Entergy 2003 Annual Report Download - page 23

CONTENTS
22 Five-Year Summary of
Selected Financial and
Operating Data
23 Management’s Financial
Discussion and Analysis
49 Report of Management
49 Independent Auditors’ Report
50 Consolidated Statements of Income
51 Consolidated Statements
of Retained Earnings,
Comprehensive Income,
and Paid-In Capital
52 Consolidated Balance Sheets
54 Consolidated Statements
of Cash Flows
56 Notes to Consolidated
Financial Statements
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ENTERGY CORPORATION AND SUBSIDIARIES 2003ENTERGY CORPORATION AND SUBSIDIARIES 2003
resolution of pending and future rate
cases and negotiations, including various
performance-based rate discussions, and
other regulatory decisions, including those
related to Entergy’s System Agreement
and utility supply plan
Entergy’s ability to reduce its operation
and maintenance costs, particularly at its
Non-Utility Nuclear generating facilities,
including the uncertainty of negotiations
with unions to agree to such reductions
the performance of Entergy’s generating
plants, and particularly the capacity
factors at its nuclear generating facilities
prices for power generated by Entergy’s
unregulated generating facilities, the
ability to extend or replace the existing
purchased power agreements for those
facilities, including the Non-Utility
Nuclear plants, and the prices and
availability of power Entergy must
purchase for its utility customers
Entergy’s ability to develop and execute
on a point of view regarding prices of
electricity, natural gas, and other energy-
related commodities
Entergy-Koch’s profitability in trading
physical and financial natural gas and
power as well as other energy and
weather-related contracts
changes in the number of participants in
the energy trading market, and in their
creditworthiness and risk profile
changes in the financial markets, particularly
those affecting the availability of capital and
Entergy’s ability to refinance existing debt
and to fund investments and acquisitions
actions of rating agencies, including
changes in the ratings of debt and
preferred stock
changes in inflation and interest rates
Entergy’s ability to purchase and sell
assets at attractive prices and on other
attractive terms
changes in ownership of joint ventures
volatility and changes in markets for
electricity, natural gas, uranium, and
other energy-related commodities
changes in utility regulation, including
the beginning or end of retail and whole-
sale competition, the ability to recover net
utility assets and other potential stranded
costs, and the establishment of a regional
transmission organization that includes
Entergy’s utility service territory
changes in regulation of nuclear
generating facilities and nuclear
materials and fuel, including possible
shutdown of Indian Point or other
nuclear generating facilities
resolution of pending or future
applications for license extensions of
nuclear generating facilities
changes in law resulting from proposed
energy legislation
changes in environmental, tax, and
other laws, including requirements
for reduced emissions of sulfur,
nitrogen, carbon, mercury, and
other substances
the economic climate, and particularly
growth in Entergy’s service territory
variations in weather, hurricanes, and
other disasters
advances in technology
the potential impacts of threatened or
actual terrorism and war
the success of Entergy’s strategies to
reduce current tax payments
the effects of litigation
changes in accounting standards,
corporate governance, and securities
law requirements
Entergy’s ability to attract and retain
talented management and directors.
FORWARD-LOOKING INFORMATION
From time to time, Entergy makes statements concerning its expectations, beliefs,
plans, objectives, goals, strategies, and future events or performance. Such
statements are “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Although Entergy believes that these
forward-looking statements and the underlying assumptions are reasonable,
it cannot provide assurance that they will prove correct. 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 involve a number of risks and uncertainties, and
there are factors that could cause actual results to differ materially from those
expressed or implied in the statements. Some of those factors (in addition to others
described elsewhere in this report and in subsequent securities filings) include:
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NON-GAAP TO GAAP RECONCILIATION
Earnings Per Share 1998 1999 2000 2001 2002 2003
As-Reported $ 3.00 $ 2.25 $ 2.97 $ 3.23 $ 2.64 $ 4.01
Special Items $(0.78) $ (0.08) $ 0.15 $ – $ 1.17 $ 0.24
Operational $ 2.22 $ 2.17 $ 3.12 $ 3.23 $ 3.81 $ 4.25