Entergy 2014 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 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.

Page out of 192

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192

(QWHUJ\&RUSRUDWLRQDQG6XEVLGLDULHV
1RWHVWR)LQDQFLDO6WDWHPHQWV
SUREDELOLW\ZHLJKWHG XQGLVFRXQWHG QHW FDVK IORZV H[SHFWHG WR EH JHQHUDWHG E\ WKH SODQW DQG UHODWHG
DVVHWV3URMHFWHGQHWFDVKIORZVSULPDULO\GHSHQGRQWKHVWDWXVRIWKHSHQGLQJOHJDODQGVWDWHUHJXODWRU\PDWWHUVDV
ZHOODV SURMHFWLRQV RIIXWXUHUHYHQXHVDQGH[SHQVHVRYHU WKHUHPDLQLQJOLIHRIWKHSODQW3ULRU WRWKHILUVWTXDUWHU
 WKH SUREDELOLW\ZHLJKWHG XQGLVFRXQWHG QHW FDVK IORZV H[FHHGHG WKH FDUU\LQJ YDOXH RI WKH 9HUPRQW <DQNHH
SODQW DQG UHODWHG DVVHWV 7KH GHFOLQH KRZHYHU LQ WKH RYHUDOO HQHUJ\ PDUNHW DQG WKH SURMHFWHG IRUZDUG SULFHV RI
SRZHU DV RI0DUFK  ZKLFK DUHVLJQLILFDQWLQSXWV LQWKH GHWHUPLQDWLRQRI QHW FDVK IORZV UHVXOWHGLQ WKH
SUREDELOLW\ZHLJKWHG XQGLVFRXQWHG IXWXUH FDVK IORZV EHLQJ OHVV WKDQ WKH DVVHW JURXS¶V FDUU\LQJ YDOXH (QWHUJ\
SHUIRUPHG D IDLU YDOXH DQDO\VLV EDVHG RQ WKH LQFRPH DSSURDFK D GLVFRXQWHG FDVK IORZ PHWKRG WR GHWHUPLQH WKH
DPRXQWRILPSDLUPHQW7KHHVWLPDWHGIDLUYDOXHRIWKHSODQWDQGUHODWHGDVVHWVDW0DUFKZDVPLOOLRQ
ZKLOH WKH FDUU\LQJ YDOXH ZDV  PLOOLRQ 7KHUHIRUH WKH DVVHWV ZHUH ZULWWHQ GRZQ WR WKHLU IDLU YDOXH DQG DQ
LPSDLUPHQW FKDUJH RI  PLOOLRQ  PLOOLRQ DIWHUWD[ ZDV UHFRJQL]HG 7KH LPSDLUPHQW FKDUJH ZDV
UHFRUGHGDVDVHSDUDWHOLQHLWHPLQ(QWHUJVFRQVROLGDWHGVWDWHPHQWRILQFRPHIRUDQGLVLQFOXGHGZLWKLQWKH
UHVXOWVRIWKH(QWHUJ\:KROHVDOH&RPPRGLWLHVVHJPHQW
7KHHVWLPDWHRIIDLUYDOXHZDVEDVHGRQWKHSULFHWKDW(QWHUJ\ZRXOGH[SHFWWRUHFHLYHLQDK\SRWKHWLFDOVDOH
RIWKH9HUPRQW<DQNHHSODQWDQGUHODWHGDVVHWVWRDPDUNHWSDUWLFLSDQWRQ0DUFK,QRUGHUWRGHWHUPLQH
WKLV SULFH (QWHUJ\ XVHG VLJQLILFDQW REVHUYDEOH LQSXWV LQFOXGLQJ TXRWHG IRUZDUG SRZHU DQG JDV SULFHV ZKHUH
DYDLODEOH6LJQLILFDQWXQREVHUYDEOHLQSXWVVXFKDVSURMHFWHGORQJWHUPSUHWD[RSHUDWLQJPDUJLQVFDVKEDVLVDQG
HVWLPDWHG ZHLJKWHG DYHUDJH FRVWV RI FDSLWDO ZHUH DOVR XVHG LQ WKH HVWLPDWLRQ RI IDLU YDOXH  ,Q DGGLWLRQ (QWHUJ\ 
PDGHFHUWDLQDVVXPSWLRQVUHJDUGLQJIXWXUHWD[GHGXFWLRQVDVVRFLDWHGZLWKWKHSODQWDQGUHODWHGDVVHWV%DVHGRQWKH
XVHRIVLJQLILFDQWXQREVHUYDEOHLQSXWVWKHIDLUYDOXHPHDVXUHPHQWIRUWKHHQWLUHW\RIWKHDVVHWJURXSDQGIRUHDFK
W\SHRIDVVHWZLWKLQWKHDVVHWJURXSLVFODVVLILHGDV/HYHOLQWKHIDLUYDOXHKLHUDUFK\GLVFXVVHGLQ1RWHWRWKH
ILQDQFLDOVWDWHPHQWV
7KHIROORZLQJWDEOHVHWVIRUWKDGHVFULSWLRQRIVLJQLILFDQWXQREVHUYDEOHLQSXWVXVHGLQWKHYDOXDWLRQRIWKH
9HUPRQW<DQNHHSODQWDQGUHODWHGDVVHWVDVRI0DUFK
Significant Unobservable Inputs Range
Weighted
Avera
g
e

:HLJKWHGDYHUDJHFRVWRIFDSLWDO  
/RQJWHUPSUHWD[RSHUDWLQJPDUJLQFDVKEDVLV  
 2Q$XJXVW(QWHUJ\DQQRXQFHGLWVSODQWRFORVHDQGGHFRPPLVVLRQ9HUPRQW<DQNHHDWWKHHQGRI
LWVIXHOF\FOHDWWKHHQGRI7KLVGHFLVLRQZDVDSSURYHGE\WKH%RDUGLQ$XJXVWDOWKRXJKWKHH[DFWGDWH
RI VKXWGRZQ ZDV QRW GHWHUPLQHG  7KH GHFLVLRQ WR VKXW GRZQ WKH SODQW ZDV SULPDULO\ GXH WRVXVWDLQHG ORZ QDWXUDO
JDVDQGZKROHVDOHHQHUJ\SULFHVWKHKLJKFRVWVWUXFWXUHRIWKHSODQWDQGODFNRIDPDUNHWVWUXFWXUHWKDWDGHTXDWHO\
FRPSHQVDWHVPHUFKDQWQXFOHDUSODQWVIRUWKHLUHQYLURQPHQWDODQGIXHOGLYHUVLW\EHQHILWVLQWKHUHJLRQLQZKLFKWKH
SODQWRSHUDWHV
$V D UHVXOW RI WKH GHFLVLRQ WR VKXW GRZQ WKH SODQW (QWHUJ\ UHFRJQL]HG QRQFDVK LPSDLUPHQW DQG RWKHU
UHODWHGFKDUJHVRIPLOOLRQPLOOLRQDIWHUWD[GXULQJWKHWKLUGTXDUWHUWRZULWHGRZQWKHFDUU\LQJ
YDOXHRI9HUPRQW<DQNHHDQGUHODWHGDVVHWVWRWKHLUIDLUYDOXHV (QWHUJ\SHUIRUPHGDIDLUYDOXH DQDO\VLVEDVHGRQ
WKH LQFRPHDSSURDFK D GLVFRXQWHG FDVK IORZ PHWKRG WR GHWHUPLQH WKH DPRXQW RI LPSDLUPHQW 7KH HVWLPDWHG IDLU
YDOXHRIWKHSODQWDQGUHODWHGDVVHWVZDVPLOOLRQZKLOHWKHFDUU\LQJYDOXHZDVPLOOLRQ7KHFDUU\LQJYDOXH
RIPLOOLRQUHIOHFWHGWKHHIIHFWRIDPLOOLRQLQFUHDVHLQ9HUPRQW<DQNHH¶VHVWLPDWHGGHFRPPLVVLRQLQJFRVW
OLDELOLW\DQG WKHUHODWHGDVVHWUHWLUHPHQWFRVWDVVHW7KHLQFUHDVHLQWKHHVWLPDWHGGHFRPPLVVLRQLQJFRVW OLDELOLW\
UHVXOWHGIURPWKHFKDQJHLQH[SHFWDWLRQUHJDUGLQJWKHWLPLQJRIGHFRPPLVVLRQLQJFDVKIORZVGXHWRWKHGHFLVLRQWR
FHDVH RSHUDWLRQV  ,PSDLUPHQW DQG RWKHU UHODWHG FKDUJHV ZHUH UHFRUGHG DV D VHSDUDWH OLQH LWHP LQ (QWHUJ\¶V
FRQVROLGDWHGVWDWHPHQWVRILQFRPHIRUDQGWKLVLPSDLUPHQWFKDUJHLVLQFOXGHGZLWKLQWKHUHVXOWVRIWKH(QWHUJ\
:KROHVDOH&RPPRGLWLHVVHJPHQW
7KHHVWLPDWHRIIDLUYDOXHZDVEDVHGRQWKHSULFHWKDW(QWHUJ\ZRXOGH[SHFWWRUHFHLYHLQDK\SRWKHWLFDOVDOH
RIWKH 9HUPRQW<DQNHH SODQWDQG UHODWHGDVVHWV WRD PDUNHW SDUWLFLSDQW ,Q RUGHU WRGHWHUPLQH WKLV SULFH (QWHUJ\
