Entergy 2011 Annual Report Download - page 89

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Entergy Corporation and Subsidiaries 2011
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
NOTE 7. COMMON EQUITY
Common Stock
Common stock and treasury stock shares activity for Entergy for 2011, 2010, and 2009 is as follows:
2011 2010 2009
Common Shares Treasury Common Shares Treasury Common Shares Treasury
Issued Shares Issued Shares Issued Shares
Beginning Balance, January 1 254,752,788 76,006,920 254,752,788 65,634,580 248,174,087 58,815,518
Equity Unit Transaction – – – – 6,578,701 –
Repurchases – 3,475,000 – 11,490,551 – 7,680,000
Issuances:
Employee Stock-Based Compensation Plans – (1,079,008) – (1,113,411) – (856,390)
Directors’ Plan – (5,924) – (4,800) – (4,548)
Ending Balance, December 31 254,752,788 78,396,988 254,752,788 76,006,920 254,752,788 65,634,580
In December 2005, Entergy Corporation sold 10 million equity units with a stated amount of $50 each. An equity unit consisted of (1) a note,
initially due February 2011 and initially bearing interest at an annual rate of 5.75%, and (2) a purchase contract that obligated the holder of
the equity unit to purchase for $50 between 0.5705 and 0.7074 shares of Entergy Corporation common stock on or before February 17, 2009.
Entergy paid the holders quarterly contract adjustment payments of 1.875% per year on the stated amount of $50 per equity unit. Under the
terms of the purchase contracts, Entergy attempted to remarket the notes in February 2009 but was unsuccessful, the note holders put the
notes to Entergy, Entergy retired the notes, and Entergy issued shares of common stock to settle the purchase contracts.
Entergy Corporation reissues treasury shares to meet the requirements of the Stock Plan for Outside Directors (Directors’ Plan), two Equity
Ownership Plans of Entergy Corporation and Subsidiaries, the Equity Awards Plan of Entergy Corporation and Subsidiaries, and certain other
stock benefit plans. The Directors’ Plan awards to non-employee directors a portion of their compensation in the form of a fixed number of
shares of Entergy Corporation common stock.
In January 2007, the Board approved a repurchase program that authorized Entergy to repurchase up to $1.5 billion of its common stock. In
January 2008, the Board authorized an incremental $500 million share repurchase program to enable Entergy to consider opportunistic purchases
in response to equity market conditions. Entergy completed both the $1.5 billion and $500 million programs in the third quarter 2009. In October
2009, the Board granted authority for an additional $750 million share repurchase program which was completed in the fourth quarter 2010. In
October 2010, the Board granted authority for an additional $500 million share repurchase program. As of December 31, 2011, $350 million remains
under the $500 million share repurchase program.
Retained Earnings and Dividend Restrictions
Provisions within the articles of incorporation or pertinent indentures and various other agreements relating to the long-term debt and preferred
stock of certain of Entergy Corporation’s subsidiaries could restrict the payment of cash dividends or other distributions on their common
and preferred equity. As of December 31, 2011, under provisions in their mortgage indentures, Entergy Arkansas and Entergy Mississippi had
retained earnings unavailable for distribution to Entergy Corporation of $394.9 million and $68.5 million, respectively. Entergy Corporation
received dividend payments from subsidiaries totaling $595 million in 2011, $580 million in 2010, and $417 million in 2009.
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