Entergy 2009 Annual Report Download - page 25

Entergy Corporation and Subsidiaries
Management's Financial Discussion and Analysis
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Net debt consists of debt less cash and cash equivalents. Debt consists of notes payable, capital lease obligations,
preferred stock with sinking fund, and long-term debt, including the currently maturing portion. Capital consists of
debt, shareholders' equity, and preferred stock without sinking fund. Net capital consists of capital less cash and
cash equivalents. Entergy uses the net debt to net capital ratio in analyzing its financial condition and believes it
provides useful information to its investors and creditors in evaluating Entergy's financial condition.
Long-term debt, including the currently maturing portion, makes up substantially all of Entergy's total debt
outstanding. Following are Entergy's long-term debt principal maturities and estimated interest payments as of
December 31, 2009. To estimate future interest payments for variable rate debt, Entergy used the rate as of
December 31, 2009. The figures below include payments on the Entergy Louisiana and System Energy sale-
leaseback transactions, which are included in long-term debt on the balance sheet.
Long-term debt maturities and
estimated interest payments 2010 2011 2012 2013-2014 after 2014
(In Millions)
Utility $863 $796 $596 $1,590 $9,865
Non-Utility Nuclear 36 33 31 41 65
Parent Company and Other
Business Segments 328 122 2,587 - -
Total $1,227 $951 $3,214 $1,631 $9,930
Note 5 to the financial statements provides more detail concerning long-term debt.
Entergy Corporation has a revolving credit facility that expires in August 2012 and has a borrowing capacity
of $3.5 billion. Entergy Corporation also has the ability to issue letters of credit against the total borrowing capacity
of the credit facility. The facility fee is currently 0.09% of the commitment amount. Facility fees and interest rates
on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy
Corporation. The weighted average interest rate for the year ended December 31, 2009 was 1.377% on the drawn
portion of the facility.
As of December 31, 2009, amounts outstanding and capacity available under the $3.5 billion credit facility
are:
Capacity Borrowings
Letters
of Credit
Capacity
Available
(In Millions)
$3,500 $2,566 $28 $906
Under covenants contained in Entergy Corporation's credit facility and in the indenture governing
Entergy Corporation's senior notes, Entergy is required to maintain a consolidated debt ratio of 65% or less of its total
capitalization. The calculation of this debt ratio under Entergy Corporation's credit facility and in the indenture
governing the Entergy Corporation senior notes is different than the calculation of the debt to capital ratio above.
Entergy is currently in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy or one of the
Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or
insolvency proceedings, an acceleration of the Entergy Corporation credit facility's maturity date may occur and there
may be an acceleration of amounts due under Entergy Corporation's senior notes.
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