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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Expenses From Continuing Operations
Income taxes for 2017, 2016, and 2015 for Entergy Corporation and Subsidiaries consist of the following:
 
2017
 
2016
 
2015
 
(In Thousands)
Current:
 
 
 
 
 
Federal

$29,595

 

$45,249

 

$77,166

Foreign
—

 
68

 
97

State
15,478

 
(14,960
)
 
157,829

Total
45,073

 
30,357

 
235,092

Deferred and non-current - net
505,010

 
(840,465
)
 
(864,799
)
Investment tax credit adjustments - net
(7,513
)
 
(7,151
)
 
(13,220
)
Income taxes

$542,570

 

($817,259
)
 

($642,927
)
Total Income Taxes For Entergy Corporation And Subsidiaries
The reasons for the differences for the years 2017, 2016, and 2015 are:
 
2017
 
2016
 
2015
 
(In Thousands)
Net income (loss) attributable to Entergy Corporation

$411,612

 

($583,618
)
 

($176,562
)
Preferred dividend requirements of subsidiaries
13,741

 
19,115

 
19,828

Consolidated net income (loss)
425,353

 
(564,503
)
 
(156,734
)
Income taxes
542,570

 
(817,259
)
 
(642,927
)
Income (loss) before income taxes

$967,923

 

($1,381,762
)
 

($799,661
)
Computed at statutory rate (35%)

$338,773

 

($483,617
)
 

($279,881
)
Increases (reductions) in tax resulting from:
 

 
 

 
 

State income taxes net of federal income tax effect
44,179

 
40,581

 
29,944

Regulatory differences - utility plant items
39,825

 
33,581

 
32,089

Equity component of AFUDC
(33,282
)
 
(23,647
)
 
(18,191
)
Amortization of investment tax credits
(10,204
)
 
(10,889
)
 
(11,136
)
Flow-through / permanent differences
8,727

 
(19,307
)
 
(7,872
)
Tax legislation enactment (a)
560,410

 
—

 
—

Louisiana business combination
—

 
—

 
(333,655
)
Entergy Wholesale Commodities restructuring (b)
(373,277
)
 
(237,760
)
 
—

Act 55 financing settlement (d)
—

 
(63,477
)
 
—

FitzPatrick disposition
(44,344
)
 
—

 
—

Provision for uncertain tax positions (c) (d)
8,756

 
(67,119
)
 
(56,683
)
Valuation allowance
—

 
11,411

 
—

Other - net
3,007

 
2,984

 
2,458

Total income taxes as reported

$542,570

 

($817,259
)
 

($642,927
)
Effective Income Tax Rate
56.1
%
 
59.1
%
 
80.4
%


(a)
See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the tax legislation enactment.
(b)
See “Other Tax Matters - Entergy Wholesale Commodities Restructuring” below for discussion of the Entergy Wholesale Commodities restructuring.
(c)
See “Income Tax Audits - 2008-2009 IRS Audit” below for discussion of the most significant items for 2015.
(d)
See “Income Tax Audits - 2010-2011 IRS Audit” below for discussion of the most significant items for 2016.
Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes
Significant components of accumulated deferred income taxes and taxes accrued for Entergy Corporation and Subsidiaries as of December 31, 2017 and 2016 are as follows:
 
 
2017
 
2016
 
(In Thousands)
Deferred tax liabilities:
 
 
 
Plant basis differences - net

($3,963,798
)
 

($6,362,905
)
Regulatory assets
—

 
(584,572
)
Nuclear decommissioning trusts/receivables
(1,657,808
)
 
(1,739,977
)
Pension, net funding
(350,743
)
 
(429,896
)
Combined unitary state taxes
(24,645
)
 
(33,063
)
Power purchase agreements
(19,621
)
 
(993
)
Other
(249,327
)
 
(251,719
)
Total
(6,265,942
)
 
(9,403,125
)
Deferred tax assets:
 

 
 

Nuclear decommissioning liabilities
964,945

 
1,399,468

Regulatory liabilities
841,370

 
255,272

Pension and other post-employment benefits
343,817

 
539,456

Sale and leaseback
122,397

 
135,866

Compensation
75,217

 
99,300

Accumulated deferred investment tax credit
59,285

 
92,375

Provision for allowances and contingencies
126,391

 
188,390

Net operating loss carryforwards
467,255

 
334,025

Capital losses and miscellaneous tax credits
16,738

 
18,470

Valuation allowance
(137,283
)
 
(104,277
)
Other
54,058

 
59,079

Total
2,934,190

 
3,017,424

Non-current accrued taxes (including unrecognized tax benefits)
(956,547
)
 
(991,704
)
Accumulated deferred income taxes and taxes accrued

($4,288,299
)
 

($7,377,405
)
Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates
Entergy’s estimated tax attributes carryovers and their expiration dates as of December 31, 2017 are as follows:
Carryover Description
 
Carryover Amount
 
Year(s) of expiration
 
 
 
 
 
Federal net operating losses
 
$10.7 billion
 
2023-2037
State net operating losses
 
$9.6 billion
 
2018-2037
Miscellaneous federal and state credits
 
$96.6 million
 
2018-2036
Reconciliation Of Unrecognized Tax Benefits
A reconciliation of Entergy’s beginning and ending amount of unrecognized tax benefits is as follows:
 
2017
 
2016
 
2015
 
(In Thousands)
Gross balance at January 1

$3,909,855

 

$2,611,585

 

$4,736,785

Additions based on tax positions related to the current year
1,120,687

 
1,532,782

 
1,850,705

Additions for tax positions of prior years
283,683

 
368,404

 
59,815

Reductions for tax positions of prior years (a)
(442,379
)
 
(265,653
)
 
(3,966,535
)
Settlements
—

 
(337,263
)
 
(68,227
)
Lapse of statute of limitations
—

 
—

 
(958
)
Gross balance at December 31
4,871,846

 
3,909,855

 
2,611,585

Offsets to gross unrecognized tax benefits:
 

 
 

 
 

Carryovers and refund claims
(3,945,524
)
 
(2,922,085
)
 
(1,264,483
)
Cash paid to taxing authorities
(10,000
)
 
(10,000
)
 
—

Unrecognized tax benefits net of unused tax attributes, refund claims and payments (b)

$916,322

 

$977,770

 

$1,347,102



(a)
The primary reduction for 2015 is related to the nuclear decommissioning costs treatment discussed in “Income Tax Audits - 2008-2009 IRS Audit” below.
(b)
Potential tax liability above what is payable on tax returns
Entergy Arkansas [Member]  
Income Tax Expenses From Continuing Operations
Income taxes for 2017, 2016, and 2015 for Entergy’s Registrant Subsidiaries consist of the following:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

$16,086

 

($84,250
)
 

($8,845
)
 

($30,635
)
 

$6,034

 

$47,674

State
 
9,191

 
1,480

 
(924
)
 
(728
)
 
310

 
5,314

Total
 
25,277

 
(82,770
)
 
(9,769
)
 
(31,363
)
 
6,344

 
52,988

Deferred and non-current - net
 
69,753

 
572,988

 
83,501

 
62,946

 
43,102

 
19,243

Investment tax credit adjustments - net
 
(1,226
)
 
(4,920
)
 
187

 
1,695

 
(965
)
 
(2,262
)
Income taxes
 

$93,804

 

$485,298

 

$73,919

 

$33,278

 

$48,481

 

$69,969


2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

($14,748
)
 

($124,113
)
 

$10,603

 

($91,067
)
 

$19,656

 

$29,628

State
 
2,805

 
10,757

 
2,257

 
566

 
1,374

 
(25,825
)
Total
 
(11,943
)
 
(113,356
)
 
12,860

 
(90,501
)
 
21,030

 
3,803

Deferred and non-current - net
 
120,942

 
208,157

 
46,984

 
119,345

 
42,982

 
71,051

Investment tax credit adjustments - net
 
(1,226
)
 
(5,067
)
 
4,010

 
(139
)
 
(915
)
 
(3,793
)
Income taxes
 

$107,773

 

$89,734

 

$63,854

 

$28,705

 

$63,097

 

$71,061


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

$66,966

 

$101,382

 

$25,628

 

($9,346
)
 

$53,313

 

($63,302
)
State
 
6,265

 
35,406

 
6,832

 
1,784

 
2,450

 
26,755

Total
 
73,231

 
136,788

 
32,460

 
(7,562
)
 
55,763

 
(36,547
)
Deferred and non-current - net
 
(31,463
)
 
47,220

 
31,149

 
32,890

 
(17,599
)
 
93,491

Investment tax credit adjustments - net
 
(1,227
)
 
(5,337
)
 
(1,737
)
 
(138
)
 
(914
)
 
(3,867
)
Income taxes
 

$40,541

 

$178,671

 

$61,872

 

$25,190

 

$37,250

 

$53,077
Total Income Taxes For Entergy Corporation And Subsidiaries
Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2017, 2016, and 2015 are:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$139,844

 

$316,347

 

$110,032

 

$44,553

 

$76,173

 

$78,596

Income taxes
 
93,804

 
485,298

 
73,919

 
33,278

 
48,481

 
69,969

Pretax income
 

$233,648

 

$801,645

 

$183,951

 

$77,831

 

$124,654

 

$148,565

Computed at statutory rate (35%)
 

$81,777

 

$280,576

 

$64,383

 

$27,241

 

$43,629

 

$51,998

Increases (reductions) in tax resulting from:
 
 
 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
11,586

 
31,927

 
6,202

 
2,842

 
527

 
5,635

Regulatory differences - utility plant items
 
7,220

 
12,168

 
1,356

 
619

 
5,581

 
12,880

Equity component of AFUDC
 
(6,458
)
 
(18,020
)
 
(3,383
)
 
(847
)
 
(2,353
)
 
(2,221
)
Amortization of investment tax credits
 
(1,201
)
 
(4,871
)
 
(160
)
 
(124
)
 
(951
)
 
(2,896
)
Flow-through / permanent differences
 
3,098

 
3,774

 
1,567

 
(3,352
)
 
1,428

 
(276
)
Tax legislation enactment (a)
 
(3,090
)
 
217,258

 
3,492

 
6,153

 
2,981

 
(69
)
Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions
 
200

 
5,700

 
228

 
600

 
(2,617
)
 
4,800

Other - net
 
672

 
1,444

 
234

 
146

 
256

 
118

Total income taxes as reported
 

$93,804

 

$485,298

 

$73,919

 

$33,278

 

$48,481

 

$69,969

Effective Income Tax Rate
 
40.1
%
 
60.5
%
 
40.2
%
 
42.8
%
 
38.9
%
 
47.1
%


2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$167,212

 

$622,047

 

$109,184

 

$48,849

 

$107,538

 

$96,744

Income taxes
 
107,773

 
89,734

 
63,854

 
28,705

 
63,097

 
71,061

Pretax income
 

$274,985

 

$711,781

 

$173,038

 

$77,554

 

$170,635

 

$167,805

Computed at statutory rate (35%)
 

$96,245

 

$249,123

 

$60,563

 

$27,144

 

$59,722

 

$58,732

Increases (reductions) in tax resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
11,652

 
29,014

 
5,592

 
3,543

 
449

 
7,001

Regulatory differences - utility plant items
 
10,971

 
8,094

 
(1,154
)
 
2,329

 
4,140

 
9,201

Equity component of AFUDC
 
(5,985
)
 
(9,774
)
 
(2,030
)
 
(412
)
 
(2,666
)
 
(2,780
)
Amortization of investment tax credits
 
(1,201
)
 
(5,019
)
 
(160
)
 
(132
)
 
(900
)
 
(3,476
)
Flow-through / permanent differences
 
(3,848
)
 
(980
)
 
764

 
(3,609
)
 
634

 
(883
)
Act 55 financing settlement (b)
 
—

 
(61,620
)
 
—

 
—

 
(454
)
 
—

Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions (b)
 
(717
)
 
(75,871
)
 
50

 
(300
)
 
1,926

 
3,151

Other - net
 
656

 
1,425

 
229

 
142

 
246

 
115

Total income taxes as reported
 

$107,773

 

$89,734

 

$63,854

 

$28,705

 

$63,097

 

$71,061

Effective Income Tax Rate
 
39.2
%
 
12.6
%
 
36.9
%
 
37.0
%
 
37.0
%
 
42.3
%


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$74,272

 

$446,639

 

$92,708

 

$44,925

 

$69,625

 

$111,318

Income taxes
 
40,541

 
178,671

 
61,872

 
25,190

 
37,250

 
53,077

Pretax income
 

$114,813

 

$625,310

 

$154,580

 

$70,115

 

$106,875

 

$164,395

Computed at statutory rate (35%)
 

$40,185

 

$218,859

 

$54,103

 

$24,540

 

$37,406

 

$57,538

Increases (reductions) in tax resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
6,643

 
23,650

 
5,219

 
2,887

 
1,621

 
6,403

Regulatory differences - utility plant items
 
7,299

 
3,013

 
2,383

 
2,201

 
3,703

 
12,167

Equity component of AFUDC
 
(4,979
)
 
(5,420
)
 
(1,083
)
 
(451
)
 
(1,987
)
 
(2,973
)
Amortization of investment tax credits
 
(1,201
)
 
(5,252
)
 
(160
)
 
(111
)
 
(900
)
 
(3,476
)
Flow-through / permanent differences
 
(4,062
)
 
2,460

 
431

 
(4,539
)
 
530

 
618

Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions (c)
 
(3,978
)
 
(15,377
)
 
756

 
525

 
(3,365
)
 
(17,313
)
Other - net
 
634

 
1,396

 
223

 
138

 
242

 
113

Total income taxes as reported
 

$40,541

 

$178,671

 

$61,872

 

$25,190

 

$37,250

 

$53,077

Effective Income Tax Rate
 
35.3
%
 
28.6
%
 
40.0
%
 
35.9
%
 
34.9
%
 
32.3
%


(a)
See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the tax legislation enactment.
(b)
See “Income Tax Audits - 2010-2011 IRS Audit” below for discussion of the most significant items for Entergy Louisiana.
(c)
See “Income Tax Audits - 2008-2009 IRS Audit” below for discussion of the most significant items for Entergy Louisiana and System Energy.
Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes
Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Deferred tax liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Plant basis differences - net
 

($1,289,827
)
 

($1,583,100
)
 

($571,682
)
 

($85,515
)
 

($526,596
)
 

($359,931
)
Nuclear decommissioning trusts/receivables
 
(181,911
)
 
(164,395
)
 
—

 
—

 
—

 
(119,184
)
Pension, net funding
 
(99,971
)
 
(102,138
)
 
(26,413
)
 
(13,040
)
 
(20,700
)
 
(21,871
)
Deferred fuel
 
(16,530
)
 
(1,329
)
 
(19,005
)
 
(1,894
)
 
—

 
(272
)
Other
 
(23,079
)
 
(98,307
)
 
(11,306
)
 
(23,610
)
 
(8,236
)
 
(5,955
)
Total
 
(1,611,318
)
 
(1,949,269
)
 
(628,406
)
 
(124,059
)
 
(555,532
)
 
(507,213
)
Deferred tax assets:
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory liabilities
 
227,489

 
368,156

 
102,676

 
23,526

 
25,428

 
91,271

Nuclear decommissioning liabilities
 
132,464

 
58,891

 
—

 
—

 
—

 
63,180

Pension and other post-employment benefits
 
(16,252
)
 
98,596

 
(4,865
)
 
(9,618
)
 
(12,044
)
 
(516
)
Sale and leaseback
 
—

 
19,915

 
—

 
—

 
—

 
102,482

Accumulated deferred investment tax credit
 
8,913

 
35,323

 
2,212

 
488

 
2,516

 
9,832

Provision for allowances and contingencies
 
4,367

 
80,516

 
11,898

 
24,234

 
4,383

 
—

Power purchase agreements
 
—

 
(6,924
)
 
1,129

 
—

 
—

 
—

Unbilled/deferred revenues
 
6,195

 
(18,263
)
 
4,847

 
1,811

 
7,736

 
—

Compensation
 
2,566

 
4,387

 
1,466

 
723

 
1,224

 
332

Net operating loss carryforwards
 
16,172

 
44

 
10,255

 
—

 
1,690

 
—

Capital losses and miscellaneous tax credits
 
2,678

 
—

 
5,736

 
—

 
—

 
—

Other
 
473

 
21,922

 
1,307

 
388

 
1,133

 
—

Total
 
385,065

 
662,563

 
136,661

 
41,552

 
32,066

 
266,581

Non-current accrued taxes (including unrecognized tax benefits)
 
35,584

 
(763,665
)
 
2,939

 
(200,795
)
 
(21,176
)
 
(535,788
)
Accumulated deferred income taxes and taxes accrued
 

($1,190,669
)
 

($2,050,371
)
 

($488,806
)
 

($283,302
)
 

($544,642
)
 

($776,420
)
2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Deferred tax liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Plant basis differences - net
 

($1,857,554
)
 

($2,357,599
)
 

($820,971
)
 

($177,242
)
 

($835,671
)
 

($651,394
)
Regulatory assets
 
(109,241
)
 
(219,750
)
 
(25,309
)
 
(36,301
)
 
(153,914
)
 
(39,879
)
Nuclear decommissioning trusts
 
(144,250
)
 
(119,544
)
 
—

 
—

 
—

 
(83,891
)
Pension, net funding
 
(123,889
)
 
(122,465
)
 
(34,284
)
 
(16,307
)
 
(28,371
)
 
(29,357
)
Deferred fuel
 
(14,774
)
 
(1,778
)
 
(12,770
)
 
(5,229
)
 
(2,808
)
 
(1,137
)
Power purchase agreements
 
—

 
—

 
—

 
—

 
—

 
—

Other
 
(47,785
)
 
(22,136
)
 
(12,474
)
 
(18,536
)
 
(8,812
)
 
(2,051
)
Total
 
(2,297,493
)
 
(2,843,272
)
 
(905,808
)
 
(253,615
)
 
(1,029,576
)
 
(807,709
)
Deferred tax assets:
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory liabilities
 
5,768

 
175,973

 
18,833

 
25,240

 
15,814

 
13,644

Nuclear decommissioning liabilities
 
124,206

 
55,408

 
—

 
—

 
—

 
53,113

Pension and other post-employment benefits
 
(24,467
)
 
145,401

 
(8,042
)
 
(12,070
)
 
(19,096
)
 
(1,182
)
Sale and leaseback
 
—

 
33,383

 
—

 
—

 
—

 
102,483

Accumulated deferred investment tax credit
 
13,848

 
54,509

 
3,315

 
239

 
4,527

 
15,936

Provision for allowances and contingencies
 
(1,497
)
 
124,309

 
21,817

 
36,466

 
5,904

 
—

Power purchase agreements
 
(3,094
)
 
29,827

 
1,905

 
—

 
140

 
—

Unbilled/deferred revenues
 
6,799

 
(35,006
)
 
5,085

 
3,751

 
11,902

 
—

Compensation
 
2,787

 
5,309

 
1,492

 
685

 
1,587

 
360

Net operating loss carryforwards
 
69,524

 
17,125

 
—

 
—

 
—

 
—

Capital losses and miscellaneous tax credits
 
2,074

 
—

 
4,487

 
—

 
—

 
—

Other
 
174

 
17,110

 
1,152

 
496

 
2,955

 
—

Total
 
196,122

 
623,348

 
50,044

 
54,807

 
23,733

 
184,354

Non-current accrued taxes (including unrecognized tax benefits)
 
(85,252
)
 
(471,194
)
 
(5,567
)
 
(136,145
)
 
(21,804
)
 
(489,510
)
Accumulated deferred income taxes and taxes accrued
 

($2,186,623
)
 

($2,691,118
)
 

($861,331
)
 

($334,953
)
 

($1,027,647
)
 

($1,112,865
)
Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates
The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2017 are as follows:
 
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal net operating losses
 
$77 million
 
$4.3 billion
 
$86.6 million
 
$1.1 billion
 
—
 
—
Year(s) of expiration
 
2030-2037
 
2035-2037
 
2030-2037
 
2037
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
State net operating losses
 
—
 
$5 billion
 
—
 
$1.2 billion
 
—
 
—
Year(s) of expiration
 
N/A
 
2029-2037
 
N/A
 
2037
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
Misc. federal credits
 
$2.7 million
 
$1.7 million
 
$2.7 million
 
$2.1 million
 
$0.6 million
 
$2.5 million
Year(s) of expiration
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
 
 
 
 
 
 
 
 
 
 
 
 
State credits
 
—
 
—
 
$4.9 million
 
—
 
$3.2 million
 
$10 million
Year(s) of expiration
 
N/A
 
N/A
 
2018-2021
 
N/A
 
2026
 
2018-2021
Reconciliation Of Unrecognized Tax Benefits
A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2017, 2016, and 2015 is as follows:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2017
 

$2,503

 

$2,440,339

 

$12,206

 

$166,230

 

$15,946

 

$472,372

Additions based on tax positions related to the current year (a)
 
8,974

 
32,843

 
2,105

 
509,183

 
1,747

 
909

Additions for tax positions of prior years
 
3,682

 
235,331

 
1,267

 
13,364

 
3,115

 
1,432

Reductions for tax positions of prior years
 
(132,875
)
 
(190,056
)
 
(456
)
 
(9,233
)
 
(4,409
)
 
(29,202
)
Gross balance at December 31, 2017
 
(117,716
)
 
2,518,457

 
15,122

 
679,544

 
16,399

 
445,511

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
—

 
(1,591,907
)
 
(15,122
)
 
(441,374
)
 
(638
)
 
(12,536
)
Unrecognized tax benefits net of unused tax attributes and payments
 

($117,716
)
 

$926,550

 

$—

 

$238,170

 

$15,761

 

$432,975



2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2016
 

$25,445

 

$1,690,661

 

$19,482

 

$53,897

 

$13,462

 

$478,318

Additions based on tax positions related to the current year (a)
 
16,868

 
931,720

 
2,662

 
33,912

 
2,002

 
5,318

Additions for tax positions of prior years
 
2,463

 
157,586

 
336

 
129,784

 
2,888

 
601

Reductions for tax positions of prior years
 
(41,957
)
 
(144,068
)
 
(10,219
)
 
(29,821
)
 
(1,849
)
 
(10,266
)
Settlements
 
(316
)
 
(195,560
)
 
(55
)
 
(21,542
)
 
(557
)
 
(1,599
)
Gross balance at December 31, 2016
 
2,503

 
2,440,339

 
12,206

 
166,230

 
15,946

 
472,372

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
—

 
(1,783,093
)
 
(2,373
)
 
(27,320
)
 
(376
)
 
(90,028
)
Unrecognized tax benefits net of unused tax attributes and payments
 

$2,503

 

$657,246

 

$9,833

 

$138,910

 

$15,570

 

$382,344


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2015
 

$362,912

 

$1,205,929

 

$20,144

 

$53,763

 

$17,264

 

$258,242

Additions based on tax positions related to the current year (b)
 
2,196

 
1,367,058

 
566

 
472

 
657

 
472,304

Additions for tax positions of prior years
 
1,057

 
7,992

 
8,140

 
48

 
2,914

 
913

Reductions for tax positions of prior years
 
(340,720
)
 
(859,430
)
 
—

 
(386
)
 
(3,981
)
 
(253,141
)
Settlements
 
—

 
(30,888
)
 
(9,368
)
 
—

 
(3,392
)
 
—

Gross balance at December 31, 2015
 
25,445

 
1,690,661

 
19,482

 
53,897

 
13,462

 
478,318

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
(3,613
)
 
(893,764
)
 
(1,016
)
 
(506
)
 
(276
)
 
(133,611
)
Unrecognized tax benefits net of unused tax attributes and payments
 

$21,832

 

$796,897

 

$18,466

 

$53,391

 

$13,186

 

$344,707



(a)
The primary additions for Entergy Louisiana in 2016 and for Entergy New Orleans in 2017 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.
(b)
The primary addition for Entergy Louisiana and System Energy is related to the nuclear decommissioning costs treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.
Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate
The Registrant Subsidiaries’ balances of unrecognized tax benefits included amounts which, if recognized, would have reduced income tax expense as follows:
 
December 31,
 
2017
 
2016
 
2015
 
(In Millions)
Entergy Arkansas

$2.6

 

$3.6

 

$4.5

Entergy Louisiana

$575.8

 

$473.3

 

$692.7

Entergy Mississippi

$—

 

$—

 

$8.1

Entergy New Orleans

$31.7

 

$33.6

 

$50.7

Entergy Texas

$4.4

 

$7.0

 

$5.2

System Energy

$—

 

$—

 

$0.7
Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits
Accrued balances for the possible payment of interest are as follows:
 
December 31,
 
2017
 
2016
 
2015
 
(In Millions)
Entergy Arkansas

$1.6

 

$1.4

 

$1.3

Entergy Louisiana

$14.1

 

$8.4

 

$9.3

Entergy Mississippi

$1.0

 

$0.8

 

$0.4

Entergy New Orleans

$2.1

 

$1.5

 

$1.8

Entergy Texas

$0.4

 

$1.2

 

$1.2

System Energy

$8.5

 

$3.7

 

$0.7
Entergy Louisiana [Member]  
Income Tax Expenses From Continuing Operations
Income taxes for 2017, 2016, and 2015 for Entergy’s Registrant Subsidiaries consist of the following:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

$16,086

 

($84,250
)
 

($8,845
)
 

($30,635
)
 

$6,034

 

$47,674

State
 
9,191

 
1,480

 
(924
)
 
(728
)
 
310

 
5,314

Total
 
25,277

 
(82,770
)
 
(9,769
)
 
(31,363
)
 
6,344

 
52,988

Deferred and non-current - net
 
69,753

 
572,988

 
83,501

 
62,946

 
43,102

 
19,243

Investment tax credit adjustments - net
 
(1,226
)
 
(4,920
)
 
187

 
1,695

 
(965
)
 
(2,262
)
Income taxes
 

$93,804

 

$485,298

 

$73,919

 

$33,278

 

$48,481

 

$69,969


2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

($14,748
)
 

($124,113
)
 

$10,603

 

($91,067
)
 

$19,656

 

$29,628

State
 
2,805

 
10,757

 
2,257

 
566

 
1,374

 
(25,825
)
Total
 
(11,943
)
 
(113,356
)
 
12,860

 
(90,501
)
 
21,030

 
3,803

Deferred and non-current - net
 
120,942

 
208,157

 
46,984

 
119,345

 
42,982

 
71,051

Investment tax credit adjustments - net
 
(1,226
)
 
(5,067
)
 
4,010

 
(139
)
 
(915
)
 
(3,793
)
Income taxes
 

$107,773

 

$89,734

 

$63,854

 

$28,705

 

$63,097

 

$71,061


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

$66,966

 

$101,382

 

$25,628

 

($9,346
)
 

$53,313

 

($63,302
)
State
 
6,265

 
35,406

 
6,832

 
1,784

 
2,450

 
26,755

Total
 
73,231

 
136,788

 
32,460

 
(7,562
)
 
55,763

 
(36,547
)
Deferred and non-current - net
 
(31,463
)
 
47,220

 
31,149

 
32,890

 
(17,599
)
 
93,491

Investment tax credit adjustments - net
 
(1,227
)
 
(5,337
)
 
(1,737
)
 
(138
)
 
(914
)
 
(3,867
)
Income taxes
 

$40,541

 

$178,671

 

$61,872

 

$25,190

 

$37,250

 

$53,077
Total Income Taxes For Entergy Corporation And Subsidiaries
Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2017, 2016, and 2015 are:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$139,844

 

$316,347

 

$110,032

 

$44,553

 

$76,173

 

$78,596

Income taxes
 
93,804

 
485,298

 
73,919

 
33,278

 
48,481

 
69,969

Pretax income
 

$233,648

 

$801,645

 

$183,951

 

$77,831

 

$124,654

 

$148,565

Computed at statutory rate (35%)
 

$81,777

 

$280,576

 

$64,383

 

$27,241

 

$43,629

 

$51,998

Increases (reductions) in tax resulting from:
 
 
 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
11,586

 
31,927

 
6,202

 
2,842

 
527

 
5,635

Regulatory differences - utility plant items
 
7,220

 
12,168

 
1,356

 
619

 
5,581

 
12,880

Equity component of AFUDC
 
(6,458
)
 
(18,020
)
 
(3,383
)
 
(847
)
 
(2,353
)
 
(2,221
)
Amortization of investment tax credits
 
(1,201
)
 
(4,871
)
 
(160
)
 
(124
)
 
(951
)
 
(2,896
)
Flow-through / permanent differences
 
3,098

 
3,774

 
1,567

 
(3,352
)
 
1,428

 
(276
)
Tax legislation enactment (a)
 
(3,090
)
 
217,258

 
3,492

 
6,153

 
2,981

 
(69
)
Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions
 
200

 
5,700

 
228

 
600

 
(2,617
)
 
4,800

Other - net
 
672

 
1,444

 
234

 
146

 
256

 
118

Total income taxes as reported
 

$93,804

 

$485,298

 

$73,919

 

$33,278

 

$48,481

 

$69,969

Effective Income Tax Rate
 
40.1
%
 
60.5
%
 
40.2
%
 
42.8
%
 
38.9
%
 
47.1
%


2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$167,212

 

$622,047

 

$109,184

 

$48,849

 

$107,538

 

$96,744

Income taxes
 
107,773

 
89,734

 
63,854

 
28,705

 
63,097

 
71,061

Pretax income
 

$274,985

 

$711,781

 

$173,038

 

$77,554

 

$170,635

 

$167,805

Computed at statutory rate (35%)
 

$96,245

 

$249,123

 

$60,563

 

$27,144

 

$59,722

 

$58,732

Increases (reductions) in tax resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
11,652

 
29,014

 
5,592

 
3,543

 
449

 
7,001

Regulatory differences - utility plant items
 
10,971

 
8,094

 
(1,154
)
 
2,329

 
4,140

 
9,201

Equity component of AFUDC
 
(5,985
)
 
(9,774
)
 
(2,030
)
 
(412
)
 
(2,666
)
 
(2,780
)
Amortization of investment tax credits
 
(1,201
)
 
(5,019
)
 
(160
)
 
(132
)
 
(900
)
 
(3,476
)
Flow-through / permanent differences
 
(3,848
)
 
(980
)
 
764

 
(3,609
)
 
634

 
(883
)
Act 55 financing settlement (b)
 
—

 
(61,620
)
 
—

 
—

 
(454
)
 
—

Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions (b)
 
(717
)
 
(75,871
)
 
50

 
(300
)
 
1,926

 
3,151

Other - net
 
656

 
1,425

 
229

 
142

 
246

 
115

Total income taxes as reported
 

$107,773

 

$89,734

 

$63,854

 

$28,705

 

$63,097

 

$71,061

Effective Income Tax Rate
 
39.2
%
 
12.6
%
 
36.9
%
 
37.0
%
 
37.0
%
 
42.3
%


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$74,272

 

$446,639

 

$92,708

 

$44,925

 

$69,625

 

$111,318

Income taxes
 
40,541

 
178,671

 
61,872

 
25,190

 
37,250

 
53,077

Pretax income
 

$114,813

 

$625,310

 

$154,580

 

$70,115

 

$106,875

 

$164,395

Computed at statutory rate (35%)
 

$40,185

 

$218,859

 

$54,103

 

$24,540

 

$37,406

 

$57,538

Increases (reductions) in tax resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
6,643

 
23,650

 
5,219

 
2,887

 
1,621

 
6,403

Regulatory differences - utility plant items
 
7,299

 
3,013

 
2,383

 
2,201

 
3,703

 
12,167

Equity component of AFUDC
 
(4,979
)
 
(5,420
)
 
(1,083
)
 
(451
)
 
(1,987
)
 
(2,973
)
Amortization of investment tax credits
 
(1,201
)
 
(5,252
)
 
(160
)
 
(111
)
 
(900
)
 
(3,476
)
Flow-through / permanent differences
 
(4,062
)
 
2,460

 
431

 
(4,539
)
 
530

 
618

Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions (c)
 
(3,978
)
 
(15,377
)
 
756

 
525

 
(3,365
)
 
(17,313
)
Other - net
 
634

 
1,396

 
223

 
138

 
242

 
113

Total income taxes as reported
 

$40,541

 

$178,671

 

$61,872

 

$25,190

 

$37,250

 

$53,077

Effective Income Tax Rate
 
35.3
%
 
28.6
%
 
40.0
%
 
35.9
%
 
34.9
%
 
32.3
%


(a)
See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the tax legislation enactment.
(b)
See “Income Tax Audits - 2010-2011 IRS Audit” below for discussion of the most significant items for Entergy Louisiana.
(c)
See “Income Tax Audits - 2008-2009 IRS Audit” below for discussion of the most significant items for Entergy Louisiana and System Energy.
Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes
Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Deferred tax liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Plant basis differences - net
 

($1,289,827
)
 

($1,583,100
)
 

($571,682
)
 

($85,515
)
 

($526,596
)
 

($359,931
)
Nuclear decommissioning trusts/receivables
 
(181,911
)
 
(164,395
)
 
—

 
—

 
—

 
(119,184
)
Pension, net funding
 
(99,971
)
 
(102,138
)
 
(26,413
)
 
(13,040
)
 
(20,700
)
 
(21,871
)
Deferred fuel
 
(16,530
)
 
(1,329
)
 
(19,005
)
 
(1,894
)
 
—

 
(272
)
Other
 
(23,079
)
 
(98,307
)
 
(11,306
)
 
(23,610
)
 
(8,236
)
 
(5,955
)
Total
 
(1,611,318
)
 
(1,949,269
)
 
(628,406
)
 
(124,059
)
 
(555,532
)
 
(507,213
)
Deferred tax assets:
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory liabilities
 
227,489

 
368,156

 
102,676

 
23,526

 
25,428

 
91,271

Nuclear decommissioning liabilities
 
132,464

 
58,891

 
—

 
—

 
—

 
63,180

Pension and other post-employment benefits
 
(16,252
)
 
98,596

 
(4,865
)
 
(9,618
)
 
(12,044
)
 
(516
)
Sale and leaseback
 
—

 
19,915

 
—

 
—

 
—

 
102,482

Accumulated deferred investment tax credit
 
8,913

 
35,323

 
2,212

 
488

 
2,516

 
9,832

Provision for allowances and contingencies
 
4,367

 
80,516

 
11,898

 
24,234

 
4,383

 
—

Power purchase agreements
 
—

 
(6,924
)
 
1,129

 
—

 
—

 
—

Unbilled/deferred revenues
 
6,195

 
(18,263
)
 
4,847

 
1,811

 
7,736

 
—

Compensation
 
2,566

 
4,387

 
1,466

 
723

 
1,224

 
332

Net operating loss carryforwards
 
16,172

 
44

 
10,255

 
—

 
1,690

 
—

Capital losses and miscellaneous tax credits
 
2,678

 
—

 
5,736

 
—

 
—

 
—

Other
 
473

 
21,922

 
1,307

 
388

 
1,133

 
—

Total
 
385,065

 
662,563

 
136,661

 
41,552

 
32,066

 
266,581

Non-current accrued taxes (including unrecognized tax benefits)
 
35,584

 
(763,665
)
 
2,939

 
(200,795
)
 
(21,176
)
 
(535,788
)
Accumulated deferred income taxes and taxes accrued
 

($1,190,669
)
 

($2,050,371
)
 

($488,806
)
 

($283,302
)
 

($544,642
)
 

($776,420
)
2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Deferred tax liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Plant basis differences - net
 

($1,857,554
)
 

($2,357,599
)
 

($820,971
)
 

($177,242
)
 

($835,671
)
 

($651,394
)
Regulatory assets
 
(109,241
)
 
(219,750
)
 
(25,309
)
 
(36,301
)
 
(153,914
)
 
(39,879
)
Nuclear decommissioning trusts
 
(144,250
)
 
(119,544
)
 
—

 
—

 
—

 
(83,891
)
Pension, net funding
 
(123,889
)
 
(122,465
)
 
(34,284
)
 
(16,307
)
 
(28,371
)
 
(29,357
)
Deferred fuel
 
(14,774
)
 
(1,778
)
 
(12,770
)
 
(5,229
)
 
(2,808
)
 
(1,137
)
Power purchase agreements
 
—

 
—

 
—

 
—

 
—

 
—

Other
 
(47,785
)
 
(22,136
)
 
(12,474
)
 
(18,536
)
 
(8,812
)
 
(2,051
)
Total
 
(2,297,493
)
 
(2,843,272
)
 
(905,808
)
 
(253,615
)
 
(1,029,576
)
 
(807,709
)
Deferred tax assets:
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory liabilities
 
5,768

 
175,973

 
18,833

 
25,240

 
15,814

 
13,644

Nuclear decommissioning liabilities
 
124,206

 
55,408

 
—

 
—

 
—

 
53,113

Pension and other post-employment benefits
 
(24,467
)
 
145,401

 
(8,042
)
 
(12,070
)
 
(19,096
)
 
(1,182
)
Sale and leaseback
 
—

 
33,383

 
—

 
—

 
—

 
102,483

Accumulated deferred investment tax credit
 
13,848

 
54,509

 
3,315

 
239

 
4,527

 
15,936

Provision for allowances and contingencies
 
(1,497
)
 
124,309

 
21,817

 
36,466

 
5,904

 
—

Power purchase agreements
 
(3,094
)
 
29,827

 
1,905

 
—

 
140

 
—

Unbilled/deferred revenues
 
6,799

 
(35,006
)
 
5,085

 
3,751

 
11,902

 
—

Compensation
 
2,787

 
5,309

 
1,492

 
685

 
1,587

 
360

Net operating loss carryforwards
 
69,524

 
17,125

 
—

 
—

 
—

 
—

Capital losses and miscellaneous tax credits
 
2,074

 
—

 
4,487

 
—

 
—

 
—

Other
 
174

 
17,110

 
1,152

 
496

 
2,955

 
—

Total
 
196,122

 
623,348

 
50,044

 
54,807

 
23,733

 
184,354

Non-current accrued taxes (including unrecognized tax benefits)
 
(85,252
)
 
(471,194
)
 
(5,567
)
 
(136,145
)
 
(21,804
)
 
(489,510
)
Accumulated deferred income taxes and taxes accrued
 

($2,186,623
)
 

($2,691,118
)
 

($861,331
)
 

($334,953
)
 

($1,027,647
)
 

($1,112,865
)
Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates
The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2017 are as follows:
 
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal net operating losses
 
$77 million
 
$4.3 billion
 
$86.6 million
 
$1.1 billion
 
—
 
—
Year(s) of expiration
 
2030-2037
 
2035-2037
 
2030-2037
 
2037
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
State net operating losses
 
—
 
$5 billion
 
—
 
$1.2 billion
 
—
 
—
Year(s) of expiration
 
N/A
 
2029-2037
 
N/A
 
2037
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
Misc. federal credits
 
$2.7 million
 
$1.7 million
 
$2.7 million
 
$2.1 million
 
$0.6 million
 
$2.5 million
Year(s) of expiration
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
 
 
 
 
 
 
 
 
 
 
 
 
State credits
 
—
 
—
 
$4.9 million
 
—
 
$3.2 million
 
$10 million
Year(s) of expiration
 
N/A
 
N/A
 
2018-2021
 
N/A
 
2026
 
2018-2021
Reconciliation Of Unrecognized Tax Benefits
A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2017, 2016, and 2015 is as follows:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2017
 

$2,503

 

$2,440,339

 

$12,206

 

$166,230

 

$15,946

 

$472,372

Additions based on tax positions related to the current year (a)
 
8,974

 
32,843

 
2,105

 
509,183

 
1,747

 
909

Additions for tax positions of prior years
 
3,682

 
235,331

 
1,267

 
13,364

 
3,115

 
1,432

Reductions for tax positions of prior years
 
(132,875
)
 
(190,056
)
 
(456
)
 
(9,233
)
 
(4,409
)
 
(29,202
)
Gross balance at December 31, 2017
 
(117,716
)
 
2,518,457

 
15,122

 
679,544

 
16,399

 
445,511

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
—

 
(1,591,907
)
 
(15,122
)
 
(441,374
)
 
(638
)
 
(12,536
)
Unrecognized tax benefits net of unused tax attributes and payments
 

($117,716
)
 

$926,550

 

$—

 

$238,170

 

$15,761

 

$432,975



2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2016
 

$25,445

 

$1,690,661

 

$19,482

 

$53,897

 

$13,462

 

$478,318

Additions based on tax positions related to the current year (a)
 
16,868

 
931,720

 
2,662

 
33,912

 
2,002

 
5,318

Additions for tax positions of prior years
 
2,463

 
157,586

 
336

 
129,784

 
2,888

 
601

Reductions for tax positions of prior years
 
(41,957
)
 
(144,068
)
 
(10,219
)
 
(29,821
)
 
(1,849
)
 
(10,266
)
Settlements
 
(316
)
 
(195,560
)
 
(55
)
 
(21,542
)
 
(557
)
 
(1,599
)
Gross balance at December 31, 2016
 
2,503

 
2,440,339

 
12,206

 
166,230

 
15,946

 
472,372

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
—

 
(1,783,093
)
 
(2,373
)
 
(27,320
)
 
(376
)
 
(90,028
)
Unrecognized tax benefits net of unused tax attributes and payments
 

$2,503

 

$657,246

 

$9,833

 

$138,910

 

$15,570

 

$382,344


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2015
 

$362,912

 

$1,205,929

 

$20,144

 

$53,763

 

$17,264

 

$258,242

Additions based on tax positions related to the current year (b)
 
2,196

 
1,367,058

 
566

 
472

 
657

 
472,304

Additions for tax positions of prior years
 
1,057

 
7,992

 
8,140

 
48

 
2,914

 
913

Reductions for tax positions of prior years
 
(340,720
)
 
(859,430
)
 
—

 
(386
)
 
(3,981
)
 
(253,141
)
Settlements
 
—

 
(30,888
)
 
(9,368
)
 
—

 
(3,392
)
 
—

Gross balance at December 31, 2015
 
25,445

 
1,690,661

 
19,482

 
53,897

 
13,462

 
478,318

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
(3,613
)
 
(893,764
)
 
(1,016
)
 
(506
)
 
(276
)
 
(133,611
)
Unrecognized tax benefits net of unused tax attributes and payments
 

$21,832

 

$796,897

 

$18,466

 

$53,391

 

$13,186

 

$344,707



(a)
The primary additions for Entergy Louisiana in 2016 and for Entergy New Orleans in 2017 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.
(b)
The primary addition for Entergy Louisiana and System Energy is related to the nuclear decommissioning costs treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.
Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate
The Registrant Subsidiaries’ balances of unrecognized tax benefits included amounts which, if recognized, would have reduced income tax expense as follows:
 
December 31,
 
2017
 
2016
 
2015
 
(In Millions)
Entergy Arkansas

$2.6

 

$3.6

 

$4.5

Entergy Louisiana

$575.8

 

$473.3

 

$692.7

Entergy Mississippi

$—

 

$—

 

$8.1

Entergy New Orleans

$31.7

 

$33.6

 

$50.7

Entergy Texas

$4.4

 

$7.0

 

$5.2

System Energy

$—

 

$—

 

$0.7
Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits
Accrued balances for the possible payment of interest are as follows:
 
December 31,
 
2017
 
2016
 
2015
 
(In Millions)
Entergy Arkansas

$1.6

 

$1.4

 

$1.3

Entergy Louisiana

$14.1

 

$8.4

 

$9.3

Entergy Mississippi

$1.0

 

$0.8

 

$0.4

Entergy New Orleans

$2.1

 

$1.5

 

$1.8

Entergy Texas

$0.4

 

$1.2

 

$1.2

System Energy

$8.5

 

$3.7

 

$0.7
Entergy Mississippi [Member]  
Income Tax Expenses From Continuing Operations
Income taxes for 2017, 2016, and 2015 for Entergy’s Registrant Subsidiaries consist of the following:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

$16,086

 

($84,250
)
 

($8,845
)
 

($30,635
)
 

$6,034

 

$47,674

State
 
9,191

 
1,480

 
(924
)
 
(728
)
 
310

 
5,314

Total
 
25,277

 
(82,770
)
 
(9,769
)
 
(31,363
)
 
6,344

 
52,988

Deferred and non-current - net
 
69,753

 
572,988

 
83,501

 
62,946

 
43,102

 
19,243

Investment tax credit adjustments - net
 
(1,226
)
 
(4,920
)
 
187

 
1,695

 
(965
)
 
(2,262
)
Income taxes
 

$93,804

 

$485,298

 

$73,919

 

$33,278

 

$48,481

 

$69,969


2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

($14,748
)
 

($124,113
)
 

$10,603

 

($91,067
)
 

$19,656

 

$29,628

State
 
2,805

 
10,757

 
2,257

 
566

 
1,374

 
(25,825
)
Total
 
(11,943
)
 
(113,356
)
 
12,860

 
(90,501
)
 
21,030

 
3,803

Deferred and non-current - net
 
120,942

 
208,157

 
46,984

 
119,345

 
42,982

 
71,051

Investment tax credit adjustments - net
 
(1,226
)
 
(5,067
)
 
4,010

 
(139
)
 
(915
)
 
(3,793
)
Income taxes
 

$107,773

 

$89,734

 

$63,854

 

$28,705

 

$63,097

 

$71,061


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

$66,966

 

$101,382

 

$25,628

 

($9,346
)
 

$53,313

 

($63,302
)
State
 
6,265

 
35,406

 
6,832

 
1,784

 
2,450

 
26,755

Total
 
73,231

 
136,788

 
32,460

 
(7,562
)
 
55,763

 
(36,547
)
Deferred and non-current - net
 
(31,463
)
 
47,220

 
31,149

 
32,890

 
(17,599
)
 
93,491

Investment tax credit adjustments - net
 
(1,227
)
 
(5,337
)
 
(1,737
)
 
(138
)
 
(914
)
 
(3,867
)
Income taxes
 

$40,541

 

$178,671

 

$61,872

 

$25,190

 

$37,250

 

$53,077
Total Income Taxes For Entergy Corporation And Subsidiaries
Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2017, 2016, and 2015 are:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$139,844

 

$316,347

 

$110,032

 

$44,553

 

$76,173

 

$78,596

Income taxes
 
93,804

 
485,298

 
73,919

 
33,278

 
48,481

 
69,969

Pretax income
 

$233,648

 

$801,645

 

$183,951

 

$77,831

 

$124,654

 

$148,565

Computed at statutory rate (35%)
 

$81,777

 

$280,576

 

$64,383

 

$27,241

 

$43,629

 

$51,998

Increases (reductions) in tax resulting from:
 
 
 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
11,586

 
31,927

 
6,202

 
2,842

 
527

 
5,635

Regulatory differences - utility plant items
 
7,220

 
12,168

 
1,356

 
619

 
5,581

 
12,880

Equity component of AFUDC
 
(6,458
)
 
(18,020
)
 
(3,383
)
 
(847
)
 
(2,353
)
 
(2,221
)
Amortization of investment tax credits
 
(1,201
)
 
(4,871
)
 
(160
)
 
(124
)
 
(951
)
 
(2,896
)
Flow-through / permanent differences
 
3,098

 
3,774

 
1,567

 
(3,352
)
 
1,428

 
(276
)
Tax legislation enactment (a)
 
(3,090
)
 
217,258

 
3,492

 
6,153

 
2,981

 
(69
)
Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions
 
200

 
5,700

 
228

 
600

 
(2,617
)
 
4,800

Other - net
 
672

 
1,444

 
234

 
146

 
256

 
118

Total income taxes as reported
 

$93,804

 

$485,298

 

$73,919

 

$33,278

 

$48,481

 

$69,969

Effective Income Tax Rate
 
40.1
%
 
60.5
%
 
40.2
%
 
42.8
%
 
38.9
%
 
47.1
%


2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$167,212

 

$622,047

 

$109,184

 

$48,849

 

$107,538

 

$96,744

Income taxes
 
107,773

 
89,734

 
63,854

 
28,705

 
63,097

 
71,061

Pretax income
 

$274,985

 

$711,781

 

$173,038

 

$77,554

 

$170,635

 

$167,805

Computed at statutory rate (35%)
 

$96,245

 

$249,123

 

$60,563

 

$27,144

 

$59,722

 

$58,732

Increases (reductions) in tax resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
11,652

 
29,014

 
5,592

 
3,543

 
449

 
7,001

Regulatory differences - utility plant items
 
10,971

 
8,094

 
(1,154
)
 
2,329

 
4,140

 
9,201

Equity component of AFUDC
 
(5,985
)
 
(9,774
)
 
(2,030
)
 
(412
)
 
(2,666
)
 
(2,780
)
Amortization of investment tax credits
 
(1,201
)
 
(5,019
)
 
(160
)
 
(132
)
 
(900
)
 
(3,476
)
Flow-through / permanent differences
 
(3,848
)
 
(980
)
 
764

 
(3,609
)
 
634

 
(883
)
Act 55 financing settlement (b)
 
—

 
(61,620
)
 
—

 
—

 
(454
)
 
—

Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions (b)
 
(717
)
 
(75,871
)
 
50

 
(300
)
 
1,926

 
3,151

Other - net
 
656

 
1,425

 
229

 
142

 
246

 
115

Total income taxes as reported
 

$107,773

 

$89,734

 

$63,854

 

$28,705

 

$63,097

 

$71,061

Effective Income Tax Rate
 
39.2
%
 
12.6
%
 
36.9
%
 
37.0
%
 
37.0
%
 
42.3
%


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$74,272

 

$446,639

 

$92,708

 

$44,925

 

$69,625

 

$111,318

Income taxes
 
40,541

 
178,671

 
61,872

 
25,190

 
37,250

 
53,077

Pretax income
 

$114,813

 

$625,310

 

$154,580

 

$70,115

 

$106,875

 

$164,395

Computed at statutory rate (35%)
 

$40,185

 

$218,859

 

$54,103

 

$24,540

 

$37,406

 

$57,538

Increases (reductions) in tax resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
6,643

 
23,650

 
5,219

 
2,887

 
1,621

 
6,403

Regulatory differences - utility plant items
 
7,299

 
3,013

 
2,383

 
2,201

 
3,703

 
12,167

Equity component of AFUDC
 
(4,979
)
 
(5,420
)
 
(1,083
)
 
(451
)
 
(1,987
)
 
(2,973
)
Amortization of investment tax credits
 
(1,201
)
 
(5,252
)
 
(160
)
 
(111
)
 
(900
)
 
(3,476
)
Flow-through / permanent differences
 
(4,062
)
 
2,460

 
431

 
(4,539
)
 
530

 
618

Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions (c)
 
(3,978
)
 
(15,377
)
 
756

 
525

 
(3,365
)
 
(17,313
)
Other - net
 
634

 
1,396

 
223

 
138

 
242

 
113

Total income taxes as reported
 

$40,541

 

$178,671

 

$61,872

 

$25,190

 

$37,250

 

$53,077

Effective Income Tax Rate
 
35.3
%
 
28.6
%
 
40.0
%
 
35.9
%
 
34.9
%
 
32.3
%


(a)
See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the tax legislation enactment.
(b)
See “Income Tax Audits - 2010-2011 IRS Audit” below for discussion of the most significant items for Entergy Louisiana.
(c)
See “Income Tax Audits - 2008-2009 IRS Audit” below for discussion of the most significant items for Entergy Louisiana and System Energy.
Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes
Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Deferred tax liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Plant basis differences - net
 

($1,289,827
)
 

($1,583,100
)
 

($571,682
)
 

($85,515
)
 

($526,596
)
 

($359,931
)
Nuclear decommissioning trusts/receivables
 
(181,911
)
 
(164,395
)
 
—

 
—

 
—

 
(119,184
)
Pension, net funding
 
(99,971
)
 
(102,138
)
 
(26,413
)
 
(13,040
)
 
(20,700
)
 
(21,871
)
Deferred fuel
 
(16,530
)
 
(1,329
)
 
(19,005
)
 
(1,894
)
 
—

 
(272
)
Other
 
(23,079
)
 
(98,307
)
 
(11,306
)
 
(23,610
)
 
(8,236
)
 
(5,955
)
Total
 
(1,611,318
)
 
(1,949,269
)
 
(628,406
)
 
(124,059
)
 
(555,532
)
 
(507,213
)
Deferred tax assets:
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory liabilities
 
227,489

 
368,156

 
102,676

 
23,526

 
25,428

 
91,271

Nuclear decommissioning liabilities
 
132,464

 
58,891

 
—

 
—

 
—

 
63,180

Pension and other post-employment benefits
 
(16,252
)
 
98,596

 
(4,865
)
 
(9,618
)
 
(12,044
)
 
(516
)
Sale and leaseback
 
—

 
19,915

 
—

 
—

 
—

 
102,482

Accumulated deferred investment tax credit
 
8,913

 
35,323

 
2,212

 
488

 
2,516

 
9,832

Provision for allowances and contingencies
 
4,367

 
80,516

 
11,898

 
24,234

 
4,383

 
—

Power purchase agreements
 
—

 
(6,924
)
 
1,129

 
—

 
—

 
—

Unbilled/deferred revenues
 
6,195

 
(18,263
)
 
4,847

 
1,811

 
7,736

 
—

Compensation
 
2,566

 
4,387

 
1,466

 
723

 
1,224

 
332

Net operating loss carryforwards
 
16,172

 
44

 
10,255

 
—

 
1,690

 
—

Capital losses and miscellaneous tax credits
 
2,678

 
—

 
5,736

 
—

 
—

 
—

Other
 
473

 
21,922

 
1,307

 
388

 
1,133

 
—

Total
 
385,065

 
662,563

 
136,661

 
41,552

 
32,066

 
266,581

Non-current accrued taxes (including unrecognized tax benefits)
 
35,584

 
(763,665
)
 
2,939

 
(200,795
)
 
(21,176
)
 
(535,788
)
Accumulated deferred income taxes and taxes accrued
 

($1,190,669
)
 

($2,050,371
)
 

($488,806
)
 

($283,302
)
 

($544,642
)
 

($776,420
)
2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Deferred tax liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Plant basis differences - net
 

($1,857,554
)
 

($2,357,599
)
 

($820,971
)
 

($177,242
)
 

($835,671
)
 

($651,394
)
Regulatory assets
 
(109,241
)
 
(219,750
)
 
(25,309
)
 
(36,301
)
 
(153,914
)
 
(39,879
)
Nuclear decommissioning trusts
 
(144,250
)
 
(119,544
)
 
—

 
—

 
—

 
(83,891
)
Pension, net funding
 
(123,889
)
 
(122,465
)
 
(34,284
)
 
(16,307
)
 
(28,371
)
 
(29,357
)
Deferred fuel
 
(14,774
)
 
(1,778
)
 
(12,770
)
 
(5,229
)
 
(2,808
)
 
(1,137
)
Power purchase agreements
 
—

 
—

 
—

 
—

 
—

 
—

Other
 
(47,785
)
 
(22,136
)
 
(12,474
)
 
(18,536
)
 
(8,812
)
 
(2,051
)
Total
 
(2,297,493
)
 
(2,843,272
)
 
(905,808
)
 
(253,615
)
 
(1,029,576
)
 
(807,709
)
Deferred tax assets:
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory liabilities
 
5,768

 
175,973

 
18,833

 
25,240

 
15,814

 
13,644

Nuclear decommissioning liabilities
 
124,206

 
55,408

 
—

 
—

 
—

 
53,113

Pension and other post-employment benefits
 
(24,467
)
 
145,401

 
(8,042
)
 
(12,070
)
 
(19,096
)
 
(1,182
)
Sale and leaseback
 
—

 
33,383

 
—

 
—

 
—

 
102,483

Accumulated deferred investment tax credit
 
13,848

 
54,509

 
3,315

 
239

 
4,527

 
15,936

Provision for allowances and contingencies
 
(1,497
)
 
124,309

 
21,817

 
36,466

 
5,904

 
—

Power purchase agreements
 
(3,094
)
 
29,827

 
1,905

 
—

 
140

 
—

Unbilled/deferred revenues
 
6,799

 
(35,006
)
 
5,085

 
3,751

 
11,902

 
—

Compensation
 
2,787

 
5,309

 
1,492

 
685

 
1,587

 
360

Net operating loss carryforwards
 
69,524

 
17,125

 
—

 
—

 
—

 
—

Capital losses and miscellaneous tax credits
 
2,074

 
—

 
4,487

 
—

 
—

 
—

Other
 
174

 
17,110

 
1,152

 
496

 
2,955

 
—

Total
 
196,122

 
623,348

 
50,044

 
54,807

 
23,733

 
184,354

Non-current accrued taxes (including unrecognized tax benefits)
 
(85,252
)
 
(471,194
)
 
(5,567
)
 
(136,145
)
 
(21,804
)
 
(489,510
)
Accumulated deferred income taxes and taxes accrued
 

($2,186,623
)
 

($2,691,118
)
 

($861,331
)
 

($334,953
)
 

($1,027,647
)
 

($1,112,865
)
Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates
The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2017 are as follows:
 
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal net operating losses
 
$77 million
 
$4.3 billion
 
$86.6 million
 
$1.1 billion
 
—
 
—
Year(s) of expiration
 
2030-2037
 
2035-2037
 
2030-2037
 
2037
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
State net operating losses
 
—
 
$5 billion
 
—
 
$1.2 billion
 
—
 
—
Year(s) of expiration
 
N/A
 
2029-2037
 
N/A
 
2037
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
Misc. federal credits
 
$2.7 million
 
$1.7 million
 
$2.7 million
 
$2.1 million
 
$0.6 million
 
$2.5 million
Year(s) of expiration
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
 
 
 
 
 
 
 
 
 
 
 
 
State credits
 
—
 
—
 
$4.9 million
 
—
 
$3.2 million
 
$10 million
Year(s) of expiration
 
N/A
 
N/A
 
2018-2021
 
N/A
 
2026
 
2018-2021
Reconciliation Of Unrecognized Tax Benefits
A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2017, 2016, and 2015 is as follows:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2017
 

$2,503

 

$2,440,339

 

$12,206

 

$166,230

 

$15,946

 

$472,372

Additions based on tax positions related to the current year (a)
 
8,974

 
32,843

 
2,105

 
509,183

 
1,747

 
909

Additions for tax positions of prior years
 
3,682

 
235,331

 
1,267

 
13,364

 
3,115

 
1,432

Reductions for tax positions of prior years
 
(132,875
)
 
(190,056
)
 
(456
)
 
(9,233
)
 
(4,409
)
 
(29,202
)
Gross balance at December 31, 2017
 
(117,716
)
 
2,518,457

 
15,122

 
679,544

 
16,399

 
445,511

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
—

 
(1,591,907
)
 
(15,122
)
 
(441,374
)
 
(638
)
 
(12,536
)
Unrecognized tax benefits net of unused tax attributes and payments
 

($117,716
)
 

$926,550

 

$—

 

$238,170

 

$15,761

 

$432,975



2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2016
 

$25,445

 

$1,690,661

 

$19,482

 

$53,897

 

$13,462

 

$478,318

Additions based on tax positions related to the current year (a)
 
16,868

 
931,720

 
2,662

 
33,912

 
2,002

 
5,318

Additions for tax positions of prior years
 
2,463

 
157,586

 
336

 
129,784

 
2,888

 
601

Reductions for tax positions of prior years
 
(41,957
)
 
(144,068
)
 
(10,219
)
 
(29,821
)
 
(1,849
)
 
(10,266
)
Settlements
 
(316
)
 
(195,560
)
 
(55
)
 
(21,542
)
 
(557
)
 
(1,599
)
Gross balance at December 31, 2016
 
2,503

 
2,440,339

 
12,206

 
166,230

 
15,946

 
472,372

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
—

 
(1,783,093
)
 
(2,373
)
 
(27,320
)
 
(376
)
 
(90,028
)
Unrecognized tax benefits net of unused tax attributes and payments
 

$2,503

 

$657,246

 

$9,833

 

$138,910

 

$15,570

 

$382,344


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2015
 

$362,912

 

$1,205,929

 

$20,144

 

$53,763

 

$17,264

 

$258,242

Additions based on tax positions related to the current year (b)
 
2,196

 
1,367,058

 
566

 
472

 
657

 
472,304

Additions for tax positions of prior years
 
1,057

 
7,992

 
8,140

 
48

 
2,914

 
913

Reductions for tax positions of prior years
 
(340,720
)
 
(859,430
)
 
—

 
(386
)
 
(3,981
)
 
(253,141
)
Settlements
 
—

 
(30,888
)
 
(9,368
)
 
—

 
(3,392
)
 
—

Gross balance at December 31, 2015
 
25,445

 
1,690,661

 
19,482

 
53,897

 
13,462

 
478,318

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
(3,613
)
 
(893,764
)
 
(1,016
)
 
(506
)
 
(276
)
 
(133,611
)
Unrecognized tax benefits net of unused tax attributes and payments
 

$21,832

 

$796,897

 

$18,466

 

$53,391

 

$13,186

 

$344,707



(a)
The primary additions for Entergy Louisiana in 2016 and for Entergy New Orleans in 2017 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.
(b)
The primary addition for Entergy Louisiana and System Energy is related to the nuclear decommissioning costs treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.
Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate
The Registrant Subsidiaries’ balances of unrecognized tax benefits included amounts which, if recognized, would have reduced income tax expense as follows:
 
December 31,
 
2017
 
2016
 
2015
 
(In Millions)
Entergy Arkansas

$2.6

 

$3.6

 

$4.5

Entergy Louisiana

$575.8

 

$473.3

 

$692.7

Entergy Mississippi

$—

 

$—

 

$8.1

Entergy New Orleans

$31.7

 

$33.6

 

$50.7

Entergy Texas

$4.4

 

$7.0

 

$5.2

System Energy

$—

 

$—

 

$0.7
Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits
Accrued balances for the possible payment of interest are as follows:
 
December 31,
 
2017
 
2016
 
2015
 
(In Millions)
Entergy Arkansas

$1.6

 

$1.4

 

$1.3

Entergy Louisiana

$14.1

 

$8.4

 

$9.3

Entergy Mississippi

$1.0

 

$0.8

 

$0.4

Entergy New Orleans

$2.1

 

$1.5

 

$1.8

Entergy Texas

$0.4

 

$1.2

 

$1.2

System Energy

$8.5

 

$3.7

 

$0.7
Entergy New Orleans [Member]  
Income Tax Expenses From Continuing Operations
Income taxes for 2017, 2016, and 2015 for Entergy’s Registrant Subsidiaries consist of the following:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

$16,086

 

($84,250
)
 

($8,845
)
 

($30,635
)
 

$6,034

 

$47,674

State
 
9,191

 
1,480

 
(924
)
 
(728
)
 
310

 
5,314

Total
 
25,277

 
(82,770
)
 
(9,769
)
 
(31,363
)
 
6,344

 
52,988

Deferred and non-current - net
 
69,753

 
572,988

 
83,501

 
62,946

 
43,102

 
19,243

Investment tax credit adjustments - net
 
(1,226
)
 
(4,920
)
 
187

 
1,695

 
(965
)
 
(2,262
)
Income taxes
 

$93,804

 

$485,298

 

$73,919

 

$33,278

 

$48,481

 

$69,969


2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

($14,748
)
 

($124,113
)
 

$10,603

 

($91,067
)
 

$19,656

 

$29,628

State
 
2,805

 
10,757

 
2,257

 
566

 
1,374

 
(25,825
)
Total
 
(11,943
)
 
(113,356
)
 
12,860

 
(90,501
)
 
21,030

 
3,803

Deferred and non-current - net
 
120,942

 
208,157

 
46,984

 
119,345

 
42,982

 
71,051

Investment tax credit adjustments - net
 
(1,226
)
 
(5,067
)
 
4,010

 
(139
)
 
(915
)
 
(3,793
)
Income taxes
 

$107,773

 

$89,734

 

$63,854

 

$28,705

 

$63,097

 

$71,061


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

$66,966

 

$101,382

 

$25,628

 

($9,346
)
 

$53,313

 

($63,302
)
State
 
6,265

 
35,406

 
6,832

 
1,784

 
2,450

 
26,755

Total
 
73,231

 
136,788

 
32,460

 
(7,562
)
 
55,763

 
(36,547
)
Deferred and non-current - net
 
(31,463
)
 
47,220

 
31,149

 
32,890

 
(17,599
)
 
93,491

Investment tax credit adjustments - net
 
(1,227
)
 
(5,337
)
 
(1,737
)
 
(138
)
 
(914
)
 
(3,867
)
Income taxes
 

$40,541

 

$178,671

 

$61,872

 

$25,190

 

$37,250

 

$53,077
Total Income Taxes For Entergy Corporation And Subsidiaries
Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2017, 2016, and 2015 are:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$139,844

 

$316,347

 

$110,032

 

$44,553

 

$76,173

 

$78,596

Income taxes
 
93,804

 
485,298

 
73,919

 
33,278

 
48,481

 
69,969

Pretax income
 

$233,648

 

$801,645

 

$183,951

 

$77,831

 

$124,654

 

$148,565

Computed at statutory rate (35%)
 

$81,777

 

$280,576

 

$64,383

 

$27,241

 

$43,629

 

$51,998

Increases (reductions) in tax resulting from:
 
 
 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
11,586

 
31,927

 
6,202

 
2,842

 
527

 
5,635

Regulatory differences - utility plant items
 
7,220

 
12,168

 
1,356

 
619

 
5,581

 
12,880

Equity component of AFUDC
 
(6,458
)
 
(18,020
)
 
(3,383
)
 
(847
)
 
(2,353
)
 
(2,221
)
Amortization of investment tax credits
 
(1,201
)
 
(4,871
)
 
(160
)
 
(124
)
 
(951
)
 
(2,896
)
Flow-through / permanent differences
 
3,098

 
3,774

 
1,567

 
(3,352
)
 
1,428

 
(276
)
Tax legislation enactment (a)
 
(3,090
)
 
217,258

 
3,492

 
6,153

 
2,981

 
(69
)
Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions
 
200

 
5,700

 
228

 
600

 
(2,617
)
 
4,800

Other - net
 
672

 
1,444

 
234

 
146

 
256

 
118

Total income taxes as reported
 

$93,804

 

$485,298

 

$73,919

 

$33,278

 

$48,481

 

$69,969

Effective Income Tax Rate
 
40.1
%
 
60.5
%
 
40.2
%
 
42.8
%
 
38.9
%
 
47.1
%


2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$167,212

 

$622,047

 

$109,184

 

$48,849

 

$107,538

 

$96,744

Income taxes
 
107,773

 
89,734

 
63,854

 
28,705

 
63,097

 
71,061

Pretax income
 

$274,985

 

$711,781

 

$173,038

 

$77,554

 

$170,635

 

$167,805

Computed at statutory rate (35%)
 

$96,245

 

$249,123

 

$60,563

 

$27,144

 

$59,722

 

$58,732

Increases (reductions) in tax resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
11,652

 
29,014

 
5,592

 
3,543

 
449

 
7,001

Regulatory differences - utility plant items
 
10,971

 
8,094

 
(1,154
)
 
2,329

 
4,140

 
9,201

Equity component of AFUDC
 
(5,985
)
 
(9,774
)
 
(2,030
)
 
(412
)
 
(2,666
)
 
(2,780
)
Amortization of investment tax credits
 
(1,201
)
 
(5,019
)
 
(160
)
 
(132
)
 
(900
)
 
(3,476
)
Flow-through / permanent differences
 
(3,848
)
 
(980
)
 
764

 
(3,609
)
 
634

 
(883
)
Act 55 financing settlement (b)
 
—

 
(61,620
)
 
—

 
—

 
(454
)
 
—

Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions (b)
 
(717
)
 
(75,871
)
 
50

 
(300
)
 
1,926

 
3,151

Other - net
 
656

 
1,425

 
229

 
142

 
246

 
115

Total income taxes as reported
 

$107,773

 

$89,734

 

$63,854

 

$28,705

 

$63,097

 

$71,061

Effective Income Tax Rate
 
39.2
%
 
12.6
%
 
36.9
%
 
37.0
%
 
37.0
%
 
42.3
%


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$74,272

 

$446,639

 

$92,708

 

$44,925

 

$69,625

 

$111,318

Income taxes
 
40,541

 
178,671

 
61,872

 
25,190

 
37,250

 
53,077

Pretax income
 

$114,813

 

$625,310

 

$154,580

 

$70,115

 

$106,875

 

$164,395

Computed at statutory rate (35%)
 

$40,185

 

$218,859

 

$54,103

 

$24,540

 

$37,406

 

$57,538

Increases (reductions) in tax resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
6,643

 
23,650

 
5,219

 
2,887

 
1,621

 
6,403

Regulatory differences - utility plant items
 
7,299

 
3,013

 
2,383

 
2,201

 
3,703

 
12,167

Equity component of AFUDC
 
(4,979
)
 
(5,420
)
 
(1,083
)
 
(451
)
 
(1,987
)
 
(2,973
)
Amortization of investment tax credits
 
(1,201
)
 
(5,252
)
 
(160
)
 
(111
)
 
(900
)
 
(3,476
)
Flow-through / permanent differences
 
(4,062
)
 
2,460

 
431

 
(4,539
)
 
530

 
618

Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions (c)
 
(3,978
)
 
(15,377
)
 
756

 
525

 
(3,365
)
 
(17,313
)
Other - net
 
634

 
1,396

 
223

 
138

 
242

 
113

Total income taxes as reported
 

$40,541

 

$178,671

 

$61,872

 

$25,190

 

$37,250

 

$53,077

Effective Income Tax Rate
 
35.3
%
 
28.6
%
 
40.0
%
 
35.9
%
 
34.9
%
 
32.3
%


(a)
See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the tax legislation enactment.
(b)
See “Income Tax Audits - 2010-2011 IRS Audit” below for discussion of the most significant items for Entergy Louisiana.
(c)
See “Income Tax Audits - 2008-2009 IRS Audit” below for discussion of the most significant items for Entergy Louisiana and System Energy.
Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes
Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Deferred tax liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Plant basis differences - net
 

($1,289,827
)
 

($1,583,100
)
 

($571,682
)
 

($85,515
)
 

($526,596
)
 

($359,931
)
Nuclear decommissioning trusts/receivables
 
(181,911
)
 
(164,395
)
 
—

 
—

 
—

 
(119,184
)
Pension, net funding
 
(99,971
)
 
(102,138
)
 
(26,413
)
 
(13,040
)
 
(20,700
)
 
(21,871
)
Deferred fuel
 
(16,530
)
 
(1,329
)
 
(19,005
)
 
(1,894
)
 
—

 
(272
)
Other
 
(23,079
)
 
(98,307
)
 
(11,306
)
 
(23,610
)
 
(8,236
)
 
(5,955
)
Total
 
(1,611,318
)
 
(1,949,269
)
 
(628,406
)
 
(124,059
)
 
(555,532
)
 
(507,213
)
Deferred tax assets:
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory liabilities
 
227,489

 
368,156

 
102,676

 
23,526

 
25,428

 
91,271

Nuclear decommissioning liabilities
 
132,464

 
58,891

 
—

 
—

 
—

 
63,180

Pension and other post-employment benefits
 
(16,252
)
 
98,596

 
(4,865
)
 
(9,618
)
 
(12,044
)
 
(516
)
Sale and leaseback
 
—

 
19,915

 
—

 
—

 
—

 
102,482

Accumulated deferred investment tax credit
 
8,913

 
35,323

 
2,212

 
488

 
2,516

 
9,832

Provision for allowances and contingencies
 
4,367

 
80,516

 
11,898

 
24,234

 
4,383

 
—

Power purchase agreements
 
—

 
(6,924
)
 
1,129

 
—

 
—

 
—

Unbilled/deferred revenues
 
6,195

 
(18,263
)
 
4,847

 
1,811

 
7,736

 
—

Compensation
 
2,566

 
4,387

 
1,466

 
723

 
1,224

 
332

Net operating loss carryforwards
 
16,172

 
44

 
10,255

 
—

 
1,690

 
—

Capital losses and miscellaneous tax credits
 
2,678

 
—

 
5,736

 
—

 
—

 
—

Other
 
473

 
21,922

 
1,307

 
388

 
1,133

 
—

Total
 
385,065

 
662,563

 
136,661

 
41,552

 
32,066

 
266,581

Non-current accrued taxes (including unrecognized tax benefits)
 
35,584

 
(763,665
)
 
2,939

 
(200,795
)
 
(21,176
)
 
(535,788
)
Accumulated deferred income taxes and taxes accrued
 

($1,190,669
)
 

($2,050,371
)
 

($488,806
)
 

($283,302
)
 

($544,642
)
 

($776,420
)
2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Deferred tax liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Plant basis differences - net
 

($1,857,554
)
 

($2,357,599
)
 

($820,971
)
 

($177,242
)
 

($835,671
)
 

($651,394
)
Regulatory assets
 
(109,241
)
 
(219,750
)
 
(25,309
)
 
(36,301
)
 
(153,914
)
 
(39,879
)
Nuclear decommissioning trusts
 
(144,250
)
 
(119,544
)
 
—

 
—

 
—

 
(83,891
)
Pension, net funding
 
(123,889
)
 
(122,465
)
 
(34,284
)
 
(16,307
)
 
(28,371
)
 
(29,357
)
Deferred fuel
 
(14,774
)
 
(1,778
)
 
(12,770
)
 
(5,229
)
 
(2,808
)
 
(1,137
)
Power purchase agreements
 
—

 
—

 
—

 
—

 
—

 
—

Other
 
(47,785
)
 
(22,136
)
 
(12,474
)
 
(18,536
)
 
(8,812
)
 
(2,051
)
Total
 
(2,297,493
)
 
(2,843,272
)
 
(905,808
)
 
(253,615
)
 
(1,029,576
)
 
(807,709
)
Deferred tax assets:
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory liabilities
 
5,768

 
175,973

 
18,833

 
25,240

 
15,814

 
13,644

Nuclear decommissioning liabilities
 
124,206

 
55,408

 
—

 
—

 
—

 
53,113

Pension and other post-employment benefits
 
(24,467
)
 
145,401

 
(8,042
)
 
(12,070
)
 
(19,096
)
 
(1,182
)
Sale and leaseback
 
—

 
33,383

 
—

 
—

 
—

 
102,483

Accumulated deferred investment tax credit
 
13,848

 
54,509

 
3,315

 
239

 
4,527

 
15,936

Provision for allowances and contingencies
 
(1,497
)
 
124,309

 
21,817

 
36,466

 
5,904

 
—

Power purchase agreements
 
(3,094
)
 
29,827

 
1,905

 
—

 
140

 
—

Unbilled/deferred revenues
 
6,799

 
(35,006
)
 
5,085

 
3,751

 
11,902

 
—

Compensation
 
2,787

 
5,309

 
1,492

 
685

 
1,587

 
360

Net operating loss carryforwards
 
69,524

 
17,125

 
—

 
—

 
—

 
—

Capital losses and miscellaneous tax credits
 
2,074

 
—

 
4,487

 
—

 
—

 
—

Other
 
174

 
17,110

 
1,152

 
496

 
2,955

 
—

Total
 
196,122

 
623,348

 
50,044

 
54,807

 
23,733

 
184,354

Non-current accrued taxes (including unrecognized tax benefits)
 
(85,252
)
 
(471,194
)
 
(5,567
)
 
(136,145
)
 
(21,804
)
 
(489,510
)
Accumulated deferred income taxes and taxes accrued
 

($2,186,623
)
 

($2,691,118
)
 

($861,331
)
 

($334,953
)
 

($1,027,647
)
 

($1,112,865
)
Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates
The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2017 are as follows:
 
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal net operating losses
 
$77 million
 
$4.3 billion
 
$86.6 million
 
$1.1 billion
 
—
 
—
Year(s) of expiration
 
2030-2037
 
2035-2037
 
2030-2037
 
2037
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
State net operating losses
 
—
 
$5 billion
 
—
 
$1.2 billion
 
—
 
—
Year(s) of expiration
 
N/A
 
2029-2037
 
N/A
 
2037
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
Misc. federal credits
 
$2.7 million
 
$1.7 million
 
$2.7 million
 
$2.1 million
 
$0.6 million
 
$2.5 million
Year(s) of expiration
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
 
 
 
 
 
 
 
 
 
 
 
 
State credits
 
—
 
—
 
$4.9 million
 
—
 
$3.2 million
 
$10 million
Year(s) of expiration
 
N/A
 
N/A
 
2018-2021
 
N/A
 
2026
 
2018-2021
Reconciliation Of Unrecognized Tax Benefits
A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2017, 2016, and 2015 is as follows:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2017
 

$2,503

 

$2,440,339

 

$12,206

 

$166,230

 

$15,946

 

$472,372

Additions based on tax positions related to the current year (a)
 
8,974

 
32,843

 
2,105

 
509,183

 
1,747

 
909

Additions for tax positions of prior years
 
3,682

 
235,331

 
1,267

 
13,364

 
3,115

 
1,432

Reductions for tax positions of prior years
 
(132,875
)
 
(190,056
)
 
(456
)
 
(9,233
)
 
(4,409
)
 
(29,202
)
Gross balance at December 31, 2017
 
(117,716
)
 
2,518,457

 
15,122

 
679,544

 
16,399

 
445,511

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
—

 
(1,591,907
)
 
(15,122
)
 
(441,374
)
 
(638
)
 
(12,536
)
Unrecognized tax benefits net of unused tax attributes and payments
 

($117,716
)
 

$926,550

 

$—

 

$238,170

 

$15,761

 

$432,975



2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2016
 

$25,445

 

$1,690,661

 

$19,482

 

$53,897

 

$13,462

 

$478,318

Additions based on tax positions related to the current year (a)
 
16,868

 
931,720

 
2,662

 
33,912

 
2,002

 
5,318

Additions for tax positions of prior years
 
2,463

 
157,586

 
336

 
129,784

 
2,888

 
601

Reductions for tax positions of prior years
 
(41,957
)
 
(144,068
)
 
(10,219
)
 
(29,821
)
 
(1,849
)
 
(10,266
)
Settlements
 
(316
)
 
(195,560
)
 
(55
)
 
(21,542
)
 
(557
)
 
(1,599
)
Gross balance at December 31, 2016
 
2,503

 
2,440,339

 
12,206

 
166,230

 
15,946

 
472,372

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
—

 
(1,783,093
)
 
(2,373
)
 
(27,320
)
 
(376
)
 
(90,028
)
Unrecognized tax benefits net of unused tax attributes and payments
 

$2,503

 

$657,246

 

$9,833

 

$138,910

 

$15,570

 

$382,344


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2015
 

$362,912

 

$1,205,929

 

$20,144

 

$53,763

 

$17,264

 

$258,242

Additions based on tax positions related to the current year (b)
 
2,196

 
1,367,058

 
566

 
472

 
657

 
472,304

Additions for tax positions of prior years
 
1,057

 
7,992

 
8,140

 
48

 
2,914

 
913

Reductions for tax positions of prior years
 
(340,720
)
 
(859,430
)
 
—

 
(386
)
 
(3,981
)
 
(253,141
)
Settlements
 
—

 
(30,888
)
 
(9,368
)
 
—

 
(3,392
)
 
—

Gross balance at December 31, 2015
 
25,445

 
1,690,661

 
19,482

 
53,897

 
13,462

 
478,318

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
(3,613
)
 
(893,764
)
 
(1,016
)
 
(506
)
 
(276
)
 
(133,611
)
Unrecognized tax benefits net of unused tax attributes and payments
 

$21,832

 

$796,897

 

$18,466

 

$53,391

 

$13,186

 

$344,707



(a)
The primary additions for Entergy Louisiana in 2016 and for Entergy New Orleans in 2017 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.
(b)
The primary addition for Entergy Louisiana and System Energy is related to the nuclear decommissioning costs treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.
Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate
The Registrant Subsidiaries’ balances of unrecognized tax benefits included amounts which, if recognized, would have reduced income tax expense as follows:
 
December 31,
 
2017
 
2016
 
2015
 
(In Millions)
Entergy Arkansas

$2.6

 

$3.6

 

$4.5

Entergy Louisiana

$575.8

 

$473.3

 

$692.7

Entergy Mississippi

$—

 

$—

 

$8.1

Entergy New Orleans

$31.7

 

$33.6

 

$50.7

Entergy Texas

$4.4

 

$7.0

 

$5.2

System Energy

$—

 

$—

 

$0.7
Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits
Accrued balances for the possible payment of interest are as follows:
 
December 31,
 
2017
 
2016
 
2015
 
(In Millions)
Entergy Arkansas

$1.6

 

$1.4

 

$1.3

Entergy Louisiana

$14.1

 

$8.4

 

$9.3

Entergy Mississippi

$1.0

 

$0.8

 

$0.4

Entergy New Orleans

$2.1

 

$1.5

 

$1.8

Entergy Texas

$0.4

 

$1.2

 

$1.2

System Energy

$8.5

 

$3.7

 

$0.7
Entergy Texas [Member]  
Income Tax Expenses From Continuing Operations
Income taxes for 2017, 2016, and 2015 for Entergy’s Registrant Subsidiaries consist of the following:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

$16,086

 

($84,250
)
 

($8,845
)
 

($30,635
)
 

$6,034

 

$47,674

State
 
9,191

 
1,480

 
(924
)
 
(728
)
 
310

 
5,314

Total
 
25,277

 
(82,770
)
 
(9,769
)
 
(31,363
)
 
6,344

 
52,988

Deferred and non-current - net
 
69,753

 
572,988

 
83,501

 
62,946

 
43,102

 
19,243

Investment tax credit adjustments - net
 
(1,226
)
 
(4,920
)
 
187

 
1,695

 
(965
)
 
(2,262
)
Income taxes
 

$93,804

 

$485,298

 

$73,919

 

$33,278

 

$48,481

 

$69,969


2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

($14,748
)
 

($124,113
)
 

$10,603

 

($91,067
)
 

$19,656

 

$29,628

State
 
2,805

 
10,757

 
2,257

 
566

 
1,374

 
(25,825
)
Total
 
(11,943
)
 
(113,356
)
 
12,860

 
(90,501
)
 
21,030

 
3,803

Deferred and non-current - net
 
120,942

 
208,157

 
46,984

 
119,345

 
42,982

 
71,051

Investment tax credit adjustments - net
 
(1,226
)
 
(5,067
)
 
4,010

 
(139
)
 
(915
)
 
(3,793
)
Income taxes
 

$107,773

 

$89,734

 

$63,854

 

$28,705

 

$63,097

 

$71,061


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

$66,966

 

$101,382

 

$25,628

 

($9,346
)
 

$53,313

 

($63,302
)
State
 
6,265

 
35,406

 
6,832

 
1,784

 
2,450

 
26,755

Total
 
73,231

 
136,788

 
32,460

 
(7,562
)
 
55,763

 
(36,547
)
Deferred and non-current - net
 
(31,463
)
 
47,220

 
31,149

 
32,890

 
(17,599
)
 
93,491

Investment tax credit adjustments - net
 
(1,227
)
 
(5,337
)
 
(1,737
)
 
(138
)
 
(914
)
 
(3,867
)
Income taxes
 

$40,541

 

$178,671

 

$61,872

 

$25,190

 

$37,250

 

$53,077
Total Income Taxes For Entergy Corporation And Subsidiaries
Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2017, 2016, and 2015 are:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$139,844

 

$316,347

 

$110,032

 

$44,553

 

$76,173

 

$78,596

Income taxes
 
93,804

 
485,298

 
73,919

 
33,278

 
48,481

 
69,969

Pretax income
 

$233,648

 

$801,645

 

$183,951

 

$77,831

 

$124,654

 

$148,565

Computed at statutory rate (35%)
 

$81,777

 

$280,576

 

$64,383

 

$27,241

 

$43,629

 

$51,998

Increases (reductions) in tax resulting from:
 
 
 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
11,586

 
31,927

 
6,202

 
2,842

 
527

 
5,635

Regulatory differences - utility plant items
 
7,220

 
12,168

 
1,356

 
619

 
5,581

 
12,880

Equity component of AFUDC
 
(6,458
)
 
(18,020
)
 
(3,383
)
 
(847
)
 
(2,353
)
 
(2,221
)
Amortization of investment tax credits
 
(1,201
)
 
(4,871
)
 
(160
)
 
(124
)
 
(951
)
 
(2,896
)
Flow-through / permanent differences
 
3,098

 
3,774

 
1,567

 
(3,352
)
 
1,428

 
(276
)
Tax legislation enactment (a)
 
(3,090
)
 
217,258

 
3,492

 
6,153

 
2,981

 
(69
)
Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions
 
200

 
5,700

 
228

 
600

 
(2,617
)
 
4,800

Other - net
 
672

 
1,444

 
234

 
146

 
256

 
118

Total income taxes as reported
 

$93,804

 

$485,298

 

$73,919

 

$33,278

 

$48,481

 

$69,969

Effective Income Tax Rate
 
40.1
%
 
60.5
%
 
40.2
%
 
42.8
%
 
38.9
%
 
47.1
%


2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$167,212

 

$622,047

 

$109,184

 

$48,849

 

$107,538

 

$96,744

Income taxes
 
107,773

 
89,734

 
63,854

 
28,705

 
63,097

 
71,061

Pretax income
 

$274,985

 

$711,781

 

$173,038

 

$77,554

 

$170,635

 

$167,805

Computed at statutory rate (35%)
 

$96,245

 

$249,123

 

$60,563

 

$27,144

 

$59,722

 

$58,732

Increases (reductions) in tax resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
11,652

 
29,014

 
5,592

 
3,543

 
449

 
7,001

Regulatory differences - utility plant items
 
10,971

 
8,094

 
(1,154
)
 
2,329

 
4,140

 
9,201

Equity component of AFUDC
 
(5,985
)
 
(9,774
)
 
(2,030
)
 
(412
)
 
(2,666
)
 
(2,780
)
Amortization of investment tax credits
 
(1,201
)
 
(5,019
)
 
(160
)
 
(132
)
 
(900
)
 
(3,476
)
Flow-through / permanent differences
 
(3,848
)
 
(980
)
 
764

 
(3,609
)
 
634

 
(883
)
Act 55 financing settlement (b)
 
—

 
(61,620
)
 
—

 
—

 
(454
)
 
—

Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions (b)
 
(717
)
 
(75,871
)
 
50

 
(300
)
 
1,926

 
3,151

Other - net
 
656

 
1,425

 
229

 
142

 
246

 
115

Total income taxes as reported
 

$107,773

 

$89,734

 

$63,854

 

$28,705

 

$63,097

 

$71,061

Effective Income Tax Rate
 
39.2
%
 
12.6
%
 
36.9
%
 
37.0
%
 
37.0
%
 
42.3
%


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$74,272

 

$446,639

 

$92,708

 

$44,925

 

$69,625

 

$111,318

Income taxes
 
40,541

 
178,671

 
61,872

 
25,190

 
37,250

 
53,077

Pretax income
 

$114,813

 

$625,310

 

$154,580

 

$70,115

 

$106,875

 

$164,395

Computed at statutory rate (35%)
 

$40,185

 

$218,859

 

$54,103

 

$24,540

 

$37,406

 

$57,538

Increases (reductions) in tax resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
6,643

 
23,650

 
5,219

 
2,887

 
1,621

 
6,403

Regulatory differences - utility plant items
 
7,299

 
3,013

 
2,383

 
2,201

 
3,703

 
12,167

Equity component of AFUDC
 
(4,979
)
 
(5,420
)
 
(1,083
)
 
(451
)
 
(1,987
)
 
(2,973
)
Amortization of investment tax credits
 
(1,201
)
 
(5,252
)
 
(160
)
 
(111
)
 
(900
)
 
(3,476
)
Flow-through / permanent differences
 
(4,062
)
 
2,460

 
431

 
(4,539
)
 
530

 
618

Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions (c)
 
(3,978
)
 
(15,377
)
 
756

 
525

 
(3,365
)
 
(17,313
)
Other - net
 
634

 
1,396

 
223

 
138

 
242

 
113

Total income taxes as reported
 

$40,541

 

$178,671

 

$61,872

 

$25,190

 

$37,250

 

$53,077

Effective Income Tax Rate
 
35.3
%
 
28.6
%
 
40.0
%
 
35.9
%
 
34.9
%
 
32.3
%


(a)
See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the tax legislation enactment.
(b)
See “Income Tax Audits - 2010-2011 IRS Audit” below for discussion of the most significant items for Entergy Louisiana.
(c)
See “Income Tax Audits - 2008-2009 IRS Audit” below for discussion of the most significant items for Entergy Louisiana and System Energy.
Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes
Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Deferred tax liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Plant basis differences - net
 

($1,289,827
)
 

($1,583,100
)
 

($571,682
)
 

($85,515
)
 

($526,596
)
 

($359,931
)
Nuclear decommissioning trusts/receivables
 
(181,911
)
 
(164,395
)
 
—

 
—

 
—

 
(119,184
)
Pension, net funding
 
(99,971
)
 
(102,138
)
 
(26,413
)
 
(13,040
)
 
(20,700
)
 
(21,871
)
Deferred fuel
 
(16,530
)
 
(1,329
)
 
(19,005
)
 
(1,894
)
 
—

 
(272
)
Other
 
(23,079
)
 
(98,307
)
 
(11,306
)
 
(23,610
)
 
(8,236
)
 
(5,955
)
Total
 
(1,611,318
)
 
(1,949,269
)
 
(628,406
)
 
(124,059
)
 
(555,532
)
 
(507,213
)
Deferred tax assets:
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory liabilities
 
227,489

 
368,156

 
102,676

 
23,526

 
25,428

 
91,271

Nuclear decommissioning liabilities
 
132,464

 
58,891

 
—

 
—

 
—

 
63,180

Pension and other post-employment benefits
 
(16,252
)
 
98,596

 
(4,865
)
 
(9,618
)
 
(12,044
)
 
(516
)
Sale and leaseback
 
—

 
19,915

 
—

 
—

 
—

 
102,482

Accumulated deferred investment tax credit
 
8,913

 
35,323

 
2,212

 
488

 
2,516

 
9,832

Provision for allowances and contingencies
 
4,367

 
80,516

 
11,898

 
24,234

 
4,383

 
—

Power purchase agreements
 
—

 
(6,924
)
 
1,129

 
—

 
—

 
—

Unbilled/deferred revenues
 
6,195

 
(18,263
)
 
4,847

 
1,811

 
7,736

 
—

Compensation
 
2,566

 
4,387

 
1,466

 
723

 
1,224

 
332

Net operating loss carryforwards
 
16,172

 
44

 
10,255

 
—

 
1,690

 
—

Capital losses and miscellaneous tax credits
 
2,678

 
—

 
5,736

 
—

 
—

 
—

Other
 
473

 
21,922

 
1,307

 
388

 
1,133

 
—

Total
 
385,065

 
662,563

 
136,661

 
41,552

 
32,066

 
266,581

Non-current accrued taxes (including unrecognized tax benefits)
 
35,584

 
(763,665
)
 
2,939

 
(200,795
)
 
(21,176
)
 
(535,788
)
Accumulated deferred income taxes and taxes accrued
 

($1,190,669
)
 

($2,050,371
)
 

($488,806
)
 

($283,302
)
 

($544,642
)
 

($776,420
)
2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Deferred tax liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Plant basis differences - net
 

($1,857,554
)
 

($2,357,599
)
 

($820,971
)
 

($177,242
)
 

($835,671
)
 

($651,394
)
Regulatory assets
 
(109,241
)
 
(219,750
)
 
(25,309
)
 
(36,301
)
 
(153,914
)
 
(39,879
)
Nuclear decommissioning trusts
 
(144,250
)
 
(119,544
)
 
—

 
—

 
—

 
(83,891
)
Pension, net funding
 
(123,889
)
 
(122,465
)
 
(34,284
)
 
(16,307
)
 
(28,371
)
 
(29,357
)
Deferred fuel
 
(14,774
)
 
(1,778
)
 
(12,770
)
 
(5,229
)
 
(2,808
)
 
(1,137
)
Power purchase agreements
 
—

 
—

 
—

 
—

 
—

 
—

Other
 
(47,785
)
 
(22,136
)
 
(12,474
)
 
(18,536
)
 
(8,812
)
 
(2,051
)
Total
 
(2,297,493
)
 
(2,843,272
)
 
(905,808
)
 
(253,615
)
 
(1,029,576
)
 
(807,709
)
Deferred tax assets:
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory liabilities
 
5,768

 
175,973

 
18,833

 
25,240

 
15,814

 
13,644

Nuclear decommissioning liabilities
 
124,206

 
55,408

 
—

 
—

 
—

 
53,113

Pension and other post-employment benefits
 
(24,467
)
 
145,401

 
(8,042
)
 
(12,070
)
 
(19,096
)
 
(1,182
)
Sale and leaseback
 
—

 
33,383

 
—

 
—

 
—

 
102,483

Accumulated deferred investment tax credit
 
13,848

 
54,509

 
3,315

 
239

 
4,527

 
15,936

Provision for allowances and contingencies
 
(1,497
)
 
124,309

 
21,817

 
36,466

 
5,904

 
—

Power purchase agreements
 
(3,094
)
 
29,827

 
1,905

 
—

 
140

 
—

Unbilled/deferred revenues
 
6,799

 
(35,006
)
 
5,085

 
3,751

 
11,902

 
—

Compensation
 
2,787

 
5,309

 
1,492

 
685

 
1,587

 
360

Net operating loss carryforwards
 
69,524

 
17,125

 
—

 
—

 
—

 
—

Capital losses and miscellaneous tax credits
 
2,074

 
—

 
4,487

 
—

 
—

 
—

Other
 
174

 
17,110

 
1,152

 
496

 
2,955

 
—

Total
 
196,122

 
623,348

 
50,044

 
54,807

 
23,733

 
184,354

Non-current accrued taxes (including unrecognized tax benefits)
 
(85,252
)
 
(471,194
)
 
(5,567
)
 
(136,145
)
 
(21,804
)
 
(489,510
)
Accumulated deferred income taxes and taxes accrued
 

($2,186,623
)
 

($2,691,118
)
 

($861,331
)
 

($334,953
)
 

($1,027,647
)
 

($1,112,865
)
Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates
The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2017 are as follows:
 
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal net operating losses
 
$77 million
 
$4.3 billion
 
$86.6 million
 
$1.1 billion
 
—
 
—
Year(s) of expiration
 
2030-2037
 
2035-2037
 
2030-2037
 
2037
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
State net operating losses
 
—
 
$5 billion
 
—
 
$1.2 billion
 
—
 
—
Year(s) of expiration
 
N/A
 
2029-2037
 
N/A
 
2037
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
Misc. federal credits
 
$2.7 million
 
$1.7 million
 
$2.7 million
 
$2.1 million
 
$0.6 million
 
$2.5 million
Year(s) of expiration
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
 
 
 
 
 
 
 
 
 
 
 
 
State credits
 
—
 
—
 
$4.9 million
 
—
 
$3.2 million
 
$10 million
Year(s) of expiration
 
N/A
 
N/A
 
2018-2021
 
N/A
 
2026
 
2018-2021
Reconciliation Of Unrecognized Tax Benefits
A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2017, 2016, and 2015 is as follows:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2017
 

$2,503

 

$2,440,339

 

$12,206

 

$166,230

 

$15,946

 

$472,372

Additions based on tax positions related to the current year (a)
 
8,974

 
32,843

 
2,105

 
509,183

 
1,747

 
909

Additions for tax positions of prior years
 
3,682

 
235,331

 
1,267

 
13,364

 
3,115

 
1,432

Reductions for tax positions of prior years
 
(132,875
)
 
(190,056
)
 
(456
)
 
(9,233
)
 
(4,409
)
 
(29,202
)
Gross balance at December 31, 2017
 
(117,716
)
 
2,518,457

 
15,122

 
679,544

 
16,399

 
445,511

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
—

 
(1,591,907
)
 
(15,122
)
 
(441,374
)
 
(638
)
 
(12,536
)
Unrecognized tax benefits net of unused tax attributes and payments
 

($117,716
)
 

$926,550

 

$—

 

$238,170

 

$15,761

 

$432,975



2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2016
 

$25,445

 

$1,690,661

 

$19,482

 

$53,897

 

$13,462

 

$478,318

Additions based on tax positions related to the current year (a)
 
16,868

 
931,720

 
2,662

 
33,912

 
2,002

 
5,318

Additions for tax positions of prior years
 
2,463

 
157,586

 
336

 
129,784

 
2,888

 
601

Reductions for tax positions of prior years
 
(41,957
)
 
(144,068
)
 
(10,219
)
 
(29,821
)
 
(1,849
)
 
(10,266
)
Settlements
 
(316
)
 
(195,560
)
 
(55
)
 
(21,542
)
 
(557
)
 
(1,599
)
Gross balance at December 31, 2016
 
2,503

 
2,440,339

 
12,206

 
166,230

 
15,946

 
472,372

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
—

 
(1,783,093
)
 
(2,373
)
 
(27,320
)
 
(376
)
 
(90,028
)
Unrecognized tax benefits net of unused tax attributes and payments
 

$2,503

 

$657,246

 

$9,833

 

$138,910

 

$15,570

 

$382,344


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2015
 

$362,912

 

$1,205,929

 

$20,144

 

$53,763

 

$17,264

 

$258,242

Additions based on tax positions related to the current year (b)
 
2,196

 
1,367,058

 
566

 
472

 
657

 
472,304

Additions for tax positions of prior years
 
1,057

 
7,992

 
8,140

 
48

 
2,914

 
913

Reductions for tax positions of prior years
 
(340,720
)
 
(859,430
)
 
—

 
(386
)
 
(3,981
)
 
(253,141
)
Settlements
 
—

 
(30,888
)
 
(9,368
)
 
—

 
(3,392
)
 
—

Gross balance at December 31, 2015
 
25,445

 
1,690,661

 
19,482

 
53,897

 
13,462

 
478,318

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
(3,613
)
 
(893,764
)
 
(1,016
)
 
(506
)
 
(276
)
 
(133,611
)
Unrecognized tax benefits net of unused tax attributes and payments
 

$21,832

 

$796,897

 

$18,466

 

$53,391

 

$13,186

 

$344,707



(a)
The primary additions for Entergy Louisiana in 2016 and for Entergy New Orleans in 2017 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.
(b)
The primary addition for Entergy Louisiana and System Energy is related to the nuclear decommissioning costs treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.
Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate
The Registrant Subsidiaries’ balances of unrecognized tax benefits included amounts which, if recognized, would have reduced income tax expense as follows:
 
December 31,
 
2017
 
2016
 
2015
 
(In Millions)
Entergy Arkansas

$2.6

 

$3.6

 

$4.5

Entergy Louisiana

$575.8

 

$473.3

 

$692.7

Entergy Mississippi

$—

 

$—

 

$8.1

Entergy New Orleans

$31.7

 

$33.6

 

$50.7

Entergy Texas

$4.4

 

$7.0

 

$5.2

System Energy

$—

 

$—

 

$0.7
Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits
Accrued balances for the possible payment of interest are as follows:
 
December 31,
 
2017
 
2016
 
2015
 
(In Millions)
Entergy Arkansas

$1.6

 

$1.4

 

$1.3

Entergy Louisiana

$14.1

 

$8.4

 

$9.3

Entergy Mississippi

$1.0

 

$0.8

 

$0.4

Entergy New Orleans

$2.1

 

$1.5

 

$1.8

Entergy Texas

$0.4

 

$1.2

 

$1.2

System Energy

$8.5

 

$3.7

 

$0.7
System Energy [Member]  
Income Tax Expenses From Continuing Operations
Income taxes for 2017, 2016, and 2015 for Entergy’s Registrant Subsidiaries consist of the following:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

$16,086

 

($84,250
)
 

($8,845
)
 

($30,635
)
 

$6,034

 

$47,674

State
 
9,191

 
1,480

 
(924
)
 
(728
)
 
310

 
5,314

Total
 
25,277

 
(82,770
)
 
(9,769
)
 
(31,363
)
 
6,344

 
52,988

Deferred and non-current - net
 
69,753

 
572,988

 
83,501

 
62,946

 
43,102

 
19,243

Investment tax credit adjustments - net
 
(1,226
)
 
(4,920
)
 
187

 
1,695

 
(965
)
 
(2,262
)
Income taxes
 

$93,804

 

$485,298

 

$73,919

 

$33,278

 

$48,481

 

$69,969


2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

($14,748
)
 

($124,113
)
 

$10,603

 

($91,067
)
 

$19,656

 

$29,628

State
 
2,805

 
10,757

 
2,257

 
566

 
1,374

 
(25,825
)
Total
 
(11,943
)
 
(113,356
)
 
12,860

 
(90,501
)
 
21,030

 
3,803

Deferred and non-current - net
 
120,942

 
208,157

 
46,984

 
119,345

 
42,982

 
71,051

Investment tax credit adjustments - net
 
(1,226
)
 
(5,067
)
 
4,010

 
(139
)
 
(915
)
 
(3,793
)
Income taxes
 

$107,773

 

$89,734

 

$63,854

 

$28,705

 

$63,097

 

$71,061


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 

$66,966

 

$101,382

 

$25,628

 

($9,346
)
 

$53,313

 

($63,302
)
State
 
6,265

 
35,406

 
6,832

 
1,784

 
2,450

 
26,755

Total
 
73,231

 
136,788

 
32,460

 
(7,562
)
 
55,763

 
(36,547
)
Deferred and non-current - net
 
(31,463
)
 
47,220

 
31,149

 
32,890

 
(17,599
)
 
93,491

Investment tax credit adjustments - net
 
(1,227
)
 
(5,337
)
 
(1,737
)
 
(138
)
 
(914
)
 
(3,867
)
Income taxes
 

$40,541

 

$178,671

 

$61,872

 

$25,190

 

$37,250

 

$53,077
Total Income Taxes For Entergy Corporation And Subsidiaries
Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2017, 2016, and 2015 are:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$139,844

 

$316,347

 

$110,032

 

$44,553

 

$76,173

 

$78,596

Income taxes
 
93,804

 
485,298

 
73,919

 
33,278

 
48,481

 
69,969

Pretax income
 

$233,648

 

$801,645

 

$183,951

 

$77,831

 

$124,654

 

$148,565

Computed at statutory rate (35%)
 

$81,777

 

$280,576

 

$64,383

 

$27,241

 

$43,629

 

$51,998

Increases (reductions) in tax resulting from:
 
 
 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
11,586

 
31,927

 
6,202

 
2,842

 
527

 
5,635

Regulatory differences - utility plant items
 
7,220

 
12,168

 
1,356

 
619

 
5,581

 
12,880

Equity component of AFUDC
 
(6,458
)
 
(18,020
)
 
(3,383
)
 
(847
)
 
(2,353
)
 
(2,221
)
Amortization of investment tax credits
 
(1,201
)
 
(4,871
)
 
(160
)
 
(124
)
 
(951
)
 
(2,896
)
Flow-through / permanent differences
 
3,098

 
3,774

 
1,567

 
(3,352
)
 
1,428

 
(276
)
Tax legislation enactment (a)
 
(3,090
)
 
217,258

 
3,492

 
6,153

 
2,981

 
(69
)
Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions
 
200

 
5,700

 
228

 
600

 
(2,617
)
 
4,800

Other - net
 
672

 
1,444

 
234

 
146

 
256

 
118

Total income taxes as reported
 

$93,804

 

$485,298

 

$73,919

 

$33,278

 

$48,481

 

$69,969

Effective Income Tax Rate
 
40.1
%
 
60.5
%
 
40.2
%
 
42.8
%
 
38.9
%
 
47.1
%


2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$167,212

 

$622,047

 

$109,184

 

$48,849

 

$107,538

 

$96,744

Income taxes
 
107,773

 
89,734

 
63,854

 
28,705

 
63,097

 
71,061

Pretax income
 

$274,985

 

$711,781

 

$173,038

 

$77,554

 

$170,635

 

$167,805

Computed at statutory rate (35%)
 

$96,245

 

$249,123

 

$60,563

 

$27,144

 

$59,722

 

$58,732

Increases (reductions) in tax resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
11,652

 
29,014

 
5,592

 
3,543

 
449

 
7,001

Regulatory differences - utility plant items
 
10,971

 
8,094

 
(1,154
)
 
2,329

 
4,140

 
9,201

Equity component of AFUDC
 
(5,985
)
 
(9,774
)
 
(2,030
)
 
(412
)
 
(2,666
)
 
(2,780
)
Amortization of investment tax credits
 
(1,201
)
 
(5,019
)
 
(160
)
 
(132
)
 
(900
)
 
(3,476
)
Flow-through / permanent differences
 
(3,848
)
 
(980
)
 
764

 
(3,609
)
 
634

 
(883
)
Act 55 financing settlement (b)
 
—

 
(61,620
)
 
—

 
—

 
(454
)
 
—

Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions (b)
 
(717
)
 
(75,871
)
 
50

 
(300
)
 
1,926

 
3,151

Other - net
 
656

 
1,425

 
229

 
142

 
246

 
115

Total income taxes as reported
 

$107,773

 

$89,734

 

$63,854

 

$28,705

 

$63,097

 

$71,061

Effective Income Tax Rate
 
39.2
%
 
12.6
%
 
36.9
%
 
37.0
%
 
37.0
%
 
42.3
%


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Net income
 

$74,272

 

$446,639

 

$92,708

 

$44,925

 

$69,625

 

$111,318

Income taxes
 
40,541

 
178,671

 
61,872

 
25,190

 
37,250

 
53,077

Pretax income
 

$114,813

 

$625,310

 

$154,580

 

$70,115

 

$106,875

 

$164,395

Computed at statutory rate (35%)
 

$40,185

 

$218,859

 

$54,103

 

$24,540

 

$37,406

 

$57,538

Increases (reductions) in tax resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

State income taxes net of federal income tax effect
 
6,643

 
23,650

 
5,219

 
2,887

 
1,621

 
6,403

Regulatory differences - utility plant items
 
7,299

 
3,013

 
2,383

 
2,201

 
3,703

 
12,167

Equity component of AFUDC
 
(4,979
)
 
(5,420
)
 
(1,083
)
 
(451
)
 
(1,987
)
 
(2,973
)
Amortization of investment tax credits
 
(1,201
)
 
(5,252
)
 
(160
)
 
(111
)
 
(900
)
 
(3,476
)
Flow-through / permanent differences
 
(4,062
)
 
2,460

 
431

 
(4,539
)
 
530

 
618

Non-taxable dividend income
 
—

 
(44,658
)
 
—

 
—

 
—

 
—

Provision for uncertain tax positions (c)
 
(3,978
)
 
(15,377
)
 
756

 
525

 
(3,365
)
 
(17,313
)
Other - net
 
634

 
1,396

 
223

 
138

 
242

 
113

Total income taxes as reported
 

$40,541

 

$178,671

 

$61,872

 

$25,190

 

$37,250

 

$53,077

Effective Income Tax Rate
 
35.3
%
 
28.6
%
 
40.0
%
 
35.9
%
 
34.9
%
 
32.3
%


(a)
See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the tax legislation enactment.
(b)
See “Income Tax Audits - 2010-2011 IRS Audit” below for discussion of the most significant items for Entergy Louisiana.
(c)
See “Income Tax Audits - 2008-2009 IRS Audit” below for discussion of the most significant items for Entergy Louisiana and System Energy.
Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes
Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Deferred tax liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Plant basis differences - net
 

($1,289,827
)
 

($1,583,100
)
 

($571,682
)
 

($85,515
)
 

($526,596
)
 

($359,931
)
Nuclear decommissioning trusts/receivables
 
(181,911
)
 
(164,395
)
 
—

 
—

 
—

 
(119,184
)
Pension, net funding
 
(99,971
)
 
(102,138
)
 
(26,413
)
 
(13,040
)
 
(20,700
)
 
(21,871
)
Deferred fuel
 
(16,530
)
 
(1,329
)
 
(19,005
)
 
(1,894
)
 
—

 
(272
)
Other
 
(23,079
)
 
(98,307
)
 
(11,306
)
 
(23,610
)
 
(8,236
)
 
(5,955
)
Total
 
(1,611,318
)
 
(1,949,269
)
 
(628,406
)
 
(124,059
)
 
(555,532
)
 
(507,213
)
Deferred tax assets:
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory liabilities
 
227,489

 
368,156

 
102,676

 
23,526

 
25,428

 
91,271

Nuclear decommissioning liabilities
 
132,464

 
58,891

 
—

 
—

 
—

 
63,180

Pension and other post-employment benefits
 
(16,252
)
 
98,596

 
(4,865
)
 
(9,618
)
 
(12,044
)
 
(516
)
Sale and leaseback
 
—

 
19,915

 
—

 
—

 
—

 
102,482

Accumulated deferred investment tax credit
 
8,913

 
35,323

 
2,212

 
488

 
2,516

 
9,832

Provision for allowances and contingencies
 
4,367

 
80,516

 
11,898

 
24,234

 
4,383

 
—

Power purchase agreements
 
—

 
(6,924
)
 
1,129

 
—

 
—

 
—

Unbilled/deferred revenues
 
6,195

 
(18,263
)
 
4,847

 
1,811

 
7,736

 
—

Compensation
 
2,566

 
4,387

 
1,466

 
723

 
1,224

 
332

Net operating loss carryforwards
 
16,172

 
44

 
10,255

 
—

 
1,690

 
—

Capital losses and miscellaneous tax credits
 
2,678

 
—

 
5,736

 
—

 
—

 
—

Other
 
473

 
21,922

 
1,307

 
388

 
1,133

 
—

Total
 
385,065

 
662,563

 
136,661

 
41,552

 
32,066

 
266,581

Non-current accrued taxes (including unrecognized tax benefits)
 
35,584

 
(763,665
)
 
2,939

 
(200,795
)
 
(21,176
)
 
(535,788
)
Accumulated deferred income taxes and taxes accrued
 

($1,190,669
)
 

($2,050,371
)
 

($488,806
)
 

($283,302
)
 

($544,642
)
 

($776,420
)
2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Deferred tax liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Plant basis differences - net
 

($1,857,554
)
 

($2,357,599
)
 

($820,971
)
 

($177,242
)
 

($835,671
)
 

($651,394
)
Regulatory assets
 
(109,241
)
 
(219,750
)
 
(25,309
)
 
(36,301
)
 
(153,914
)
 
(39,879
)
Nuclear decommissioning trusts
 
(144,250
)
 
(119,544
)
 
—

 
—

 
—

 
(83,891
)
Pension, net funding
 
(123,889
)
 
(122,465
)
 
(34,284
)
 
(16,307
)
 
(28,371
)
 
(29,357
)
Deferred fuel
 
(14,774
)
 
(1,778
)
 
(12,770
)
 
(5,229
)
 
(2,808
)
 
(1,137
)
Power purchase agreements
 
—

 
—

 
—

 
—

 
—

 
—

Other
 
(47,785
)
 
(22,136
)
 
(12,474
)
 
(18,536
)
 
(8,812
)
 
(2,051
)
Total
 
(2,297,493
)
 
(2,843,272
)
 
(905,808
)
 
(253,615
)
 
(1,029,576
)
 
(807,709
)
Deferred tax assets:
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory liabilities
 
5,768

 
175,973

 
18,833

 
25,240

 
15,814

 
13,644

Nuclear decommissioning liabilities
 
124,206

 
55,408

 
—

 
—

 
—

 
53,113

Pension and other post-employment benefits
 
(24,467
)
 
145,401

 
(8,042
)
 
(12,070
)
 
(19,096
)
 
(1,182
)
Sale and leaseback
 
—

 
33,383

 
—

 
—

 
—

 
102,483

Accumulated deferred investment tax credit
 
13,848

 
54,509

 
3,315

 
239

 
4,527

 
15,936

Provision for allowances and contingencies
 
(1,497
)
 
124,309

 
21,817

 
36,466

 
5,904

 
—

Power purchase agreements
 
(3,094
)
 
29,827

 
1,905

 
—

 
140

 
—

Unbilled/deferred revenues
 
6,799

 
(35,006
)
 
5,085

 
3,751

 
11,902

 
—

Compensation
 
2,787

 
5,309

 
1,492

 
685

 
1,587

 
360

Net operating loss carryforwards
 
69,524

 
17,125

 
—

 
—

 
—

 
—

Capital losses and miscellaneous tax credits
 
2,074

 
—

 
4,487

 
—

 
—

 
—

Other
 
174

 
17,110

 
1,152

 
496

 
2,955

 
—

Total
 
196,122

 
623,348

 
50,044

 
54,807

 
23,733

 
184,354

Non-current accrued taxes (including unrecognized tax benefits)
 
(85,252
)
 
(471,194
)
 
(5,567
)
 
(136,145
)
 
(21,804
)
 
(489,510
)
Accumulated deferred income taxes and taxes accrued
 

($2,186,623
)
 

($2,691,118
)
 

($861,331
)
 

($334,953
)
 

($1,027,647
)
 

($1,112,865
)
Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates
The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2017 are as follows:
 
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal net operating losses
 
$77 million
 
$4.3 billion
 
$86.6 million
 
$1.1 billion
 
—
 
—
Year(s) of expiration
 
2030-2037
 
2035-2037
 
2030-2037
 
2037
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
State net operating losses
 
—
 
$5 billion
 
—
 
$1.2 billion
 
—
 
—
Year(s) of expiration
 
N/A
 
2029-2037
 
N/A
 
2037
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
Misc. federal credits
 
$2.7 million
 
$1.7 million
 
$2.7 million
 
$2.1 million
 
$0.6 million
 
$2.5 million
Year(s) of expiration
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
2029-2036
 
 
 
 
 
 
 
 
 
 
 
 
 
State credits
 
—
 
—
 
$4.9 million
 
—
 
$3.2 million
 
$10 million
Year(s) of expiration
 
N/A
 
N/A
 
2018-2021
 
N/A
 
2026
 
2018-2021
Reconciliation Of Unrecognized Tax Benefits
A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2017, 2016, and 2015 is as follows:
2017
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2017
 

$2,503

 

$2,440,339

 

$12,206

 

$166,230

 

$15,946

 

$472,372

Additions based on tax positions related to the current year (a)
 
8,974

 
32,843

 
2,105

 
509,183

 
1,747

 
909

Additions for tax positions of prior years
 
3,682

 
235,331

 
1,267

 
13,364

 
3,115

 
1,432

Reductions for tax positions of prior years
 
(132,875
)
 
(190,056
)
 
(456
)
 
(9,233
)
 
(4,409
)
 
(29,202
)
Gross balance at December 31, 2017
 
(117,716
)
 
2,518,457

 
15,122

 
679,544

 
16,399

 
445,511

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
—

 
(1,591,907
)
 
(15,122
)
 
(441,374
)
 
(638
)
 
(12,536
)
Unrecognized tax benefits net of unused tax attributes and payments
 

($117,716
)
 

$926,550

 

$—

 

$238,170

 

$15,761

 

$432,975



2016
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2016
 

$25,445

 

$1,690,661

 

$19,482

 

$53,897

 

$13,462

 

$478,318

Additions based on tax positions related to the current year (a)
 
16,868

 
931,720

 
2,662

 
33,912

 
2,002

 
5,318

Additions for tax positions of prior years
 
2,463

 
157,586

 
336

 
129,784

 
2,888

 
601

Reductions for tax positions of prior years
 
(41,957
)
 
(144,068
)
 
(10,219
)
 
(29,821
)
 
(1,849
)
 
(10,266
)
Settlements
 
(316
)
 
(195,560
)
 
(55
)
 
(21,542
)
 
(557
)
 
(1,599
)
Gross balance at December 31, 2016
 
2,503

 
2,440,339

 
12,206

 
166,230

 
15,946

 
472,372

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
—

 
(1,783,093
)
 
(2,373
)
 
(27,320
)
 
(376
)
 
(90,028
)
Unrecognized tax benefits net of unused tax attributes and payments
 

$2,503

 

$657,246

 

$9,833

 

$138,910

 

$15,570

 

$382,344


2015
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
System Energy
 
 
(In Thousands)
Gross balance at January 1, 2015
 

$362,912

 

$1,205,929

 

$20,144

 

$53,763

 

$17,264

 

$258,242

Additions based on tax positions related to the current year (b)
 
2,196

 
1,367,058

 
566

 
472

 
657

 
472,304

Additions for tax positions of prior years
 
1,057

 
7,992

 
8,140

 
48

 
2,914

 
913

Reductions for tax positions of prior years
 
(340,720
)
 
(859,430
)
 
—

 
(386
)
 
(3,981
)
 
(253,141
)
Settlements
 
—

 
(30,888
)
 
(9,368
)
 
—

 
(3,392
)
 
—

Gross balance at December 31, 2015
 
25,445

 
1,690,661

 
19,482

 
53,897

 
13,462

 
478,318

Offsets to gross unrecognized tax benefits:
 
 

 
 

 
 

 
 

 
 

 
 

Loss carryovers
 
(3,613
)
 
(893,764
)
 
(1,016
)
 
(506
)
 
(276
)
 
(133,611
)
Unrecognized tax benefits net of unused tax attributes and payments
 

$21,832

 

$796,897

 

$18,466

 

$53,391

 

$13,186

 

$344,707



(a)
The primary additions for Entergy Louisiana in 2016 and for Entergy New Orleans in 2017 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.
(b)
The primary addition for Entergy Louisiana and System Energy is related to the nuclear decommissioning costs treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.
Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate
The Registrant Subsidiaries’ balances of unrecognized tax benefits included amounts which, if recognized, would have reduced income tax expense as follows:
 
December 31,
 
2017
 
2016
 
2015
 
(In Millions)
Entergy Arkansas

$2.6

 

$3.6

 

$4.5

Entergy Louisiana

$575.8

 

$473.3

 

$692.7

Entergy Mississippi

$—

 

$—

 

$8.1

Entergy New Orleans

$31.7

 

$33.6

 

$50.7

Entergy Texas

$4.4

 

$7.0

 

$5.2

System Energy

$—

 

$—

 

$0.7
Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits
Accrued balances for the possible payment of interest are as follows:
 
December 31,
 
2017
 
2016
 
2015
 
(In Millions)
Entergy Arkansas

$1.6

 

$1.4

 

$1.3

Entergy Louisiana

$14.1

 

$8.4

 

$9.3

Entergy Mississippi

$1.0

 

$0.8

 

$0.4

Entergy New Orleans

$2.1

 

$1.5

 

$1.8

Entergy Texas

$0.4

 

$1.2

 

$1.2

System Energy

$8.5

 

$3.7

 

$0.7