Entergy 2009 Annual Report Download - page 36

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Entergy Corporation and Subsidiaries
Management's Financial Discussion and Analysis
32
Cash Flow Activity
As shown in Entergy's Statements of Cash Flows, cash flows for the years ended December 31, 2009, 2008,
and 2007 were as follows:
2009 2008 2007
(In Millions)
Cash and cash equivalents at beginning of period $1,920 $1,253 $1,016
Effect of reconsolidating Entergy New Orleans in 2007 - - 17
Cash flow provided by (used in):
Operating activities 2,933 3,324 2,560
Investing activities (2,094) (2,590) (2,118)
Financing activities (1,048) (70) (222)
Effect of exchange rates on cash and cash equivalents (1) 3 -
Net increase (decrease) in cash and cash equivalents (210) 667 220
Cash and cash equivalents at end of period $1,710 $1,920 $1,253
Operating Cash Flow Activity
2009 Compared to 2008
Entergy's cash flow provided by operating activities decreased by $391 million in 2009 compared to 2008
primarily due to the receipt in 2008 of $954 million from the Louisiana Utilities Restoration Corporation as a result
of the Louisiana Act 55 storm cost financings, Arkansas ice storm restoration spending, and increases in nuclear
refueling outage spending and spin-off costs at Non-Utility Nuclear. These factors were partially offset by a
decrease of $94 million in income tax payments, a decrease of $155 million in pension contributions at Utility and
Non-Utility Nuclear, increased collection of fuel costs, and higher spending in 2008 on Hurricane Gustav and
Hurricane Ike storm restoration.
2008 Compared to 2007
Entergy's cash flow provided by operating activities increased by $765 million in 2008 compared to 2007.
Following are cash flows from operating activities by segment:
Utility provided $2,379 million in cash from operating activities in 2008 compared to providing
$1,809 million in 2007 primarily due to proceeds of $954 million received from the Louisiana Utilities
Restoration Corporation as a result of the Louisiana Act 55 storm cost financings. The Act 55 storm cost
financings are discussed in more detail in Note 2 to the financial statements. A decrease in income tax
payments of $290 million also contributed to the increase. Offsetting these factors were the net effect of
Hurricane Gustav and Hurricane Ike which reduced operating cash flow by $444 million in 2008 as a result
of costs associated with system repairs and lower revenues due to customer outages, the receipt of $181
million of Community Development Block Grant funds by Entergy New Orleans in 2007, and a $100 million
increase in pension contributions in 2008.
Non-Utility Nuclear provided $1,255 million in cash from operating activities in 2008 compared to providing
$880 million in 2007, primarily due to an increase in net revenue, partially offset by an increase in operation
and maintenance costs, both of which are discussed in "Results of Operations."
Parent & Other used $310 million in cash in operating activities in 2008 compared to using $129 million in
2007 primarily due to an increase in income taxes paid of $69 million and outside services costs of $69
million related to the planned spin-off of the Non-Utility Nuclear business.
34