Entergy 2014 Annual Report Download - page 107
Download and view the complete annual report
Please find page 107 of the 2014 Entergy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.
(QWHUJ\&RUSRUDWLRQDQG6XEVLGLDULHV
1RWHVWR)LQDQFLDO6WDWHPHQWV
)(5&¶VRUGHUDUHIXQGRIPLOOLRQLQFOXGLQJLQWHUHVWZDVPDGHLQ-XQH(QWHUJ\DQGWKH/36&DSSHDOHG
FHUWDLQ DVSHFWV RI WKH )(5&¶V GHFLVLRQV WR WKH 86 &RXUW RI $SSHDOVIRUWKH'&&LUFXLW2Q'HFHPEHU
WKH'&&LUFXLWGLVPLVVHG(QWHUJ\¶VSHWLWLRQIRUUHYLHZDVSUHPDWXUHEHFDXVH(QWHUJ\ILOHGDUHKHDULQJUHTXHVWRI
WKH0D\)(5&RUGHUDQGWKDWUHKHDULQJUHTXHVWLVVWLOOSHQGLQJ7KHFRXUWDOVRRUGHUHGWKDWWKH/36&¶VDSSHDO
EH KHOG LQ DEH\DQFH DQG WKDW WKH SDUWLHV ILOH PRWLRQV WR JRYHUQIXUWKHU SURFHHGLQJV ZLWKLQ GD\V RI WKH )(5&¶V
FRPSOHWLRQRIWKHRQJRLQJ³(QWHUJ\EDQGZLGWKSURFHHGLQJV´2Q2FWREHUWKH)(5&LVVXHGWZRRUGHUV
UHODWHG WR WKLV SURFHHGLQJ 7KH ILUVW RUGHU SURYLGHG FODULILFDWLRQ ZLWK UHJDUG WR WKH GHULYDWLRQ RI WKH UDWLR WKDW
VKRXOGEHXVHGWRIXQFWLRQDOL]HQHWRSHUDWLQJORVVFDUU\IRUZDUGVIRUSXUSRVHVRIWKHDQQXDOEDQGZLGWKILOLQJV7KH
ILUVWRUGHUUHTXLUHGDFRPSOLDQFHILOLQJWKDW(QWHUJ\PDGHLQ1RYHPEHU7KHVHFRQGRUGHUGHQLHG(QWHUJ\¶V
UHTXHVW IRU UHKHDULQJ RI WKH )(5&¶V SULRU GHWHUPLQDWLRQ WKDW LQWHUHVW VKRXOG EH LQFOXGHG RQ UHFDOFXODWHG SD\PHQW
DQG UHFHLSW DPRXQWV UHTXLUHG LQ WKLV SDUWLFXODU SURFHHGLQJ GXH WR WKH OHQJWK RI WLPH WKDW KDG SDVVHG (QWHUJ\
VXEVHTXHQWO\DSSHDOHGFHUWDLQDVSHFWVRIWKH)(5&¶V GHFLVLRQVWRWKH86&RXUWRI$SSHDOVIRUWKH'&&LUFXLW
2Q -DQXDU\ WKH'& &LUFXLWUHWXUQHG WKH/36&¶V DSSHDO WR WKHDFWLYH GRFNHW DQG FRQVROLGDWHGLW ZLWK
(QWHUJ\¶VSHWLWLRQIRUDSSHOODWHUHYLHZ7KHDSSHDOVDUHSHQGLQJ,Q-XO\WKH)(5&LVVXHGDQRUGHUDFFHSWLQJ
(QWHUJ\ 6HUYLFHV¶ 1RYHPEHU FRPSOLDQFH ILOLQJ 7KH )(5& GLUHFWHG (QWHUJ\ 6HUYLFHV WR PDNH D
FRPSUHKHQVLYH EDQGZLGWK UHFDOFXODWLRQ UHSRUW E\ 6HSWHPEHU VKRZLQJ DOO WKH XSGDWHG SD\PHQWUHFHLSW
DPRXQWVEDVHGRQWKHFDOHQGDU\HDUGDWDLQFRPSOLDQFHZLWKDOOEDQGZLGWKIRUPXODDQGEDQGZLGWKFDOFXODWLRQ
DGMXVWPHQWVWKDWWKH)(5&KDVDFFHSWHGRURUGHUHGIRUWKRVH\HDUV7KH)(5&DOVRGLUHFWHGWKH(QWHUJ\2SHUDWLQJ
&RPSDQLHVWRPDNHDQ\WUXHXSEDQGZLGWKSD\PHQWVDVVRFLDWHGZLWKWKHEDQGZLGWKUHFDOFXODWLRQUHSRUWZLWK
LQWHUHVW IROORZLQJ WKH ILOLQJ RI WKH FRPSUHKHQVLYH UHFDOFXODWLRQ UHSRUW 6HH GLVFXVVLRQ EHORZ UHJDUGLQJ WKH
FRPSUHKHQVLYHEDQGZLGWKUHFDOFXODWLRQDQGILOLQJVPDGHZLWKWKH)(5&LQFRQQHFWLRQZLWKWKLVSURFHHGLQJ
5DWH)LOLQJ%DVHGRQ&DOHQGDU<HDU3URGXFWLRQ&RVWV
6HYHUDO SDUWLHV LQWHUYHQHG LQWKH UDWHSURFHHGLQJDW WKH)(5& LQFOXGLQJ WKH$36& WKH/36& DQG
$PHUHQ8( ZKLFK DOVRILOHG SURWHVWV6HYHUDO RWKHU SDUWLHV LQFOXGLQJ WKH036& DQGWKH &LW\&RXQFLO LQWHUYHQHG
LQ WKH SURFHHGLQJ ZLWKRXW ILOLQJ D SURWHVW ,Q GLUHFW WHVWLPRQ\ ILOHG LQ -DQXDU\ FHUWDLQ LQWHUYHQRUV DQG WKH
)(5&VWDIIDGYRFDWHGDQXPEHURISRVLWLRQVRQLVVXHVWKDWDIIHFWWKHOHYHORISURGXFWLRQFRVWVWKHLQGLYLGXDO8WLOLW\
RSHUDWLQJFRPSDQLHVDUHSHUPLWWHGWRUHIOHFWLQWKHEDQGZLGWKFDOFXODWLRQLQFOXGLQJWKHOHYHORIGHSUHFLDWLRQDQG
GHFRPPLVVLRQLQJ H[SHQVH IRU WKH QXFOHDU DQG IRVVLOIXHOHG JHQHUDWLQJ IDFLOLWLHV 7KH HIIHFW RI WKHVH YDULRXV
SRVLWLRQVZRXOGEHWRUHDOORFDWHFRVWVDPRQJWKH8WLOLW\RSHUDWLQJFRPSDQLHV,QDGGLWLRQWKUHHLVVXHVZHUHUDLVHG
DOOHJLQJ LPSUXGHQFH E\ WKH 8WLOLW\ RSHUDWLQJ FRPSDQLHV LQFOXGLQJ ZKHWKHU WKH 8WLOLW\ RSHUDWLQJ FRPSDQLHV KDG
SURSHUO\ UHIOHFWHG JHQHUDWLQJ XQLWV¶ PLQLPXP RSHUDWLQJ OHYHOV IRU SXUSRVHV RI PDNLQJ XQLW FRPPLWPHQW DQG
GLVSDWFK GHFLVLRQV ZKHWKHU (QWHUJ\ $UNDQVDV¶V VDOHV WR WKLUG SDUWLHV IURP LWV UHWDLQHG VKDUH RI WKH *UDQG *XOI
QXFOHDU IDFLOLW\ ZHUH UHDVRQDEOH SUXGHQW DQG QRQGLVFULPLQDWRU\ DQG ZKHWKHU (QWHUJ\ /RXLVLDQD¶V ORQJWHUP
(YDQJHOLQHJDVSXUFKDVHFRQWUDFWZDVSUXGHQWDQGUHDVRQDEOH
7KH SDUWLHV UHDFKHG D SDUWLDO VHWWOHPHQW DJUHHPHQW RI FHUWDLQ RI WKH LVVXHV LQLWLDOO\ UDLVHG LQ WKLV
SURFHHGLQJ 7KH SDUWLDO VHWWOHPHQW DJUHHPHQW ZDV FRQGLWLRQHG RQ WKH )(5& DFFHSWLQJ WKH DJUHHPHQW ZLWKRXW
PRGLILFDWLRQ RU FRQGLWLRQ ZKLFK WKH )(5& GLG LQ $XJXVW $ KHDULQJ RQ WKH UHPDLQLQJ LVVXHV LQ WKH
SURFHHGLQJ ZDV FRPSOHWHG LQ -XQH DQG LQ 6HSWHPEHU WKH$/- LVVXHG DQ LQLWLDO GHFLVLRQ 7KH LQLWLDO
GHFLVLRQ DIILUPV (QWHUJ\¶V SRVLWLRQ LQ WKH ILOLQJ H[FHSW IRU WZR LVVXHV WKDW PD\ UHVXOW LQ D UHDOORFDWLRQ RI FRVWV
DPRQJ WKH 8WLOLW\ RSHUDWLQJ FRPSDQLHV ,Q 2FWREHU WKH )(5& LVVXHG DQ RUGHU RQ WKH $/-¶V LQLWLDO
GHFLVLRQ 7KH )(5&¶V RUGHU UHVXOWHG LQ D PLQRU UHDOORFDWLRQ RI SD\PHQWVUHFHLSWV DPRQJ WKH 8WLOLW\ RSHUDWLQJ
FRPSDQLHVRQRQHLVVXHLQWKHUDWHILOLQJ(QWHUJ\PDGHDFRPSOLDQFHILOLQJLQ'HFHPEHUVKRZLQJWKH
XSGDWHGSD\PHQWUHFHLSWDPRXQWV7KH/36&ILOHGDSURWHVWLQUHVSRQVHWRWKHFRPSOLDQFHILOLQJ,Q-DQXDU\
WKH )(5& LVVXHG DQ RUGHU DFFHSWLQJ (QWHUJ\¶V FRPSOLDQFH ILOLQJ ,Q WKH -DQXDU\ RUGHU WKH )(5& UHTXLUHG
(QWHUJ\ WR LQFOXGH LQWHUHVW RQ WKH UHFDOFXODWHG EDQGZLGWK SD\PHQW DQG UHFHLSW DPRXQWV IRU WKH SHULRG IURP
-XQHXQWLOWKHGDWHRIWKH(QWHUJ\LQWUDV\VWHPELOOWKDWZLOOUHIOHFWWKHEDQGZLGWKUHFDOFXODWLRQDPRXQWVIRU
FDOHQGDU\HDU,Q)HEUXDU\(QWHUJ\ILOHGDUHTXHVWIRUUHKHDULQJRIWKH)(5&¶VUXOLQJUHTXLULQJLQWHUHVW
,Q 0DUFK WKH /36& ILOHG D SHWLWLRQ IRU UHYLHZ ZLWK WKH 86 &RXUW RI $SSHDOV IRU WKH )LIWK &LUFXLW VHHNLQJ
DSSHOODWHUHYLHZRIWKH)(5&¶VHDUOLHURUGHUVDGGUHVVLQJWKH$/-¶VLQLWLDOGHFLVLRQ,Q-XO\WKH)(5&LVVXHG
DQ RUGHU GHQ\LQJ (QWHUJ\¶V UHKHDULQJ UHTXHVW DQG GHFLGHG WKDW LW LV DSSURSULDWH WR DOORZ LQWHUHVW WR EH SDLG RQ WKH
EDQGZLGWKUHFDOFXODWLRQDPRXQWV7KH)(5&DOVRGLUHFWHG(QWHUJ\WRILOHDFRPSUHKHQVLYHEDQGZLGWKUHFDOFXODWLRQ