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Equity
 9 Months Ended
Sep. 30, 2019
Equity EQUITY (Entergy Corporation, Entergy Louisiana, and Entergy Texas)

Common Stock

Earnings per Share

The following table presents Entergy’s basic and diluted earnings per share calculations included on the consolidated income statements:
 
For the Three Months Ended September 30,
 
2019
 
2018
 
(In Millions, Except Per Share Data)
 
Income
 
Shares
 
$/share
 
Income
 
Shares
 
$/share
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Entergy Corporation

$365.2

 
198.9

 

$1.84

 

$536.4

 
181.0

 

$2.96

Average dilutive effect of:
 
 
 
 
 
 
 
 
 
 
 
Stock options
 
 
0.7

 
(0.01
)
 
 
 
0.4

 
(0.01
)
Other equity plans
 
 
0.9

 
(0.01
)
 
 
 
0.8

 
(0.01
)
Equity forwards
 
 
—

 
—

 
 
 
1.5

 
(0.02
)
Diluted earnings per share

$365.2

 
200.5

 

$1.82

 

$536.4

 
183.7

 

$2.92


The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 1.1 million for the three months ended September 30, 2018.
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
(In Millions, Except Per Share Data)
 
Income
 
Shares
 
$/share
 
Income
 
Shares
 
$/share
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Entergy Corporation

$856.2

 
193.9

 

$4.42

 

$914.6

 
180.8

 

$5.06

Average dilutive effect of:
 
 
 
 
 
 
 
 
 
 
 
Stock options
 
 
0.5

 
(0.01
)
 
 
 
0.3

 
(0.01
)
Other equity plans
 
 
0.7

 
(0.02
)
 
 
 
0.7

 
(0.01
)
Equity forwards
 
 
0.6

 
(0.01
)
 
 
 
0.9

 
(0.03
)
Diluted earnings per share

$856.2

 
195.7

 

$4.38

 

$914.6

 
182.7

 

$5.01



The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 0.2 million for the nine months ended September 30, 2019 and approximately 1.1 million for the nine months ended September 30, 2018.

Entergy’s stock options and other equity compensation plans are discussed in Note 5 to the financial statements herein and in Note 12 to the financial statements in the Form 10-K.

Dividends declared per common share were $0.91 for the three months ended September 30, 2019 and $0.89 for the three months ended September 30, 2018. Dividends declared per common share were $2.73 for the nine months ended September 30, 2019 and $2.67 for the nine months ended September 30, 2018.

Equity Forward Sale Agreements

As discussed in Note 7 to the financial statements in the Form 10-K, in June 2018, Entergy marketed an equity offering of 15.3 million shares of common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with various investment banks. In December 2018, Entergy physically settled a portion of its obligations under the forward sale agreements by delivering 6,834,221 shares of common stock in exchange for cash proceeds of approximately $500 million. In May 2019, Entergy physically settled the remaining 8,448,171 shares of common stock in exchange for cash proceeds of approximately $608 million.

Treasury Stock

During the nine months ended September 30, 2019, Entergy Corporation issued 1,582,916 shares of its previously repurchased common stock to satisfy stock option exercises, vesting of shares of restricted stock, and other stock-based awards.  Entergy Corporation did not repurchase any of its common stock during the nine months ended September 30, 2019.

Retained Earnings

On October 25, 2019, Entergy Corporation’s Board of Directors declared a common stock dividend of $0.93 per share, payable on December 2, 2019, to holders of record as of November 7, 2019.

Entergy implemented ASU No. 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” effective January 1, 2019. The ASU makes a number of amendments to hedge accounting, most significantly changing the recognition and presentation of highly effective hedges. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by approximately $8 million as of January 1, 2019 for the cumulative effect of the ineffectiveness portion of designated hedges on nuclear power sales.

Entergy implemented ASU 2017-08 “Receivables (Topic 310): Nonrefundable Fees and Other Costs” effective January 1, 2019. The ASU amends the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Entergy implemented this standard using the modified retrospective approach, and recorded an adjustment decreasing retained earnings and decreasing accumulated other comprehensive loss by approximately $1 million as of January 1, 2019 for the cumulative effect of the amended amortization period.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended September 30, 2019 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 
Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
Beginning balance, July 1, 2019

$51,736

 

($508,876
)
 

$26,736

 

($430,404
)
Other comprehensive income (loss) before reclassifications
(5,190
)
 
—

 
8,350

 
3,160

Amounts reclassified from accumulated other comprehensive income (loss)
(14,913
)
 
25,464

 
(3,079
)
 
7,472

Net other comprehensive income (loss) for the period
(20,103
)
 
25,464

 
5,271

 
10,632

Ending balance, September 30, 2019

$31,633

 

($483,412
)
 

$32,007

 

($419,772
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended September 30, 2018 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 
Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
Beginning balance, July 1, 2018

($14,874
)
 

($589,926
)
 

($8,842
)
 

($613,642
)
Other comprehensive income (loss) before reclassifications
(40,401
)
 
—

 
(7,173
)
 
(47,574
)
Amounts reclassified from accumulated other comprehensive income (loss)
8,397

 
15,265

 
5,428

 
29,090

Net other comprehensive income (loss) for the period
(32,004
)
 
15,265

 
(1,745
)
 
(18,484
)
Ending balance, September 30, 2018

($46,878
)
 

($574,661
)
 

($10,587
)
 

($632,126
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the nine months ended September 30, 2019 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 
Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)
Implementation of accounting standards
(7,685
)
 
—

 
879

 
(6,806
)
Beginning balance, January 1, 2019

($30,820
)
 

($531,922
)
 

($1,237
)
 

($563,979
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
122,481

 
—

 
37,724

 
160,205

Amounts reclassified from accumulated other comprehensive income (loss)
(60,028
)
 
48,510

 
(4,480
)
 
(15,998
)
Net other comprehensive income (loss) for the period
62,453

 
48,510

 
33,244

 
144,207

Ending balance, September 30, 2019

$31,633

 

($483,412
)
 

$32,007

 

($419,772
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the nine months ended September 30, 2018 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 
Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
Ending balance, December 31, 2017

($37,477
)
 

($531,099
)
 

$545,045

 

($23,531
)
Implementation of accounting standards
—

 
—

 
(632,617
)
 
(632,617
)
Beginning balance, January 1, 2018

($37,477
)
 

($531,099
)
 

($87,572
)
 

($656,148
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(31,816
)
 
—

 
(50,958
)
 
(82,774
)
Amounts reclassified from accumulated other comprehensive income (loss)
30,171

 
47,404

 
13,716

 
91,291

Net other comprehensive income (loss) for the period
(1,645
)
 
47,404

 
(37,242
)
 
8,517

 
 
 
 
 
 
 
 
Reclassification pursuant to ASU 2018-02
(7,756
)
 
(90,966
)
 
114,227

 
15,505

 
 
 
 
 
 
 
 
Ending balance, September 30, 2018

($46,878
)
 

($574,661
)
 

($10,587
)
 

($632,126
)


The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the three months ended September 30, 2019 and 2018:
 
 
Pension and Other
Postretirement Liabilities
 
 
2019
 
2018
 
 
(In Thousands)
Beginning balance, July 1,
 

($8,091
)
 

($57,451
)
Amounts reclassified from accumulated other
comprehensive income (loss)
 
(969
)
 
(500
)
Net other comprehensive income (loss) for the period
 
(969
)
 
(500
)
Ending balance, September 30,
 

($9,060
)
 

($57,951
)

    
The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the nine months ended September 30, 2019 and 2018:
 
 
Pension and Other
Postretirement Liabilities
 
 
2019
 
2018
 
 
(In Thousands)
Beginning balance, January 1,
 

($6,153
)
 

($46,400
)
Amounts reclassified from accumulated other
comprehensive income (loss)
 
(2,907
)
 
(1,502
)
Net other comprehensive income (loss) for the period
 
(2,907
)
 
(1,502
)
 
 
 
 
 
Reclassification pursuant to ASU 2018-02
 
—

 
(10,049
)
 
 
 
 
 
Ending balance, September 30,
 

($9,060
)
 

($57,951
)

    
Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the three months ended September 30, 2019 and 2018 are as follows:

Amounts reclassified
from AOCI

Income Statement Location
 
2019
 
2018
 
 

(In Thousands)


Cash flow hedges net unrealized gain (loss)

 
 


   Power contracts

$18,925

 

($10,566
)

Competitive business operating revenues
   Interest rate swaps
(48
)
 
(63
)

Miscellaneous - net
Total realized gain (loss) on cash flow hedges
18,877

 
(10,629
)



(3,964
)
 
2,232


Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)

$14,913

 

($8,397
)





 
 


Pension and other postretirement liabilities


 
 


   Amortization of prior-service credit

$5,325

 

$5,425


(a)
   Amortization of loss
(20,919
)
 
(24,740
)

(a)
   Settlement loss
(16,630
)
 
(76
)

(a)
Total amortization
(32,224
)
 
(19,391
)



6,760

 
4,126


Income taxes
Total amortization (net of tax)

($25,464
)
 

($15,265
)




 
 


Net unrealized investment gain (loss)

 
 


Realized gain (loss)

$4,872

 

($8,589
)

Interest and investment income

(1,793
)
 
3,161


Income taxes
Total realized investment gain (loss) (net of tax)

$3,079

 

($5,428
)





 
 


Total reclassifications for the period (net of tax)

($7,472
)
 

($29,090
)




(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the nine months ended September 30, 2019 and 2018 are as follows:
 
Amounts reclassified
from AOCI
 
Income Statement Location
 
2019
 
2018
 
 
 
(In Thousands)
 
 
Cash flow hedges net unrealized gain (loss)
 
 
 
 
 
   Power contracts

$76,129

 

($37,913
)
 
Competitive business operating revenues
   Interest rate swaps
(145
)
 
(278
)
 
Miscellaneous - net
Total realized gain (loss) on cash flow hedges
75,984

 
(38,191
)
 
 
 
(15,956
)
 
8,020

 
Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)

$60,028

 

($30,171
)
 
 
 
 
 
 
 
 
Pension and other postretirement liabilities
 
 
 
 
 
   Amortization of prior-service credit

$15,977

 

$16,278

 
(a)
   Amortization of loss
(58,888
)
 
(74,503
)
 
(a)
   Settlement loss
(18,685
)
 
(2,098
)
 
(a)
Total amortization
(61,596
)
 
(60,323
)
 
 
 
13,086

 
12,919

 
Income taxes
Total amortization (net of tax)

($48,510
)
 

($47,404
)
 
 
 
 
 
 
 
 
Net unrealized investment gain (loss)
 
 
 
 
 
Realized gain (loss)

$7,088

 

($21,703
)
 
Interest and investment income
 
(2,608
)
 
7,987

 
Income taxes
Total realized investment gain (loss) (net of tax)

$4,480

 

($13,716
)
 
 
 
 
 
 
 
 
Total reclassifications for the period (net of tax)

$15,998

 

($91,291
)
 
 

(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the three months ended September 30, 2019 and 2018 are as follows:
 
 
Amounts reclassified
from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
Pension and other postretirement liabilities
 
 
 
 
 
 
   Amortization of prior-service credit
 

$1,837

 

$1,934

 
(a)
   Amortization of loss
 
(526
)
 
(1,257
)
 
(a)
Total amortization
 
1,311

 
677

 
 
 
 
(342
)
 
(177
)
 
Income taxes
Total amortization (net of tax)
 
969

 
500

 
 
 
 
 
 
 
 
 
Total reclassifications for the period (net of tax)
 

$969

 

$500

 
 


(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the nine months ended September 30, 2019 and 2018 are as follows:
 
 
Amounts reclassified
from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
Pension and other postretirement liabilities
 
 
 
 
 
 
   Amortization of prior-service credit
 

$5,511

 

$5,802

 
(a)
   Amortization of loss
 
(1,578
)
 
(3,770
)
 
(a)
Total amortization
 
3,933

 
2,032

 
 
 
 
(1,026
)
 
(530
)
 
Income taxes
Total amortization (net of tax)
 
2,907

 
1,502

 
 
 
 
 
 
 
 
 
Total reclassifications for the period (net of tax)
 

$2,907

 

$1,502

 
 


(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

Preferred Stock

In September 2019, Entergy Texas issued $35 million of 5.375% Series A preferred stock, a total of 1,400,000 shares with a liquidation value of $25 per share, all of which are outstanding as of September 30, 2019. The dividends are cumulative and payable quarterly. The preferred stock is redeemable on or after October 15, 2024 at Entergy Texas’s option, at a fixed redemption price of $25 per share.

Accounting standards regarding the classification and measurement of redeemable securities require the classification of preferred securities between liabilities and shareholders’ equity on the balance sheet if the holders of those securities have protective rights that allow them to gain control of the board of directors in certain circumstances. These rights would have the effect of giving the holders the ability to potentially redeem their securities, even if the likelihood of occurrence of these circumstances is considered remote. The outstanding preferred stock of Entergy
Texas has protective rights with respect to unpaid dividends but provides for the election of board members that would not constitute a majority of the board, and the preferred stock of Entergy Texas is therefore classified as a component of equity.
Entergy Texas [Member]  
Equity EQUITY (Entergy Corporation, Entergy Louisiana, and Entergy Texas)

Common Stock

Earnings per Share

The following table presents Entergy’s basic and diluted earnings per share calculations included on the consolidated income statements:
 
For the Three Months Ended September 30,
 
2019
 
2018
 
(In Millions, Except Per Share Data)
 
Income
 
Shares
 
$/share
 
Income
 
Shares
 
$/share
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Entergy Corporation

$365.2

 
198.9

 

$1.84

 

$536.4

 
181.0

 

$2.96

Average dilutive effect of:
 
 
 
 
 
 
 
 
 
 
 
Stock options
 
 
0.7

 
(0.01
)
 
 
 
0.4

 
(0.01
)
Other equity plans
 
 
0.9

 
(0.01
)
 
 
 
0.8

 
(0.01
)
Equity forwards
 
 
—

 
—

 
 
 
1.5

 
(0.02
)
Diluted earnings per share

$365.2

 
200.5

 

$1.82

 

$536.4

 
183.7

 

$2.92


The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 1.1 million for the three months ended September 30, 2018.
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
(In Millions, Except Per Share Data)
 
Income
 
Shares
 
$/share
 
Income
 
Shares
 
$/share
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Entergy Corporation

$856.2

 
193.9

 

$4.42

 

$914.6

 
180.8

 

$5.06

Average dilutive effect of:
 
 
 
 
 
 
 
 
 
 
 
Stock options
 
 
0.5

 
(0.01
)
 
 
 
0.3

 
(0.01
)
Other equity plans
 
 
0.7

 
(0.02
)
 
 
 
0.7

 
(0.01
)
Equity forwards
 
 
0.6

 
(0.01
)
 
 
 
0.9

 
(0.03
)
Diluted earnings per share

$856.2

 
195.7

 

$4.38

 

$914.6

 
182.7

 

$5.01



The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 0.2 million for the nine months ended September 30, 2019 and approximately 1.1 million for the nine months ended September 30, 2018.

Entergy’s stock options and other equity compensation plans are discussed in Note 5 to the financial statements herein and in Note 12 to the financial statements in the Form 10-K.

Dividends declared per common share were $0.91 for the three months ended September 30, 2019 and $0.89 for the three months ended September 30, 2018. Dividends declared per common share were $2.73 for the nine months ended September 30, 2019 and $2.67 for the nine months ended September 30, 2018.

Equity Forward Sale Agreements

As discussed in Note 7 to the financial statements in the Form 10-K, in June 2018, Entergy marketed an equity offering of 15.3 million shares of common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with various investment banks. In December 2018, Entergy physically settled a portion of its obligations under the forward sale agreements by delivering 6,834,221 shares of common stock in exchange for cash proceeds of approximately $500 million. In May 2019, Entergy physically settled the remaining 8,448,171 shares of common stock in exchange for cash proceeds of approximately $608 million.

Treasury Stock

During the nine months ended September 30, 2019, Entergy Corporation issued 1,582,916 shares of its previously repurchased common stock to satisfy stock option exercises, vesting of shares of restricted stock, and other stock-based awards.  Entergy Corporation did not repurchase any of its common stock during the nine months ended September 30, 2019.

Retained Earnings

On October 25, 2019, Entergy Corporation’s Board of Directors declared a common stock dividend of $0.93 per share, payable on December 2, 2019, to holders of record as of November 7, 2019.

Entergy implemented ASU No. 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” effective January 1, 2019. The ASU makes a number of amendments to hedge accounting, most significantly changing the recognition and presentation of highly effective hedges. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by approximately $8 million as of January 1, 2019 for the cumulative effect of the ineffectiveness portion of designated hedges on nuclear power sales.

Entergy implemented ASU 2017-08 “Receivables (Topic 310): Nonrefundable Fees and Other Costs” effective January 1, 2019. The ASU amends the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Entergy implemented this standard using the modified retrospective approach, and recorded an adjustment decreasing retained earnings and decreasing accumulated other comprehensive loss by approximately $1 million as of January 1, 2019 for the cumulative effect of the amended amortization period.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended September 30, 2019 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 
Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
Beginning balance, July 1, 2019

$51,736

 

($508,876
)
 

$26,736

 

($430,404
)
Other comprehensive income (loss) before reclassifications
(5,190
)
 
—

 
8,350

 
3,160

Amounts reclassified from accumulated other comprehensive income (loss)
(14,913
)
 
25,464

 
(3,079
)
 
7,472

Net other comprehensive income (loss) for the period
(20,103
)
 
25,464

 
5,271

 
10,632

Ending balance, September 30, 2019

$31,633

 

($483,412
)
 

$32,007

 

($419,772
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended September 30, 2018 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 
Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
Beginning balance, July 1, 2018

($14,874
)
 

($589,926
)
 

($8,842
)
 

($613,642
)
Other comprehensive income (loss) before reclassifications
(40,401
)
 
—

 
(7,173
)
 
(47,574
)
Amounts reclassified from accumulated other comprehensive income (loss)
8,397

 
15,265

 
5,428

 
29,090

Net other comprehensive income (loss) for the period
(32,004
)
 
15,265

 
(1,745
)
 
(18,484
)
Ending balance, September 30, 2018

($46,878
)
 

($574,661
)
 

($10,587
)
 

($632,126
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the nine months ended September 30, 2019 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 
Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)
Implementation of accounting standards
(7,685
)
 
—

 
879

 
(6,806
)
Beginning balance, January 1, 2019

($30,820
)
 

($531,922
)
 

($1,237
)
 

($563,979
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
122,481

 
—

 
37,724

 
160,205

Amounts reclassified from accumulated other comprehensive income (loss)
(60,028
)
 
48,510

 
(4,480
)
 
(15,998
)
Net other comprehensive income (loss) for the period
62,453

 
48,510

 
33,244

 
144,207

Ending balance, September 30, 2019

$31,633

 

($483,412
)
 

$32,007

 

($419,772
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the nine months ended September 30, 2018 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 
Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
Ending balance, December 31, 2017

($37,477
)
 

($531,099
)
 

$545,045

 

($23,531
)
Implementation of accounting standards
—

 
—

 
(632,617
)
 
(632,617
)
Beginning balance, January 1, 2018

($37,477
)
 

($531,099
)
 

($87,572
)
 

($656,148
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(31,816
)
 
—

 
(50,958
)
 
(82,774
)
Amounts reclassified from accumulated other comprehensive income (loss)
30,171

 
47,404

 
13,716

 
91,291

Net other comprehensive income (loss) for the period
(1,645
)
 
47,404

 
(37,242
)
 
8,517

 
 
 
 
 
 
 
 
Reclassification pursuant to ASU 2018-02
(7,756
)
 
(90,966
)
 
114,227

 
15,505

 
 
 
 
 
 
 
 
Ending balance, September 30, 2018

($46,878
)
 

($574,661
)
 

($10,587
)
 

($632,126
)


The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the three months ended September 30, 2019 and 2018:
 
 
Pension and Other
Postretirement Liabilities
 
 
2019
 
2018
 
 
(In Thousands)
Beginning balance, July 1,
 

($8,091
)
 

($57,451
)
Amounts reclassified from accumulated other
comprehensive income (loss)
 
(969
)
 
(500
)
Net other comprehensive income (loss) for the period
 
(969
)
 
(500
)
Ending balance, September 30,
 

($9,060
)
 

($57,951
)

    
The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the nine months ended September 30, 2019 and 2018:
 
 
Pension and Other
Postretirement Liabilities
 
 
2019
 
2018
 
 
(In Thousands)
Beginning balance, January 1,
 

($6,153
)
 

($46,400
)
Amounts reclassified from accumulated other
comprehensive income (loss)
 
(2,907
)
 
(1,502
)
Net other comprehensive income (loss) for the period
 
(2,907
)
 
(1,502
)
 
 
 
 
 
Reclassification pursuant to ASU 2018-02
 
—

 
(10,049
)
 
 
 
 
 
Ending balance, September 30,
 

($9,060
)
 

($57,951
)

    
Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the three months ended September 30, 2019 and 2018 are as follows:

Amounts reclassified
from AOCI

Income Statement Location
 
2019
 
2018
 
 

(In Thousands)


Cash flow hedges net unrealized gain (loss)

 
 


   Power contracts

$18,925

 

($10,566
)

Competitive business operating revenues
   Interest rate swaps
(48
)
 
(63
)

Miscellaneous - net
Total realized gain (loss) on cash flow hedges
18,877

 
(10,629
)



(3,964
)
 
2,232


Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)

$14,913

 

($8,397
)





 
 


Pension and other postretirement liabilities


 
 


   Amortization of prior-service credit

$5,325

 

$5,425


(a)
   Amortization of loss
(20,919
)
 
(24,740
)

(a)
   Settlement loss
(16,630
)
 
(76
)

(a)
Total amortization
(32,224
)
 
(19,391
)



6,760

 
4,126


Income taxes
Total amortization (net of tax)

($25,464
)
 

($15,265
)




 
 


Net unrealized investment gain (loss)

 
 


Realized gain (loss)

$4,872

 

($8,589
)

Interest and investment income

(1,793
)
 
3,161


Income taxes
Total realized investment gain (loss) (net of tax)

$3,079

 

($5,428
)





 
 


Total reclassifications for the period (net of tax)

($7,472
)
 

($29,090
)




(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the nine months ended September 30, 2019 and 2018 are as follows:
 
Amounts reclassified
from AOCI
 
Income Statement Location
 
2019
 
2018
 
 
 
(In Thousands)
 
 
Cash flow hedges net unrealized gain (loss)
 
 
 
 
 
   Power contracts

$76,129

 

($37,913
)
 
Competitive business operating revenues
   Interest rate swaps
(145
)
 
(278
)
 
Miscellaneous - net
Total realized gain (loss) on cash flow hedges
75,984

 
(38,191
)
 
 
 
(15,956
)
 
8,020

 
Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)

$60,028

 

($30,171
)
 
 
 
 
 
 
 
 
Pension and other postretirement liabilities
 
 
 
 
 
   Amortization of prior-service credit

$15,977

 

$16,278

 
(a)
   Amortization of loss
(58,888
)
 
(74,503
)
 
(a)
   Settlement loss
(18,685
)
 
(2,098
)
 
(a)
Total amortization
(61,596
)
 
(60,323
)
 
 
 
13,086

 
12,919

 
Income taxes
Total amortization (net of tax)

($48,510
)
 

($47,404
)
 
 
 
 
 
 
 
 
Net unrealized investment gain (loss)
 
 
 
 
 
Realized gain (loss)

$7,088

 

($21,703
)
 
Interest and investment income
 
(2,608
)
 
7,987

 
Income taxes
Total realized investment gain (loss) (net of tax)

$4,480

 

($13,716
)
 
 
 
 
 
 
 
 
Total reclassifications for the period (net of tax)

$15,998

 

($91,291
)
 
 

(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the three months ended September 30, 2019 and 2018 are as follows:
 
 
Amounts reclassified
from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
Pension and other postretirement liabilities
 
 
 
 
 
 
   Amortization of prior-service credit
 

$1,837

 

$1,934

 
(a)
   Amortization of loss
 
(526
)
 
(1,257
)
 
(a)
Total amortization
 
1,311

 
677

 
 
 
 
(342
)
 
(177
)
 
Income taxes
Total amortization (net of tax)
 
969

 
500

 
 
 
 
 
 
 
 
 
Total reclassifications for the period (net of tax)
 

$969

 

$500

 
 


(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the nine months ended September 30, 2019 and 2018 are as follows:
 
 
Amounts reclassified
from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
Pension and other postretirement liabilities
 
 
 
 
 
 
   Amortization of prior-service credit
 

$5,511

 

$5,802

 
(a)
   Amortization of loss
 
(1,578
)
 
(3,770
)
 
(a)
Total amortization
 
3,933

 
2,032

 
 
 
 
(1,026
)
 
(530
)
 
Income taxes
Total amortization (net of tax)
 
2,907

 
1,502

 
 
 
 
 
 
 
 
 
Total reclassifications for the period (net of tax)
 

$2,907

 

$1,502

 
 


(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

Preferred Stock

In September 2019, Entergy Texas issued $35 million of 5.375% Series A preferred stock, a total of 1,400,000 shares with a liquidation value of $25 per share, all of which are outstanding as of September 30, 2019. The dividends are cumulative and payable quarterly. The preferred stock is redeemable on or after October 15, 2024 at Entergy Texas’s option, at a fixed redemption price of $25 per share.

Accounting standards regarding the classification and measurement of redeemable securities require the classification of preferred securities between liabilities and shareholders’ equity on the balance sheet if the holders of those securities have protective rights that allow them to gain control of the board of directors in certain circumstances. These rights would have the effect of giving the holders the ability to potentially redeem their securities, even if the likelihood of occurrence of these circumstances is considered remote. The outstanding preferred stock of Entergy
Texas has protective rights with respect to unpaid dividends but provides for the election of board members that would not constitute a majority of the board, and the preferred stock of Entergy Texas is therefore classified as a component of equity.
Entergy Louisiana [Member]  
Equity EQUITY (Entergy Corporation, Entergy Louisiana, and Entergy Texas)

Common Stock

Earnings per Share

The following table presents Entergy’s basic and diluted earnings per share calculations included on the consolidated income statements:
 
For the Three Months Ended September 30,
 
2019
 
2018
 
(In Millions, Except Per Share Data)
 
Income
 
Shares
 
$/share
 
Income
 
Shares
 
$/share
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Entergy Corporation

$365.2

 
198.9

 

$1.84

 

$536.4

 
181.0

 

$2.96

Average dilutive effect of:
 
 
 
 
 
 
 
 
 
 
 
Stock options
 
 
0.7

 
(0.01
)
 
 
 
0.4

 
(0.01
)
Other equity plans
 
 
0.9

 
(0.01
)
 
 
 
0.8

 
(0.01
)
Equity forwards
 
 
—

 
—

 
 
 
1.5

 
(0.02
)
Diluted earnings per share

$365.2

 
200.5

 

$1.82

 

$536.4

 
183.7

 

$2.92


The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 1.1 million for the three months ended September 30, 2018.
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
(In Millions, Except Per Share Data)
 
Income
 
Shares
 
$/share
 
Income
 
Shares
 
$/share
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Entergy Corporation

$856.2

 
193.9

 

$4.42

 

$914.6

 
180.8

 

$5.06

Average dilutive effect of:
 
 
 
 
 
 
 
 
 
 
 
Stock options
 
 
0.5

 
(0.01
)
 
 
 
0.3

 
(0.01
)
Other equity plans
 
 
0.7

 
(0.02
)
 
 
 
0.7

 
(0.01
)
Equity forwards
 
 
0.6

 
(0.01
)
 
 
 
0.9

 
(0.03
)
Diluted earnings per share

$856.2

 
195.7

 

$4.38

 

$914.6

 
182.7

 

$5.01



The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 0.2 million for the nine months ended September 30, 2019 and approximately 1.1 million for the nine months ended September 30, 2018.

Entergy’s stock options and other equity compensation plans are discussed in Note 5 to the financial statements herein and in Note 12 to the financial statements in the Form 10-K.

Dividends declared per common share were $0.91 for the three months ended September 30, 2019 and $0.89 for the three months ended September 30, 2018. Dividends declared per common share were $2.73 for the nine months ended September 30, 2019 and $2.67 for the nine months ended September 30, 2018.

Equity Forward Sale Agreements

As discussed in Note 7 to the financial statements in the Form 10-K, in June 2018, Entergy marketed an equity offering of 15.3 million shares of common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with various investment banks. In December 2018, Entergy physically settled a portion of its obligations under the forward sale agreements by delivering 6,834,221 shares of common stock in exchange for cash proceeds of approximately $500 million. In May 2019, Entergy physically settled the remaining 8,448,171 shares of common stock in exchange for cash proceeds of approximately $608 million.

Treasury Stock

During the nine months ended September 30, 2019, Entergy Corporation issued 1,582,916 shares of its previously repurchased common stock to satisfy stock option exercises, vesting of shares of restricted stock, and other stock-based awards.  Entergy Corporation did not repurchase any of its common stock during the nine months ended September 30, 2019.

Retained Earnings

On October 25, 2019, Entergy Corporation’s Board of Directors declared a common stock dividend of $0.93 per share, payable on December 2, 2019, to holders of record as of November 7, 2019.

Entergy implemented ASU No. 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” effective January 1, 2019. The ASU makes a number of amendments to hedge accounting, most significantly changing the recognition and presentation of highly effective hedges. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by approximately $8 million as of January 1, 2019 for the cumulative effect of the ineffectiveness portion of designated hedges on nuclear power sales.

Entergy implemented ASU 2017-08 “Receivables (Topic 310): Nonrefundable Fees and Other Costs” effective January 1, 2019. The ASU amends the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Entergy implemented this standard using the modified retrospective approach, and recorded an adjustment decreasing retained earnings and decreasing accumulated other comprehensive loss by approximately $1 million as of January 1, 2019 for the cumulative effect of the amended amortization period.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended September 30, 2019 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 
Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
Beginning balance, July 1, 2019

$51,736

 

($508,876
)
 

$26,736

 

($430,404
)
Other comprehensive income (loss) before reclassifications
(5,190
)
 
—

 
8,350

 
3,160

Amounts reclassified from accumulated other comprehensive income (loss)
(14,913
)
 
25,464

 
(3,079
)
 
7,472

Net other comprehensive income (loss) for the period
(20,103
)
 
25,464

 
5,271

 
10,632

Ending balance, September 30, 2019

$31,633

 

($483,412
)
 

$32,007

 

($419,772
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended September 30, 2018 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 
Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
Beginning balance, July 1, 2018

($14,874
)
 

($589,926
)
 

($8,842
)
 

($613,642
)
Other comprehensive income (loss) before reclassifications
(40,401
)
 
—

 
(7,173
)
 
(47,574
)
Amounts reclassified from accumulated other comprehensive income (loss)
8,397

 
15,265

 
5,428

 
29,090

Net other comprehensive income (loss) for the period
(32,004
)
 
15,265

 
(1,745
)
 
(18,484
)
Ending balance, September 30, 2018

($46,878
)
 

($574,661
)
 

($10,587
)
 

($632,126
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the nine months ended September 30, 2019 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 
Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)
Implementation of accounting standards
(7,685
)
 
—

 
879

 
(6,806
)
Beginning balance, January 1, 2019

($30,820
)
 

($531,922
)
 

($1,237
)
 

($563,979
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
122,481

 
—

 
37,724

 
160,205

Amounts reclassified from accumulated other comprehensive income (loss)
(60,028
)
 
48,510

 
(4,480
)
 
(15,998
)
Net other comprehensive income (loss) for the period
62,453

 
48,510

 
33,244

 
144,207

Ending balance, September 30, 2019

$31,633

 

($483,412
)
 

$32,007

 

($419,772
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the nine months ended September 30, 2018 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 
Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
Ending balance, December 31, 2017

($37,477
)
 

($531,099
)
 

$545,045

 

($23,531
)
Implementation of accounting standards
—

 
—

 
(632,617
)
 
(632,617
)
Beginning balance, January 1, 2018

($37,477
)
 

($531,099
)
 

($87,572
)
 

($656,148
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(31,816
)
 
—

 
(50,958
)
 
(82,774
)
Amounts reclassified from accumulated other comprehensive income (loss)
30,171

 
47,404

 
13,716

 
91,291

Net other comprehensive income (loss) for the period
(1,645
)
 
47,404

 
(37,242
)
 
8,517

 
 
 
 
 
 
 
 
Reclassification pursuant to ASU 2018-02
(7,756
)
 
(90,966
)
 
114,227

 
15,505

 
 
 
 
 
 
 
 
Ending balance, September 30, 2018

($46,878
)
 

($574,661
)
 

($10,587
)
 

($632,126
)


The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the three months ended September 30, 2019 and 2018:
 
 
Pension and Other
Postretirement Liabilities
 
 
2019
 
2018
 
 
(In Thousands)
Beginning balance, July 1,
 

($8,091
)
 

($57,451
)
Amounts reclassified from accumulated other
comprehensive income (loss)
 
(969
)
 
(500
)
Net other comprehensive income (loss) for the period
 
(969
)
 
(500
)
Ending balance, September 30,
 

($9,060
)
 

($57,951
)

    
The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the nine months ended September 30, 2019 and 2018:
 
 
Pension and Other
Postretirement Liabilities
 
 
2019
 
2018
 
 
(In Thousands)
Beginning balance, January 1,
 

($6,153
)
 

($46,400
)
Amounts reclassified from accumulated other
comprehensive income (loss)
 
(2,907
)
 
(1,502
)
Net other comprehensive income (loss) for the period
 
(2,907
)
 
(1,502
)
 
 
 
 
 
Reclassification pursuant to ASU 2018-02
 
—

 
(10,049
)
 
 
 
 
 
Ending balance, September 30,
 

($9,060
)
 

($57,951
)

    
Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the three months ended September 30, 2019 and 2018 are as follows:

Amounts reclassified
from AOCI

Income Statement Location
 
2019
 
2018
 
 

(In Thousands)


Cash flow hedges net unrealized gain (loss)

 
 


   Power contracts

$18,925

 

($10,566
)

Competitive business operating revenues
   Interest rate swaps
(48
)
 
(63
)

Miscellaneous - net
Total realized gain (loss) on cash flow hedges
18,877

 
(10,629
)



(3,964
)
 
2,232


Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)

$14,913

 

($8,397
)





 
 


Pension and other postretirement liabilities


 
 


   Amortization of prior-service credit

$5,325

 

$5,425


(a)
   Amortization of loss
(20,919
)
 
(24,740
)

(a)
   Settlement loss
(16,630
)
 
(76
)

(a)
Total amortization
(32,224
)
 
(19,391
)



6,760

 
4,126


Income taxes
Total amortization (net of tax)

($25,464
)
 

($15,265
)




 
 


Net unrealized investment gain (loss)

 
 


Realized gain (loss)

$4,872

 

($8,589
)

Interest and investment income

(1,793
)
 
3,161


Income taxes
Total realized investment gain (loss) (net of tax)

$3,079

 

($5,428
)





 
 


Total reclassifications for the period (net of tax)

($7,472
)
 

($29,090
)




(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the nine months ended September 30, 2019 and 2018 are as follows:
 
Amounts reclassified
from AOCI
 
Income Statement Location
 
2019
 
2018
 
 
 
(In Thousands)
 
 
Cash flow hedges net unrealized gain (loss)
 
 
 
 
 
   Power contracts

$76,129

 

($37,913
)
 
Competitive business operating revenues
   Interest rate swaps
(145
)
 
(278
)
 
Miscellaneous - net
Total realized gain (loss) on cash flow hedges
75,984

 
(38,191
)
 
 
 
(15,956
)
 
8,020

 
Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)

$60,028

 

($30,171
)
 
 
 
 
 
 
 
 
Pension and other postretirement liabilities
 
 
 
 
 
   Amortization of prior-service credit

$15,977

 

$16,278

 
(a)
   Amortization of loss
(58,888
)
 
(74,503
)
 
(a)
   Settlement loss
(18,685
)
 
(2,098
)
 
(a)
Total amortization
(61,596
)
 
(60,323
)
 
 
 
13,086

 
12,919

 
Income taxes
Total amortization (net of tax)

($48,510
)
 

($47,404
)
 
 
 
 
 
 
 
 
Net unrealized investment gain (loss)
 
 
 
 
 
Realized gain (loss)

$7,088

 

($21,703
)
 
Interest and investment income
 
(2,608
)
 
7,987

 
Income taxes
Total realized investment gain (loss) (net of tax)

$4,480

 

($13,716
)
 
 
 
 
 
 
 
 
Total reclassifications for the period (net of tax)

$15,998

 

($91,291
)
 
 

(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the three months ended September 30, 2019 and 2018 are as follows:
 
 
Amounts reclassified
from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
Pension and other postretirement liabilities
 
 
 
 
 
 
   Amortization of prior-service credit
 

$1,837

 

$1,934

 
(a)
   Amortization of loss
 
(526
)
 
(1,257
)
 
(a)
Total amortization
 
1,311

 
677

 
 
 
 
(342
)
 
(177
)
 
Income taxes
Total amortization (net of tax)
 
969

 
500

 
 
 
 
 
 
 
 
 
Total reclassifications for the period (net of tax)
 

$969

 

$500

 
 


(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the nine months ended September 30, 2019 and 2018 are as follows:
 
 
Amounts reclassified
from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
Pension and other postretirement liabilities
 
 
 
 
 
 
   Amortization of prior-service credit
 

$5,511

 

$5,802

 
(a)
   Amortization of loss
 
(1,578
)
 
(3,770
)
 
(a)
Total amortization
 
3,933

 
2,032

 
 
 
 
(1,026
)
 
(530
)
 
Income taxes
Total amortization (net of tax)
 
2,907

 
1,502

 
 
 
 
 
 
 
 
 
Total reclassifications for the period (net of tax)
 

$2,907

 

$1,502

 
 


(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

Preferred Stock

In September 2019, Entergy Texas issued $35 million of 5.375% Series A preferred stock, a total of 1,400,000 shares with a liquidation value of $25 per share, all of which are outstanding as of September 30, 2019. The dividends are cumulative and payable quarterly. The preferred stock is redeemable on or after October 15, 2024 at Entergy Texas’s option, at a fixed redemption price of $25 per share.

Accounting standards regarding the classification and measurement of redeemable securities require the classification of preferred securities between liabilities and shareholders’ equity on the balance sheet if the holders of those securities have protective rights that allow them to gain control of the board of directors in certain circumstances. These rights would have the effect of giving the holders the ability to potentially redeem their securities, even if the likelihood of occurrence of these circumstances is considered remote. The outstanding preferred stock of Entergy
Texas has protective rights with respect to unpaid dividends but provides for the election of board members that would not constitute a majority of the board, and the preferred stock of Entergy Texas is therefore classified as a component of equity.