Entergy 2014 Annual Report Download - page 81


(QWHUJ\&RUSRUDWLRQDQG6XEVLGLDULHV
1RWHVWR)LQDQFLDO6WDWHPHQWV


(QWHUJ\ *XOI 6WDWHV /RXLVLDQD GRHV QRW DSSO\ UHJXODWRU\ DFFRXQWLQJ VWDQGDUGV WR WKH /RXLVLDQD UHWDLO
GHUHJXODWHG SRUWLRQ RI 5LYHU %HQG WKH  LQWHUHVW LQ 5LYHU %HQG IRUPHUO\ RZQHG E\ &DMXQ DQG LWV VWHDP 
EXVLQHVV XQOHVV VSHFLILF FRVW UHFRYHU\ LVSURYLGHG IRULQ WDULII UDWHV 7KH /RXLVLDQD UHWDLOGHUHJXODWHG SRUWLRQ RI
5LYHU %HQGLV RSHUDWHGXQGHU DGHUHJXODWHGDVVHWSODQ UHSUHVHQWLQJD SRUWLRQDSSUR[LPDWHO\  RI5LYHU %HQG
SODQWFRVWVJHQHUDWLRQUHYHQXHVDQGH[SHQVHVHVWDEOLVKHGXQGHUD/36&RUGHU7KHSODQDOORZV(QWHUJ\*XOI
6WDWHV/RXLVLDQDWRVHOOWKHHOHFWULFLW\IURPWKHGHUHJXODWHGDVVHWVWR/RXLVLDQDUHWDLOFXVWRPHUVDWFHQWVSHUN:K
RU RIIV\VWHP DW KLJKHU SULFHV ZLWK FHUWDLQ SURYLVLRQV IRU VKDULQJLQFUHPHQWDOUHYHQXHDERYHFHQWVSHUN:K
EHWZHHQFXVWRPHUVDQGVKDUHKROGHUV

Regulatory Asset for Income Taxes
 $FFRXQWLQJ VWDQGDUGV IRU LQFRPH WD[HV SURYLGH WKDW D UHJXODWRU\ DVVHW RU OLDELOLW\ EH UHFRUGHG LI LW LV
SUREDEOH WKDW WKH FXUUHQWO\ GHWHUPLQDEOH IXWXUH LQFUHDVH RU GHFUHDVH LQ UHJXODWRU\ LQFRPH WD[ H[SHQVH ZLOO EH 
UHFRYHUHG IURP RU UHLPEXUVHGWR FXVWRPHUV WKURXJKIXWXUH UDWHV7KH SULPDU\VRXUFHRI (QWHUJ\¶V UHJXODWRU\DVVHW
IRULQFRPHWD[HVLVUHODWHGWRWKHUDWHPDNLQJWUHDWPHQWRIWKHWD[ HIIHFWV RI ERRN GHSUHFLDWLRQ IRU WKH HTXLW\ 
FRPSRQHQWRI$)8'&WKDWKDVEHHQFDSLWDOL]HGWRSURSHUW\SODQW DQG HTXLSPHQW EXW IRU ZKLFK WKHUH LV QR 
FRUUHVSRQGLQJWD[ EDVLV (TXLW\$)8'& LV D FRPSRQHQW RI SURSHUW\ SODQW DQG HTXLSPHQW WKDW LV LQFOXGHG LQUDWH
EDVHZKHQWKHSODQWLVSODFHGLQVHUYLFH

Cash and Cash Equivalents

(QWHUJ\FRQVLGHUVDOOXQUHVWULFWHGKLJKO\OLTXLGGHEWLQVWUXPHQWVZLWKDQRULJLQDOPDWXULW\RIWKUHHPRQWKV
RUOHVVDWGDWHRISXUFKDVHWREHFDVKHTXLYDOHQWV

Allowance for Doubtful Accounts

7KH DOORZDQFH IRU GRXEWIXO DFFRXQWV UHIOHFWV (QWHUJ\¶V EHVW HVWLPDWH RI ORVVHV RQ WKH DFFRXQWV UHFHLYDEOH
EDODQFHV7KHDOORZDQFHLVEDVHGRQDFFRXQWVUHFHLYDEOHDJLQJVKLVWRULFDOH[SHULHQFHDQGRWKHUFXUUHQWO\DYDLODEOH
HYLGHQFH 8WLOLW\ RSHUDWLQJ FRPSDQ\ FXVWRPHU DFFRXQWV UHFHLYDEOH DUH ZULWWHQ RII FRQVLVWHQW ZLWK DSSURYHG
UHJXODWRU\UHTXLUHPHQWV

Investments

(QWHUJ\UHFRUGVGHFRPPLVVLRQLQJWUXVWIXQGVRQWKHEDODQFHVKHHWDWWKHLUIDLUYDOXH%HFDXVHRIWKHDELOLW\
RI WKH 5HJLVWUDQW 6XEVLGLDULHV WR UHFRYHU GHFRPPLVVLRQLQJ FRVWV LQ UDWHV DQG LQ DFFRUGDQFH ZLWK WKH UHJXODWRU\
WUHDWPHQW IRU GHFRPPLVVLRQLQJ WUXVW IXQGV WKH 5HJLVWUDQW 6XEVLGLDULHV UHFRUG DQ RIIVHWWLQJ DPRXQW LQ RWKHU
UHJXODWRU\OLDELOLWLHVDVVHWVIRUWKHXQUHDOL]HGJDLQVORVVHVRQLQYHVWPHQWVHFXULWLHV)RUWKHLQWHUHVWLQ5LYHU
%HQGIRUPHUO\RZQHGE\&DMXQ(QWHUJ\*XOI6WDWHV/RXLVLDQDKDVUHFRUGHGDQRIIVHWWLQJDPRXQWLQ RWKHUGHIHUUHG
FUHGLWVIRU WKHXQUHDOL]HGJDLQVORVVHV'HFRPPLVVLRQLQJWUXVWIXQGVIRU3LOJULP,QGLDQ3RLQW9HUPRQW<DQNHH
DQG3DOLVDGHV GRQRW PHHW WKHFULWHULD IRU UHJXODWRU\DFFRXQWLQJ WUHDWPHQW$FFRUGLQJO\ XQUHDOL]HG JDLQV UHFRUGHG
RQ WKH DVVHWV LQ WKHVH WUXVW IXQGV DUH UHFRJQL]HG LQ WKH DFFXPXODWHG RWKHU FRPSUHKHQVLYH LQFRPH FRPSRQHQW RI
HTXLW\EHFDXVHWKHVHDVVHWVDUHFODVVLILHGDVDYDLODEOHIRUVDOH8QUHDOL]HGORVVHVZKHUHFRVWH[FHHGVIDLUPDUNHW
YDOXH RQ WKH DVVHWV LQ WKHVH WUXVW IXQGV DUH DOVR UHFRUGHG LQ WKH DFFXPXODWHG RWKHU FRPSUHKHQVLYH LQFRPH
FRPSRQHQW RI HTXLW\ XQOHVV WKH XQUHDOL]HG ORVV LV RWKHU WKDQ WHPSRUDU\ DQG WKHUHIRUH UHFRUGHG LQ HDUQLQJV 7KH
DVVHVVPHQWRIZKHWKHUDQLQYHVWPHQWLQDGHEWVHFXULW\KDVVXIIHUHGDQRWKHUWKDQWHPSRUDU\LPSDLUPHQWLVEDVHGRQ
ZKHWKHU(QWHUJ\KDVWKHLQWHQWWRVHOORUPRUHOLNHO\WKDQQRWZLOOEHUHTXLUHGWRVHOOWKHGHEWVHFXULW\EHIRUH
UHFRYHU\RILWVDPRUWL]HGFRVWV)XUWKHULI(QWHUJ\GRHVQRWH[SHFWWRUHFRYHUWKHHQWLUHDPRUWL]HGFRVWEDVLVRIWKH
GHEW VHFXULW\DQRWKHUWKDQWHPSRUDU\LPSDLUPHQWLVFRQVLGHUHGWRKDYHRFFXUUHGDQGLWLVPHDVXUHGE\WKHSUHVHQW
YDOXHRI FDVK IORZV H[SHFWHGWREHFROOHFWHG OHVV WKHDPRUWL]HGFRVW EDVLV FUHGLW ORVV7KHDVVHVVPHQW RI ZKHWKHU
DQ LQYHVWPHQW LQ DQ HTXLW\ VHFXULW\ KDV VXIIHUHG DQ RWKHUWKDQWHPSRUDU\ LPSDLUPHQW LV EDVHG RQ D QXPEHU RI
IDFWRUV LQFOXGLQJ ILUVW ZKHWKHU (QWHUJ\ KDV WKH DELOLW\ DQG LQWHQW WR KROG WKH LQYHVWPHQW WR UHFRYHU LWV YDOXH WKH
GXUDWLRQDQGVHYHULW\RIDQ\ORVVHVDQGWKHQZKHWKHULWLVH[SHFWHGWKDWWKHLQYHVWPHQWZLOOUHFRYHULWVYDOXHZLWKLQ
D UHDVRQDEOH SHULRG RI WLPH (QWHUJ\¶V WUXVWV DUH PDQDJHG E\ WKLUG SDUWLHV ZKR RSHUDWH LQ DFFRUGDQFH ZLWK
