092 
  Preferred stock   127,995    -    127,995 
  Common stock and treasury stock   106,068    170,237    (64,169)
Retirement of long-term debt   (2,689,206)   (4,022,548)   1,333,342 
Repurchase of common stock   (878,188)   (1,017,996)   139,808 
Redemption of preferred stock   (33,719)   (3,450)   (30,269)
Changes in credit line borrowings - net   39,850    (154)   40,004 
Dividends paid:            
  Common stock   (453,508)   (427,901)   (25,607)
  Preferred stock   (25,472)   (23,525)   (1,947)
Net cash flow provided by (used in) financing activities   496,390    (1,671,859)   2,168,249 
             
Effect of exchange rates on cash and cash equivalents   (602)   (1,882)   1,280 
             
Net increase (decrease) in cash and cash equivalents   (29,012)   112,353    (141,365)
             
Cash and cash equivalents at beginning of period   611,832    507,433    104,399 
             
Cash and cash equivalents at end of period   $582,820    $619,786    ($36,966)
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $441,279    $477,768    ($36,489)
    Income taxes   $116,072    $28,241    $87,831 
             
             

 

Entergy Corporation
 
Pro Forma Consolidated Cash Flow Statement 
(Reflects Deconsolidation of Entergy New Orleans) 
Year to Date December 31, 2005 vs. 2004 
(Dollars in thousands) 
(Unaudited) 
             
    2005   2004   Variance
             
   
OPERATING ACTIVITIES            
Consolidated net income   $923,758    $932,084    ($8,326)
Adjustments to reconcile consolidated net income to net cash flow            
provided by operating activities:            
  Reserve for regulatory adjustments   (82,033)   40,896    (122,929)
  Other regulatory credits - net   (49,882)   (85,941)   36,059 
  Depreciation, amortization, and decommissioning   1,001,852    1,015,465    (13,613)
  Deferred income taxes and investment tax credits   626,813    235,676    391,137 
  Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends   4,315    586,234    (581,919)
  Provision for turbine commitments, asset impairments and restructuring charges   39,767    55,000    (15,233)
  Changes in working capital:            
    Receivables   (367,351)   (202,662)   (164,689)
    Fuel inventory   (83,125)   (18,168)   (64,957)
    Accounts payable   303,194    81,401    221,793 
    Taxes accrued   (172,315)   88,111    (260,426)
    Interest accrued   15,133    6,724    8,409 
    Deferred fuel   (236,801)   218,906    (455,707)
    Other working capital accounts   (45,653)   38,885    (84,538)
  Provision for estimated losses and reserves   (3,704)   (16,178)   12,474 
  Changes in other regulatory assets   (311,934)   54,006    (365,940)
  Other   (94,226)   (159,496)   65,270 
Net cash flow provided by operating activities   1,467,808    2,870,943    (1,403,135)
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (1,458,086)   (1,359,346)   (98,740)
Allowance for equity funds used during construction   45,736    38,204    7,532 
Nuclear fuel purchases   (314,414)   (238,170)   (76,244)
Proceeds from sale/leaseback of nuclear fuel   184,403    109,988    74,415 
Proceeds from sale of assets and businesses   -    75,430    (75,430)
Payment for purchase of plant   (162,075)   -    (162,075)
Investment in nonutility properties   -    (6,420)   6,420 
Decrease (increase) in other investments   9,905    383,498    (373,593)
Purchase of other temporary investments   (1,591,025)   (1,629,500)   38,475 
Liquidation of other temporary investments   1,778,975    1,675,744    103,231 
Decommissioning trust contributions and realized change in trust assets   (95,571)   (89,807)   (5,764)
Other regulatory investments   (390,456)   (53,566)   (336,890)
Net cash flow used in investing activities   (1,992,608)   (1,093,945)   (898,663)
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   4,302,570    3,580,838    721,732 
  Preferred stock   127,995    -    127,995 
  Common stock and treasury stock   106,068    170,237    (64,169)
Retirement of long-term debt   (2,689,206)   (3,945,061)   1,255,855 
Repurchase of common stock   (878,188)   (1,017,996)   139,808 
Redemption of preferred stock   (33,719)   (3,450)   (30,269)
Changes in credit line borrowings - net   39,850    (154)   40,004 
Dividends paid:            
  Common stock   (453,508)   (427,901)   (25,607)
  Preferred stock   (25,472)   (22,560)   (2,912)
Net cash flow provided by (used in) financing activities   496,390    (1,666,047)   2,162,437 
             
Effect of exchange rates on cash and cash equivalents   (602)   (1,882)   1,280 
             
Net increase (decrease) in cash and cash equivalents   (29,012)   109,069    (138,081)
             
Cash and cash equivalents at beginning of period   611,832    502,763    109,069 
             
Cash and cash equivalents at end of period   $582,820    $611,832    ($29,012)
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $441,279    $461,596    ($20,317)
    Income taxes   $116,072    $33,977    $82,095