Entergy 2014 Annual Report Download - page 173


(QWHUJ\&RUSRUDWLRQDQG6XEVLGLDULHV
1RWHVWR)LQDQFLDO6WDWHPHQWV


0:K)RUWKH33$ZKLFKZDVDWEHORZPDUNHWSULFHVDWWKHWLPHRIWKHDFTXLVLWLRQ(QWHUJ\ZLOODPRUWL]HD
OLDELOLW\WRUHYHQXHRYHUWKHOLIHRIWKHDJUHHPHQW7KHDPRXQWWKDWZLOOEHDPRUWL]HGHDFKSHULRGLVEDVHGXSRQWKH
GLIIHUHQFHEHWZHHQWKHSUHVHQWYDOXHFDOFXODWHGDWWKHGDWHRIDFTXLVLWLRQRIHDFK\HDU¶VGLIIHUHQFHEHWZHHQUHYHQXH
XQGHU WKH DJUHHPHQW DQG UHYHQXH EDVHG RQ HVWLPDWHG PDUNHW SULFHV $PRXQWV DPRUWL]HG WR UHYHQXH ZHUH 
PLOOLRQLQPLOOLRQLQDQGPLOOLRQLQ7KHDPRXQWVWREHDPRUWL]HGWRUHYHQXHIRUWKHQH[W
ILYH\HDUVZLOOEH PLOOLRQLQ PLOOLRQIRU PLOOLRQIRU PLOOLRQIRUDQG
PLOOLRQIRU

NYPA Value Sharing Agreements

(QWHUJ\¶V SXUFKDVH RI WKH )LW]3DWULFN DQG ,QGLDQ 3RLQW  SODQWV IURP 1<3$ LQFOXGHG YDOXH VKDULQJ
DJUHHPHQWVZLWK1<3$,Q2FWREHU(QWHUJ\VXEVLGLDULHVDQG1<3$DPHQGHGDQGUHVWDWHGWKHYDOXHVKDULQJ
DJUHHPHQWV WR FODULI\ DQG DPHQG FHUWDLQ SURYLVLRQV RI WKH RULJLQDO WHUPV 8QGHU WKH DPHQGHG YDOXH VKDULQJ
DJUHHPHQWV (QWHUJ\ VXEVLGLDULHV PDGH DQQXDO SD\PHQWV WR 1<3$EDVHG RQ WKH JHQHUDWLRQ RXWSXW RI WKH,QGLDQ
3RLQWDQG)LW]3DWULFNSODQWVIURP-DQXDU\WKURXJK'HFHPEHU(QWHUJ\VXEVLGLDULHVSDLG1<3$
SHU0:KIRUSRZHUVROGIURP,QGLDQ3RLQWXSWRDQDQQXDOFDSRIPLOOLRQDQGSHU0:KIRUSRZHU
VROGIURP)LW]3DWULFNXSWRDQDQQXDOFDSRIPLOOLRQ7KHDQQXDOSD\PHQWIRUHDFK\HDU¶VRXWSXWZDVGXHE\
-DQXDU\RIWKHIROORZLQJ\HDU(QWHUJ\UHFRUGHGWKHOLDELOLW\IRUSD\PHQWVWR1<3$DVSRZHULVJHQHUDWHGDQG
VROGE\,QGLDQ3RLQW DQG)LW]3DWULFN$QDPRXQW HTXDOWRWKHOLDELOLW\ZDV UHFRUGHGWRWKHSODQWDVVHWDFFRXQWDV
FRQWLQJHQWSXUFKDVHSULFHFRQVLGHUDWLRQIRUWKHSODQWV,QDQG(QWHUJ\:KROHVDOH&RPPRGLWLHV
UHFRUGHG DSSUR[LPDWHO\  PLOOLRQ DV SODQW IRU JHQHUDWLRQ GXULQJ HDFK RI WKRVH \HDUV 7KLV DPRXQW ZDV
GHSUHFLDWHGRYHUWKHH[SHFWHGUHPDLQLQJXVHIXOOLIHRIWKHSODQWV

Dispositions

 ,Q1RYHPEHU(QWHUJ\VROG(QWHUJ\6ROXWLRQV'LVWULFW(QHUJ\DEXVLQHVVZKROO\RZQHGE\(QWHUJ\LQ
WKH (QWHUJ\:KROHVDOH &RPPRGLWLHV VHJPHQW WKDW RZQV DQG RSHUDWHV GLVWULFW HQHUJ\ DVVHWV VHUYLQJ WKH EXVLQHVV
GLVWULFWV LQ +RXVWRQ DQG 1HZ 2UOHDQV   (QWHUJ\ VROG (QWHUJ\ 6ROXWLRQV 'LVWULFW (QHUJ\ IRU  PLOOLRQ DQG
UHDOL]HGDSUHWD[JDLQRIPLOOLRQRQWKHVDOH


NOTE 16. RISK MANAGEMENT AND FAIR VALUES

Market Risk
,Q WKH QRUPDO FRXUVH RI EXVLQHVV (QWHUJ\ LV H[SRVHG WR D QXPEHU RI PDUNHW ULVNV  0DUNHW ULVN LV WKH 
SRWHQWLDOORVVWKDW(QWHUJ\PD\LQFXUDVDUHVXOWRIFKDQJHVLQWKHPDUNHWRUIDLUYDOXHRIDSDUWLFXODUFRPPRGLW\RU
LQVWUXPHQW $OO ILQDQFLDO DQG FRPPRGLW\UHODWHG LQVWUXPHQWV LQFOXGLQJ GHULYDWLYHV DUH VXEMHFW WR PDUNHW ULVN
LQFOXGLQJ FRPPRGLW\ SULFH ULVN HTXLW\ SULFH DQG LQWHUHVW UDWH ULVN (QWHUJ\ XVHV GHULYDWLYHV SULPDULO\ WR PLWLJDWH
FRPPRGLW\SULFHULVNSDUWLFXODUO\SRZHUSULFHDQGIXHOSULFHULVN

7KH8WLOLW\KDVOLPLWHGH[SRVXUHWRWKHHIIHFWVRIPDUNHWULVNEHFDXVHLWRSHUDWHVSULPDULO\XQGHUFRVWEDVHG
UDWH UHJXODWLRQ 7R WKH H[WHQW DSSURYHG E\ WKHLU UHWDLO UHJXODWRUV WKH 8WLOLW\ RSHUDWLQJ FRPSDQLHV XVH GHULYDWLYH
LQVWUXPHQWVWRKHGJHWKHH[SRVXUHWRSULFHYRODWLOLW\LQKHUHQWLQWKHLUSXUFKDVHGSRZHUIXHODQGJDVSXUFKDVHGIRU
UHVDOHFRVWVWKDWDUHUHFRYHUHGIURPFXVWRPHUV

$V D ZKROHVDOH JHQHUDWRU (QWHUJ\:KROHVDOH &RPPRGLWLHV¶FRUH EXVLQHVV LV VHOOLQJ HQHUJ\ PHDVXUHG LQ
0:KWRLWVFXVWRPHUV(QWHUJ\:KROHVDOH&RPPRGLWLHVHQWHUVLQWRIRUZDUGFRQWUDFWVZLWKLWVFXVWRPHUVDQGDOVR
VHOOV HQHUJ\ DQG FDSDFLW\ LQ WKH GD\ DKHDG RU VSRW PDUNHWV ,Q DGGLWLRQ WR LWV IRUZDUG SK\VLFDO SRZHU FRQWUDFWV
(QWHUJ\ :KROHVDOH &RPPRGLWLHV DOVR XVHV D FRPELQDWLRQ RI ILQDQFLDO FRQWUDFWV LQFOXGLQJ VZDSV FROODUV DQG
RSWLRQVWRPLWLJDWHFRPPRGLW\SULFHULVN:KHQWKHPDUNHWSULFHIDOOVWKHFRPELQDWLRQRILQVWUXPHQWVLVH[SHFWHG
WRVHWWOHLQJDLQVWKDWRIIVHWORZHUUHYHQXHIURPJHQHUDWLRQZKLFKUHVXOWVLQDPRUHSUHGLFWDEOHFDVKIORZ

