Entergy 2004 Annual Report Download - page 73

Entergy Corporation and Subsidiaries 2004
-71 -
NOTE 6. PREFERRED STOCK
The number of shares authorized and outstanding and dollar value of preferred stock and minority interest for Entergy Corporation
subsidiaries as of December 31, 2004 and 2003 are presented below. Only the Entergy Gulf States series “with sinking fund” contain
mandatory redemption requirements. All other series of the U.S. Utility are redeemable at Entergy’s option. ($ in thousands)
Shares Authorized Shares Outstanding
2004 2003 2004 2003 2004 2003
U.S. Utility:
Preferred Stock without sinking fund:
Entergy Arkansas, 4.32% - 7.88% Series 1,613,500 1,613,500 1,613,500 1,613,500 $116,350 $116,350
Entergy Gulf States, 4.20% - 7.56% Series 473,268 473,268 473,268 473,268 47,327 47,327
Entergy Louisiana, 4.16% - 8.00% Series 2,115,000 2,115,000 2,115,000 2,115,000 100,500 100,500
Entergy Mississippi, 4.36% - 8.36% Series 503,807 503,807 503,807 503,807 50,381 50,381
Entergy New Orleans, 4.36% - 5.56% Series 197,798 197,798 197,798 197,798 19,780 19,780
Total U.S. Utility Preferred Stock without sinking fund 4,903,373 4,903,373 4,903,373 4,903,373 $334,337 $334,337
Energy Commodity Services:
Preferred Stock without sinking fund:
Entergy Asset Management, 11.50% Rate 1,000,000 – 297,376 – 29,738 –
Other – – – – 1,281 –
Total Preferred Stock without sinking fund 5,903,373 4,903,373 5,200,749 4,903,373 $365,356 $334,337
U.S. Utility:
Preferred Stock with sinking fund:
EntergyGulf States, Adjustable Rate 7.0%(a) 174,000 208,520 174,000 208,520 $ 17,400 $ 20,852
Total Preferred Stock with sinking fund 174,000 208,520 174,000 208,520 $ 17,400 $ 20,852
Fair Value of Preferred Stock with sinking fund(b) $15,286 $ 15,354
Totals may not foot due to rounding.
(a) Represents weighted-average annualized rate for 2004 and 2003.
(b) Fair values were determined using bid prices reported by dealer markets and by nationally recognized investment banking firms. There is additional disclosure of
fair value of financial instruments in Note 14 to the consolidated financial statements.
Alloutstanding preferred stock is cumulative.
Entergy Gulf States’ preferred stock with sinking fund retirements were 34,500 shares in 2004 and 2003, and 18,579 shares in 2002.
Entergy Gulf States has annual sinking fund requirements of $3.45 million through 2009 for its preferred stock outstanding.
In 2004, Entergy realized a pre-tax gain of $0.9 million upon the sale to a third party of preferred shares, and less than 1% of the
common shares, of Entergy Asset Management, an Entergy subsidiary. See Note 3 to the consolidated financial statements for a discussion
of the tax benefit realized on the sale. Entergy Asset Management’s stockholders’ agreement provides that at any time during the 180-day
period prior to December 31, 2007 or each subsequent December 31 thereafter, either Entergy Asset Management or the preferred
shareholders may request that the preferred dividend rate be reset. If Entergy Asset Management and the preferred shareholders are unable
to agree on a dividend reset rate, a preferred shareholder can request that its shares be sold to a third party. If Entergy Asset Management is
unable to sell the preferred shares within 75 days, the preferred shareholder has the right to take control of the Entergy Asset Management
board of directors for the purpose of liquidating the assets of Entergy Asset Management in order to repay the preferred shares and any
accrued dividends.
NOTE 7. COMMON EQUITY
Common Stock
Treasury Stock
Treasury stock activity for Entergy for 2004 and 2003 is as follows ($ in thousands):
2004 2003
Treasury Shares Cost Treasury Shares Cost
Beginning Balance, January 1 19,276,445 $ 561,152 25,752,410 $ 747,331
Repurchases 16,631,800 1,017,996 155,000 8,135
Issuances:
Employee Stock-Based Compensation Plans (4,555,897) (146,877) (6,622,095) (194,057)
Directors’ Plan (7,320) (252) (8,870) (257)
Ending Balance, December 31 31,345,028 $1,432,019 19,276,445 $ 561,152
Entergy Corporation reissues treasury shares to meet the requirements of the Stock Plan for Outside Directors (Directors’ Plan), the
Equity Ownership Plan of Entergy Corporation and Subsidiaries (Equity Ownership Plan), the Equity Awards Plan of Entergy
Corporation and Subsidiaries, and certain other stock benefit plans. The Directors’ Plan awards to non-employee directors a portion of their
compensation in the form of a fixed number of shares of Entergy Corporation common stock.
NOTES to CONSOLIDATED FINANCIAL STATEMENTS continued