Entergy 2007 Annual Report Download - page 84

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82
Entergy Corporation and Subsidiaries 2007
Notes to Consolidated Financial Statements continued
NOTE 7. COMMON EQUITY
CO M M O N ST O C K
Treasury Stock
Treasury stock activity for Entergy for 2007, 2006, and 2005 is as follows ($ in thousands):
Entergy Corporation reissues treasury shares to meet the requirements of the Stock Plan for Outside Directors (Directors’ Plan), two Equity
Ownership Plans of Entergy Corporation and Subsidiaries, the Equity Awards Plan of Entergy Corporation and Subsidiaries, and certain other
stock benet plans. e Directors’ Plan awards to non-employee directors a portion of their compensation in the form of a xed number of shares
of Entergy Corporation common stock.
In January 2007, the Board approved a repurchase program under which Entergy is authorized to repurchase up to $1.5 billion of its common
stock, which Entergy expects to complete in 2008. In January 2008, the Board authorized an incremental $500 million share repurchase program
to enable Entergy to consider opportunistic purchases in response to equity market conditions.
e amount of repurchases may vary as a result of material changes in business results or capital spending or new investment opportunities.
e Board had previously approved a program under which Entergy was authorized to repurchase up to $1.5 billion of its common stock
through 2006. Entergy completed this program in the fourth quarter 2006.
RE TA I N E D EA R N I N G S A N D DI V I D E N D RE S T R I C T I O N S
Provisions within the articles of incorporation or pertinent indentures and various other agreements relating to the long-term debt and preferred
stock of certain of Entergy Corporation’s subsidiaries restrict the payment of cash dividends or other distributions on their common and preferred
stock. As of December 31, 2007, Entergy Arkansas and Entergy Mississippi had restricted retained earnings unavailable for distribution to Entergy
Corporation of $396.4 million and $121.6 million, respectively. Entergy Corporation received dividend payments from subsidiaries totaling $625
million in 2007, $950 million in 2006, and $424 million in 2005.
2007 2006 2005
Treasury
Shares Cost
Treasury
Shares Cost
Treasury
Shares
Beginning Balance, January 1 45,506,311 $2,644,390 40,644,602 $2,161,960 31,345,028 $1,432,019|
Repurchases 11,581,842 1,215,578 6,672,000 584,193 12,280,500 878,188|
Issuances:
Employee Stock-Based Compensation Plans (2,029,686) (124,801) (1,803,471) (101,393) (2,965,006) (147,888)
Directors’ Plan (4,620) (302) (6,820) (370) (15,920) (359)
Ending Balance, December 31 55,053,847 $3,734,865 45,506,311 $2,644,390 40,644,602 $2,161,960-
Cost