Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date earliest event reported) November 1, 2023


Commission File Number	Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No.	Commission File Number	Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No.

1-11299	ENTERGY CORPORATION	1-35747	ENTERGY NEW ORLEANS, LLC
	(a Delaware corporation) 639 Loyola Avenue New Orleans, Louisiana 70113 Telephone (504) 576-4000		(a Texas limited liability company) 1600 Perdido Street New Orleans, Louisiana 70112 Telephone (504) 670-3702
	72-1229752		82-2212934


1-10764	ENTERGY ARKANSAS, LLC	1-34360	ENTERGY TEXAS, INC.
	(a Texas limited liability company) 425 West Capitol Avenue Little Rock, Arkansas 72201 Telephone (501) 377-4000		(a Texas corporation) 2107 Research Forest Drive The Woodlands, Texas 77380 Telephone (409) 981-2000
	83-1918668		61-1435798


1-32718	ENTERGY LOUISIANA, LLC	1-09067	SYSTEM ENERGY RESOURCES, INC.
	(a Texas limited liability company) 4809 Jefferson Highway Jefferson, Louisiana 70121 Telephone (504) 576-4000		(an Arkansas corporation) 1340 Echelon Parkway Jackson, Mississippi 39213 Telephone (601) 368-5000
	47-4469646		72-0752777


1-31508	ENTERGY MISSISSIPPI, LLC
	(a Texas limited liability company) 308 East Pearl Street Jackson, Mississippi 39201 Telephone (601) 368-5000
	83-1950019

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Registrant	Title of Class	Trading Symbol	Name of Each Exchange on Which Registered

Entergy Corporation	Common Stock, $0.01 Par Value	ETR	New York Stock Exchange
	Common Stock, $0.01 Par Value	ETR	NYSE Chicago, Inc.

Entergy Arkansas, LLC	Mortgage Bonds, 4.875% Series due September 2066	EAI	New York Stock Exchange

Entergy Louisiana, LLC	Mortgage Bonds, 4.875% Series due September 2066	ELC	New York Stock Exchange

Entergy Mississippi, LLC	Mortgage Bonds, 4.90% Series due October 2066	EMP	New York Stock Exchange

Entergy New Orleans, LLC	Mortgage Bonds, 5.0% Series due December 2052	ENJ	New York Stock Exchange
	Mortgage Bonds, 5.50% Series due April 2066	ENO	New York Stock Exchange

Entergy Texas, Inc.	5.375% Series A Preferred Stock, Cumulative, No Par Value (Liquidation Value $25 Per Share)	ETI/PR	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On November 1, 2023, Entergy Corporation (the “Company”) issued a press release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the third quarter 2023 (the “Earnings Release”). The information in Exhibit 99.1 is being furnished, not filed, pursuant to this Item 2.02.

Item 7.01. Regulation FD Disclosure

On November 1, 2023, the Company issued the Earnings Release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the third quarter 2023. The information in Exhibit 99.1 is being furnished, not filed, pursuant to this Item 7.01.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.


Exhibit No.			Description
99.1			Earnings Release, dated November 1 , 2023, issued by Entergy Corporation.

104			Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Entergy Corporation

Entergy Arkansas, LLC

Entergy Louisiana, LLC

Entergy Mississippi, LLC

Entergy New Orleans, LLC

Entergy Texas, Inc.

System Energy Resources, Inc.


			By: /s/ Reginald T. Jackson
			Reginald T. Jackson Senior Vice President and Chief Accounting Officer

Dated: November 1, 2023

NEWS RELEASE

FOR IMMEDIATE RELEASE

November 1, 2023

Entergy reports third quarter earnings

Company narrows guidance range and extends financial outlooks

NEW ORLEANS – Entergy Corporation (NYSE: ETR) reported third quarter 2023 earnings per share of $3.14 on an as-reported basis, and $3.27 on an adjusted (non-GAAP) basis.

“The commitment and effort given by our employees were exceptional, and our plants and grid all performed well to deliver reliable service to our customers during this summer’s extreme heat,” said Drew Marsh, Entergy Chairman and Chief Executive Officer. “The quarter’s results keep us firmly on track to achieve our commitments, and we made important regulatory progress including settlements that reduce risk and uncertainty going forward.”

Business highlights included the following:

•Entergy narrowed its 2023 adjusted EPS guidance range to $6.65 to $6.85.

•SERI reached a settlement in principle with the APSC to resolve all of the APSC’s complaints against SERI; the settlement is subject to FERC approval.

•Entergy announced agreement to sell its gas distribution business for approximately $484 million.

•E-LA and Lotte Chemical USA Corporation signed a memorandum of understanding aimed at meeting Lotte’s sustainability goals.

•The CCNO approved E-NO’s request to extend its FRP through the 2026 filing year.

•FERC issued its order on rehearing for the sale leaseback renewal and uncertain tax positions case.

•The PUCT approved E-TX’s base rate case settlement.

•E-AR committed to resolve recovery of costs associated with the March 2013 ANO stator incident.

•E-LA filed a proposal which includes modifying extending its current FRP for three years.

•Entergy’s Board of Directors declared a quarterly dividend of $1.13 per share, a six percent increase.

•Entergy was named as one of the nation’s top utilities in economic development by Site Selection magazine for the 16th consecutive year.


Table of contents			Page
News release Appendices A: Consolidated results and adjustments B: Earnings variance analysis C: Utility operating and financial measures D: Consolidated financial measures E: Definitions and abbreviations and acronyms F: Other GAAP to non-GAAP reconciliations Financial statements			1 7 8 11 14 15 16 18 20

Entergy reports third quarter earnings

November 1, 2023

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Consolidated earnings (GAAP and non-GAAP measures)
Third quarter and year-to-date 2023 vs. 2022 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments)
	Third quarter			Year-to-date
	2023	2022	Change	2023	2022	Change
(After-tax, $ in millions)
As-reported earnings	667	561	106	1,369	997	372
Less adjustments	(27)	(19)	(8)	42	(216)	258
Adjusted earnings (non-GAAP)	694	580	114	1,327	1,213	114
Estimated weather impact	135	21	115	103	86	17

(After-tax, per share in $)
As-reported earnings	3.14	2.74	0.40	6.45	4.88	1.57
Less adjustments	(0.13)	(0.10)	(0.03)	0.20	(1.06)	1.26
Adjusted earnings (non-GAAP)	3.27	2.84	0.43	6.25	5.94	0.32
Estimated weather impact	0.64	0.10	0.54	0.48	0.42	0.06

Calculations may differ due to rounding

Consolidated results

For third quarter 2023, the company reported earnings of $667 million, or $3.14 per share, on an as-reported basis and earnings of $694 million, or $3.27 per share, on an adjusted basis. This compared to third quarter 2022 earnings of $561 million, or $2.74 per share, on an as-reported basis and earnings of $580 million, or $2.84 per share, on an adjusted basis.

Summary discussions by business follow. Additional details, including information on OCF by business, are provided in Appendix A. An analysis of variances by business is provided in Appendix B.

Business segment results

Utility

For third quarter 2023, the Utility business reported earnings attributable to Entergy Corporation of $752 million, or $3.54 per share, on an as-reported basis and $810 million, or $3.82 per share, on an adjusted basis. This compared to third quarter 2022 earnings of $672 million, or $3.29 per share, on both an as-reported and adjusted basis.

Drivers for the increase in quarterly earnings included:

•the effects of weather on retail volume,

•the net effect of regulatory actions across the operating companies,

•lower other O&M, and

•higher other income (deductions) from affiliate preferred investments (offset at P&O and largely earnings neutral at the consolidated level).

The drivers were partially offset by an Entergy Arkansas write-off in third quarter 2023 totaling $(78 million) ($(59 million) after tax), including $(69 million) for replacement power costs included in deferred fuel and $(10 million) for undepreciated property, plant, and equipment. The write-off was recorded to reflect Entergy Arkansas’ offer to forgo its opportunity to seek recovery of costs resulting from the March 2013 ANO stator incident. The write-off was considered an adjustment and excluded from adjusted earnings.

Depreciation expense on new assets and higher interest expense also provided partial offsets.

On a per share basis, third quarter 2023 results reflected higher diluted average number of common shares outstanding.

Appendix C contains additional details on Utility operating and financial measures.

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Entergy reports third quarter earnings

November 1, 2023

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Parent & Other

For third quarter 2023, Parent & Other reported a loss attributable to Entergy Corporation of $(85 million), or (40) cents per share, on an as-reported basis and a loss of $(117 million), or (55) cents per share, on an adjusted basis. This compared to third quarter 2022 loss of $(112 million), or (55) cents per share, on an as-reported basis and a loss of $(92 million), or (45) cents per share, on an adjusted basis.

In 2022, the wind down of EWC was completed and that business is no longer a reportable segment. Starting in 2023, the remaining activity from EWC is included in Parent & Other. For comparability, EWC’s 2022 results are also included in Parent & Other.

In third quarter 2022, EWC reported a loss of $(19 million), or (10) cents per share, on an as-reported basis, largely driven by the accrual of an uncertain tax position as a result of a state tax audit.

Other drivers for the quarterly Parent & Other variance included:

•the effects of the third quarter 2023 DOE spent fuel litigation settlement on asset write-offs and impairments (considered an adjustment and excluded from adjusted earnings),

•higher dividends on intercompany preferred investments (offset at Utility and largely earnings neutral for consolidated results),

•higher interest expense, and

•higher non-service pension income.

On a per share basis, third quarter 2023 results reflected higher diluted average number of common shares outstanding.

Earnings per share guidance

Entergy narrowed its 2023 adjusted EPS guidance to a range of $6.65 to $6.85. See webcast presentation for additional details.

The company has provided 2023 earnings guidance with regard to the non-GAAP measure of adjusted earnings per share. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under “Non-GAAP financial measures.” The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. Potential adjustments include the exclusion of regulatory charges related to outstanding regulatory complaints and significant income tax items.

Earnings teleconference

A teleconference will be held at 10:00 a.m. Central Time on Wednesday, November 1, 2023, to discuss Entergy’s quarterly earnings announcement and the company’s financial performance. The teleconference may be accessed by visiting Entergy’s website at www.entergy.com or by dialing 888-440-4149, conference ID 9024832, no more than 15 minutes prior to the start of the call. The webcast presentation is also being posted to Entergy’s website concurrent with this news release. A replay of the teleconference will be available on Entergy’s website at www.entergy.com and by telephone. The telephone replay will be available through November 8, 2023, by dialing 800-770-2030, conference ID 9024832.

Entergy is a Fortune 500 company that powers life for 3 million customers through our operating companies in Arkansas, Louisiana, Mississippi, and Texas. We’re investing in the reliability and resilience of the energy system while helping our region transition to cleaner, more efficient energy solutions. With roots in our communities for more than 100 years, Entergy is a nationally recognized leader in sustainability and corporate citizenship. Since 2018, we have delivered more than $100 million in economic benefits each year to local communities through philanthropy, volunteerism, and advocacy. Entergy is headquartered in New Orleans, Louisiana, and has approximately 12,000 employees.

Entergy Corporation’s common stock is listed on the New York Stock Exchange and NYSE Chicago under the symbol “ETR”.

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Entergy reports third quarter earnings

November 1, 2023

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Details regarding Entergy’s results of operations, regulatory proceedings, and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast presentation. Both documents are available on Entergy’s Investor Relations website at www.entergy.com/investors.

Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and other information, which provides investors with key updates on certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.

For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix E.

Non-GAAP financial measures

This news release contains non-GAAP financial measures, which are generally numerical measures of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain “adjustments.” Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.

Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy’s business, comparing period to period results, and comparing Entergy’s financial performance to the financial performance of other companies in the utility sector.

Other non-GAAP measures, including adjusted ROE; adjusted ROE, excluding affiliate preferred; gross liquidity; net liquidity; net liquidity, including storm escrows; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; and FFO to debt, excluding securitization debt, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy’s ongoing financial results and flexibility and assists investors in comparing Entergy’s credit and liquidity to the credit and liquidity of others in the utility sector. In addition, ROE is included on both an adjusted and an as-reported basis. Metrics defined as “adjusted” exclude the effect of adjustments as defined above.

These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy’s operations that, when viewed with Entergy’s GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy’s business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy’s consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy’s performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

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November 1, 2023

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Cautionary note regarding forward-looking statements

In this news release, and from time to time, Entergy Corporation makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, statements regarding Entergy’s 2023 earnings guidance; current financial and operational outlooks; industrial load growth outlooks; statements regarding its climate transition and resilience plans, goals, beliefs, or expectations; and other statements of Entergy’s plans, beliefs, or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q, and Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent or on the timeline anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with (1) realizing the benefits of its resilience plan, including impacts of the frequency and intensity of future storms and storm paths, as well as the pace of project completion and (2) efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust values or earnings or in the timing or cost of decommissioning Entergy’s nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with executing on business strategies, including strategic transactions that Entergy or its subsidiaries may undertake and the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) direct and indirect impacts to Entergy or its customers from pandemics, terrorist attacks, geopolitical conflicts, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy’s business or operations, and/or other catastrophic events; and (i) effects on Entergy or its customers of (1) changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (2) the effects of changes in commodity markets, capital markets, or economic conditions; and (3) the effects of technological change, including the costs, pace of development, and commercialization of new and emerging technologies.

###


Media inquiries: Neal Kirby 504-576-4238 nkirby@entergy.com			Investor relations inquiries: Bill Abler 281-297-5436 wabler@entergy.com

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Third quarter 2023 earnings release appendices and financial statements

Appendices

A: Consolidated results and adjustments

B: Earnings variance analysis

C: Utility operating and financial measures

D: Consolidated financial measures

E: Definitions and abbreviations and acronyms

F: Other GAAP to non-GAAP reconciliations

Financial statements

Consolidating balance sheets

Consolidating income statements

Consolidated cash flow statements

A: Consolidated results and adjustments

Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).


Appendix A-1: Consolidated earnings - reconciliation of GAAP to non-GAAP measures Third quarter and year-to-date 2023 vs. 2022 (See Appendix A-2 and Appendix A-3 for details on adjustments)
	Third quarter			Year-to-date
	2023	2022	Change	2023	2022	Change
(After-tax, $ in millions)
As-reported earnings (loss)
Utility	752	672	79	1,663	1,166	498
Parent & Other
2022 EWC	-	(19)	19	-	75	(75)
All other	(85)	(92)	8	(294)	(244)	(50)
Total Parent & Other	(85)	(112)	27	(294)	(169)	(125)
Consolidated	667	561	106	1,369	997	372

Less adjustments
Utility	(59)	-	(59)	10	(291)	301
Parent & Other
2022 EWC	-	(19)	19	-	75	(75)
All other	32	-	32	32	-	32
Total Parent & Other	32	(19)	51	32	75	(43)
Consolidated	(27)	(19)	(8)	42	(216)	258

Adjusted earnings (loss) (non-GAAP)
Utility	810	672	138	1,653	1,457	196
Parent & Other
2022 EWC	-	-	-	-	-	-
All other	(117)	(92)	(24)	(326)	(244)	(82)
Total Parent & Other	(117)	(92)	(24)	(326)	(244)	(82)
Consolidated	694	580	114	1,327	1,213	114
Estimated weather impact	135	21	115	103	86	17

Diluted average number of common shares outstanding (in millions)	212	205	8	212	204	8

(After-tax, per share in $) (a)
As-reported earnings (loss)
Utility	3.54	3.29	0.25	7.84	5.70	2.13
Parent & Other
2022 EWC	-	(0.10)	0.10	-	0.37	(0.37)
All other	(0.40)	(0.45)	0.05	(1.39)	(1.19)	(0.19)
Total Parent & Other	(0.40)	(0.55)	0.15	(1.39)	(0.83)	(0.56)
Consolidated	3.14	2.74	0.40	6.45	4.88	1.57

Less adjustments
Utility	(0.28)	-	(0.28)	0.05	(1.43)	1.47
Parent & Other
2022 EWC	-	(0.10)	0.10	-	0.37	(0.37)
All other	0.15	-	0.15	0.15	-	0.15
Total Parent & Other	0.15	(0.10)	0.25	0.15	0.37	(0.22)
Consolidated	(0.13)	(0.10)	(0.03)	0.20	(1.06)	1.26

Adjusted earnings (loss) (non-GAAP)
Utility	3.82	3.29	0.53	7.79	7.13	0.66
Parent & Other
2022 EWC	-	-	-	-	-	-
All other	(0.55)	(0.45)	(0.10)	(1.54)	(1.19)	(0.34)
Total Parent & Other	(0.55)	(0.45)	(0.10)	(1.54)	(1.19)	(0.34)
Consolidated	3.27	2.84	0.43	6.25	5.94	0.32
Estimated weather impact	0.64	0.10	0.54	0.48	0.42	0.06

Calculations may differ due to rounding

(a)Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.

See Appendix B for detailed earnings variance analysis.

Appendix A-2 and Appendix A-3 detail adjustments by business. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.


Appendix A-2: Adjustments by driver (shown as positive/(negative) impact on earnings or EPS)
Third quarter and year-to-date 2023 vs. 2022
	Third quarter			Year-to-date
	2023	2022	Change	2023	2022	Change

(Pre-tax except for income taxes and totals; $ in millions)
Utility
E-AR write-off of assets related to the ANO stator incident	(78)	-	(78)	(78)	-	(78)
E-LA and E-TX true-up for carrying costs on storm expenditures	-	-	-	31	41	(10)
E-LA contribution to the LURC related to securitization	-	-	-	(15)	(32)	17
E-LA customer-sharing of securitization benefit	-	-	-	(103)	(224)	121
SERI regulatory charge resulting from partial settlement and offer of settlement for pending litigation	-	-	-	-	(551)	551
Income tax effect on Utility adjustments above	20	-	20	47	192	(145)
E-LA income tax benefit resulting from securitization	-	-	-	129	283	(154)
Total Utility	(59)	-	(59)	10	(291)	301

Parent & Other
2022 EWC
Income before income taxes	-	-	-	-	123	(123)
Income taxes	-	(18)	18	-	(46)	46
Preferred dividend requirement	-	(1)	1	-	(2)	2
Total 2022 EWC	-	(19)	19	-	75	(75)
All Other
DOE spent nuclear fuel litigation settlement – IPEC	40	-	40	40	-	40
Income tax effect on adjustments above	(9)	-	(9)	(9)	-	(9)
Total Parent & Other	32	(19)	51	32	75	(43)

Total adjustments	(27)	(19)	(8)	42	(216)	258

(After-tax, per share in $) (b)
Utility
E-AR write-off of assets related to the ANO stator incident	(0.28)	-	(0.28)	(0.28)	-	(0.28)
E-LA and E-TX true-up for carrying costs on storm expenditures	-	-	-	0.14	0.17	(0.03)
E-LA contribution to the LURC related to securitization	-	-	-	(0.07)	(0.15)	0.09
E-LA customer-sharing of securitization benefit	-	-	-	(0.36)	(0.81)	0.45
SERI regulatory charge resulting from partial settlement and offer of settlement for pending litigation	-	-	-	-	(2.02)	2.02
E-LA income tax benefit resulting from securitization	-	-	-	0.61	1.38	(0.77)
Total Utility	(0.28)	-	(0.28)	0.05	(1.43)	1.48

Parent & Other
Total 2022 EWC	-	(0.10)	0.10	-	0.37	(0.37)
DOE spent nuclear fuel litigation settlement – IPEC	0.15	-	0.15	0.15	-	0.15
Total Parent & Other	0.15	(0.10)	0.25	0.15	0.37	(0.22)

Total adjustments	(0.13)	(0.10)	(0.03)	0.20	(1.06)	1.26

Calculations may differ due to rounding

(b)Per share amounts are calculated by multiplying the corresponding earnings (loss) by the estimated income tax rate that is expected to apply and dividing by the diluted average number of common shares outstanding for the period.


Appendix A-3: Adjustments by income statement line item (shown as positive/(negative) impact on earnings)
Third quarter and year-to-date 2023 vs. 2022
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)
	Third quarter			Year-to-date
	2023	2022	Change	2023	2022	Change
Utility
Operating revenues	-	-	-	31	46	(16)
Asset write-offs and impairments	(78)	-	(78)	(78)	-	(78)
Other regulatory charges (credits)–net	-	-	-	(103)	(775)	672
Other income (deductions)	-	-	-	(15)	(37)	22
Income taxes	20	-	20	176	474	(299)
Total Utility	(59)	-	(59)	10	(291)	301

Parent & Other
2022 EWC
Operating revenues	-	62	(62)	-	301	(301)
Fuel and fuel-related expenses	-	(30)	30	-	(81)	81
Purchased power	-	(24)	24	-	(64)	64
Nuclear refueling outage expenses	-	-	-	-	(18)	18
Other O&M	-	(10)	10	-	(94)	94
Asset write-offs and impairments	-	-	-	-	163	(163)
Decommissioning	-	-	-	-	(28)	28
Taxes other than income taxes	-	(1)	1	-	(13)	13
Depreciation and amortization	-	(1)	1	-	(13)	13
Other income (deductions)	-	6	(6)	-	(26)	26
Interest expense	-	(2)	2	-	(5)	5
Income taxes	-	(18)	18	-	(46)	46
Preferred dividend requirements	-	(1)	1	-	(2)	2
Total 2022 EWC	-	(19)	19	-	75	(75)
All Other
Asset write-offs and impairments	40	-	40	40	-	40
Income taxes	(9)	-	(9)	(9)	-	(9)

Total Parent & Other	32	(19)	51	32	75	(43)

Total adjustments	(27)	(19)	(8)	42	(216)	258

Calculations may differ due to rounding

Appendix A-4 provides a comparative summary of OCF by business.


Appendix A-4: Consolidated operating cash flow
Third quarter and year-to-date 2023 vs. 2022
($ in millions)
	Third quarter			Year-to-date
	2023	2022	Change	2023	2022	Change
Utility	1,387	1,086	301	3,301	1,942	1,360
Parent & Other
2022 EWC	-	(56)	56	-	22	(22)
All other	18	(36)	54	(70)	(155)	84
Total Parent & Other	18	(93)	111	(70)	(132)	62
Consolidated	1,405	993	412	3,231	1,809	1,422

Calculations may differ due to rounding

OCF increased for the quarter due primarily to lower Utility fuel and purchased power payments, lower other O&M spending, and 2022 EWC severance and retention payments; the increases were partially offset by Utility customer receipts (primarily higher fuel revenue) and higher pension contributions.

B: Earnings variance analysis

Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2023 versus 2022 as-reported and adjusted earnings per share variances for Utility and Parent & Other.


Appendix B-1: As-reported and adjusted earnings per share variance analysis (c), (d), (e)
Third quarter 2023 vs. 2022
(After-tax, per share in $)
				Parent & Other
	Utility			2022 EWC (f)	All other			Consolidated
	As- reported	Adjusted		As- reported	As- reported	Adjusted		As- reported	Adjusted
2022 earnings (loss)	3.29	3.29		(0.10)	(0.45)	(0.45)		2.74	2.84
Operating revenue less: fuel, fuel-related expenses and gas purchased for resale; purchased power; and other regulatory charges (credits)–net	0.57	0.57	(g)	(0.03)	0.02	0.02		0.56	0.59
Other O&M	0.12	0.12	(h)	0.04	-	-		0.15	0.11
Asset write-offs and impairments	(0.29)	-	(i)	-	0.16	-	(j)	(0.13)	-
Decommissioning expense	(0.01)	(0.01)		-	-	-		(0.01)	(0.01)
Taxes other than income taxes	(0.03)	(0.03)		-	-	-		(0.03)	(0.03)
Depreciation/amortization exp.	0.05	0.05	(k)	0.01	-	-		0.05	0.04
Other income (deductions)	0.08	0.08	(l)	(0.02)	(0.06)	(0.06)	(m)	(0.01)	0.02
Interest expense	(0.07)	(0.07)	(n)	0.01	(0.05)	(0.05)	(o)	(0.10)	(0.11)
Income taxes–other	(0.03)	(0.03)		0.09	(0.02)	(0.02)		0.04	(0.05)
Share effect	(0.13)	(0.14)	(p)	-	0.01	0.02		(0.12)	(0.12)
2023 earnings (loss)	3.54	3.82		-	(0.40)	(0.55)		3.14	3.27

Calculations may differ due to rounding


Appendix B-2: As-reported and adjusted earnings per share variance analysis (c), (d), (e)
Year-to-date 2023 vs. 2022
(After-tax, per share in $)
				Parent & Other
	Utility			2022 EWC (f)	All other			Consolidated
	As- reported	Adjusted		As- reported	As- reported	Adjusted		As- reported	Adjusted
2022 earnings (loss)	5.70	7.13		0.37	(1.19)	(1.19)		4.88	5.94
Operating revenue less: fuel, fuel-related expenses and gas purchased for resale; other purchased power; and regulatory charges (credits)–net	3.15	0.75	(g)	(0.60)	0.04	0.04		2.59	0.79
Nuclear refueling outage expense	(0.04)	(0.04)		0.07	-	-		0.04	(0.04)
Other O&M	0.45	0.45	(h)	0.36	(0.04)	(0.04)		0.77	0.41
Asset write-offs and impairments	(0.29)	-	(i)	(0.63)	0.16	-	(j)	(0.76)	-
Decommissioning expense	(0.03)	(0.03)		0.11	-	-		0.08	(0.03)
Taxes other than income taxes	(0.13)	(0.13)	(q)	0.05	(0.01)	(0.01)		(0.09)	(0.14)
Depreciation/amortization exp.	(0.13)	(0.13)	(k)	0.05	(0.02)	(0.02)		(0.09)	(0.14)
Other income (deductions)	0.50	0.39	(l)	0.10	(0.25)	(0.25)	(m)	0.35	0.14
Interest expense	(0.20)	(0.20)	(n)	0.02	(0.10)	(0.10)	(o)	(0.28)	(0.30)
Income taxes–other	(0.86)	(0.10)	(r)	0.10	(0.02)	(0.02)		(0.78)	(0.12)
Preferred dividend requirements and noncontrolling interest	-	-		0.01	(0.01)	(0.01)		-	(0.01)
Share effect	(0.30)	(0.30)	(p)	-	0.05	0.06	(p)	(0.25)	(0.24)
2023 earnings (loss)	7.84	7.79		-	(1.39)	(1.54)		6.45	6.25

Calculations may differ due to rounding

(c)Utility operating revenue and Utility income taxes-other exclude the following for the amortization of unprotected excess ADIT affecting customers’ bills (net effect is neutral to earnings) ($ in millions):


	3Q23	3Q22	YTD23	YTD22
Utility operating revenue	5	(16)	8	(50)
Utility income taxes-other	(5)	16	(8)	50

(d)Utility regulatory charges (credits) and Utility preferred dividend requirements and noncontrolling interest exclude the following for the effects of HLBV accounting and the approved deferral (net effect is neutral to earnings) ($ millions):


	3Q23	3Q22	YTD23	YTD22
Utility regulatory charges (credits)	3	10	10	12
Utility preferred dividend requirements and noncontrolling interest	(3)	(10)	(10)	(12)

(e)EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period. Income taxes–other represents income tax differences other than the tax effect of individual line items. Share effect captures the impact from the change in diluted average number of common shares outstanding.

(f)In 2022, the wind down of EWC was completed and that business is no longer a reportable segment. Starting in 2023, the remaining activity from EWC is included in Parent & Other "All other." EWC 2022 results were largely attributable to Palisades nuclear plant, which was shut down and sold in second quarter 2022. Financial results in 2022 included revenue and operating expenses from Palisades until the plant was shut down in May 2022, and decommissioning expense and earnings on the decommissioning trust until the plant was sold in June 2022. Second quarter 2022 results also included a gain of $166 million ($130 million after tax) as a result of the sale of Palisades. Third quarter 2022 results included the accrual of an uncertain tax position as a result of a state tax audit.


Utility as-reported operating revenue less fuel, fuel-related expenses and gas purchased for resale; purchased power; and other regulatory charges (credits)-net variance analysis 2023 vs. 2022 ($ EPS)
	3Q	YTD
Electric volume / weather	0.52	0.08
Retail electric price	0.28	0.94
3Q23 E-TX adjustments to regulatory provisions	0.11	0.11
3Q23 E-TX base rate case relate-back	(0.03)	(0.03)
3Q23 SERI depreciation rate settlement	(0.15)	(0.15)
3Q22 reg. credit for E-MS 2021 FRP lookback in excess of previous provision	(0.05)	(0.05)
3Q22 reg. credit for E-MS 2022 FRP rate change retroactive to 4/1/2022	(0.03)	(0.03)
2Q22 increase in provision for potential refunds in SERI complaints	-	2.02
2Q22 provision for customer sharing of securitization benefits	-	0.81
2Q22 reg. provisions for true-up of E-LA and E-TX equity carrying costs on 2020 storms	-	(0.26)
2022 reg. provisions for true-up of E-LA and E-TX cost of debt from 2020 storms	-	(0.07)
1Q23 provision for customer sharing of securitization benefits	-	(0.37)
1Q23 E-LA true-up of carrying charges on storm costs	-	0.15
Reg. provisions for decommissioning items	0.03	(0.02)
Grand Gulf recovery	(0.08)	(0.07)
Other	(0.03)	0.09
Total	0.57	3.15

(g)The third quarter and year-to-date increases included the effects of weather on retail volume. Variances also reflect regulatory actions including E-AR’s FRP, E-LA’s FRP (including riders), E-MS’s FRP, E-NO’s FRP, and E-TX’s base rate increase. In third quarter 2022, E-MS recorded regulatory credits for the true up of the 2021 FRP lookback as well as the retroactive portion of its FRP rate change. In third quarter 2023, E-TX recorded adjustments to existing regulatory provisions and a new regulatory provision for the relate-back portion of its base rate case. In third quarter 2023, SERI recorded a regulatory provision to refund excess depreciation collected from customers as a result of FERC approving lower depreciation rates retroactive to March 2022 (largely offset by a retroactive reduction in depreciation expense). The variances also reflected a change in regulatory provisions for decommissioning items (the difference between expense and trust earnings plus costs collected in revenue, largely earnings neutral). The year-to-date variance included several second quarter 2022 items: SERI recorded a $551 million ($413 million after-tax) regulatory charge to reflect the effects of a partial settlement agreement and offer of settlement related to pending proceedings before the FERC (this item was considered an adjustment and excluded from adjusted earnings); a regulatory provision for the true-up of E-LA and E-TX cost of debt from 2020 storms was recorded, as well as $59 million in revenues ($54 million after-tax) for the equity component of carrying charges on those storm costs ($46 million ($42 million after tax) associated with prior years was considered an adjustment and excluded from adjusted earnings); and E-LA recorded a $224 million ($165 million after-tax) regulatory provision for sharing the benefits of E-LA’s securitization with customers (considered an adjustment and excluded from adjusted earnings). The year-to-date variance also reflected items resulting from securitization approvals: in the first quarter 2023, E-LA recorded a regulatory provision for $103 million ($76 million after tax) for sharing the benefits of E-LA’s securitization with customers and $31 million for the true-up of carrying charges on storm costs (both were considered adjustments and excluded from adjusted earnings).

(h)The third quarter and year-to-date earnings increases from lower Utility other O&M included lower nuclear generation expenses primarily due to a lower scope of work, and lower MISO costs as a result of MISO changing its ancillary generator services market structure (largely offset by lower ancillary generator revenues). The increases also reflected lower compensation and benefits costs including lower pension and other postretirement benefits service costs and healthcare claims. The year-to-date increase also reflected higher prescription drug rebates in 2023, lower non-nuclear generation expenses primarily due to a lower scope of work, the recognition of a DOE award for spent fuel litigation, and a gain on sale of an asset, partially offset by lower nuclear insurance refunds.

(i)The third quarter and year-to-date as-reported earnings decreases from higher asset write-offs and impairments were due to a third quarter 2023 E-AR write-off totaling $78 million ($59 million after tax) for a $69 million regulatory asset for deferred fuel and a $10 million undepreciated balance in capital costs, which resulted from the ANO stator incident in 2013 (considered an adjustment and excluded from adjusted earnings).

(j)The third quarter and year-to-date as-reported earnings increases from Parent & Other asset write-offs and impairments were due to recording a spent fuel litigation settlement related to IPEC in third quarter 2023 (considered an adjustment and excluded from adjusted earnings).

(k)The third quarter earnings increase from lower Utility depreciation/amortization expense was due to a reduction in depreciation expense resulting from FERC approval of lower depreciation rates at SERI retroactive to March 2022 (largely offset by a regulatory provision to refund the excess depreciation collected from customers). The increase was partially offset by higher plant in service and updated depreciation rates for E-TX. The year-to-date earnings decrease reflected the same drivers.

(l)The third quarter and year-to-date earnings increases from higher Utility other income (deductions) were due to higher intercompany dividend income from affiliated preferred membership interests related to storm cost securitizations (largely offset in P&O). The increases were partially offset by lower carrying costs on deferred fuel balances, an increase in
non-service pension settlement costs, and lower donations. The third quarter increase was partially offset by changes in nuclear decommissioning trust returns (based on regulatory treatment, decommissioning-related variances are largely earnings neutral). The year-to-date earnings increase also reflected an increase in allowance for equity funds used during construction due to higher construction work in progress in 2023, partially offset by lower storm restoration carrying costs. Additionally, a $32 million charge recorded in second quarter 2022 to account for LURC’s 1% beneficial interest in the trust established as part of E-LA’s 2022 securitization as compared to a $15 million dollar charge recorded in first quarter 2023 to account for LURC’s 1% beneficial interest in the trust established as part of E-LA’s 2023 securitization (both items were considered an adjustment and excluded from adjusted earnings) contributed to the increase.

(m)The third quarter and year-to-date earnings decreases from lower Parent & Other other income (deductions) were due to changes in the new intercompany investment in preferred stock resulting from E-LA’s securitizations (largely offset in Utility), partially offset by higher non-service pension income.

(n)The third quarter and year-to-date earnings decreases from higher Utility interest expense were due primarily to higher debt balances as well as a higher weighted-average interest rate.

(o)The third quarter and year-to-date earnings decreases from higher Parent & Other interest expense were due primarily to higher interest rates on commercial paper. The year-to-date decrease was partially offset by lower long-term debt balances.

(p)The third quarter and year-to-date earnings per share impacts from share effect were due to settlement of equity forward sales in November 2022 under the company’s ATM program.

(q)The year-to-date earnings decrease from higher Utility taxes other than income taxes was due to higher ad valorem and franchise taxes.

(r)The year-to-date earnings decrease from Utility income taxes-other was due largely to a second quarter 2022 $283 million income tax benefit related to securitization financing (this item was considered an adjustment and excluded from adjusted earnings). Other miscellaneous income tax items also contributed to the year-to-date decrease, partially offset by a $129 million income tax benefit recorded in first quarter 2023 related to storm cost securitization financing (this item was considered an adjustment and excluded from adjusted earnings).

C: Utility operating and financial measures

Appendix C provides a comparison of Utility operating and financial measures.


Appendix C: Utility operating and financial measures
Third quarter and year-to-date 2023 vs. 2022
	Third quarter				Year-to-date
	2023	2022	% Change	% Weather adjusted (s)	2023	2022	% Change	% Weather adjusted (s)
GWh sold
Residential	12,661	11,272	12.3	(1.1)	28,963	29,218	(0.9)	(0.1)
Commercial	8,648	8,223	5.2	(1.1)	21,865	21,697	0.8	(1.0)
Governmental	700	702	(0.3)	(3.2)	1,887	1,928	(2.1)	(3.2)
Industrial	13,781	13,926	(1.0)	(1.0)	39,823	39,903	(0.2)	(0.2)
Total retail sales	35,790	34,123	4.9	(1.1)	92,538	92,746	(0.2)	(0.4)
Wholesale	3,916	4,809	(18.6)		11,589	12,371	(6.3)
Total sales	39,706	38,932	2.0		104,127	105,117	(0.9)

Number of electric retail customers
Residential					2,581,652	2,561,441	0.8
Commercial					370,966	366,351	1.3
Governmental					18,008	18,055	(0.3)
Industrial					50,380	50,721	(0.7)
Total retail customers					3,021,006	2,996,568	0.8

Other O&M and nuclear refueling outage exp. per MWh	$19.70	$20.95	(6.0)		$20.34	$21.23	(4.2)

Calculations may differ due to rounding

(s)The effects of weather were estimated using heating degree days and cooling degree days for the period from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change.

For the quarter, excluding the effects of weather, retail sales decreased (1.1) percent. Residential and commercial sales were each (1.1) percent lower. Industrial sales decreased (1.0) percent due largely to lower sales to cogen customers and lower sales to existing large industrial customers primarily in the petrochemicals, pulp and paper, and agricultural chemicals industries; the decreases were partially offset by higher sales to new and expansion customers mainly in the primary metals, industrial gases, and petrochemicals industries and higher sales to small industrial customers.

D: Consolidated financial measures

Appendix D provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.


Appendix D: GAAP and non-GAAP financial measures
Third quarter 2023 vs. 2022 (See Appendix F for reconciliation of GAAP to non-GAAP financial measures)

For 12 months ending September 30	2023	2022	Change
GAAP measure
As-reported ROE	11.4%	10.8%	0.6%

Non-GAAP financial measure
Adjusted ROE	11.1%	11.7%	(0.6)%

As of September 30 ($ in millions, except where noted)	2023	2022	Change
GAAP measures
Cash and cash equivalents	1,520	1,003	517
Available revolver capacity	4,346	4,191	154
Commercial paper	1,351	1,386	(35)
Total debt	27,619	27,677	(58)
Securitization debt	278	311	(33)
Debt to capital	66.3%	69.0%	(2.7)%

Storm escrows	416	325	91

Non-GAAP financial measures ($ in millions, except where noted)
Debt to capital, excluding securitization debt	66.1%	68.8%	(2.7)%
Net debt to net capital, excluding securitization debt	64.8%	68.0%	(3.2)%
Gross liquidity	5,865	5,195	670
Net liquidity	4,514	3,809	705
Net liquidity, including storm escrows	4,930	4,133	797
Parent debt to total debt, excluding securitization debt	19.6%	20.3%	(0.7)%
FFO to debt, excluding securitization debt	12.4%	12.2%	0.2%

Calculations may differ due to rounding

E: Definitions and abbreviations and acronyms

Appendix E-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.


Appendix E-1: Definitions
Utility operating and financial measures
GWh sold			Total number of GWh sold to retail and wholesale customers
Number of electric retail customers			Average number of electric customers over the period
Other O&M and refueling outage expense per MWh			Other operation and maintenance expense plus nuclear refueling outage expense per MWh of total sales

Financial measures – GAAP
As-reported ROE			12-months rolling net income attributable to Entergy Corp. divided by avg. common equity
Debt to capital			Total debt divided by total capitalization
Available revolver capacity			Amount of undrawn capacity remaining on corporate and subsidiary revolvers
Securitization debt			Debt on the balance sheet associated with securitization bonds that is secured by certain future customer collections
Total debt			Sum of short-term and long-term debt, notes payable, and commercial paper

Financial measures – non-GAAP
Adjusted EPS			As-reported EPS excluding adjustments
Adjusted ROE			12-months rolling adjusted net income attributable to Entergy Corp. divided by avg. common equity
Adjustments			Unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as significant tax items, and other items such as certain costs, expenses, or other specified items. In 2022, the results of the EWC segment were considered an adjustment in light of the company’s exit from the merchant nuclear power business.
Debt to capital, excluding securitization debt			Total debt divided by total capitalization, excluding securitization debt
FFO			OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, taxes accrued, interest accrued, deferred fuel costs, and other working capital accounts), and securitization regulatory charges
FFO to debt, excluding securitization debt			12-months rolling FFO as a percentage of end of period total debt excluding securitization debt
Gross liquidity			Sum of cash and available revolver capacity
Net debt to net capital, excl. securitization debt			Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
Net liquidity			Sum of cash and available revolver capacity less commercial paper borrowing
Net liquidity, including storm escrows			Sum of cash, available revolver capacity, and escrow accounts available for certain storm expenses, less commercial paper borrowing
Parent debt to total debt, excl. securitization debt			Entergy Corp. debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt

Appendix E-2 explains abbreviations and acronyms used in the quarterly earnings materials.


Appendix E-2: Abbreviations and acronyms
ADIT	Accumulated deferred income taxes	HLBV	Hypothetical liquidation at book value
AFUDC	Allowance for funds used during construction	IPEC	Indian Point Energy Center (nuclear) (sold 5/28/21)
AFUDC – borrowed funds	Allowance for borrowed funds used during construction	LNG	Liquified natural gas
AGA	American Gas Association	LPSC	Louisiana Public Service Commission
ALJ	Administrative law judge	LTM	Last twelve months
AMI	Advanced metering infrastructure	LURC	Louisiana Utility Restoration Corporation
ANO	Arkansas Nuclear One (nuclear)	MISO	Midcontinent Independent System Operator, Inc.
APSC	Arkansas Public Service Commission	MMBtu	Million British thermal units
ATM	At the market equity issuance program	Moody’s	Moody’s Investor Service
bbl	Barrels	MOU	Memorandum of understanding
Bcf/D	Billion cubic feet per day	MPSC	Mississippi Public Service Commission
bps	Basis points	MTEP	MISO Transmission Expansion Plan
CAGR	Compound annual growth rate	NBP	National Balancing Point
CCGT	Combined cycle gas turbine	NDT	Nuclear decommissioning trust
CCN	Certificate for convenience and necessity	NYSE	New York Stock Exchange
CCNO	Council of the City of New Orleans	O&M	Operations and maintenance
CFO	Cash from operations	OCAPS	Orange County Advanced Power Station
COD	Commercial operation date	OCF	Net cash flow provided by operating activities
DCRF	Distribution cost recovery factor	OpCo	Utility operating company
DOE	U.S. Department of Energy	OPEB	Other post-employment benefits
DTA	Deferred tax asset	Other O&M	Other non-fuel operation and maintenance expense
E-AR	Entergy Arkansas, LLC	P&O	Parent & Other
E-LA	Entergy Louisiana, LLC	Palisades	Palisades Power Plant (nuclear) (shut down May 2022, sold June 2022)
E-MS	Entergy Mississippi, LLC	PMR	Performance Management Rider
E-NO	Entergy New Orleans, LLC	PPA	Power purchase agreement or purchased power agreement
E-TX	Entergy Texas, Inc.	PUCT	Public Utility Commission of Texas
EEI	Edison Electric Institute	RFP	Request for proposals
EPS	Earnings per share	ROE	Return on equity
ESG	Environmental, social, and governance	RSP	Rate Stabilization Plan (E-LA Gas)
ETR	Entergy Corporation	S&P	Standard & Poor’s
EWC	Entergy Wholesale Commodities	SEC	U.S. Securities and Exchange Commission
FERC	Federal Energy Regulatory Commission	SERI	System Energy Resources, Inc.
FFO	Funds from operations	TCRF	Transmission cost recovery factor
FIN 48	FASB Interpretation No.48, “Accounting for Uncertainty in Income Taxes”	TRAM	Tax reform adjustment mechanism
FRP	Formula rate plan	UPSA	Unit Power Sales Agreement
GAAP	U.S. generally accepted accounting principles	WACC	Weighted-average cost of capital
GCRR	Generation Cost Recovery Rider
Grand Gulf or GGNS	Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI

F: Other GAAP to non-GAAP reconciliations

Appendix F-1, Appendix F-2, and Appendix F-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.


Appendix F-1: Reconciliation of GAAP to non-GAAP financial measures – ROE
(LTM $ in millions except where noted)		Third quarter
		2023	2022
As-reported net income (loss) attributable to Entergy Corporation	(A)	1,475	1,256
Adjustments	(B)	41	(112)

Adjusted earnings (non-GAAP)	(A-B)	1,434	1,368

Average common equity (average of beginning and ending balances)	(C)	12,894	11,674

As-reported ROE	(A/C)	11.4%	10.8%
Adjusted ROE (non-GAAP)	[(A-B)/C]	11.1%	11.7%

Calculations may differ due to rounding


Appendix F-2: Reconciliation of GAAP to non-GAAP financial measures – debt ratios excluding securitization debt; gross liquidity; net liquidity; net liquidity, including storm escrows
($ in millions except where noted)		Third quarter
		2023	2022
Total debt	(A)	27,619	27,677
Less securitization debt	(B)	278	311
Total debt, excluding securitization debt	(C)	27,341	27,366
Less cash and cash equivalents	(D)	1,520	1,003
Net debt, excluding securitization debt	(E)	25,821	26,362

Commercial paper	(F)	1,351	1,386

Total capitalization	(G)	41,657	40,091
Less securitization debt	(B)	278	311
Total capitalization, excluding securitization debt	(H)	41,379	39,780
Less cash and cash equivalents	(D)	1,520	1,003
Net capital, excluding securitization debt	(I)	39,859	38,776

Debt to capital	(A/G)	66.3%	69.0%
Debt to capital, excluding securitization debt (non-GAAP)	(C/H)	66.1%	68.8%
Net debt to net capital, excluding securitization debt (non-GAAP)	(E/I)	64.8%	68.0%

Available revolver capacity	(J)	4,346	4,191

Storm escrows	(K)	416	325

Gross liquidity (non-GAAP)	(D+J)	5,865	5,195
Net liquidity (non-GAAP)	(D+J-F)	4,514	3,809
Net liquidity, including storm escrows (non-GAAP)	(D+J-F+K)	4,930	4,133

Entergy Corporation notes:
Due September 2025		800	800
Due September 2026		750	750
Due June 2028		650	650
Due June 2030		600	600
Due June 2031		650	650
Due June 2050		600	600
Total Entergy Corporation notes	(L)	4,050	4,050
Revolver draw	(M)	-	150
Unamortized debt issuance costs and discounts	(N)	(39)	(44)
Total parent debt	(F+L+M+N)	5,363	5,542
Parent debt to total debt, excluding securitization debt (non-GAAP)	[(F+L+M+N)/C]	19.6%	20.3%

Calculations may differ due to rounding


Appendix F-3: Reconciliation of GAAP to non-GAAP financial measures – FFO to debt, excluding securitization debt
($ in millions except where noted)		Third quarter
		2023	2022
Total debt	(A)	27,619	27,677
Less securitization debt	(B)	278	311
Total debt, excluding securitization debt	(C)	27,341	27,366

Net cash flow provided by operating activities, LTM	(D)	4,007	2,099

AFUDC – borrowed funds, LTM	(E)	(39)	(28)

Working capital items in net cash flow provided by operating activities, LTM:
Receivables		(6)	(208)
Fuel inventory		(47)	(9)
Accounts payable		(346)	(153)
Taxes accrued		23	49
Interest accrued		32	(2)
Deferred fuel costs		1,048	(931)
Other working capital accounts		(170)	(84)
Securitization regulatory charges, LTM		32	67
Total	(F)	566	(1,271)

FFO, LTM (non-GAAP)	(G)=(D+E-F)	3,402	3,342

FFO to debt, excluding securitization debt (non-GAAP)	(G/C)	12.4%	12.2%

Calculations may differ due to rounding

Financial Statements


Entergy Corporation
Consolidating Balance Sheet
September 30, 2023
(Dollars in thousands)
(Unaudited)
	Utility		Parent & Other		Consolidated
ASSETS

CURRENT ASSETS

Cash and cash equivalents:
Cash	$	97,710	$	7,578	$	105,288
Temporary cash investments	1,354,781		59,705		1,414,486
Total cash and cash equivalents	1,452,491		67,283		1,519,774

Accounts receivable:
Customer	986,010		—		986,010
Allowance for doubtful accounts	(27,813)		—		(27,813)
Associated companies	4,603		(4,603)		—
Other	174,449		28,702		203,151
Accrued unbilled revenues	551,392		—		551,392
Total accounts receivable	1,688,641		24,099		1,712,740
Deferred fuel costs	188,885		—		188,885
Fuel inventory - at average cost	176,935		5,298		182,233
Materials and supplies - at average cost	1,357,841		4,257		1,362,098
Deferred nuclear refueling outage costs	125,101		—		125,101
Prepayments and other	453,638		(214,810)		238,828
TOTAL	5,443,532		(113,873)		5,329,659

OTHER PROPERTY AND INVESTMENTS

Investment in affiliates	4,509,541		(4,509,541)		—
Decommissioning trust funds	4,417,704		—		4,417,704
Non-utility property - at cost (less accumulated depreciation)	411,526		8,405		419,931
Storm reserve escrow account	416,274		—		416,274
Other	34,653		30,960		65,613
TOTAL	9,789,698		(4,470,176)		5,319,522

PROPERTY, PLANT, AND EQUIPMENT

Electric	65,742,550		211,596		65,954,146
Natural gas	712,374		—		712,374
Construction work in progress	2,295,125		1,140		2,296,265
Nuclear fuel	606,600		—		606,600
TOTAL PROPERTY, PLANT, AND EQUIPMENT	69,356,649		212,736		69,569,385
Less - accumulated depreciation and amortization	26,120,043		154,260		26,274,303
PROPERTY, PLANT, AND EQUIPMENT - NET	43,236,606		58,476		43,295,082

DEFERRED DEBITS AND OTHER ASSETS

Regulatory assets:
Other regulatory assets	5,690,179		—		5,690,179
Deferred fuel costs	172,202		—		172,202
Goodwill	374,099		3,073		377,172
Accumulated deferred income taxes	47,956		2,939		50,895
Other	170,381		147,055		317,436
TOTAL	6,454,817		153,067		6,607,884

TOTAL ASSETS	$	64,924,653	$	(4,372,506)	$	60,552,147

*Totals may not foot due to rounding.


Entergy Corporation
Consolidating Balance Sheet
September 30, 2023
(Dollars in thousands)
(Unaudited)
	Utility		Parent & Other		Entergy Wholesale Commodities
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Currently maturing long-term debt	$	1,385,057	$	139,000	$	1,524,057
Notes payable and commercial paper:
Other	—		1,351,105		1,351,105
Account payable:
Associated companies	27,566		(27,566)		—
Other	1,328,065		8,042		1,336,107
Customer deposits	441,018		—		441,018
Taxes accrued	478,563		53,427		531,990
Interest accrued	239,518		22,317		261,835
Deferred fuel costs	98,924		—		98,924
Pension and other postretirement liabilities	40,688		12,845		53,533

Other	244,392		5,731		250,123
TOTAL	4,283,791		1,564,901		5,848,692

NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	6,248,185		(1,184,662)		5,063,523
Accumulated deferred investment tax credits	204,839		—		204,839
Regulatory liability for income taxes - net	1,223,532		—		1,223,532
Other regulatory liabilities	2,667,648		—		2,667,648
Decommissioning and retirement cost liabilities	4,449,182		650		4,449,832
Accumulated provisions	523,758		272		524,030
Pension and other postretirement liabilities	788,606		128,375		916,981
Long-term debt	20,647,921		4,011,422		24,659,343
Other	1,364,063		(408,754)		955,309
TOTAL	38,117,734		2,547,303		40,665,037

Subsidiaries' preferred stock without sinking fund	195,161		24,249		219,410

EQUITY
Preferred stock, no par value, authorized 1,000,000 shares;
issued shares in 2023 - none	—		—		—
Common stock, $.01 par value, authorized 499,000,000 shares;
issued 279,653,929 shares in 2023	2,458,748		(2,455,951)		2,797
Paid-in capital	5,145,656		2,503,714		7,649,370
Retained earnings	14,670,427		(3,478,151)		11,192,276
Accumulated other comprehensive loss	41,846		(237,299)		(195,453)
Less - treasury stock, at cost (68,182,125 shares in 2023)	120,000		4,837,522		4,957,522
TOTAL COMMON SHAREHOLDERS' EQUITY	22,196,677		(8,505,209)		13,691,468
Subsidiaries' preferred stock without sinking fund
and noncontrolling interests	131,290		(3,750)		127,540
TOTAL	22,327,967		(8,508,959)		13,819,008

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	64,924,653	$	(4,372,506)	$	60,552,147

*Totals may not foot due to rounding.


Entergy Corporation
Consolidating Balance Sheet
December 31, 2022
(Dollars in thousands)
(Unaudited)
	Utility		Parent & Other		Entergy Wholesale Commodities		Consolidated
ASSETS

CURRENT ASSETS

Cash and cash equivalents:
Cash	$	101,049	$	1,758	$	12,483	$	115,290
Temporary cash investments	47,186		912		60,776		108,874
Total cash and cash equivalents	148,235		2,670		73,259		224,164
Notes receivable	—		(75,000)		75,000		—
Accounts receivable:
Customer	788,552		—		—		788,552
Allowance for doubtful accounts	(30,856)		—		—		(30,856)
Associated companies	7,991		(9,407)		1,416		—
Other	223,752		4		17,946		241,702
Accrued unbilled revenues	495,859		—		—		495,859
Total accounts receivable	1,485,298		(9,403)		19,362		1,495,257
Deferred fuel costs	710,401		—		—		710,401
Fuel inventory - at average cost	141,174		—		6,458		147,632
Materials and supplies - at average cost	1,179,344		—		3,964		1,183,308
Deferred nuclear refueling outage costs	143,653		—		—		143,653
Prepayments and other	190,942		(8,673)		8,342		190,611
TOTAL	3,999,047		(90,406)		186,385		4,095,026

OTHER PROPERTY AND INVESTMENTS

Investment in affiliates	3,176,229		(3,176,315)		86		—
Decommissioning trust funds	4,121,864		—		—		4,121,864
Non-utility property - at cost (less accumulated depreciation)	357,763		(16)		8,658		366,405
Storm reserve escrow account	401,955		—		—		401,955
Other	42,154		51,497		8,608		102,259
TOTAL	8,099,965		(3,124,834)		17,352		4,992,483

PROPERTY, PLANT, AND EQUIPMENT

Electric	64,435,141		5,313		206,457		64,646,911
Natural gas	691,970		—		—		691,970
Construction work in progress	1,843,160		352		659		1,844,171
Nuclear fuel	582,119		—		—		582,119
TOTAL PROPERTY, PLANT, AND EQUIPMENT	67,552,390		5,665		207,116		67,765,171
Less - accumulated depreciation and amortization	25,137,429		200		150,418		25,288,047
PROPERTY, PLANT, AND EQUIPMENT - NET	42,414,961		5,465		56,698		42,477,124

DEFERRED DEBITS AND OTHER ASSETS

Regulatory assets:
Other regulatory assets	6,036,397		—		—		6,036,397
Deferred fuel costs	241,085		—		—		241,085
Goodwill	374,099		—		3,073		377,172
Accumulated deferred income taxes	81,315		358		2,427		84,100
Other	152,374		10,903		128,527		291,804
TOTAL	6,885,270		11,261		134,027		7,030,558

TOTAL ASSETS	$	61,399,243	$	(3,198,514)	$	394,462	$	58,595,191

*Totals may not foot due to rounding.


Entergy Corporation
Consolidating Balance Sheet
December 31, 2022
(Dollars in thousands)
(Unaudited)
	Utility		Parent & Other		Entergy Wholesale Commodities		Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Currently maturing long-term debt	$	2,170,037	$	—	$	139,000	$	2,309,037
Notes payable and commercial paper:
Other	—		827,621		—		827,621
Account payable:
Associated companies	42,681		(39,329)		(3,352)		—
Other	1,769,731		83		7,776		1,777,590
Customer deposits	424,723		—		—		424,723
Taxes accrued	407,244		2,887		13,960		424,091
Interest accrued	181,960		12,927		377		195,264

Pension and other postretirement liabilities	89,348		—		15,497		104,845
Sale-leaseback/depreciation regulatory liability	103,497		—		—		103,497
Other	195,983		1,915		4,881		202,779
TOTAL	5,385,204		806,104		178,139		6,369,447

NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	5,923,987		(638,476)		(466,674)		4,818,837
Accumulated deferred investment tax credits	211,220		—		—		211,220
Regulatory liability for income taxes - net	1,258,276		—		—		1,258,276
Other regulatory liabilities	2,324,590		—		—		2,324,590
Decommissioning and retirement cost liabilities	4,270,916		—		615		4,271,531
Accumulated provisions	530,910		—		291		531,201
Pension and other postretirement liabilities	1,047,018		—		166,537		1,213,555
Long-term debt	19,466,346		4,157,166		—		23,623,512
Other	1,104,215		(459,639)		44,144		688,720
TOTAL	36,137,478		3,059,051		(255,087)		38,941,442

Subsidiaries' preferred stock without sinking fund	195,161		—		24,249		219,410

EQUITY
Preferred stock, no par value, authorized 1,000,000 shares;
issued shares in 2022 - none	—		—		—		—
Common stock, $.01 par value, authorized 499,000,000 shares;
issued 279,653,929 shares in 2022	2,458,748		(2,657,052)		201,101		2,797
Paid-in capital	3,694,509		(1,619,515)		5,557,901		7,632,895
Retained earnings	13,504,961		2,075,642		(5,078,562)		10,502,041
Accumulated other comprehensive loss	41,525		—		(233,279)		(191,754)
Less - treasury stock, at cost (68,477,429 shares in 2022)	120,000		4,858,994		—		4,978,994
TOTAL COMMON SHAREHOLDERS' EQUITY	19,579,743		(7,059,919)		447,161		12,966,985
Subsidiaries' preferred stock without sinking fund
and noncontrolling interests	101,657		(3,750)		—		97,907
TOTAL	19,681,400		(7,063,669)		447,161		13,064,892

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	61,399,243	$	(3,198,514)	$	394,462	$	58,595,191

*Totals may not foot due to rounding.

Entergy Corporation

Consolidating Income Statement

Three Months Ended September 30, 2023

(Dollars in thousands)

(Unaudited)

Utility

Parent & Other

Consolidated

OPERATING REVENUES

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