Entergy 2007 Annual Report Download - page 27

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Coming Attractions
hen executed, the spin-o of our non-utility nuclear assets will
create three entities – Entergy Classic, SpinCo and the Nuclear
Services joint venture. Each company in this value trilogy will
continue to aspire individually to deliver superior value to its owners.
e nancial aspirations for 2008 through 2012 for each
business are:
n฀ Entergy Classic aspires to 6 to 8 percent annualized growth in
earnings per share, a 70 to 75 percent dividend payout ratio target
and the capacity for a new share repurchase program targeted
at $2.5 billion beginning aer the completion of the spin-o. In
January 2008, the Entergy Board of Directors authorized $0.5 billion
of this program. e balance is expected to be authorized and to
commence following completion of the spin-o.
n฀ SpinCo aspires to $2 billion in 2012 earnings before interest, taxes,
depreciation and amortization generating cash ow for ongoing
acquisitions and/or distribution capacity through share repurchases
in the range of $0.5 billion to $1.0 billion annually. Subject to market
terms and conditions, SpinCo expects to execute approximately
$4.5 billion of debt nancing.
n฀ To be owned equally by Entergy Classic and SpinCo, the Nuclear
Services joint venture aspires to safe, secure and industry-leading
nuclear operational performance. e joint venture will operate
SpinCo’s plants and the Cooper Nuclear Station and will provide
certain technical services and the Chief Nuclear Ocer to Entergy
Classic following the spin. In addition, the joint venture expects to
pursue growth opportunities by oering nuclear services including
plant operations, decommissioning and relicensing to third parties.
We will be working diligently throughout 2008 to execute our
plans and complete the spin-o of our non-utility nuclear assets to
our shareholders. We have established a steering committee to lead
the overall spin-o process and make nal recommendations on all
major business and operational issues. We also established a project
management oce to coordinate all aspects of the spin-o process
across multiple functional areas, including nuclear operations, support
services, regulatory aairs and nancial planning and execution. We
will continue to take the necessary actions, including seeking requisite
regulatory approvals, in order to complete the transaction around the
end of the third quarter of 2008.
W
Entergy Corporation and Subsidiaries 2007
25
Financial Review
27 Five-Year Summary of Selected Financial and
Operating Data
28 Management’s Financial Discussion
and Analysis
52 Report of Management
53 Reports of Independent Registered Public
Accounting Firm
53 Internal Control Over Financial Reporting
54 Consolidated Statements of Income
55 Consolidated Statements of Retained Earnings,
Comprehensive Income and Paid-In Capital
56 Consolidated Balance Sheets
58 Consolidated Statements of Cash Flows
60 Notes to Consolidated Financial Statements