Entergy 2009 Annual Report Download - page 118

Download and view the complete annual report

Please find page 118 of the 2009 Entergy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 154

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154

Entergy Corporation and Subsidiaries
Notes to Financial Statements
114
NOTE 10. LEASES
General
As of December 31, 2009, Entergy Corporation and subsidiaries had capital leases and non-cancelable
operating leases for equipment, buildings, vehicles, and fuel storage facilities (excluding nuclear fuel leases and the
Grand Gulf and Waterford 3 sale and leaseback transactions) with minimum lease payments as follows:
Year
Operating
Leases
Capital
Leases
(In Thousands)
2010 $95,392 $4,924
2011 79,043 4,924
2012 66,042 4,924
2013 58,279 4,924
2014 58,557 3,124
Years thereafter 172,752 43,480
Minimum lease payments 530,065 66,300
Less: Amount representing interest -26,708
Present value of net minimum lease payments $530,065 $39,592
Total rental expenses for all leases (excluding nuclear fuel leases and the Grand Gulf and Waterford 3 sale
and leaseback transactions) amounted to $71.6 million in 2009, $66.4 million in 2008, and $78.8 million in 2007.
Nuclear Fuel Leases
As of December 31, 2009, arrangements to lease nuclear fuel existed in an aggregate amount up to $215
million for Entergy Arkansas, $210 million for Entergy Gulf States Louisiana, $160 million for Entergy Louisiana,
and $155 million for System Energy. As of December 31, 2009, the unrecovered cost base of nuclear fuel leases
amounted to approximately $173.1 million for Entergy Arkansas, $157.0 million for Entergy Gulf States Louisiana,
$122.0 million for Entergy Louisiana, and $75.4 million for System Energy. The lessors finance the acquisition and
ownership of nuclear fuel through loans made under revolving credit agreements, the issuance of commercial paper,
and the issuance of intermediate-term notes. The credit agreements for Entergy Arkansas, Entergy Gulf States
Louisiana, Entergy Louisiana, and System Energy each have a termination date of August 12, 2010. The termination
dates may be extended from time to time with the consent of the lenders. The intermediate-term notes issued
pursuant to these fuel lease arrangements have varying maturities through July 15, 2014. It is expected that
additional financing under the leases will be arranged as needed to acquire additional fuel, to pay interest, and to pay
maturing debt. However, if such additional financing cannot be arranged, the lessee in each case must repurchase
sufficient nuclear fuel to allow the lessor to meet its obligations in accordance with the fuel lease.
116