Entergy 2011 Annual Report Download - page 112

Entergy Louisiana and System Energy are also considered
to each hold a variable interest in the lessors from which they
lease undivided interests representing approximately 9.3% of the
Waterford 3 and 11.5% of the Grand Gulf nuclear plants, respectively.
Entergy Louisiana and System Energy are the lessees under these
arrangements, which are described in more detail in Note 10 to
the financial statements. Entergy Louisiana made payments on its
lease, including interest, of $50.4 million in 2011, $35.1 million in
2010, and $32.5 million in 2009. System Energy made payments on
its lease, including interest, of $49.4 million in 2011, $48.6 million
in 2010, and $47.8 million in 2009. The lessors are banks acting in
the capacity of owner trustee for the benefit of equity investors in
the transactions pursuant to trust agreements entered solely for
the purpose of facilitating the lease transactions. It is possible that
Entergy Louisiana and System Energy may be considered as the
primary beneficiary of the lessors, but Entergy is unable to apply
the revised authoritative accounting guidance with respect to these
VIEs because the lessors are not required to, and could not, provide
the necessary financial information to consolidate the lessors.
Because Entergy accounts for these leasing arrangements as capital
financings, however, Entergy believes that consolidating the lessors
would not materially affect the financial statements. In the unlikely
event of default under a lease, remedies available to the lessor include
payment by the lessee of the fair value of the undivided interest in
the plant, payment of the present value of the basic rent payments,
or payment of a predetermined casualty value. Entergy believes,
however, that the obligations recorded on the balance sheets
materially represent each company’s potential exposure to loss.
Entergy has also reviewed various lease arrangements, power
purchase agreements, and other agreements in which it holds a
variable interest. In these cases, Entergy has determined that it is not
the primary beneficiary of the related VIE because it does not have
the power to direct the activities of the VIE that most significantly
affect the VIE’s economic performance, or it does not have the
obligation to absorb losses or the right to residual returns that would
potentially be significant to the entity, or both.
NOTE 19. QUARTERLY FINANCIAL DATA
(UNAUDITED)
Operating results for the four quarters of 2011 and 2010 for Entergy
Corporation and subsidiaries were (in thousands):
Net Income
Consolidated Attributable
Operating Operating Net to Entergy
Revenues Income Income Corporation
2011:
First Quarter $2,541,208 $510,891 $253,678 $248,663
Second Quarter $2,803,279 $558,738 $320,598 $315,583
Third Quarter $3,395,553 $600,909 $633,069 $628,054
Fourth Quarter $2,489,033 $342,696 $160,027 $154,139
2010:
First Quarter $2,759,347 $476,714 $218,814 $213,799
Second Quarter $2,862,950 $626,241 $320,283 $315,266
Third Quarter $3,332,176 $770,642 $497,901 $492,886
Fourth Quarter $2,533,104 $393,780 $233,307 $228,291
Earnings per Average Common Share
2011 2010
Basic Diluted Basic Diluted
First Quarter $1.39 $1.38 $1.13 $1.12
Second Quarter $1.77 $1.76 $1.67 $1.65
Third Quarter $3.55 $3.53 $2.65 $2.62
Fourth Quarter $0.88 $0.88 $1.27 $1.26
The business of the Utility operating companies is subject to
seasonal fluctuations with the peak periods occurring during the
third quarter.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS concluded
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