Entergy 2008 Annual Report Download - page 87

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8585
ENTERGY CORPORATION AND SUBSIDIARIES 2008
85
Notes to Consolidated Financial Statements continued
85
NOTE 7. COMMON STOCK
CO M M O N ST O C K
Treasury Stock
Treasury stock activity for Entergy for 2008, 2007, and 2006 is as follows (dollars in thousands):
2008 2007 2006
Treasury Treasury Treasury
Shares Cost Shares Cost Shares Cost
Beginning Balance, January 1 55,053,847 $3,734,865 45,506,311 $2,644,390 40,644,602 $2,161,960
Repurchases 4,792,299 512,351 11,581,842 1,215,578 6,672,000 584,193
Issuances:
Employee Stock-Based Compensation Plans (1,025,408) (71,636) (2,029,686) (124,801) (1,803,471) (101,393)
Directors’ Plan (5,220) (366) (4,620) (302) (6,820) (370)
Ending Balance, December 31 58,815,518 $4,175,214 55,053,847 $3,734,865 45,506,311 $2,644,390
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 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.
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, of which $1.4 billion was repurchased as of December 31, 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.
Entergy expects to complete both of these programs in 2009.
The amount of repurchases may vary as a result of material changes in business results or capital spending or new investment
opportunities.
The 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 T A 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, 2008, Entergy Arkansas and Entergy Mississippi had restricted retained earnings
unavailable for distribution to Entergy Corporation of $461.6 million and $121.6 million, respectively. Entergy Corporation received
dividend payments from subsidiaries totaling $313 million in 2008, $625 million in 2007, and $950 million in 2006.