Entergy 2014 Annual Report Download - page 187
Download and view the complete annual report
Please find page 187 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
RIWKHYDULDEOHLQWHUHVW HQWLWLHV GRQRW KDYHUHFRXUVHWRWKHDVVHWV RUUHYHQXHV RI(QWHUJ\7H[DV (QWHUJ\7H[DV KDV
QRSD\PHQWREOLJDWLRQVWRWKHYDULDEOHLQWHUHVWHQWLWLHVH[FHSWWRUHPLWWUDQVLWLRQFKDUJHFROOHFWLRQV6HH1RWHWR
WKHILQDQFLDOVWDWHPHQWVIRUDGGLWLRQDOGHWDLOVUHJDUGLQJWKHVHFXULWL]DWLRQERQGV
(QWHUJ\ $UNDQVDV 5HVWRUDWLRQ )XQGLQJ //& D FRPSDQ\ ZKROO\RZQHG DQG FRQVROLGDWHG E\ (QWHUJ\
$UNDQVDV LV D YDULDEOH LQWHUHVW HQWLW\ DQG (QWHUJ\ $UNDQVDV LV WKHSULPDU\EHQHILFLDU\ ,Q$XJXVW (QWHUJ\
$UNDQVDV 5HVWRUDWLRQ )XQGLQJ LVVXHG VWRUP FRVW UHFRYHU\ ERQGV WR ILQDQFH (QWHUJ\ $UNDQVDV¶V -DQXDU\ LFH
VWRUPGDPDJHUHVWRUDWLRQFRVWV:LWKWKHSURFHHGV(QWHUJ\$UNDQVDV5HVWRUDWLRQ)XQGLQJSXUFKDVHGIURP(QWHUJ\
$UNDQVDVWKHVWRUPUHFRYHU\SURSHUW\ZKLFKLVWKHULJKWWRUHFRYHUIURPFXVWRPHUVWKURXJKDVWRUPUHFRYHU\FKDUJH
DPRXQWVVXIILFLHQWWRVHUYLFHWKHVHFXULWL]DWLRQERQGV7KHVWRUPUHFRYHU\SURSHUW\LVUHIOHFWHGDVDUHJXODWRU\DVVHW
RQWKHFRQVROLGDWHG(QWHUJ\$UNDQVDVEDODQFHVKHHW7KHFUHGLWRUVRI(QWHUJ\$UNDQVDVGRQRW KDYHUHFRXUVHWRWKH
DVVHWV RU UHYHQXHV RI (QWHUJ\ $UNDQVDV 5HVWRUDWLRQ )XQGLQJ LQFOXGLQJ WKH VWRUP UHFRYHU\ SURSHUW\ DQG WKH
FUHGLWRUV RI (QWHUJ\ $UNDQVDV 5HVWRUDWLRQ )XQGLQJ GR QRW KDYH UHFRXUVH WR WKH DVVHWV RU UHYHQXHV RI (QWHUJ\
$UNDQVDV (QWHUJ\$UNDQVDV KDV QRSD\PHQW REOLJDWLRQV WR (QWHUJ\$UNDQVDV 5HVWRUDWLRQ )XQGLQJ H[FHSW WR UHPLW
VWRUPUHFRYHU\FKDUJHFROOHFWLRQV 6HH1RWHWRWKHILQDQFLDOVWDWHPHQWV IRU DGGLWLRQDOGHWDLOV UHJDUGLQJWKHVWRUP
FRVWUHFRYHU\ERQGV
(QWHUJ\/RXLVLDQD,QYHVWPHQW5HFRYHU\)XQGLQJ,//&DFRPSDQ\ZKROO\RZQHGDQGFRQVROLGDWHGE\
(QWHUJ\ /RXLVLDQD LV D YDULDEOH LQWHUHVW HQWLW\ DQG (QWHUJ\ /RXLVLDQD LV WKH SULPDU\ EHQHILFLDU\ ,Q 6HSWHPEHU
(QWHUJ\ /RXLVLDQD ,QYHVWPHQW 5HFRYHU\ )XQGLQJ LVVXHG LQYHVWPHQW UHFRYHU\ ERQGV WR UHFRYHU (QWHUJ\
/RXLVLDQD¶V LQYHVWPHQW UHFRYHU\ FRVWV DVVRFLDWHG ZLWK WKH FDQFHOHG /LWWOH *\SV\ UHSRZHULQJ SURMHFW :LWK WKH
SURFHHGV (QWHUJ\ /RXLVLDQD ,QYHVWPHQW 5HFRYHU\ )XQGLQJ SXUFKDVHG IURP (QWHUJ\ /RXLVLDQD WKH LQYHVWPHQW
UHFRYHU\ SURSHUW\ ZKLFK LV WKHULJKW WR UHFRYHU IURP FXVWRPHUV WKURXJK DQ LQYHVWPHQW UHFRYHU\ FKDUJHDPRXQWV
VXIILFLHQW WR VHUYLFH WKH ERQGV 7KH LQYHVWPHQW UHFRYHU\ SURSHUW\ LV UHIOHFWHG DV D UHJXODWRU\ DVVHW RQ WKH
FRQVROLGDWHG(QWHUJ\/RXLVLDQDEDODQFHVKHHW7KHFUHGLWRUVRI(QWHUJ\/RXLVLDQDGRQRWKDYHUHFRXUVHWRWKHDVVHWV
RU UHYHQXHV RI(QWHUJ\ /RXLVLDQD,QYHVWPHQW 5HFRYHU\ )XQGLQJ LQFOXGLQJ WKHLQYHVWPHQWUHFRYHU\SURSHUW\ DQG
WKHFUHGLWRUVRI(QWHUJ\/RXLVLDQD,QYHVWPHQW5HFRYHU\)XQGLQJGRQRWKDYHUHFRXUVHWRWKHDVVHWVRUUHYHQXHVRI
(QWHUJ\ /RXLVLDQD (QWHUJ\ /RXLVLDQD KDV QR SD\PHQW REOLJDWLRQV WR (QWHUJ\ /RXLVLDQD ,QYHVWPHQW 5HFRYHU\
)XQGLQJ H[FHSW WR UHPLW LQYHVWPHQW UHFRYHU\ FKDUJH FROOHFWLRQV 6HH 1RWH WR WKH ILQDQFLDO VWDWHPHQWV IRU
DGGLWLRQDOGHWDLOVUHJDUGLQJWKHLQYHVWPHQWUHFRYHU\ERQGV
(QWHUJ\ /RXLVLDQD DQG 6\VWHP (QHUJ\ DUH DOVR FRQVLGHUHG WR HDFK KROG D YDULDEOH LQWHUHVW LQ WKH OHVVRUV
IURPZKLFKWKH\OHDVHXQGLYLGHGLQWHUHVWVLQWKH:DWHUIRUGDQG*UDQG*XOIQXFOHDUSODQWVUHVSHFWLYHO\(QWHUJ\
/RXLVLDQDDQG6\VWHP(QHUJ\DUHWKHOHVVHHVXQGHUWKHVHDUUDQJHPHQWVZKLFKDUHGHVFULEHG LQPRUHGHWDLOLQ1RWH
WRWKHILQDQFLDOVWDWHPHQWV(QWHUJ\/RXLVLDQDPDGHSD\PHQWVRQLWVOHDVHLQFOXGLQJLQWHUHVWRIPLOOLRQLQ
PLOOLRQ LQ DQG PLOOLRQ LQ 6\VWHP (QHUJ\ PDGH SD\PHQWV RQ LWV OHDVH LQFOXGLQJ
LQWHUHVWRIPLOOLRQLQPLOOLRQLQDQGPLOOLRQLQ7KHOHVVRUVDUHEDQNVDFWLQJLQ
WKH FDSDFLW\ RI RZQHU WUXVWHHIRU WKH EHQHILW RI HTXLW\ LQYHVWRUV LQ WKH WUDQVDFWLRQV SXUVXDQW WR WUXVW DJUHHPHQWV
HQWHUHGVROHO\IRUWKHSXUSRVHRIIDFLOLWDWLQJWKHOHDVHWUDQVDFWLRQV,WLVSRVVLEOHWKDW(QWHUJ\/RXLVLDQDDQG6\VWHP
(QHUJ\PD\EHFRQVLGHUHGDVWKHSULPDU\EHQHILFLDU\RIWKHOHVVRUVEXW(QWHUJ\LVXQDEOHWRDSSO\WKHDXWKRULWDWLYH
DFFRXQWLQJ JXLGDQFH ZLWK UHVSHFW WRWKHVH9,(V EHFDXVHWKH OHVVRUV DUH QRW UHTXLUHGWR DQG FRXOG QRW SURYLGHWKH
QHFHVVDU\ILQDQFLDOLQIRUPDWLRQWRFRQVROLGDWHWKHOHVVRUV%HFDXVH(QWHUJ\DFFRXQWVIRUWKHVHOHDVLQJDUUDQJHPHQWV
DV FDSLWDO ILQDQFLQJV KRZHYHU (QWHUJ\ EHOLHYHV WKDW FRQVROLGDWLQJ WKH OHVVRUV ZRXOG QRW PDWHULDOO\ DIIHFW WKH
ILQDQFLDOVWDWHPHQWV,QWKHXQOLNHO\HYHQWRIGHIDXOWXQGHUDOHDVHUHPHGLHVDYDLODEOHWRWKHOHVVRULQFOXGHSD\PHQW
E\ WKH OHVVHH RIWKHIDLUYDOXHRIWKHXQGLYLGHGLQWHUHVWLQ WKHSODQWSD\PHQWRIWKHSUHVHQWYDOXHRIWKHEDVLFUHQW
SD\PHQWVRUSD\PHQWRID SUHGHWHUPLQHGFDVXDOW\YDOXH(QWHUJ\EHOLHYHVKRZHYHUWKDWWKHREOLJDWLRQVUHFRUGHG
RQWKHEDODQFHVKHHWVPDWHULDOO\UHSUHVHQWHDFKFRPSDQ\¶VSRWHQWLDOH[SRVXUHWRORVV
(QWHUJ\KDVDOVRUHYLHZHGYDULRXVOHDVHDUUDQJHPHQWVSRZHUSXUFKDVHDJUHHPHQWVDQGRWKHUDJUHHPHQWVLQ
ZKLFKLWKROGVDYDULDEOHLQWHUHVW,QWKHVHFDVHV(QWHUJ\KDVGHWHUPLQHGWKDWLWLVQRWWKHSULPDU\EHQHILFLDU\RIWKH
UHODWHG9,(EHFDXVHLWGRHVQRWKDYHWKHSRZHUWRGLUHFWWKHDFWLYLWLHVRIWKH9,(WKDWPRVWVLJQLILFDQWO\DIIHFWWKH
9,(¶VHFRQRPLFSHUIRUPDQFHRU LWGRHV QRWKDYHWKHREOLJDWLRQWRDEVRUEORVVHVRUWKHULJKWWRUHVLGXDOUHWXUQVWKDW
ZRXOGSRWHQWLDOO\EHVLJQLILFDQWWRWKHHQWLW\RUERWK