Entergy 2011 Annual Report Download - page 15

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continue to work to deliver value to all our stakeholders in the future by maintaining dynamic and
well-informed points of view and adapting our business strategies in accordance with our points of
view to take advantage of emerging opportunities.
Working Toward Our Overarching Financial Goal
Our overarching financial goal is to deliver top-quartile shareholder return over the long term. In recent
years, we have not achieved top-quartile return. Although total shareholder return was 8.3 percent
in 2011, our performance was another disappointment. We trailed our peer group – one of the best
performing sectors in 2011 – ranking in the bottom quartile.
Despite our recent performance, we believe the strategies and initiatives we implemented in 2011
lay a foundation for achieving top-quartile return over the long term. We continue to analyze changing
market conditions and act on opportunities when appropriate. For example, in 2011 we announced
our plan to spin off and merge our transmission business with ITC Holdings Corp. This transaction
generates benefits for Entergy customers and other stakeholders, while enhancing Entergy’s financial
flexibility. Following the expected transaction close in 2013, Entergy expects to have greater ability to
fund investment alternatives while protecting the credit quality of Entergy and its subsidiaries.
Absent attractive investment opportunities, we previously outlined an outlook to deploy as much
as $4 billion to $5 billion to shareholders through dividends and share repurchases in the 2010 to
2014 time period. During 2011, along with returning nearly $800 million through dividends and share
repurchases to our owners, we also acted on an attractive investment opportunity, acquiring the Rhode
Island State Energy Center, a 583-megawatt power plant. In addition, our current long-term financial
outlook supports maintaining the common dividend at the current $3.32 per share annualized level after
the ITC transaction. Any dividend from ITC that our shareholders are expected to receive would be in
addition to the Entergy dividend.
Building an Employee-Owned Safety Culture
We believe safety is everyone’s responsibility, and we encourage the active involvement of employees
in our safety programs. Although we improved our safety performance in 2011, as measured by the
Recordable Accident Index, we were saddened by the loss of a long-time, dedicated and respected
co-worker in a traffic-related pedestrian accident. We continue to enlist the efforts and resourcefulness
of every employee to raise safety awareness and minimize any high-risk behaviors. We are encouraged
A Well-Informed
Point of View
Most frogs have large bulging eyes that
capture a wide range of colors and
function well in dim light. With eyes
positioned on the top of their heads,
frogs can see well in all directions
without moving. As a result, frogs
can quickly identify and react to
opportunities and threats in a rapidly
changing environment.
Entergy Corporation and Subsidiaries 2011
13