Entergy Reports Second Quarter Earnings

(Per share in $)

Utility, Parent & Other

EWC

Consolidated

As-Reported

1.77

1.39

3.16

  Specials

-

0.05

0.05

Operational

1.77

1.34

3.11

Included in As-Reported and Operational:

  Weather

(0.09)

-

(0.09)

  Income Taxes, Net of Sharing

0.68

1.33

2.01

Utility, Parent & Other Adjusted

1.18

Consolidated Earnings (GAAP and Non-GAAP Measures)

Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items)

Second Quarter

Year-to-Date

2016

2015

Change

2016

2015

Change

As-Reported Earnings ($ in millions)

567.3

148.8

418.5

797.3

446.9

350.4

Less Special Items

9.6

(1.1)

10.7

(3.3)

(5.7)

2.4

Operational Earnings

557.7

149.9

407.8

800.6

452.6

348.0

Weather Impact

(16.3)

(2.9)

(13.4)

(41.8)

11.4

(53.2)

As-Reported Earnings (per share in $)

3.16

0.83

2.33

4.45

2.48

1.97

Less: Special Items

0.05

-

0.05

(0.02)

(0.03)

0.01

Operational Earnings

3.11

0.83

2.28

4.47

2.51

1.96

(0.09)

(0.02)

(0.07)

(0.23)

(0.29)

Totals may not foot due to rounding

Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures

Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A-3 and Appendix A-4 for details on special items)

(Per share in $)

Second Quarter

Year-to-Date

2016

2015

Change

2016

2015

Change

As-reported

Utility

2.09

1.11

0.98

3.18

2.35

0.83

Parent & Other

(0.32)

(0.26)

(0.06)

(0.57)

(0.53)

(0.04)

EWC

1.39

(0.02)

1.41

1.84

0.66

1.18

  Consolidated as-reported earnings

3.16

0.83

2.33

4.45

2.48

1.97

Less special items

Utility

-

-

-

-

-

-

Parent & Other

-

-

-

-

-

-

EWC

0.05

-

0.05

(0.02)

(0.03)

0.01

  Consolidated special items

0.05

-

0.05

(0.02)

(0.03)

0.01

Operational

Utility

2.09

1.11

0.98

3.18

2.35

0.83

Parent & Other

(0.32)

(0.26)

(0.06)

(0.57)

(0.53)

(0.04)

EWC

1.34

(0.02)

1.36

1.86

0.69

1.17

  Consolidated operational earnings

3.11

0.83

2.28

4.47

2.51

1.96

Weather impact

(0.09)

(0.02)

(0.07)

(0.23)

0.06

(0.29)

Appendix A-2: Consolidated Operating Cash Flow

Second Quarter and Year-to-Date 2016 vs. 2015

($ in millions)

Second Quarter

Year-to-Date

2016

2015

Change

2016

2015

Change

Utility

690

762

(72)

1,149

1,216

(67)

Parent & Other

(47)

(43)

(4)

(109)

(94)

(15)

EWC

76

8

68

212

216

(4)

  Total Operating Cash Flow

719

727

(8)

1,252

1,338

(86)

Totals may not foot due to rounding

Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on EPS)

Second Quarter and Year-to-Date 2016 vs. 2015

(After-tax, per share in $)

Second Quarter

Year-to-Date

2016

2015

Change

2016

2015

Change

EWC

Decisions to close VY, FitzPatrick and Pilgrim

(0.07)

-

(0.07)

(0.14)

(0.03)

(0.11)

DOE litigation awards for VY and FitzPatrick

0.12

-

0.12

0.12

-

0.12

  Total EWC

0.05

-

0.05

(0.02)

(0.03)

0.01

Total special items

0.05

-

0.05

(0.02)

(0.03)

0.01

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

Second Quarter and Year-to-Date 2016 vs. 2015

(Pre-tax except for Income taxes – other and Total, $ in millions)

Second Quarter

Year-to-Date

2016

2015

Change

2016

2015

Change

EWC

Non-fuel O&M

22.7

(1.6)

24.3

11.2

(9.1)

20.3

Taxes other than income taxes

(0.9)

-

(0.9)

(1.9)

0.3

(2.2)

Asset write-off and impairments

(7.0)

-

(7.0)

(14.3)

-

(14.3)

Income taxes – other

(5.2)

0.6

(5.8)

1.8

3.0

(1.2)

  Total EWC

9.6

(1.1)

10.7

(3.3)

(5.7)

2.4

Total Special Items (after-tax)

9.6

(1.1)

10.7

(3.3)

(5.7)

2.4

Totals may not foot due to rounding

Appendix B-1: As-Reported and Operational EPS Variance Analysis

Second Quarter 2016 vs. 2015

(After-tax, per share in $, sorted in consolidated operational column, most to least favorable)

Utility

Parent & Other

EWC

Consolidated

As-Reported

Opera-tional

As-Reported

Opera-tional

As- Reported

Opera-tional

As- Reported

Opera-tional

2015 earnings

1.11

1.11

(0.26)

(0.26)

(0.02)

(0.02)

0.83

0.83

Income taxes – other

0.79

0.79

(a)

(0.04)

(0.04)

1.33

1.33

(b)

2.08

2.08

Non-fuel O&M

0.09

0.09

(c)

(0.01)

(0.01)

0.22

0.14

(d)

0.30

0.22

Other income (deductions)-other

0.05

0.05

(e)

-

-

0.01

0.01

0.06

0.06

Taxes other than income taxes

(0.01)

(0.01)

-

-

0.04

0.04

0.03

0.03

Depreciation/amortization expense

(0.04)

(0.04)

-

-

0.06

0.06

(f)

0.02

0.02

Share effect

0.01

0.01

-

-

-

-

0.01

0.01

Asset write-offs and impairments

-

-

-

-

(0.03)

-

(0.03)

-

Decommissioning expense

(0.01)

(0.01)

-

-

(0.02)

(0.02)

(0.03)

(0.03)

Interest expense and other charges

(0.03)

(0.03)

(0.01)

(0.01)

-

-

(0.04)

(0.04)

Net revenue

0.13

0.13

(g)

-

-

(0.20)

(0.20)

(h)

(0.07)

(0.07)

2016 earnings

2.09

2.09

(0.32)

(0.32)

1.39

1.34

3.16

3.11

Appendix B-2: As-Reported and Operational EPS Variance Analysis

Year-to-Date 2016 vs. 2015

(After-tax, per share in $, sorted in consolidated operational column, most to least favorable)

Utility

Parent & Other

EWC

Consolidated

As-Reported

Opera-tional

As-Reported

Opera-tional

As- Reported

Opera-tional

As- Reported

Opera-tional

2015 earnings

2.35

2.35

(0.53)

(0.53)

0.66

0.69

2.48

2.51

Income taxes – other

0.66

0.66

(a)

-

-

1.30

1.30

(b)

1.96

1.96

Non-fuel O&M

0.22

0.22

(c)

(0.01)

(0.01)

0.28

0.21

(d)

0.49

0.42

Taxes other than income taxes

0.02

0.02

-

-

0.03

0.04

0.05

0.06

Share effect

0.02

0.02

-

-

0.01

0.01

0.03

0.03

Depreciation/amortization expense

(0.07)

(0.07)

(i)

-

-

0.08

0.08

(f)

0.01

0.01

Asset write-offs and impairments

-

-

-

-

(0.05)

-

(j)

(0.05)

-

Decommissioning expense

(0.01)

(0.01)

-

-

(0.01)

(0.01)

(0.02)

(0.02)

Other income (deductions)-other

0.02

0.02

(0.01)

(0.01)

(0.06)

(0.06)

(k)

(0.05)

(0.05)

Interest expense and other charges

(0.03)

(0.03)

(0.02)

(0.02)

-

-

(0.05)

(0.05)

Net revenue

-

-

-

-

(0.40)

(0.40)

(h)

(0.40)

(0.40)

2016 earnings

3.18

3.18

(0.57)

(0.57)

1.84

1.86

4.45

4.47

(a)

The current quarter and year-to-date increases were due largely to the reversal of a portion of the provision for uncertain tax positions totaling $136 million for two previous positions that were resolved in the 2010-2011 tax audit. This was partly offset by customer sharing recorded as a regulatory charge ($16 million pre-tax, included in net revenue). The year-to-date variance also reflected a first quarter 2015 reversal of a portion of the provision for uncertain tax provisions related to interest accrual of approximately $24 million.

(b)

The current quarter and year-to-date increases were attributable largely to a tax election which reduced income tax expense $238 million.

(c) 

The current quarter and year-to-date increases reflected lower pension and OPEB expenses stemming partly from a higher discount rate and lower fossil spending due to lower scope of work for outage activity. The expense decreases were partially offset by the Union acquisition (offset in net revenue). The year-to-date variance also reflected a deferral recorded at EAI in first quarter 2016, expenses in second quarter 2015 related to the ELL business combination and higher nuclear generation spending in 2016 due primarily to an increase in regulatory compliance costs, an overall higher scope of work done during plant outages and higher nuclear labor costs, including contract labor.

(d) 

The current quarter and year-to-date increases reflected a reduction in expense for litigation proceeds received from the DOE in connection with spent nuclear fuel storage costs in second quarter 2016, a portion of the amounts received for VY and FitzPatrick (approximately 12 cents EPS) was considered "special." Lower refueling outage expense, largely as a result of 2015 impairments, also contributed to the increase. Partially offsetting were higher expenses resulting from the decisions to close certain nuclear plants (these expenses were also considered "special").

(e) 

The current quarter increase was due largely to higher realized earnings on nuclear decommissioning trust funds (substantially offset in net revenue).

(f)

The current quarter and year-to-date increases resulted from 2015 impairments and recording the effects of DOE litigation proceeds related to spent nuclear fuel storage costs. These items were partially offset by the sale of RISEC.

(g)

The current quarter increase was due primarily to rate changes associated with the Union acquisition, EAI's 2015 rate case and industrial sales growth. Higher volume in the unbilled period also contributed. Partially offsetting the increase was a $16 million (pre-tax) reserve for the portion of tax benefit noted above to be shared with customers. The effect of weather was more unfavorable in the current period than a year ago.

(h)

The current quarter and year-to-date decreases were driven by lower energy and capacity pricing for nuclear assets. Volume from nuclear assets was also lower due largely to the extended Indian Point 2 refueling outage. The sale of RISEC facility in December 2015 also contributed to the decline. These decreases were partially offset by lower nuclear fuel expense (due largely to 2015 impairments).

(i) 

The year-to-date decrease was due primarily to additions to plant, including the Union acquisition in March 2016.

(j) 

The year-to-date decrease is attributable to capital that is recorded as non-fuel O&M for nuclear plants that have closed or are identified to close.

(k) 

The year-to-date decrease was due largely to realized earnings from decommissioning trusts in 2015 from rebalancing of VY's decommissioning trust.

Second
Quarter

Year-to-

Date

Weather

(0.07)

(0.29)

Sales growth/pricing

0.29

0.43

Other

(0.09)

(0.14)

0.13

-

Appendix C-1: Utility, Parent & Other Adjusted EPS - Reconciliation of GAAP to Non-GAAP Measures

Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for details on special items)

(Per share in $)

Second Quarter

Year-to-Date

2016

2015

Change

2016

2015

Change

As-reported earnings

1.77

0.85

0.92

2.61

1.82

0.79

Less:

  Special items

-

-

-

-

-

-

  Weather

(0.09)

(0.02)

(0.07)

(0.23)

0.06

(0.29)

  Income taxes, net of sharing (l)

0.68

-

0.68

0.71

0.13

0.58

Adjusted EPS

1.18

0.87

0.31

2.13

1.63

0.50

(l)

Tax items recorded in second quarter 2016 are net of the reserve recorded for amounts to be shared with customers (reflected as a reduction in net revenue).

Appendix C-2: Utility Operational Performance Measures

Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures)

Second Quarter

Year-to-Date

2016

2015

%

Change

% Weather
Adjusted

2016

2015

%

Change

% Weather
Adjusted

GWh billed

Residential

7,081

7,364

(3.8%)

(0.6%)

15,218

16,796

(9.4%)

(0.6%)

Commercial

6,777

6,904

(1.8%)

(0.6%)

13,288

13,625

(2.5%)

(1.2%)

Governmental

609

602

1.2%

1.8%

1,209

1,194

1.3%

1.5%

Industrial

11,509

10,737

7.2%

7.2%

22,564

21,144

6.7%

6.7%

Total retail sales

25,976

25,607

1.4%

2.7%

52,279

52,759

(0.9%)

2.2%

Wholesale

3,579

3,138

14.1%

6,719

4,949

35.8%

Total sales

29,555

28,745

2.8%

58,998

57,708

2.2%

Number of electric retail customers

Residential

2,448,934

2,430,698

0.8%

Commercial

352,615

348,337

1.2%

Governmental

17,641

17,487

0.9%

Industrial

46,752

45,892

1.9%

Total retail customers

2,865,942

2,842,414

0.8%

Net revenue ($ millions)

1,524

1,488

2.4%

2,899

2,898

-

As-reported non-fuel O&M per MWh

$20.80

$22.35

(6.9%)

$19.69

$21.26

(7.4%)

Operational non-fuel O&M per MWh

$20.80

$22.35

(6.9%)

$19.69

$21.26

(7.4%)

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

Second Quarter and Year-to-Date 2016 vs. 2015

($ in millions)

Second Quarter

Year-to-Date

2016

2015

Change

2016

2015

Change

Net income

251

(4)

255

330

120

210

Add back: interest expense

6

6

-

13

12

1

Add back: income tax expense

(235)

(3)

(232)

(183)

67

(250)

Add back: depreciation and amortization

46

64

(18)

102

126

(24)

Subtract: interest and investment income

34

36

(2)

60

86

(26)

Add back: decommissioning expense

39

33

6

70

68

2

Adjusted EBITDA

73

60

13

272

307

(35)

Add back pre-tax special items for:

  Decisions to close VY, FitzPatrick and Pilgrim

19

2

17

39

9

30

  DOE litigation awards for VY and FitzPatrick

(34)

-

(34)

(34)

-

(34)

Operational adjusted EBITDA

58

62

(4)

277

315

(39)

Totals may not foot due to rounding

Appendix D-2: EWC Operational Performance Measures

Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures)

Second Quarter

Year-to-Date

2016

2015

% Change

2016

2015

% Change

Owned capacity (MW) (m)

4,880

5,463

(10.7%)

4,880

5,463

(10.7%)

GWh billed

7,866

9,578

(17.9%)

17,112

19,170

(10.7%)

As-reported average total revenue per MWh

$43.74

$45.87

(4.6%)

$50.62

$56.44

(10.3%)

Adjusted average total revenue per MWh

$43.32

$45.47

(4.7%)

$50.22

$56.04

(10.4%)

Net revenue ($ millions)

293

350

(16.3%)

759

877

(13.5%)

As-reported non-fuel O&M per MWh

$23.50

$25.97

(9.5%)

$24.39

$25.93

(5.9%)

Operational non-fuel O&M per MWh

$26.38

$25.80

2.2%

$25.04

$25.46

(1.6%)

EWC Nuclear Fleet

Capacity factor

76%

89%

(14.6%)

83%

89%

(6.7%)

GWh billed

7,308

8,555

(14.6%)

15,996

17,173

(6.9%)

As-reported average total revenue per MWh

$43.52

$45.84

(5.1%)

$51.07

$55.85

(8.6%)

Adjusted average total revenue per MWh

$43.06

$45.40

(5.2%)

$50.65

$55.41

(8.6%)

Production cost per MWh

$23.06

$26.21

(12.0%)

$22.44

$25.91

(13.4%)

Net revenue ($ millions)

290

336

(13.7%)

754

847

(11.0%)

Refueling outage days

  Indian Point 2

77

-

102

-

  Indian Point 3

-

-

-

23

  Pilgrim

-

34

-

34

(m)

Second quarter and year-to-date 2016 exclude RISEC (583 MW) that was sold in December 2015.

Appendix E: GAAP and Non-GAAP Financial Performance Measures

Second Quarter 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures)

For 12 months ending June 30

2016

2015

Change

GAAP Measures

ROIC - as-reported

2.4%

5.0%

(2.6%)

ROE - as-reported

1.7%

7.9%

(6.2%)

Book value per share

$54.54

$56.58

($2.04)

End of period shares outstanding (millions)

178.9

179.5

(0.6)

Non-GAAP Measures

ROIC - operational

7.5%

5.4%

2.1%

ROE - operational

14.3%

8.8%

5.5%

As of June 30 ($ in millions)

GAAP Measures

Cash and cash equivalents

996

910

86

Revolver capacity

4,173

4,158

15

Commercial paper outstanding

853

895

(42)

Total debt

14,837

13,858

979

Securitization debt

716

734

(18)

Debt to capital ratio

59.6%

57.0%

2.6%

Off-balance sheet liabilities:

Debt of joint ventures - Entergy's share

76

80

(4)

Leases - Entergy's share

359

422

(63)

Power purchase agreements accounted for as leases

195

224

(29)

Total off-balance sheet liabilities

630

726

(96)

Non-GAAP Measures

Debt to capital ratio, excluding securitization debt

58.4%

55.6%

2.8%

Gross liquidity

5,169

5,068

101

Net debt to net capital ratio, excluding securitization debt

56.6%

53.9%

2.7%

Parent debt to total debt ratio, excluding securitization debt

19.1%

20.3%

(1.2%)

Debt to operational adjusted EBITDA, excluding securitization debt

4.4x

3.9x

0.5x

Operational FFO to debt ratio, excluding securitization debt

21.1%

28.4%

(7.3%)

Appendix F-1: Definitions

Utility Operational Performance Measures

GWh billed

Total number of GWh billed to all retail and wholesale customers

Net revenue

Operating revenue less fuel, fuel related expenses and gas purchased for resale, purchased power and other regulatory charges (credits) - net

Non-fuel O&M

Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power

Non-fuel O&M per MWh

Non-fuel O&M per MWh of billed sales

Number of retail customers

Number of customers at end of period

EWC Operational Performance Measures

As-reported average total revenue per MWh

As-reported revenue per MWh billed (does not include revenue from investments in wind generation that is accounted for under the equity method of accounting)

Adjusted average total revenue per MWh

As-reported average total revenue per MWh, excluding revenue from the amortization of the Palisades below-market PPA

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 market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent 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 ISO-NE, the 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 estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent 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

Firm LD

Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract; a portion of which may be capped through the use of risk management products

GWh billed

Total number of GWh billed to customers and financially-settled instruments (does not include amounts from investments in wind generation that are accounted for under the equity method of accounting)

Appendix F-1: Definitions

EWC Operational Performance Measures (continued)

Net revenue

Operating revenue less fuel, fuel related expenses and purchased power

Non-fuel O&M

Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale, purchased power (does not include amounts from investments in wind generation that are accounted for under the equity method of accounting)

Non-fuel O&M per MWh

Non-fuel O&M per MWh billed

Offsetting positions

Transactions for the purchase of energy, generally to offset a Firm LD transaction

Owned capacity (MW)

Installed capacity owned and operated by EWC, including investments in wind generation accounted for under the equity method of accounting; RISEC (non-nuclear) was sold on Dec. 17, 2015

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 Pilgrim on May 31, 2019 and FitzPatrick on Jan. 27, 2017

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 Pilgrim on May 31, 2019 and FitzPatrick on Jan. 27, 2017, uninterrupted normal plant operation and timely renewal of plant operating licenses at IPEC

Production cost per MWh

Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items

Refueling outage days

Number of days lost for scheduled refueling outage during the period

Unit-contingent

Transaction under which power is supplied from a specific generation asset; if the asset is on 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

Book value per share

End of period common equity divided by end of period shares outstanding

Debt of joint ventures - Entergy's share

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

Debt to capital ratio

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, including Entergy Nuclear Vermont Yankee

ROIC - as-reported

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

ROE - as-reported

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

Securitization debt

Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI and Hurricane Isaac at ENOI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL

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 EBITDA

Earnings before interest, depreciation and amortization and income taxes excluding decommissioning expense; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds

Adjusted EPS

As-reported EPS excluding special items and weather and normalizing for income tax

Debt to capital ratio, excluding securitization debt

Total debt divided by total capitalization, excluding securitization debt

Debt to EBITDA

End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA

FFO

Net cash flow provided by operations less AFUDC-borrowed funds, working capital items in operating cash flow (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charge

FFO to debt

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

Gross liquidity

Sum of cash and revolver capacity

Operational adjusted EBITDA

Adjusted EBITDA excluding effects of special items

Operational EPS

As-reported EPS adjusted to exclude the impact of special items

Operational FFO

FFO excluding effects of special items

Parent debt to total debt

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

Net debt to net capital ratio, excluding securitization debt

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

ROIC - operational

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

ROE - operational

12-months rolling operational net income attributable to Entergy Corp. divided by average common equity

Appendix F-2: Abbreviations and Acronyms

AFUDC-

  borrowed funds

Allowance for borrowed funds used during

  Construction

LTM

Last twelve months

MISO

Midcontinent Independent System Operator, Inc.

AFUDC-

  equity funds

Allowance for equity funds used during

  Construction

MPSC

Mississippi Public Service Commission

MTEP

MISO Transmission Expansion Planning

ADIT

Accumulated deferred income taxes

NEPOOL

New England Power Pool

ANO

Arkansas Nuclear One (nuclear)

Ninemile 6

Ninemile Point Unit 6

APSC

Arkansas Public Service Commission

NOAA

National Oceanic and Atmosphere Administration

BP

Basis point

Non-fuel O&M

Non-fuel operation and maintenance expense

CCGT

Combined cycle gas turbine

NRC

Nuclear Regulatory Commission

CCNO

Council of the City of New Orleans, Louisiana

NYISO

New York Independent System Operator, Inc.

COD

Commercial operation date

NYS

New York State

Cooper

Cooper Nuclear Station

NYSDEC

New York State Department of Environmental Conservation

CT

Simple cycle combustion turbine

NYSDOS

New York State Department of State

CZM

Coastal zone management

NYSE

New York Stock Exchange

DCRF

Distribution cost recovery factor

DOE

U.S. Department of Energy

O&M

Operation and maintenance expense

EAI

Entergy Arkansas, Inc.

OCF

Net cash flow provided by operating activities

EBITDA

Earnings before interest, income taxes, depreciation and amortization

OPEB

Other post-employment benefits

EGSL

Entergy Gulf States Louisiana, L.L.C.

Palisades

Palisades Power Plant (nuclear)

ELL

Entergy Louisiana, LLC

Pilgrim

Pilgrim Nuclear Power Station (nuclear)

EMI

Entergy Mississippi, Inc.

PPA

Power purchase agreement or purchased power agreement

ENOI

Entergy New Orleans, Inc.

PUCT

Public Utility Commission of Texas

ESI

Entergy Services, Inc.

RFP

Request for proposal

EPS

Earnings per share

ETI

Entergy Texas, Inc.

RISEC

Rhode Island State Energy Center (CCGT)

ETR

Entergy Corporation

ROE

Return on equity

EWC

Entergy Wholesale Commodities

ROIC

Return on invested capital

FCA

Forward capacity auction

ROS

Rest of state

FERC

Federal Energy Regulatory Commission

RPCE

Rough production cost equalization

FFO

Funds from operations

RSP

Rate Stabilization Plan (ELL Gas)

Firm LD

Firm liquidated damages

SEC

U.S. Securities and Exchange Commission

FitzPatrick

James A. FitzPatrick Nuclear Power Plant (nuclear)

SEMARI

Southeast Massachusetts/Rhode Island

FRP

Formula rate plan

SERI

System Energy Resources, Inc.

GAAP

Generally accepted accounting principles

SPDES

State Pollutant Discharge Elimination System

Grand Gulf

Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy

HCM

Human Capital Management program

SPP

Southwest Power Pool

TCRF

Transmission cost recovery factor

Indian Point 2

Indian Point Energy Center Unit 2 (nuclear)

Top Deer

Top Deer Wind Ventures, LLC

Indian Point 3

Indian Point Energy Center Unit 3 (nuclear)

Union

Union Power Station

IPEC

Indian Point Energy Center (nuclear)

UP&O

Utility, Parent & Other

ISES

Independence Steam Electric Station (coal)

VY

Vermont Yankee Nuclear Power Station (nuclear)

ISO

Independent system operator

WACC

Weighted-average cost of capital

ISO-NE

ISO New England

WOTAB

West of the Atchafalaya Basin

LHV

Lower Hudson Valley

WQC

Water Quality Certification

LPSC

Louisiana Public Service Commission

YOY

Year-over-year

Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - Utility and EWC Non-fuel O&M per MWh, EWC and EWC Nuclear Average Total Revenue per MWh

($ in thousands except where noted)

Second Quarter

Year-to-Date

2016

2015

2016

2015

Utility

As-reported Utility non-fuel O&M

(A)

614,820

642,538

1,161,402

1,226,839

Operational Utility non-fuel O&M

(B)

614,820

642,538

1,161,402

1,226,839

Utility billed sales (GWh)

(C)

29,555

28,745

58,998

57,708

As-reported Utility non-fuel O&M per MWh

(A/C)

20.80

22.35

19.69

21.26

Operational Utility non-fuel O&M per MWh

(B/C)

20.80

22.35

19.69

21.26

EWC

As-reported EWC non-fuel O&M

(D)

184,820

248,738

417,285

497,063

Special Items included in non-fuel O&M:

 Decisions to close VY, FitzPatrick and Pilgrim

11,104

1,579

22,625

9,068

 DOE litigation awards for VY and FitzPatrick

(33,823)

-

(33,823)

-

     Total special items included in non-fuel O&M

(E)

(22,719)

1,579

(11,198)

9,068

Operational EWC non-fuel O&M

(D-E)

207,539

247,159

428,483

487,995

EWC billed sales (GWh)

(F)

7,866

9,578

17,112

19,170

As-reported EWC non-fuel O&M per MWh

(D/F)

23.50

25.97

24.39

25.93

Operational EWC non-fuel O&M per MWh

[(D-E)/(F)]

26.38

25.80

25.04

25.46

As-reported EWC operating revenue

(G)

344,110

439,306

866,189

1,081,896

Less Palisades below-market PPA amortization

(H)

3,364

3,800

6,728

7,600

Adjusted EWC operating revenue

(G-H)

340,746

435,506

859,461

1,074,296

As-reported EWC nuclear operating revenue

(I)

318,031

392,188

816,932

959,096

Less Palisades below-market PPA amortization

(H)

3,364

3,800

6,728

7,600

Adjusted EWC nuclear operating revenue

(I-H)

314,667

388,388

810,204

951,496

As-reported EWC average total revenue per MWh

(G)/(F)

43.74

45.87

50.62

56.44

Adjusted EWC average total revenue per MWh

[(G-H)/(F)]

43.32

45.47

50.22

56.04

EWC nuclear billed sales (GWh)

(J)

7,308

8,555

15,996

17,173

As-reported EWC nuclear average total revenue per MWh

(I)/(J)

43.52

45.84

51.07

55.85

Adjusted EWC nuclear average total revenue per MWh

[(I-H)/(J)]

43.06

45.40

50.65

55.41

Totals may not foot due to rounding

Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROE, ROIC Metrics

($ in millions)

Second Quarter

2016

2015

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

(A)

174

797

Preferred dividends

21

20

Tax effected interest expense

404

391

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

(B)

599

1,208

Special items in prior quarters

(1,260)

(95)

Decisions to close VY, FitzPatrick and Pilgrim

(12)

(1)

DOE litigation awards for VY and FitzPatrick

22

-

  Total special items, rolling 12 months

(C)

(1,250)

(95)

Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense

(B-C)

1,849

1,303

Operational earnings, rolling 12 months

(A-C)

1,424

892

Average invested capital

(D)

24,617

24,190

Average common equity

(E)

9,958

10,110

ROIC - as-reported

(B/D)

2.4%

5.0%

ROIC - operational  

[(B-C)/D]

7.5%

5.4%

ROE - as-reported  

(A/E)

1.7%

7.9%

ROE - operational  

[(A-C)/E]

14.3%

8.8%

Totals may not foot due to rounding

Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics

($ in millions)

Second Quarter

2016

2015

Total debt

(A)

14,837

13,858

Less securitization debt

(B)

716

734

Total debt, excluding securitization debt

(C)

14,121

13,124

Less cash and cash equivalents

(D)

996

910

  Net debt, excluding securitization debt

(E)

13,125

12,214

Total capitalization

(F)

24,913

24,321

Less securitization debt

(B)

716

734

Total capitalization, excluding securitization debt

(G)

24,197

23,587

Less cash and cash equivalents

(D)

996

910

Net capital, excluding securitization debt

(H)

23,201

22,677

Debt to capital ratio

(A/F)

59.6%

57.0%

Debt to capital ratio, excluding securitization debt

(C/G)

58.4%

55.6%

Net debt to net capital ratio, excluding securitization debt

(E/H)

56.6%

53.9%

Revolver capacity

(I)

4,173

4,158

Gross liquidity

(D+I)

5,169

5,068

Entergy Corporation notes:

  Due September 2015

-

550

  Due January 2017

500

500

  Due September 2020

450

450

  Due July 2022

650

-

    Total parent long-term debt

(J)

1,600

1,500

Revolver draw

(K)

240

271

Commercial paper

(L)

853

895

Total parent debt

(J)+(K)+(L)

2,693

2,666

Parent debt to total debt ratio, excluding securitization debt %

[((J)+(K)+

(L))/(C)]

19.1%

20.3%

Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics (continued)

($ in millions)

Second Quarter

2016

2015

Total debt

(A)

14,837

13,858

Less securitization debt

(B)

716

734

Total debt, excluding securitization debt

(C)

14,121

13,124

As-reported consolidated net income, rolling 12 months

194

817

Add back: interest expense, rolling 12 months

658

636

Add back: income tax expense, rolling 12 months

(1,002)

494

Add back: depreciation and amortization, rolling 12 months

1,335

1,331

Add back: regulatory charges (credits), rolling 12 months

185

10

Subtract: securitization proceeds, rolling 12 months

137

130

Subtract: interest and investment income, rolling 12 months

158

196

Subtract: AFUDC-equity funds, rolling 12 months

61

59

Add back: decommissioning expense, rolling 12 months

287

278

  Adjusted EBITDA, rolling 12 months

(D)

1,301

3,181

Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax)

-

4

Add back: special item resulting from decisions to close VY, FitzPatrick and Pilgrim, rolling 12 months (pre-tax)

1,688

143

Add back: special item for DOE litigation awards for VY and FitzPatrick

(34)

-

Add back: special item for Palisades asset impairment and related write-offs, rolling 12 months (pre-tax)

396

-

Add back: special item for Top Deer investment impairment, rolling 12 months (pre-tax)

37

-

Add back: special item for gain on the sale of RISEC, rolling 12 months (pre-tax)

(154)

-

  Operational adjusted EBITDA, rolling 12 months

(E)

3,234

3,328

Debt to operational adjusted EBITDA, excluding securitization debt

(C)/(E)

4.4

3.9

Net cash flow provided by operating activities, rolling 12 months

(F)

3,205

3,699

AFUDC-borrowed funds used during construction, rolling 12 months

(G)

(31)

(30)

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

  Receivables

81

45

  Fuel inventory

1

(32)

  Accounts payable

15

(164)

  Prepaid taxes and taxes accrued

108

(43)

  Interest accrued

(2)

5

  Other working capital accounts

(111)

104

  Securitization regulatory charge

107

99

       Total

(H)

199

14

FFO, rolling 12 months

(F)+(G)-(H)

2,975

3,655

Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax)

-

15

Add back: special item resulting from decisions to close VY, FitzPatrick and Pilgrim, rolling 12 months (pre-tax)

6

57

Operational FFO, rolling 12 months

(I)

2,981

3,727

Operational FFO to debt ratio, excluding securitization debt

(I)/(C)

21.1%

28.4%

Totals may not foot due to rounding