Entergy 2009 Annual Report Download - page 110

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Entergy Corporation and Subsidiaries
Notes to Financial Statements
106
NOTE 7. COMMON EQUITY
Common Stock
Treasury Stock
Treasury stock activity for Entergy for 2009, 2008, and 2007 is as follows:
2009 2008 2007
Treasury Treasury Treasury
Shares Cost Shares Cost Shares Cost
(In Thousands) (In Thousands) (In Thousands)
Beginning Balance, January 1 58,815,518 $4,175,214 55,053,847 $3,734,865 45,506,311 $2,644,390
Repurchases 7,680,000 613,125 4,792,299 512,351 11,581,842 1,215,578
Issuances:
Employee Stock-Based
Compensation Plans (856,390) (60,846) (1,025,408) (71,636) (2,029,686) (124,801)
Directors' Plan (4,548) (326) (5,220) (366) (4,620) (302)
Ending Balance, December 31 65,634,580 $4,727,167 58,815,518 $4,175,214 55,053,847 $3,734,865
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. 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 completed both the $1.5 billion and $500 million programs in the third quarter 2009. In October 2009, the
Board granted authority for an additional $750 million share repurchase program.
Retained Earnings and Dividend Restrictions
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, 2009, Entergy Arkansas
and Entergy Mississippi had restricted retained earnings unavailable for distribution to Entergy Corporation of
$461.6 million and $236 million, respectively. Entergy Corporation received dividend payments from subsidiaries
totaling $417 million in 2009, $313 million in 2008, and $625 million in 2007.
NOTE 8. COMMITMENTS AND CONTINGENCIES
Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings
before various courts, regulatory commissions, and governmental agencies in the ordinary course of business. While
management is unable to predict the outcome of such proceedings, management does not believe that the ultimate
resolution of these matters will have a material adverse effect on Entergy's results of operations, cash flows, or
financial condition. Entergy discusses regulatory proceedings in Note 2 to the financial statements and discusses tax
proceedings in Note 3 to the financial statements.
108