Entergy 2007 Annual Report Download - page 83

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Entergy Corporation and Subsidiaries 2007
Notes to Consolidated Financial Statements continued
NOTE 6. PREFERRED EQUITY
e number of shares and units authorized and outstanding and dollar value of preferred stock, preferred membership interests, and minority
interest for Entergy Corporation subsidiaries as of December 31, 2007 and 2006 are presented below. All series of the Utility preferred stock are
redeemable at the option of the related company ($ in thousands):
(a) Subsequent to December 31, 2007, the rate was reset to 8.95%. e preferred stockholders’ agreement provides that each December 31 either Entergy Asset Manage-
ment 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.
(b) Represents weighted-average annualized rate for 2006.
(c) 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 16 to the financial statements.
(d) In 2007, Entergy Louisiana Holding, an Entergy subsidiary, purchased 160,000 of these shares from the holders.
(e) Pending developments in the Entergy New Orleans bankruptcy proceeding, Entergy deconsolidated Entergy New Orleans and reported its financial
position and results under the equity method of accounting in 2005 and 2006. Entergy reconsolidated Entergy New Orleans in 2007.
All outstanding preferred stock and membership interests are cumulative.
At December 31, Entergy Gulf States Louisiana had outstanding 100,000 units of no par value 8.25% Series Preferred Membership Interests that
were initially issued by Entergy Gulf States, Inc. as preference stock. e preference shares were converted into the preferred units as part of the
jurisdictional separation. e distributions are cumulative and payable quarterly beginning March 15, 2008. e preferred membership interests
are redeemable on or aer December 15, 2015, at Entergy Gulf States Louisiana’s option, at the xed redemption price of $100 per unit.
In December 2007, Entergy Gulf States, Inc. redeemed all outstanding shares of the following series of preferred stock:
Series of Entergy Gulf States Louisiana Preferred Stock Redemption Price Per Share
4.50% Preferred Stock, Cumulative, $100 par value $105.00
4.40% Preferred Stock, Cumulative, $100 par value $108.00
4.40% Preferred Stock, Cumulative, $100 par value $103.00
4.20% Preferred Stock, Cumulative, $100 par value $102.818
4.44% Preferred Stock, Cumulative, $100 par value $103.75
5.00% Preferred Stock, Cumulative, $100 par value $104.25
5.08% Preferred Stock, Cumulative, $100 par value $104.63
4.52% Preferred Stock, Cumulative, $100 par value $103.57
6.08% Preferred Stock, Cumulative, $100 par value $103.34
7.56% Preferred Stock, Cumulative, $100 par value $101.80
Adjustable Rate A Preferred Stock, Cumulative, $100 par value $100.00
Adjustable Rate B Preferred Stock, Cumulative, $100 par value $100.00
Entergy Gulf States Louisiana’s preferred stock with sinking fund retirements were 34,500 shares in 2006 and 2005. Entergy Gulf States Louisiana
has no annual sinking fund requirements for its preferred membership interests outstanding.
Shares/Units Authorized Shares/Units Outstanding
2007 2006 2007 2006 2007 2006
Entergy Corporation
Utility:
Preferred Stock or Membership Interests without sinking fund:
Entergy Arkansas, 4.32% – 7.88% Series 3,413,500 3,413,500 3,413,500 3,413,500 $116,350 $116,350
Entergy Gulf States Louisiana, Series A 8.25% 100,000 – 100,000 – 10,000 –
Entergy Gulf States Louisiana, 4.20% – 7.56% Series – 473,268 – 473,268 – 47,327
Entergy Louisiana, 6.95% Series(d) 1,000,000 1,000,000 840,000 1,000,000 84,000 100,000
Entergy Mississippi, 4.36% – 6.25% Series 1,403,807 1,403,807 1,403,807 1,403,807 50,381 50,381
Entergy New Orleans, 4.36% – 5.56% Series(e) 197,798 – 197,798 – 19,780 –
Total Utility Preferred Stock or Preferred Membership Interests
without sinking fund 6,115,105 6,290,575 5,955,105 6,290,575 280,511 314,058
Non-Utility Wholesale Assets Business:
Preferred Stock without sinking fund:
Entergy Asset Management, 11.50% rate(a) 1,000,000 1,000,000 297,376 297,376 29,738 29,738
Other – – – – 913 1,117
Total Preferred Stock or Preferred Membership Interests
without sinking fund and Preference Stock 7,115,105 7,290,575 6,252,481 6,587,951 $311,162 $344,913
Utility:
Preferred Stock with sinking fund:
Entergy Gulf States Louisiana, Adjustable Rate 7.0%(b) – 105,000 – 105,000 $ – $ 10,500
Total Preferred Stock with sinking fund – 105,000 – 105,000 $ – $ 10,500
Fair Value of Preferred Stock with sinking fund(c)$ – $ 7,950