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Entergy Reports Third Quarter Earnings

2019-10-30 06:30 ET - News Release

Company raises 2019 guidance midpoint and narrows range

NEW ORLEANS, Oct. 30, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported third quarter 2019 earnings per share of $1.82 on an as-reported basis and $2.52 on an adjusted basis (non-GAAP).

"With another successful quarter, we are increasing the midpoint of our 2019 guidance and narrowing the range," said Entergy Chairman and Chief Executive Officer Leo Denault.  "The fundamentals supporting our steady, predictable growth are strong and give us confidence in our financial outlooks."

Business highlights included the following:

  • Entergy updated its 2019 adjusted EPS guidance range to $5.25 to $5.45, raising the midpoint 5 cents and narrowing the range.
  • The MPSC approved Entergy Mississippi's acquisition of the Choctaw Generating Station.
  • Entergy completed the sale of Pilgrim Nuclear Power Station.
  • Construction began on Capital Region Solar, a 50 MW solar project, from which Entergy Louisiana will purchase the output.
  • Entergy was named as one of the nation's top utilities in economic development by Site Selection magazine for the 12th consecutive year.
  • Entergy was named to the 2019 Dow Jones Sustainability North America Index and received perfect scores in five areas, including climate strategy; this is the 18th consecutive year Entergy has appeared on the World or North America Index or both.

 


Consolidated Earnings (GAAP and Non-GAAP Measures)

Third Quarter and Year-to-Date 2019 vs. 2018 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments)


Third Quarter

Year-to-Date


2019

2018

Change

2019

2018

Change

(After-tax, $ in millions)







As-reported earnings

365

536

(171)

856

915

(58)

Less adjustments

(141)

105

(246)

(70)

73

(143)

Adjusted earnings (non-GAAP)

506

431

75

927

842

85

  Estimated weather in billed sales

13

5

7

1

42

(41)








(After-tax, per share in $)







As-reported earnings

1.82

2.92

(1.10)

4.38

5.01

(0.63)

Less adjustments

(0.70)

0.57

(1.27)

(0.36)

0.39

(0.75)

Adjusted earnings (non-GAAP)

2.52

2.35

0.17

4.74

4.62

0.12

  Estimated weather in billed sales

0.06

0.03

0.03

0.01

0.23

(0.22)








Calculations may differ due to rounding

Consolidated Results

For third quarter 2019, the company reported earnings of $365 million, or $1.82 per share, on an as-reported basis and earnings of $506 million, or $2.52 per share, on an adjusted basis. This compared to third quarter 2018 earnings of $536 million, or $2.92 per share, on an as-reported basis and earnings of $431 million, or $2.35 per share on an adjusted basis.

Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A and an analysis of quarterly and year-to-date variances by business is provided in Appendix B.

Business Segment Results

Utility

For third quarter 2019, the Utility business reported earnings attributable to Entergy Corporation of $578 million, or $2.88 per share, on both an as-reported and an adjusted basis. This compared to third quarter 2018 earnings of $505 million, or $2.75 per share, on both an as-reported and an adjusted basis. Drivers for the quarter included:

  • rate activity at Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas;
  • higher sales volume, primarily in the unbilled period;
  • third quarter 2018 regulatory charges to return benefits of the lower federal tax rate to customers; and
  • lower nuclear generation O&M.

These drivers were partially offset by:

  • higher depreciation expense;
  • higher spending on information technology, loss reserves, initiatives to explore new customer products and services, as well as distribution operations; and
  • lower other income largely due to lower gains on decommissioning trust funds.

On a per share basis, 2019 results reflected higher common shares outstanding.

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

Parent & Other

For third quarter 2019, Parent & Other reported a loss attributable to Entergy Corporation of $(72 million), or (36) cents per share, on both an as-reported and an adjusted basis.  This compared to a loss of $(73 million), or (40) cents per share, on both an as-reported and an adjusted basis in third quarter 2018.

Entergy Wholesale Commodities 

For third quarter 2019, EWC reported a loss attributable to Entergy Corporation of $(141 million), or (70) cents per share on an as-reported basis. This compared to third quarter 2018 earnings attributable to Entergy Corporation of $105 million, or 57 cents per share, on an as-reported basis. Drivers for the quarter included:

  • tax items recorded in third quarter 2018;
  • lower revenue due to the shutdown of Pilgrim and lower capacity pricing;
  • lower gains on decommissioning trust funds;
  • higher asset write-offs, impairments and related charges as compared to a year ago; and
  • higher refueling outage expenses at Palisades.

These drivers were partially offset by lower spending on nuclear operations. On a per share basis, 2019 results reflected higher common shares outstanding.

Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC adjusted EBITDA.

Earnings per Share Guidance

Entergy updated its 2019 adjusted EPS guidance range to $5.25 to $5.45 per share from $5.15 to $5.45 per share, raising the midpoint 5 cents and narrowing the range.

See webcast presentation slides for additional details.

The company has provided 2019 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. 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 periods. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy's as-reported EPS will be approximately (70) cents in 2019, excluding the impact of a potential tax item. These estimates are subject to substantial uncertainty due to, among other things, the potential effects of exiting the EWC business.

Earnings Teleconference

A teleconference will be held at 10:00 a.m. Central Time on Wednesday, October 30, 2019, 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 844-309-6569, conference ID 8727128, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. 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 6, 2019, by dialing 855-859-2056, conference ID 8727128.

Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 employees.

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

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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations.

Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory & Other Information, which provides investors with key updates of 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 F.

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 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," including the removal of the Entergy Wholesale Commodities segment in light of the company's decision to exit the merchant power business. 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 the results of the EWC segment, 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 EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, 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, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; return on average invested capital; and return on average common equity are included on both an adjusted and as-reported basis. In each case, the metrics defined as "adjusted" (other than EWC's adjusted EBITDA) excludes the effect of adjustments as defined above. EWC's adjusted EBITDA represents EWC's earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.

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.

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, Entergy's 2019 earnings guidance; its current financial and operational outlooks; 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 anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with 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 fund 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 strategic transactions that Entergy or its subsidiaries may undertake, including 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) effects of 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; (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and other catastrophic events.

Third Quarter 2019 Earnings Release Appendices and Financial Statements

Appendices
Appendices are presented in this section as follows:

  • A: Consolidated Results and Adjustments
  • B: Earnings Variance Analysis
  • C: Utility Financial and Operating Measures
  • D: EWC Financial and Operating Measures
  • E: Consolidated Financial Measures
  • F: Definitions and Abbreviations and Acronyms
  • G: Other GAAP to Non-GAAP Reconciliations

Financial Statements
Financial statements are presented in this section.

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 2019 vs. 2018 (See Appendix A-3 and Appendix A-4 for details on adjustments)


Third Quarter

Year-to-Date


2019

2018

Change

2019

2018

Change

(After-tax, $ in millions)







Earnings (loss)







Utility

578

505

73

1,140

1,095

45

Parent & Other

(72)

(73)

1

(213)

(211)

(3)

EWC

(141)

105

(246)

(70)

30

(100)

Consolidated

365

536

(171)

856

915

(58)








Less adjustments







Utility

-

-

-

-

43

(43)

Parent & Other

-

-

-

-

-

-

EWC

(141)

105

(246)

(70)

30

(100)

Consolidated

(141)

105

(246)

(70)

73

(143)








Adjusted earnings (loss) (non-GAAP)







Utility

578

505

73

1,140

1,052

88

Parent & Other

(72)

(73)

1

(213)

(211)

(3)

EWC

-

-

-

-

-

-

Consolidated

506

431

75

927

842

85

Estimated weather in billed sales

13

5

7

1

42

(41)








Diluted average number of common shares outstanding (in millions)

200

184


196

183









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







Earnings (loss)







Utility

2.88

2.75

0.13

5.83

6.00

(0.17)

Parent & Other

(0.36)

(0.40)

0.04

(1.09)

(1.15)

0.06

EWC

(0.70)

0.57

(1.27)

(0.36)

0.16

(0.52)

Consolidated

1.82

2.92

(1.10)

4.38

5.01

(0.63)








Less adjustments







Utility

-

-

-

-

0.23

(0.23)

Parent & Other

-

-

-

-

-

-

EWC

(0.70)

0.57

(1.27)

(0.36)

0.16

(0.52)

Consolidated

(0.70)

0.57

(1.27)

(0.36)

0.39

(0.75)








Adjusted earnings (loss) (non-GAAP)







Utility

2.88

2.75

0.13

5.83

5.77

0.06

Parent & Other

(0.36)

(0.40)

0.04

(1.09)

(1.15)

0.06

EWC

-

-

-

-

-

-

Consolidated

2.52

2.35

0.17

4.74

4.62

0.12

Estimated weather in billed sales

0.06

0.03

0.03

0.01

0.23

(0.22)








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. See Appendix A-3 for adjustments by driver.

Appendix A-2 provides a comparative summary of OCF, by business.

Appendix A-2: Consolidated Operating Cash Flow

Third Quarter and Year-to-Date 2019 vs. 2018

($ in millions)


Third Quarter

Year-to-Date


2019

2018

Change

2019

2018

Change

Utility

1,143

845

298

2,297

1,994

303

Parent & Other

(93)

(99)

6

(216)

(214)

(2)

EWC

15

33

(18)

37

79

(42)

Consolidated

1,065

780

286

2,118

1,860

259








Calculations may differ due to rounding

OCF increased quarter-over-quarter due primarily to a lower amount of unprotected excess ADIT returned to customers, lower pension contributions, and lower asset retirement obligation spending at EWC. Higher severance and retention payments at EWC partially offset the increase.

Appendix A-3 and Appendix A-4 list adjustments by business. Amounts are shown on both an earnings and EPS basis. 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-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS) 

Third Quarter and Year-to-Date 2019 vs. 2018

(Pre-tax except for Income taxes, Preferred dividend requirements of subsidiaries,  and Total, $ in millions) 


Third Quarter

Year-to-Date


2019

2018

Change

2019

2018

Change








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







Utility







2012 / 2013 IRS settlement

-

-

-

-

43

(43)

    Total Utility

-

-

-

-

43

(43)

EWC







Income before income taxes

(171)

(30)

(141)

(43)

(135)

93

Income taxes

31

136

(105)

(26)

167

(193)

Preferred dividend requirements of subsidiaries

(1)

(1)

-

(2)

(2)

-

    Total EWC

(141)

105

(246)

(70)

30

(100)








Total adjustments

(141)

105

(246)

(70)

73

(143)








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







Utility







2012 / 2013 IRS settlement

-

-

-

-

0.23

(0.23)

    Total Utility

-

-

-

-

0.23

(0.23)

EWC







    Total EWC

(0.70)

0.57

(1.27)

(0.36)

0.16

(0.52)








Total adjustments

(0.70)

0.57

(1.27)

(0.36)

0.39

(0.75)








Calculations may differ due to rounding

(b) 

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

 

Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings) 

Third Quarter and Year-to-Date 2019 vs. 2018

(Pre-tax except for Income taxes, Preferred dividend, and totals, $ in millions)


Third Quarter

Year-to-Date


2019

2018

Change

2019

2018

Change

Utility







Income taxes

-

-

-

-

43

(43)

  Total Utility

-

-

-

-

43

(43)

EWC







Operating revenues

300

380

(80)

1,024

1,108

(84)

Fuel and fuel-related expenses

(26)

(19)

(6)

(76)

(58)

(19)

Purchased power

(18)

(20)

2

(49)

(54)

6

Nuclear refueling outage expense

(12)

-

(12)

(36)

(3)

(33)

Other O&M

(136)

(209)

73

(513)

(600)

87

Asset write-off and impairments

(198)

(155)

(43)

(289)

(297)

9

Decommissioning expense

(60)

(56)

(4)

(187)

(175)

(13)

Taxes other than income taxes

(13)

(19)

6

(46)

(58)

12

Depreciation/amortization exp.

(38)

(40)

2

(114)

(116)

3

Other income (deductions)–other

34

116

(82)

266

143

124

Interest exp. and other charges

(6)

(9)

3

(24)

(25)

1

Income taxes

31

136

(105)

(26)

167

(193)

Preferred dividend

(1)

(1)

-

(2)

(2)

-

   Total EWC

(141)

105

(246)

(70)

30

(100)








Total adjustments

(141)

105

(246)

(70)

73

(143)








Calculations may differ due to rounding

B: Earnings Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2019 versus 2018 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.

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

Third Quarter 2019 vs. 2018

(After-tax, per share in $)



Utility


Parent & Other


EWC


Consolidated


As-
Reported

Adjusted


As-
Reported

Adjusted


As-

Reported


As-

Reported

Adjusted

2018 earnings

2.75

2.75


(0.40)

(0.40)


0.57


2.92

2.35

Operating revenue less:

  Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits)

0.91

0.91

(e) 

-

-


(0.36)

(f)

0.55

0.91

Nuclear refueling outage expense

(0.01)

(0.01)


-

-


(0.05)

(g)

(0.06)

(0.01)

Other O&M

(0.11)

(0.11)

(h)

-

-


0.31

(i)

0.20

(0.11)

Asset write-offs and impairments

-

-


-

-


(0.18)

(j)

(0.18)

-

Decommissioning expense

(0.02)

(0.02)


-

-


(0.02)


(0.04)

(0.02)

Taxes other than income taxes

(0.04)

(0.04)


-

-


0.03


(0.01)

(0.04)

Depreciation/amortization exp.

(0.23)

(0.23)

(k)

-

-


0.01


(0.22)

(0.23)

Other income (deductions)–other

(0.08)

(0.08)

(l)

-

-


(0.35)

(m)

(0.43)

(0.08)

Interest exp. and other charges

(0.04)

(0.04)


-

-


0.01


(0.03)

(0.04)

Income taxes–other

0.01

0.01


0.01

0.01


(0.73)

(n)

(0.71)

0.02

Share effect

(0.26)

(0.26)

(o)

0.03

0.03


0.06

(o)

(0.17)

(0.23)

2019 earnings

2.88

2.88


(0.36)

(0.36)


(0.70)


1.82

2.52












 

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

Year-to-Date 2019 vs. 2018

(After-tax, per share in $)



Utility


Parent & Other


EWC


Consolidated


As-
Reported

Adjusted


As-
Reported

Adjusted


As-
Reported


As-

Reported

Adjusted

2018 earnings

6.00

5.77


(1.15)

(1.15)


0.16


5.01

4.62

Operating revenue less:

  Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits)

1.16

1.16

(e) 

-

-


(0.42)

(f)

0.74

1.16

Nuclear refueling outage expense

(0.02)

(0.02)


-

-


(0.14)

(g)

(0.16)

(0.02)

Other O&M

(0.19)

(0.19)

(h)

0.01

0.01


0.38

(i)

0.20

(0.18)

Asset write-offs and impairments

-

-


-

-


0.04


0.04

-

Decommissioning expense

(0.04)

(0.04)


-

-


(0.05)

(p)

(0.09)

(0.04)

Taxes other than income taxes

(0.06)

(0.06)

(q)

-

-


0.05

(r)

(0.01)

(0.06)

Depreciation/amortization exp.

(0.32)

(0.32)

(k)

-

-


0.01


(0.31)

(0.32)

Other income (deductions)–other

0.01

0.01


(0.02)

(0.02)


0.53

(m)

0.52

(0.01)

Interest exp. and other charges

(0.09)

(0.09)

(s)

(0.03)

(0.03)


0.01


(0.11)

(0.12)

Income taxes–other

(0.20)

0.03

(t)

0.02

0.02


(0.95)

(n)

(1.13)

0.05

Preferred dividend requirements

(0.01)

(0.01)


-

-


-


(0.01)

(0.01)

Share effect

(0.41)

(0.41)

(o)

0.08

0.08

(o)

0.02


(0.31)

(0.33)

2019 earnings

5.83

5.83


(1.09)

(1.09)


(0.36)


4.38

4.74












Calculations may differ due to rounding

 

(c)

Utility revenue, Utility other O&M and Utility income taxes exclude $93 million, $3 million, and $96 million respectively in third quarter 2019 and $277 million, $6 million, and $283 million respectively in third quarter 2018 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings).  On a year-to-date basis, Utility revenue, Utility otherO&M and Utility income taxes exclude $216 million, $3 million, and $219 million respectively in 2019 and $555 million, $6 million, and $561 million respectively in 2018 (net effect is neutral to earnings).

(d) 

EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes–other represents income tax differences other than the tax effect of individual line items.

(e) 

The third quarter and year-to-date earnings increases were primarily driven by rate activity from E-AR's FRP, E-LA's FRP, including recovery of the St. Charles Power Station, E-LA's AMI rider, E-TX's base rate case, and E-MS's FRP. In addition, in the third quarter and year-to-date 2018, E-LA recorded regulatory charges to return the benefits of the lower effective federal tax rate to customers.  Also contributing was the net effect of volume/weather primarily due to higher volume in the unbilled period, net of lower billed sales volume.

(f)

The third quarter and year-to-date earnings decreases were due largely to lower revenues from the shutdown of Pilgrim in May 2019, lower capacity prices, and impacts on fuel expense from EWC plant impairments, partially offset by higher nuclear energy volume.

(g) 

The third quarter and year-to-date earnings decreases from higher EWC nuclear refueling outage expense is due primarily to increased outage amortization at Palisades due to the plant no longer being impaired.

(h) 

The third quarter and year-to-date earnings decreases from higher Utility other O&M reflected higher spending on information technology, loss reserves, initiatives to explore new customer products and services, and distribution operations. These were partially offset by lower spending on nuclear operations. The year-to-date variance also reflected lower energy efficiency costs (largely offset in operating revenue and/or regulatory charges (credits)).

(i) 

The third quarter and year-to-date earnings increases from lower EWC other O&M is due largely to a decrease in severance and retention expense, as well as the Pilgrim plant shutdown in May 2019.

(j) 

The third quarter earnings decrease from higher EWC asset write-offs and impairments was due to a $191 million loss (pre-tax) on the sale of Pilgrim in third quarter 2019, compared to $155 million (pre-tax) of impairment charges in third quarter 2018 primarily due to an upward revision of Pilgrim's ARO and a write-off of materials and supplies at Pilgrim.

(k) 

The third quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including the St. Charles Power Station, as well as the third quarter 2018 depreciation adjustment related to Grand Gulf, partially offset by the ongoing effect of Grand Gulf's lower depreciation rate (variances from Grand Gulf are largely offset in operating revenue).

(l)

The third quarter earnings decrease from lower Utility other income (deductions)–other was due largely to differences in decommissioning trust fund returns.

(m) 

The third quarter earnings decrease from lower EWC other income (deductions)–other was due largely to lower gains on the decommissioning trust fund investments in 2019 as compared to 2018, as well as a $16 million pension settlement charge in third quarter 2019 related to the exit of the EWC business. The year-to-date earnings increase from higher EWC other income (deductions)–other was due largely to higher gains on the decommissioning trust fund investments in 2019 as compared to 2018. These gains were partially offset by the pension settlement charge mentioned above.

(n) 

The third quarter and year-to-date earnings decreases from higher EWC income taxes were due primarily to two tax items in third quarter 2018.  First, a restructuring of an interest in an EWC decommissioning trust fund resulted in a reduction in income tax expense of $107 million. Second, the conclusion of a state income tax audit resulted in a benefit of $23 million. The year-to date earnings decrease also reflected an accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019 and $13 million in tax benefits from the settlement of the 2012 / 2013 IRS audit in second quarter 2018.

(o) 

The third quarter and year-to-date earnings per share decreases from share effect were due to settlement of the equity forward (6.8 million shares settled in December 2018 and 8.4 million shares settled in May 2019).

(p) 

The year-to-date earnings decrease from higher EWC decommissioning expense was due to the acceleration of the ARO accretion for Indian Point and Palisades, as those plants move closer to their projected decommissioning dates.

(q) 

The year-to date earnings decrease from higher Utility taxes other than income taxes was primarily higher ad valorem at E-AR, E-LA, and E-MS.

(r) 

The year-to-date earnings increase from lower EWC taxes other than income taxes was primarily due to a true-up as well as lower ad valorem taxes due to a lower assessment at Palisades.

(s) 

The year-to-date earnings decrease from higher Utility interest expense and other charges was largely due to higher debt balances at E-AR and E-LA.

(t) 

The year-to-date as-reported earnings decrease from higher Utility income taxes was primarily due to the settlement of the 2012 / 2013 IRS audit totaling $43 million in second quarter 2018.

 

Utility as-reported operating revenue less fuel, fuel-
related expenses and gas purchased for resale;
purchased power; and regulatory charges (credits)
variance analysis

2019 vs. 2018 ($ EPS)


3Q

YTD

Volume/weather

0.20

(0.13)

Retail electric price

0.52

0.85

Reg. charges for lower tax rate

0.07

0.31

Other, including Grand Gulf recovery

0.12

0.13

Total

0.91

1.16

 

C: Utility Financial and Operating Measures
Appendix C-1 and Appendix C-2 provides comparative summaries of Utility operating and financial measures.


Appendix C-1: Utility Operating and Financial Measures

Third Quarter and Year-to-Date 2019 vs. 2018


Third Quarter

Year-to-Date


2019

2018

%

Change

% Weather
Adjusted (u)

2019

2018

%

Change

% Weather
Adjusted (u)

GWh billed









Residential

11,627

11,821

(1.6)

(2.9)

27,749

28,857

(3.8)

(1.2)

Commercial

8,499

8,726

(2.6)

(3.3)

21,764

22,401

(2.8)

(1.8)

Governmental

705

714

(1.3)

(1.8)

1,932

1,934

(0.1)

(0.2)

Industrial

12,861

12,879

(0.1)

(0.1)

36,509

36,503

-

-

   Total retail sales

33,692

34,140

(1.3)

(1.9)

87,954

89,695

(1.9)

(0.8)

Wholesale

3,025

2,978

1.6


10,009

8,788

13.9


   Total sales

36,717

37,118

(1.1)


97,963

98,483

(0.5)











Number of electric retail customers









Residential





2,497,790

2,482,698

0.6


Commercial





356,259

357,050

(0.2)


Governmental





17,630

17,867

(1.3)


Industrial





48,532

49,491

(1.9)


   Total retail customers





2,920,211

2,907,106

0.5











Other O&M and refueling outage expense per MWh

$19.02

$18.12

5.0


$20.53

$19.95

2.9











Calculations may differ due to rounding

On a weather-adjusted basis for third quarter 2019, retail billed sales decreased (1.9) percent. Industrial billed sales volume decreased (0.1) percent driven by lower sales to small industrials and cogeneration customers.  This was partially offset by continued growth from new and expansion customers. Residential billed sales decreased (2.9) percent partly due to fewer days billed compared to a year ago.

Appendix C-2: Utility Operating Measures

Twelve Months Ended September 30, 2019 vs. 2018


Twelve Months Ended September 30


2019

2018

%

Change

% Weather
Adjusted (u)

GWh billed





Residential

35,999

36,881

(2.4)

(1.0)

Commercial

28,789

29,551

(2.6)

(1.8)

Governmental

2,579

2,560

0.7

0.6

Industrial

48,390

48,443

(0.1)

(0.1)

Total retail sales

115,757

117,435

(1.4)

(0.8)






Calculations may differ due to rounding

(u) 

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

D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).

Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures

Third Quarter and Year-to-Date 2019 vs. 2018

($ in millions)

Third Quarter

Year-to-Date


2019

2018

Change

2019

2018

Change

Net income (loss)

(141)

106

(247)

(69)

31

(100)

Add back: interest expense

6

9

(3)

24

25

(1)

Add back: income taxes

(31)

(136)

105

26

(167)

193

Add back: depreciation and amortization

38

40

(2)

114

116

(2)

Subtract: interest and investment income

59

127

(68)

316

183

133

Add back: decommissioning expense

60

56

4

187

174

13

Adjusted EBITDA (non-GAAP)

(127)

(52)

(75)

(34)

(5)

(29)








Calculations may differ due to rounding

Appendix D-2 provides a comparative summary of EWC operating and financial measures.

Appendix D-2: EWC Operating and Financial Measures

Third Quarter and Year-to-Date 2019 vs. 2018


Third Quarter

Year-to-Date


2019

2018

% Change

2019

2018

% Change

Owned capacity (MW) (u)

3,274

3,962

(17.4)

3,274

3,962

(17.4)

GWh billed

6,847

7,576

(9.6)

21,308

21,853

(2.5)








EWC Nuclear Fleet







Capacity factor

98%

90%

8.9

91%

86%

5.8

GWh billed

6,210

6,976

(11.0)

19,602

20,096

(2.5)

Production cost per MWh

$15.68

$17.15

(8.6)

$17.87

$17.93

(0.3)

Average energy/capacity revenue per MWh

$42.15

$48.97

(13.9)

$46.53

$49.13

(5.3)

Refueling outage days







Indian Point 2

-

-


-

33


Indian Point 3

-

-


29

-


Palisades

-

-


-

-









Calculations may differ due to rounding

(v) 

Third quarter and year-to-date 2019 exclude Pilgrim (688MW), which was shut down May 31, 2019.

See the appendix in the webcast slide presentation for EWC hedging and price disclosures.

E: Consolidated Financial Measures
Appendix E 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 E: GAAP and Non-GAAP Financial Measures

Third Quarter 2019 vs. 2018 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures)



For 12 months ending September 30

2019

2018

Change

GAAP Measures




As-reported ROIC

4.8%

3.7%

1.1%

As-reported ROE

8.6%

5.1%

3.5%





Non-GAAP Measures




Adjusted ROIC

5.6%

5.5%

0.1%

Adjusted ROE

11.4%

10.7%

0.7%





As of September 30 ($ in millions)

2019

2018

Change

GAAP Measures




Cash and cash equivalents

956

988

(32)

Revolver capacity 

4,115

3,653

462

Commercial paper

1,918

1,947

(29)

Total debt

19,441

18,485

956

Securitization debt

338

463

(125)

Debt to capital

65.4%

68.2%

(2.8%)

Off-balance sheet liabilities:




  Debt of joint ventures – Entergy's share

56

62

(6)

  Leases – Entergy's share (v)

-

429

(429)

  Power purchase agreements accounted for as leases (v)

-

136

(136)

Total off-balance sheet liabilities

56

627

(571)





Non-GAAP Financial Measures




Debt to capital, excluding securitization debt

65.0%

67.7%

(2.7%)

Gross liquidity

5,071

4,641

430

Net debt to net capital, excluding securitization debt

63.8%

66.4%

(2.6%)

Parent debt to total debt, excluding securitization debt

20.5%

24.5%

(4.0%)

FFO to debt, excluding securitization debt

14.2%

13.1%

1.1%

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

17.6%

15.0%

2.6%





(w)

As of January 1, 2019, Entergy adopted Financial Accounting Standards Board Accounting Standards Codification 842, the new lease accounting standard. As a result, Entergy re-evaluated all agreements and put all agreements that qualified as operating leases on the balance sheet, and there are no longer any off-balance sheet liabilities for leases.

F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.

Appendix F-1: Definitions 

Utility Financial and Operating Measures

GWh billed

Total number of GWh billed to retail and wholesale customers

Other O&M and refueling outage expense per MWh

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

Number of electric retail customers

Number of electric customers at the end of the period



EWC Financial and Operating Measures

Adjusted EBITDA (non-GAAP)

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

Average revenue under contract per kW-month (applies to capacity contracts only)

Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards

Average revenue per MWh on contracted volumes

Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades.  Revenue will fluctuate due to factors including positive or negative basis differentials and other risk management costs

Bundled capacity and energy contracts

A contract for the sale of installed capacity and related energy, priced per MWh sold

Capacity contracts

A contract for the sale of the installed capacity product in regional markets managed by NYISO and MISO

Capacity factor

Normalized percentage of the period that the nuclear plants generate power

Expected sold and market total revenue per MWh

Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including positive or negative basis differentials and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA



Appendix F-1: Definitions

EWC Financial and Operating Measures (continued)

GWh billed

Total number of GWh billed to customers and financially-settled instruments

Owned capacity (MW)

Installed capacity owned by EWC

Percent of capacity sold forward

Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions

Percent of planned generation under contract

Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract

Planned net MW in operation

Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022)

Planned TWh of generation

Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022)

Production cost per MWh

Fuel and other O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation)

Refueling outage days

Number of days lost for a scheduled refueling and maintenance outage during the period

Unit-contingent

Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee



Financial Measures – GAAP

As-reported ROE

12-months rolling net income attributable to Entergy Corporation divided by average common equity

As-reported ROIC

12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital

Debt of joint ventures – Entergy's share

Entergy's share of debt issued by business joint ventures at EWC

Debt to capital

Total debt divided by total capitalization

Leases – Entergy's share

Operating leases held by subsidiaries capitalized at implicit interest rate

Revolver capacity

Amount of undrawn capacity remaining on corporate and subsidiary revolvers

Securitization debt

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

Total debt

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



Appendix F-1: Definitions

Financial Measures - Non-GAAP

Adjusted EPS

As-reported EPS excluding adjustments

Adjusted ROE

12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity

Adjusted ROIC

12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital

Adjustments

Unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items and other items such as certain costs, expenses, or other specified items

Debt to capital, excluding securitization debt

Total debt divided by total capitalization, excluding securitization debt

FFO

OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges

FFO to debt, excluding securitization debt

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

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

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

Gross liquidity

Sum of cash and revolver capacity

Net debt to net capital, excluding securitization debt

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

Parent debt to total debt, excluding securitization debt

End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt



 

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

Appendix F-2: Abbreviations and Acronyms

ADIT

Accumulated deferred income taxes

ISO

Independent system operator

AFUDC – borrowed funds

Allowance for borrowed funds used during construction

LPSC

Louisiana Public Service Commission

ALJ

Administrative law judge

LTM

Last twelve months

AMI

Advanced metering infrastructure

LTSA

Long-term service agreement

ANO

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

MISO

Midcontinent Independent System Operator, Inc.

APSC

Arkansas Public Service Commission

Moody's

Moody's Investor Service 

ARO

Asset retirement obligation

MPSC

Mississippi Public Service Commission

bps

Basis points

MTEP

MISO Transmission Expansion Planning

CCGT

Combined cycle gas turbine

Nelson 6

Unit 6 of Roy S. Nelson plant (coal)

CCN

Certificate of convenience & necessity 

NEPOOL

New England Power Pool

CCNO

Council of the City of New Orleans, Louisiana

Ninemile 6

Ninemile Point Unit 6 (CCGT)

COD

Commercial operation date

NDT

Nuclear decommissioning trust

CT

Simple cycle combustion turbine

NRC

Nuclear Regulatory Commission

CWIP

Construction work in progress

NY PSC

New York Public Service Commission

DCRF

Distribution cost recovery factor

NYISO

New York Independent System Operator, Inc.

E-AR

Entergy Arkansas, LLC

NYPA

New York Power Authority

E-LA

Entergy Louisiana, LLC

NYSE

New York Stock Exchange

E-MS

Entergy Mississippi, LLC

OCF

Net cash flow provided by operating activities

E-NO

Entergy New Orleans, LLC

OpCo

Operating Company

E-TX

Entergy Texas, Inc.

OPEB

Other post-employment benefits

EBITDA

Earnings before interest, income taxes, depreciation and amortization

Other O&M

Other non-fuel operation and maintenance expense

ENP

Entergy Nuclear Palisades, LLC

P&O

Parent & Other

EPS

Earnings per share

Palisades

Palisades Power Plant (nuclear)

ETR

Entergy Corporation

Pilgrim

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

EWC

Entergy Wholesale Commodities

PMR

Performance Management Rider

FERC

Federal Energy Regulatory Commission

PPA

Power purchase agreement or purchased power agreement

FFO

Funds from operations

PUCT

Public Utility Commission of Texas

FRP

Formula rate plan

RICE

Reciprocating Internal Combustion Engine

GAAP

U.S. generally accepted accounting principles

RFP

Request for proposals

Grand Gulf or GGNS

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

ROE

Return on equity

Indian Point 1

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

ROIC

Return on invested capital

Indian Point 2 or IP2

Indian Point Energy Center Unit 2 (nuclear)

RS Cogen

RS Cogen facility (CCGT cogeneration)

Indian Point 3 or IP3

Indian Point Energy Center Unit 3 (nuclear)

RSP

Rate Stabilization Plan (E-LA Gas)

IPEC

Indian Point Energy Center (nuclear)

S&P

Standard & Poor's

ISES 2

Unit 2 of Independence Steam Electric Station (coal)

SCPS

St. Charles Power Station (CCGT) 

IRS

Internal Revenue Service

SEC

U.S. Securities and Exchange Commission



SERI

System Energy Resources, Inc.



TCRF

Transmission cost recovery factor



Union

Union Power Station (CCGT)



UPSA

Unit Power Sales Agreement



Vermont Yankee

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



WACC

Weighted-average cost of capital

G: Other GAAP to Non-GAAP Reconciliations
Appendix G-1 and Appendix G-2 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.

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

($ in millions except where noted)


Third Quarter



2019

2018

As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months

(A)

790

435

Preferred dividends


16

14

Tax effected interest expense


548

520

As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense

(B)

1,354

969





Adjustments in prior quarters


(123)

(586)

Adjustments


(141)

105

  Total adjustments

(C)

(264)

(481)





EWC preferred dividends and tax-effected interest expense, rolling 12     months


27

27





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

(D)

(237)

(454)





Adjusted earnings, rolling 12 months (non-GAAP)

(A-C)

1,054

916

Adjusted earnings, rolling 12 months including preferred dividends and tax- effected interest expense (non-GAAP)

(B-D)

1,591

1,423





Average invested capital

(E)

28,413

26,107





Average common equity

(F)

9,224

8,551





As-reported ROIC

(B/E)

4.8%

3.7%

Adjusted ROIC (non-GAAP)

[(B-D)/E]

5.6%

5.5%

As-reported ROE

(A/F)

8.6%

5.1%

Adjusted ROE (non-GAAP)

[(A-C)/F]

11.4%

10.7%





Calculations may differ due to rounding

 

Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC

($ in millions except where noted)


Third Quarter



2019

2018

Total debt

(A)

19,441

18,485

Less securitization debt

(B)

338

463

Total debt, excluding securitization debt

(C)

19,103

18,022

Less cash and cash equivalents

(D)

956

988

Net debt, excluding securitization debt

(E)

18,147

17,034





Total capitalization

(F)

29,730

27,095

Less securitization debt

(B)

338

463

Total capitalization, excluding securitization debt

(G)

29,392

26,632

Less cash and cash equivalents

(D)

956

988

Net capital, excluding securitization debt

(H)

28,436

25,644





Debt to capital

(A/F)

65.4%

68.2%

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

(C/G)

65.0%

67.7%

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

(E/H)

63.8%

66.4%





Revolver capacity

(I)

4,115

3,653





Gross liquidity (non-GAAP)

(D+I)

5,071

4,641





Entergy Corporation notes:




Due September 2020


450

450

Due July 2022


650

650

Due September 2026


750

750

Total parent long-term debt

(J)

1,850

1,850

Revolver draw

(K)

155

630

Commercial paper

(L)

1,918

1,947

Unamortized debt issuance and discounts

(M)

(9)

(10)

Total parent debt

(J+K+L+M)

3,914

4,417





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

[(J+K+L+M)/C]

20.5%

24.5%





 

Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC (continued)

($ in millions except where noted)


Third Quarter



2019

2018

Total debt

(A)

19,441

18,485

Less securitization debt

(B)

338

463

Total debt, excluding securitization debt

(C)

19,103

18,022





Net cash flow provided by operating activities, rolling 12 months

(D)

2,644

2,770





AFUDC – borrowed funds, rolling 12 months

(E)

(67)

(57)





Working capital items in net cash flow provided by operating activities (rolling 12 months):




Receivables


21

(53)

Fuel inventory


(18)

26

Accounts payable


(158)

258

Taxes accrued


(7)

10

Interest accrued


12

(3)

Other working capital accounts


(97)

(9)

Securitization regulatory charges


120

125

Total

(F)

(127)

354





FFO, rolling 12 months (non-GAAP)

(G)=(D+E-F)

2,704

2,359





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

(G/C)

14.2%

13.1%





Estimated return of unprotected excess ADIT (rolling 12 months pre-tax)

(H)

469

342

Severance and retention payments associated with exit of EWC (rolling 12 months pre-tax)

(I)

183

-





FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP)

[(G+H+I)/(C)]

17.6%

15.0%





Calculations may differ due to rounding

 

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SOURCE Entergy Corporation

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