Entergy 2011 Annual Report Download - page 99

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Entergy Corporation and Subsidiaries 2011
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
Qualified Pension Trust
2010 Level 1 Level 2 Level 3 Total
Equity securities:
Corporate stocks:
Preferred $ – $ 8,354(a) $– $ 8,354
Common 1,375,531(b) – – 1,375,531
Common collective trusts(a) – 657,075(c) – 657,075
Fixed income securities:
Interest-bearing cash 103,731(d) – – 103,731
U.S. government securities 75,124(b) 187,957(a) – 263,081
Corporate debt instruments – 298,760(a) – 298,760
Registered investment
companies(c) – 385,020(e) – 385,020
Other – 108,305(f) – 108,305
Other:
Insurance company
general account
(unallocated contracts) – 33,439(g) – 33,439
Total investments $1,554,386 $1,678,910 $– $3,233,296
Cash 321
Other pending transactions (14,954)
Less: Other postretirement
assets included in total
investments (2,395)
Total fair value of
qualified pension assets $3,216,268
Other Postretirement Trusts
2011 Level 1 Level 2 Level 3 Total
Equity securities:
Common collective trust $ – $208,812(c) $– $208,812
Fixed income securities:
U.S. government
securities 42,577(b) 57,151(a) – 99,728
Corporate debt instruments – 42,807(a) – 42,807
Registered investment
companies(b) 4,659(d) – – 4,659
Other – 69,287(f) – 69,287
Total investments $47,236 $378,057 $– $425,293
Other pending transactions (235)
Plus: Other postretirement
assets included in the
investments of the
qualified pension trust 2,114
Total fair value of other
postretirement assets $427,172
Other Postretirement Trusts
2010 Level 1 Level 2 Level 3 Total
Equity securities:
Common collective trust(a) $ – $211,835(c) $ – $211,835
Fixed income securities:
Interest-bearing cash 4,014(d) – – 4,014
U.S. government
securities 37,823(b) 52,326(a) – 90,149
Corporate debt instruments – 37,128(a) – 37,128
Other – 58,716(f) – 58,716
Total investments $41,837 $360,005 $ – $401,842
Other pending transactions 193
Plus: Other postretirement
assets included in the
investments of the
qualified pension trust 2,395
Total fair value of other
postretirement assets $404,430
(a) Certain preferred stocks and fixed income debt securities (corporate,
government, and securitized) are stated at fair value as determined by
broker quotes.
(b) Common stocks, treasury notes and bonds, and certain preferred stocks and
fixed income debt securities are stated at fair value determined by quoted
market prices.
(c) The common collective trusts hold investments in accordance with stated
objectives. The investment strategy of the trusts is to capture the growth
potential of equity markets by replicating the performance of a specified
index. Net asset value per share of the common collective trusts estimate
fair value.
(d) The registered investment company is a money market mutual fund with a
stable net asset value of one dollar per share.
(e) The registered investment company holds investments in domestic and
international bond markets and estimates fair value using net asset value
per share.
(f) The other remaining assets are U.S. municipal and foreign government
bonds stated at fair value as determined by broker quotes.
(g) The unallocated insurance contract investments are recorded at contract
value, which approximates fair value. The contract value represents
contributions made under the contract, plus interest, less funds used to pay
benefits and contract expenses, and less distributions to the master trust.
Accumulated Pension Benefit Obligation
The accumulated benefit obligation for Entergy’s qualified pension
plans was $4.6 billion and $3.8 billion at December 31, 2011 and
2010, respectively.
Estimated Future Benefit Payments
Based upon the assumptions used to measure Entergy’s qualified
pension and other postretirement benefit obligations at December
31, 2011, and including pension and other postretirement benefits
attributable to estimated future employee service, Entergy expects
that benefits to be paid and the Medicare Part D subsidies to be
received over the next ten years for Entergy Corporation and its
subsidiaries will be as follows (in thousands):
Estimated Future Benefits Payments
Other Postretirement Estimated Future
Qualified Non-Qualified (before Medicare Medicare Subsidy
Pension Pension Subsidy) Receipts
2012 $ 178,030 $11,199 $ 72,685 $ 5,678
2013 $ 189,881 $18,159 $ 76,731 $ 6,374
2014 $ 204,573 $14,942 $ 81,001 $ 7,137
2015 $ 220,295 $15,502 $ 85,780 $ 7,935
2016 $ 238,242 $22,492 $ 90,143 $ 8,828
2017 - 2021 $1,524,241 $72,724 $523,040 $59,306
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