Entergy Reports First Quarter Earnings

Consolidated Earnings (GAAP and Non-GAAP measures)

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

First Quarter

2016

2015

Change

As-Reported Earnings ($ in millions)

230.0

298.1

(68.1)

Less Special Items

(12.9)

(4.6)

(8.3)

Operational Earnings

242.8

302.7

(59.9)

Weather Impact

(25.4)

14.3

(39.7)

As-Reported Earnings (per share in $)

1.28

1.65

(0.37)

Less: Special Items

(0.07)

(0.03)

(0.04)

Operational Earnings

1.35

1.68

(0.33)

Weather Impact

(0.14)

0.08

(0.22)

Totals may not foot due to rounding

EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures

First Quarter 2016 vs. 2015

($ in millions)

First Quarter

2016

2015

Change

Net income

80

123

(43)

Add back: interest expense

6

6

-

Add back: income tax expense

52

70

(18)

Add back: depreciation and amortization

56

62

(6)

Subtract: interest and investment income

27

50

(23)

Add back: decommissioning expense

31

35

(4)

Adjusted EBITDA

199

247

(48)

Add back pre-tax special items for:

  Decisions to close VY, FitzPatrick and Pilgrim

20

7

13

Operational adjusted EBITDA

219

254

(35)

Totals may not foot due to rounding

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

First Quarter 2016 vs. 2015 (See Appendix A-3 and Appendix A-4 for details on special items)

(Per share in $)

First Quarter

2016

2015

Change

As-Reported

Utility

1.09

1.24

(0.15)

Parent & Other

(0.25)

(0.27)

0.02

EWC

0.44

0.68

(0.24)

  Consolidated As-Reported Earnings

1.28

1.65

(0.37)

Less Special Items

Utility

-

-

-

Parent & Other

-

-

-

EWC

(0.07)

(0.03)

(0.04)

  Consolidated Special Items

(0.07)

(0.03)

(0.04)

Operational

Utility

1.09

1.24

(0.15)

Parent & Other

(0.25)

(0.27)

0.02

EWC

0.51

0.71

(0.20)

  Consolidated Operational Earnings

1.35

1.68

(0.33)

Weather Impact

(0.14)

0.08

(0.22)

Appendix A-2: Consolidated Operating Cash Flow

First Quarter 2016 vs. 2015

($ in millions)

First Quarter

2016

2015

Change

Utility

459

454

5

Parent & Other

(62)

(51)

(11)

EWC

136

208

(72)

  Total Operating Cash Flow

533

611

(78)

Totals may not foot due to rounding

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

First Quarter 2016 vs. 2015

(After-tax, per share in $)

First Quarter

2016

2015

Change

EWC

Decisions to close VY, FitzPatrick and Pilgrim

(0.07)

(0.03)

(0.04)

  Total EWC

(0.07)

(0.03)

(0.04)

Total Special Items

(0.07)

(0.03)

(0.04)

Appendix A-4: Special Items by Income Statement Line Item

(shown as positive/(negative) impact on earnings)

First Quarter 2016 vs. 2015

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

First Quarter

2016

2015

Change

EWC

Non-fuel O&M

(11.5)

(7.5)

(4.0)

Taxes other than income taxes

(1.0)

0.3

(1.3)

Asset write-off and impairments

(7.4)

-

(7.4)

Income taxes - other

7.0

2.5

4.5

  Total EWC

(12.9)

(4.6)

(8.3)

Total Special Items

(12.9)

(4.6)

(8.3)

Totals may not foot due to rounding

Appendix B: As-Reported and Operational EPS Variance Analysis

First 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

1.24

1.24

(0.27)

(0.27)

0.68

0.71

1.65

1.68

Non-fuel O&M

0.13

0.13

(a)

(0.01)

(0.01)

0.06

0.07

(b)

0.18

0.19

Taxes other than income taxes

0.02

0.02

-

-

0.01

0.01

0.03

0.03

Share effect

0.01

0.01

-

-

-

-

0.01

0.01

Decommissioning expense

(0.01)

(0.01)

-

-

0.01

0.01

-

-

Asset write-offs and impairments

-

-

-

-

(0.03)

-

(0.03)

-

Interest expense and other charges

-

-

(0.01)

(0.01)

-

-

(0.01)

(0.01)

Depreciation/amortization expense

(0.03)

(0.03)

-

-

0.02

0.02

(0.01)

(0.01)

Other income (deductions)-other

(0.03)

(0.03)

-

-

(0.07)

(0.07)

(c)

(0.10)

(0.10)

Income taxes – other

(0.12)

(0.12)

(d)

0.04

0.04

(0.03)

(0.03)

(0.11)

(0.11)

Net revenue

(0.12)

(0.12)

(e)

-

-

(0.21)

(0.21)

(f)

(0.33)

(0.33)

2016 earnings

1.09

1.09

(0.25)

(0.25)

0.44

0.51

1.28

1.35

(a)

The quarter-over-quarter increase is attributable to several drivers. Fossil spending was lower quarter-over-quarter due largely to lower scope of work for outage activity. Pension and OPEB expenses were also lower stemming partly from a higher discount rate. Additionally, EAI recorded a deferral of $17.6 million for costs previously expensed related to post-Fukushima and flood barrier compliance. These items were partially offset by higher nuclear generation spending primarily due to an increase in regulatory compliance costs at ANO and an increase in nuclear labor costs, including contract labor.

(b) 

The increase in the current quarter was due largely to lower refueling outage expense resulting from impairments recorded in the 2015. Pension and OPEB expenses were also lower, but largely offset by other benefit cost variances.

(c) 

The decrease quarter-over-quarter was largely due to realized earnings from decommissioning trusts in the first quarter 2015 from rebalancing of VY's decommissioning trust.

(d) 

The quarter-over-quarter decrease was attributable to a first quarter 2015 reversal of a portion of the provision for uncertain tax provisions related to interest accrual of approximately $24 million.

(e) 

The quarterly decrease was driven by weather. The effects of weather were unfavorable in the current quarter and favorable a year ago. The current quarter results also include a $(0.03) per share charge to reflect the estimated impact for recent FERC orders on opportunity sales cases (incremental interest expense was recorded, as well). Excluding these items, net revenue increased due primarily to the EAI rate case, which was effective Feb. 24, 2016 and industrial sales growth.

(f) 

The decrease in the current quarter was driven by lower energy pricing for nuclear assets; capacity pricing was also somewhat lower. The sale of RISEC facility in December 2015 also contributed to the decline. These decreases were partially offset by lower nuclear fuel expense (largely resulting from 2015 impairments) and slightly higher nuclear generation with fewer unplanned outage days.

First Quarter

Weather

Sales growth/pricing

Other

(0.04)

(0.12)

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

First Quarter 2016 vs. 2015 (See Appendix A for details on special items)

(per share in $)

First Quarter

2016

2015

Change

As-Reported Earnings

0.84

0.97

(0.13)

Less:

  Special Items

-

-

-

  Weather

(0.14)

0.08

(0.22)

  Tax Items

0.03

0.13

(0.10)

Adjusted Earnings

0.95

0.76

0.19

Adjusted U/P&O includes a $(0.05) per share charge for the FERC's recent opportunity sales decision and a $0.06 cost deferral from EAI's 2015 rate case decision

Appendix C-2: Utility Operational Performance Measures

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

First Quarter

2016

2015

% Change

% Weather Adjusted

GWh billed

Residential

8,137

9,433

(13.7)

(0.6)

Commercial

6,511

6,721

(3.1)

(1.8)

Governmental

600

592

1.4

1.1

Industrial

11,055

10,406

6.2

6.2

Total Retail Sales

26,303

27,152

(3.1)

1.8

Wholesale

3,140

1,811

73.4

Total Sales

29,443

28,963

1.7

Number of electric retail customers

Residential

2,443,022

2,419,228

1.0

Commercial

350,136

345,616

1.3

Governmental

17,686

17,383

1.7

Industrial

40,823

41,047

(0.5)

Total Retail Customers

2,851,667

2,823,274

1.0

Net Revenue ($ millions)

1,375

1,410

(2.5)

As-reported non-fuel O&M per MWh

18.56

20.17

(8.0)

Operational non-fuel O&M per MWh

18.56

20.17

(8.0)

Appendix D-1: EWC Operational Performance Measures

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

First Quarter

2016

2015

% Change

Owned capacity (MW) (g)

4,880

5,463

(10.7%)

GWh billed

9,246

9,592

(3.6%)

As-reported average total revenue per MWh

$56.47

$67.00

(15.7%)

Adjusted average total revenue per MWh

$56.10

$66.60

(15.8%)

Net revenue ($ millions)

466

527

(11.6%)

As-reported non-fuel O&M per MWh

25.14

25.89

(2.9%)

Operational non-fuel O&M per MWh

23.90

25.11

(4.8%)

EWC Nuclear Fleet

Capacity factor

90%

90%

-

GWh billed

8,688

8,618

0.8%

As-reported average total revenue per MWh

$57.43

$65.78

(12.7%)

Adjusted average total revenue per MWh

$57.04

$65.34

(12.7%)

Production cost per MWh

$21.91

$25.61

(14.4%)

Net revenue ($ millions)

464

511

(9.2%)

Refueling outage days

  Indian Point 2

25

  Indian Point 3

23

(g) 

First quarter 2016 excludes RISEC (583 MW) that was sold in December 2015.

Appendix E: GAAP and Non-GAAP Financial Performance Measures

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

For 12 months ending March 31

2016

2015

Change

GAAP Measures

ROIC - as-reported

0.7%

5.1%

(4.4%)

ROE - as-reported

(2.5%)

8.3%

(10.8%)

Book value per share

$52.38

$56.45

($4.07)

End of period shares outstanding (millions)

178.7

179.5

(0.8)

Non-GAAP Measures

ROIC - operational

5.8%

5.6%

0.2%

ROE - operational

10.4%

9.4%

1.0%

As of March 31 ($ in millions)

GAAP Measures

Cash and cash equivalents

1,092

1,181

(89)

Revolver capacity

3,794

3,779

15

Commercial paper outstanding

578

762

(184)

Total debt

15,092

14,044

1,048

Securitization debt

752

762

(10)

Debt to capital ratio

60.9%

57.4%

3.5%

Off-balance sheet liabilities:

Debt of joint ventures - Entergy's share

77

81

(4)

Leases - Entergy's share

359

422

(63)

Power purchase agreements accounted for as leases

195

224

(29)

Total off-balance sheet liabilities

631

727

(96)

Non-GAAP Measures

Debt to capital ratio, excluding securitization debt

59.7%

56.0%

3.7%

Gross liquidity

4,886

4,960

(74)

Net debt to net capital ratio, excluding securitization debt

57.8%

53.7%

4.1%

Parent debt to total debt ratio, excluding securitization debt

19.5%

20.9%

(1.4%)

Debt to operational adjusted EBITDA, excluding securitization debt

4.6

3.9

0.7

Operational FFO to debt ratio, excluding securitization debt

21.0%

28.2%

(7.2%)

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, excluding revenue from investments in wind generation 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, excluding investments in wind generation accounted for under the equity method of accounting and financially-settled instruments

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 and investments in wind generation 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 Corporation or Subsidiary (Net Income) adjusted for preferred dividends and tax-effected interest expense divided by average invested capital

ROE - as-reported

12-months rolling Net Income 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 and other than temporary impairment losses on decommissioning trust fund assets; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds

Adjusted EPS

As-reported earnings per share 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 earnings

As-reported Net Income 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 adjusted for preferred dividends and tax-effected interest expense divided by average invested capital

ROE - operational

12-months rolling operational Net Income divided by average common equity

Appendix F-2: Abbreviations and Acronyms

AFUDC-

  borrowed funds

Allowance for borrowed funds used during

  construction

MISO

Midcontinent Independent System Operator, Inc.

MPSC

Mississippi Public Service Commission

AFUDC-

  equity funds

Allowance for equity funds used during

  construction

MTEP

MISO Transmission Expansion Planning

NEPOOL

New England Power Pool

ADIT

Accumulated deferred income taxes

Ninemile 6

Ninemile Point Unit 6

ANO

Arkansas Nuclear One (nuclear)

NOAA

National Oceanic and Atmosphere Administration

APSC

Arkansas Public Service Commission

Non-fuel O&M

Non-fuel operation and maintenance expense

BP

Basis point

NRC

Nuclear Regulatory Commission

CCGT

Combined cycle gas turbine

NYISO

New York Independent System Operator, Inc.

CCNO

Council of the City of New Orleans, Louisiana

NYPA

New York Power Authority

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

CZM

Coastal zone management

NYSDOS

New York State Department of State

DCRF

Distribution cost recovery factor

NYSE

New York Stock Exchange

EAI

Entergy Arkansas, Inc.

O&M

Operation and maintenance expense

EBITDA

Earnings before interest, income taxes,

  depreciation and amortization

OCF

Operating cash flow

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.

ESI

Entergy Services, Inc.

PUCT

Public Utility Commission of Texas

EPS

Earnings per share

RFO

Refueling outage

ETI

Entergy Texas, Inc.

RFP

Request for proposal

ETR

Entergy Corporation

RISEC

Rhode Island State Energy Center (CCGT)

EWC

Entergy Wholesale Commodities

ROE

Return on equity

FCA

Forward capacity auction

ROIC

Return on invested capital

FERC

Federal Energy Regulatory Commission

ROS

Rest of state

FFO

Funds from operations

RPCE

Rough production cost equalization

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

SPP

Southwest Power Pool

TCRF

Transmission cost recovery factor

HCM

Human Capital Management program

Top Deer

Top Deer Wind Ventures, LLC

Indian Point 2

Indian Point Energy Center Unit 2 (nuclear)

Union

Union Power Station

Indian Point 3

Indian Point Energy Center Unit 3 (nuclear)

UP&O

Utility, Parent & Other

IPEC

Indian Point Energy Center (nuclear)

VY

Vermont Yankee Nuclear Power Station (nuclear)

ISES

Independence Steam Electric Station (coal)

WACC

Weighted-average cost of capital

ISO

Independent system operator

WOTAB

West of the Atchafalaya Basin

ISO-NE

ISO New England

Waterford 3

Unit No. 3 (nuclear) of the Waterford Steam Electric Station, 100% owned or leased by Entergy Louisiana

LEUG

Louisiana Energy Users Group

LHV

Lower Hudson Valley

WQC

Water Quality Certification

LPSC

Louisiana Public Service Commission

YOY

Year-over-year

LTM

Last twelve months

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)

First Quarter

2016

2015

Utility

As-reported Utility non-fuel O&M

(A)

546,581

584,300

Operational Utility non-fuel O&M

(B)

546,581

584,300

Utility billed sales (GWh)

(C)

29,443

28,963

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

(A/C)

18.56

20.17

Operational Utility non-fuel O&M per MWh

(B/C)

18.56

20.17

EWC

As-reported EWC non-fuel O&M

(D)

232,463

248,326

Special Items included in non-fuel O&M:

 Decisions to close VY, FitzPatrick and Pilgrim

11,521

7,489

     Total special items included in non-fuel O&M

(E)

11,521

7,489

Operational EWC non-fuel O&M

(D-E)

220,942

240,837

EWC billed sales (GWh)

(F)

9,246

9,592

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

(D/F)

25.14

25.89

Operational EWC non-fuel O&M per MWh

[(D-E)/(F)]

23.90

25.11

As-reported EWC operating revenue

(G)

522,079

642,590

Less Palisades below-market PPA amortization

(H)

3,364

3,800

Adjusted EWC operating revenue

(G-H)

518,715

638,790

As-reported EWC nuclear operating revenue

(I)

498,901

566,908

Less Palisades below-market PPA amortization

(H)

3,364

3,800

Adjusted EWC nuclear operating revenue

(I-H)

495,537

563,109

As-reported EWC average total revenue per MWh

(G)/(F)

56.47

67.00

Adjusted EWC average total revenue per MWh

[(G-H)/(F)]

56.10

66.60

EWC nuclear billed sales (GWh)

(J)

8,688

8,618

As-reported EWC nuclear average total revenue per MWh

(I)/(J)

57.43

65.78

Adjusted EWC nuclear average total revenue per MWh

[(I-H)/(J)]

57.04

65.34

Totals may not foot due to rounding

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

($ in millions)       

First Quarter

2016

2015

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

(A)

(245)

838

Preferred dividends

20

20

Tax effected interest expense

398

389

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

(B)

173

1,247

Special items in prior quarters

(1,248)

(101)

Decisions to close VY, FitzPatrick and Pilgrim

(13)

(5)

  Total special items, rolling 12 months

(C)

(1,261)

(105)

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

(B-C)

1,434

1,352

Operational earnings, rolling 12 months

(A-C)

1,016

943

Average invested capital

(D)

24,627

24,298

Average common equity

(E)

9,747

10,041

ROIC - as-reported %

(B/D)

0.7

5.1

ROIC - operational %

[(B-C)/D]

5.8

5.6

ROE - as-reported %

(A/E)

(2.5)

8.3

ROE - operational %

[(A-C)/E]

10.4

9.4

Totals may not foot due to rounding

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

($ in millions)

First Quarter

2016

2015

Total debt

(A)

15,092

14,044

Less securitization debt

(B)

752

762

Total debt, excluding securitization debt

(C)

14,340

13,282

Less cash and cash equivalents

(D)

1,092

1,181

  Net debt, excluding securitization debt

(E)

13,248

12,101

Total capitalization

(F)

24,771

24,483

Less securitization debt

(B)

752

762

Total capitalization, excluding securitization debt

(G)

24,019

23,721

Less cash and cash equivalents

(D)

1,092

1,181

Net capital, excluding securitization debt

(H)

22,927

22,540

Debt to capital ratio %

(A/F)

60.9

57.4

Debt to capital ratio, excluding securitization debt %

(C/G)

59.7

56.0

Net debt to net capital ratio, excluding securitization debt %

(E/H)

57.8

53.7

Revolver capacity

(I)

3,794

3,779

Gross liquidity

(D+I)

4,886

4,960

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)

616

508

Commercial paper

(L)

578

762

Total parent debt

(J)+(K)+(L)

2,794

2,770

Parent debt to total debt ratio, excluding securitization debt %

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

19.5

20.9

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

($ in millions)

First Quarter

2016

2015

Total debt

(A)

15,092

14,044

Less securitization debt

(B)

752

762

Total debt, excluding securitization debt

(C)

14,340

13,282

As-reported consolidated net income (loss), rolling 12 months

(245)

857

Add back: interest expense, rolling 12 months

647

632

Add back: income tax expense, rolling 12 months

(653)

523

Add back: depreciation and amortization, rolling 12 months

1,340

1,322

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

166

(7)

Subtract: securitization proceeds, rolling 12 months

136

129

Subtract: interest and investment income, rolling 12 months

152

181

Subtract: AFUDC-equity funds, rolling 12 months

59

61

Add back: decommissioning expense, rolling 12 months

279

277

  Adjusted EBITDA, rolling 12 months

(D)

1,187

3,233

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

-

11

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

1,670

152

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

396

-

Add back: 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)

3,136

3,396

Debt to operational adjusted EBITDA, excluding securitization debt

(C)/(E)

4.6

3.9

Net cash flow provided by operating activities, rolling 12 months

(F)

3,213

3,733

AFUDC-borrowed funds used during construction, rolling 12 months

(G)

(30)

(33)

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

  Receivables

92

72

  Fuel inventory

1

(35)

  Accounts payable

(49)

(200)

  Prepaid taxes and taxes accrued

134

(51)

  Interest accrued

4

7

  Other working capital accounts

(118)

137

  Securitization regulatory charge

106

97

       Total

(H)

170

27

FFO, rolling 12 months

(F)+(G)-(H)

3,013

3,673

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

-

23

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

4

56

Operational FFO, rolling 12 months

(I)

3,017

3,752

Operational FFO to debt ratio, excluding securitization debt %

(I)/(C)

21.0

28.2

Totals may not foot due to rounding