Entergy 2003 Annual Report Download - page 35

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33
ENTERGY CORPORATION AND SUBSIDIARIES 2003
2002 COMPARED TO 2001
Net cash used in investing activities decreased in 2002
primarily due to the following:
Entergy used $420 million less cash in its 2002 nuclear
power plant purchase than it used in its 2001 purchase.
In July 2002, Entergy’s Non-Utility Nuclear business
purchased the Vermont Yankee nuclear power plant for
$180 million in cash. In September 2001, Entergy’s Non-
Utility Nuclear business purchased the Indian Point 2
nuclear power plant for $600 million in cash. The
liabilities to decommission both plants, as well as related
decommissioning trust funds, were also transferred
to Entergy. These decommissioning trust transfers are
reflected in the non-cash activity section of the cash
flow statements.
Entergy made cash contributions of approximately
$414 million in 2001 in connection with the formation
of Entergy-Koch.
Entergy made a $272 million cash investment in 2001
to provide the collateral, discussed above, for the letter
of credit that secures the installment obligations owed to
NYPA. Approximately $40 million of this collateral was
released to Entergy in 2002.
Entergy used $150 million to invest in temporary
investments with a maturity of greater than 90 days
in 2001 and those investments matured in 2002. This
resulted in a net decrease of $300 million in cash used
in 2002.
Partially offsetting the decrease in net cash used in investing
activities were the following:
Entergy received less cash from sales of businesses in
2002 than it received in 2001. The sale of the Saltend
plant in August 2001 provided approximately $810 million
in cash, while the sale of various projects in 2002
provided approximately $215 million in cash.
Entergy spent approximately $150 million more on
construction in 2002 than in 2001, primarily for
construction of the Harrison County project.
Financing Activities
2003 COMPARED TO 2002
Net cash used in financing activities increased in 2003
primarily due to the following:
Net long-term debt retirements by the U.S. Utility
segment were approximately $470 million in 2003
compared to net issuances of approximately $76 million
in 2002. See Note 5 to the consolidated financial
statements for the details of Entergy’s long-term
debt outstanding.
The net borrowings under Entergy Corporation’s credit
facilities decreased $500 million in 2003 compared to an
increase of $244 million in 2002.
The items causing cash used to increase in 2003 were
partially offset by the following:
Entergy Corporation issued $538 million of long-term
notes in 2003 compared to $267 million in 2002.
The non-nuclear wholesale assets business retired
$268 million of long-term debt in 2002 related to the
repurchase of the rights to acquire turbines discussed
in Results of Operations above. Partially offsetting this
was the retirement of the $79 million Top of Iowa wind
project debt at its maturity in January 2003.
Entergy repurchased $8 million of its common stock in
2003 compared to $118 million in 2002.
2002 COMPARED TO 2001
Net cash used in financing activities decreased in 2002
primarily due to:
Entergy increased the net borrowings under Entergy
Corporation’s credit facilities by $295 million in 2002.
Entergy Corporation issued $267 million of long-term
notes in 2002.
The non-nuclear wholesale assets business used
$196 million less cash in 2002 to retire debt than it did
in 2001. This primarily resulted from two transactions.
The non-nuclear wholesale assets business retired
$268 million of long-term debt in April 2002 related
to the acquisition of the rights to purchase turbines
from a special-purpose financing entity. In 2001, the
non-nuclear wholesale assets business retired the
$555 million outstanding on the Saltend credit facility
when the plant was sold.
Issuances of long-term debt net of retirements by the
U.S. Utility segment provided $113 million less cash in
2002 than in 2001. Net issuances were $76 million in
2002 compared to $189 million in 2001.
Entergy repurchased $81.6 million more of its common
stock in 2002 than in 2001.
In a non-cash transaction in 2002, long-term debt was
reduced by $488 million in the sale of the Damhead Creek
plant when the purchaser assumed the Damhead Creek debt
along with the acquisition of the plant.
“The U.S. Utility provided
$1,675 million in operating
cash flow in 2003.”