Entergy 2014 Annual Report Download - page 54

(QWHUJ\&RUSRUDWLRQDQG6XEVLGLDULHV
0DQDJHPHQWV)LQDQFLDO'LVFXVVLRQDQG$QDO\VLV
SULRUWRUHFHLYLQJPDUNHWEDVHGUDWHDXWKRULW\XQGHU0,627KHSHUFHQWDJHVROGDVVXPHVFRPSOHWLRQRIWKH
QHFHVVDU\WUDQVPLVVLRQXSJUDGHVUHTXLUHGIRUWKHDSSURYHGWUDQVPLVVLRQULJKWV
O 1RQQXFOHDUSODQQHGJHQHUDWLRQDQGQHW0:LQRSHUDWLRQLQFOXGHSXUFKDVHVIURPDIILOLDWHGDQGQRQDIILOLDWHG
FRXQWHUSDUWLHV XQGHU ORQJWHUP FRQWUDFWV DQG H[FOXGH HQHUJ\ DQG FDSDFLW\ IURP (QWHUJ\ :KROHVDOH
&RPPRGLWLHV¶ZLQGLQYHVWPHQW7KHGHFUHDVHLQSODQQHGQHW0:LQRSHUDWLRQEHJLQQLQJLQLVGXHWRWKH
H[SLUDWLRQRIDQRQDIILOLDWHG0:FRQWDFW
(QWHUJ\HVWLPDWHVWKDWDSRVLWLYHSHU0:KFKDQJHLQWKHDQQXDODYHUDJHHQHUJ\SULFHLQWKHPDUNHWVLQ
ZKLFKWKH(QWHUJ\:KROHVDOH&RPPRGLWLHVQXFOHDUEXVLQHVVVHOOVSRZHUEDVHGRQWKHUHVSHFWLYH\HDUHQGPDUNHW
FRQGLWLRQVSODQQHGJHQHUDWLRQYROXPHVDQGKHGJHGSRVLWLRQVZRXOGKDYHDFRUUHVSRQGLQJHIIHFWRQSUHWD[LQFRPH
RIPLOOLRQLQDQGZRXOGKDYHKDGDFRUUHVSRQGLQJHIIHFWRQSUHWD[LQFRPHRIPLOOLRQLQ$
QHJDWLYHSHU0:KFKDQJHLQWKHDQQXDODYHUDJHHQHUJ\SULFHLQWKHPDUNHWVEDVHGRQWKHUHVSHFWLYH\HDUHQG
PDUNHWFRQGLWLRQVSODQQHGJHQHUDWLRQYROXPHVDQGKHGJHGSRVLWLRQVZRXOGKDYHDFRUUHVSRQGLQJHIIHFWRQSUHWD[
LQFRPHRIPLOOLRQLQDQGZRXOGKDYHKDGDFRUUHVSRQGLQJHIIHFWRQSUHWD[LQFRPHRIPLOOLRQLQ

(QWHUJ\¶VSXUFKDVHRIWKH)LW]3DWULFNDQG,QGLDQ3RLQWSODQWVIURP1<3$LQFOXGHGYDOXHVKDULQJDJUHHPHQWV
ZLWK1<3$,Q2FWREHU1<3$DQGWKHVXEVLGLDULHVWKDWRZQWKH)LW]3DWULFNDQG,QGLDQ3RLQWSODQWVDPHQGHG
DQGUHVWDWHGWKHYDOXHVKDULQJDJUHHPHQWVWRFODULI\DQGDPHQGFHUWDLQSURYLVLRQVRIWKHRULJLQDOWHUPV8QGHUWKH
DPHQGHGYDOXHVKDULQJDJUHHPHQWVWKH(QWHUJ\VXEVLGLDULHVDJUHHGWRPDNHDQQXDOSD\PHQWVWR1<3$EDVHGRQWKH
JHQHUDWLRQRXWSXWRIWKH,QGLDQ3RLQWDQG)LW]3DWULFNSODQWVIURP-DQXDU\WKURXJK'HFHPEHU(QWHUJ\
VXEVLGLDULHVSDLG1<3$SHU0:KIRUSRZHUVROGIURP,QGLDQ3RLQWXSWRDQDQQXDOFDSRIPLOOLRQDQG
SHU0:KIRUSRZHUVROGIURP)LW]3DWULFNXSWRDQDQQXDOFDSRIPLOOLRQ7KHDQQXDOSD\PHQWIRUHDFK
\HDU¶VRXWSXWLVGXHE\-DQXDU\RIWKHIROORZLQJ\HDU(QWHUJ\UHFRUGVWKHOLDELOLW\IRUSD\PHQWVWR1<3$DVSRZHU
LVJHQHUDWHGDQGVROGE\,QGLDQ3RLQWDQG)LW]3DWULFN,QDQG(QWHUJ\:KROHVDOH&RPPRGLWLHV
UHFRUGHGDOLDELOLW\RIDSSUR[LPDWHO\PLOOLRQIRUJHQHUDWLRQGXULQJHDFKRIWKRVH\HDUV$QDPRXQWHTXDOWRWKH
OLDELOLW\ZDVUHFRUGHGHDFK\HDUWRWKHSODQWDVVHWDFFRXQWDVFRQWLQJHQWSXUFKDVHSULFHFRQVLGHUDWLRQIRUWKHSODQWV7KLV
DPRXQWZLOOEHGHSUHFLDWHGRYHUWKHH[SHFWHGUHPDLQLQJXVHIXOOLIHRIWKHSODQWV
6RPHRIWKHDJUHHPHQWVWRVHOOWKHSRZHUSURGXFHGE\(QWHUJ\:KROHVDOH&RPPRGLWLHV¶SRZHUSODQWVFRQWDLQ
SURYLVLRQVWKDWUHTXLUHDQ(QWHUJ\VXEVLGLDU\WRSURYLGHFROODWHUDOWRVHFXUHLWVREOLJDWLRQVXQGHUWKHDJUHHPHQWV7KH
(QWHUJ\VXEVLGLDU\LVUHTXLUHGWRSURYLGHFROODWHUDOEDVHGXSRQWKHGLIIHUHQFHEHWZHHQWKHFXUUHQWPDUNHWDQGFRQWUDFWHG
SRZHUSULFHVLQWKHUHJLRQVZKHUH(QWHUJ\:KROHVDOH&RPPRGLWLHVVHOOVSRZHU7KHSULPDU\IRUPRIFROODWHUDOWR
VDWLVI\WKHVHUHTXLUHPHQWVLVDQ(QWHUJ\&RUSRUDWLRQJXDUDQW\&DVKDQGOHWWHUVRIFUHGLWDUHDOVRDFFHSWDEOHIRUPVRI
FROODWHUDO$W'HFHPEHUEDVHGRQSRZHUSULFHVDWWKDWWLPH(QWHUJ\KDGOLTXLGLW\H[SRVXUHRIPLOOLRQ
XQGHUWKHJXDUDQWHHVLQSODFHVXSSRUWLQJ(QWHUJ\:KROHVDOH&RPPRGLWLHVWUDQVDFWLRQVDQGPLOOLRQRISRVWHGFDVK
FROODWHUDO,QWKHHYHQWRIDGHFUHDVHLQ(QWHUJ\&RUSRUDWLRQ¶VFUHGLWUDWLQJWREHORZLQYHVWPHQWJUDGHEDVHGRQSRZHU
SULFHVDVRI'HFHPEHU(QWHUJ\ZRXOGKDYHEHHQUHTXLUHGWRSURYLGHDSSUR[LPDWHO\PLOOLRQRIDGGLWLRQDO
FDVKRUOHWWHUVRIFUHGLWXQGHUVRPHRIWKHDJUHHPHQWV$VRI'HFHPEHUWKHOLTXLGLW\H[SRVXUHDVVRFLDWHG
ZLWK(QWHUJ\:KROHVDOH&RPPRGLWLHVDVVXUDQFHUHTXLUHPHQWVLQFOXGLQJUHWXUQRISUHYLRXVO\SRVWHGFROODWHUDOIURP
FRXQWHUSDUWLHVZRXOGLQFUHDVHE\PLOOLRQIRUDSHU00%WXLQFUHDVHLQJDVSULFHVLQERWKWKHVKRUWDQGORQJ
WHUPPDUNHWV
$VRI'HFHPEHUVXEVWDQWLDOO\DOORIWKHFRXQWHUSDUWLHVRUWKHLUJXDUDQWRUVIRUWKHSODQQHGHQHUJ\
RXWSXWXQGHUFRQWUDFWIRU(QWHUJ\:KROHVDOH&RPPRGLWLHVQXFOHDUSODQWVWKURXJKKDYHSXEOLFLQYHVWPHQWJUDGH
FUHGLWUDWLQJV
Nuclear Matters
$IWHUWKHQXFOHDULQFLGHQWLQ-DSDQUHVXOWLQJIURPWKH0DUFKHDUWKTXDNHDQGWVXQDPLWKH15&HVWDEOLVKHG
DWDVNIRUFHWRFRQGXFWDUHYLHZRISURFHVVHVDQGUHJXODWLRQVUHODWLQJWRQXFOHDUIDFLOLWLHVLQWKH8QLWHG6WDWHV7KH
WDVNIRUFHLVVXHGDQHDUWHUPGD\UHSRUWLQ-XO\WKDWPDGHLQLWLDOUHFRPPHQGDWLRQVZKLFKZHUHVXEVHTXHQWO\
