Entergy Corporation and Subsidiaries Notes to Financial Statements 106 NOTE 7.
COMMON EQUITY Common Stock Treasury Stock Treasury stock activity for Entergy for 2009, 2008, and 2007 is as follows:
## Table 0 ##
Entergy Corporation reissues treasury shares to meet the requirements of the Stock Plan for Outside Directors (Directors' Plan), two Equity Ownership Plans of Entergy Corporation and Subsidiaries, the Equity Awards Plan of Entergy Corporation and Subsidiaries, and certain other stock benefit plans.
The Directors' Plan awards to non-employee directors a portion of their compensation in the form of a fixed number of shares of Entergy Corporation common stock.
In January 2007, the Board approved a repurchase program under which Entergy is authorized to repurchase up to $1.5 billion of its common stock.
In January 2008, the Board authorized an incremental $500 million share repurchase program to enable Entergy to consider opportunistic purchases in response to equity market conditions.
Entergy completed both the $1.5 billion and $500 million programs in the third quarter 2009.
In October 2009, the Board granted authority for an additional $750 million share repurchase program.
Retained Earnings and Dividend Restrictions Provisions within the articles of incorporation or pertinent indentures and various other agreements relating to the long-term debt and preferred stock of certain of Entergy Corporation's subsidiaries restrict the payment of cash dividends or other distributions on their common and preferred stock.
As of December 31, 2009, Entergy Arkansas and Entergy Mississippi had restricted retained earnings unavailable for distribution to Entergy Corporation of $461.6 million and $236 million, respectively.
Entergy Corporation received dividend payments from subsidiaries totaling $417 million in 2009, $313 million in 2008, and $625 million in 2007.
NOTE 8.
COMMITMENTS AND CONTINGENCIES Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings before various courts, regulatory commissions, and governmental agencies in the ordinary course of business.
While management is unable to predict the outcome of such proceedings, management does not believe that the ultimate resolution of these matters will have a material adverse effect on Entergy's results of operations, cash flows, or financial condition.
Entergy discusses regulatory proceedings in Note 2 to the financial statements and discusses tax proceedings in Note 3 to the financial statements.
Entergy Corporation and Subsidiaries Management's Financial Discussion and Analysis 20 methodology of computing Massachusetts state income taxes resulting from legislation passed in the third quarter 2008, which resulted in an income tax benefit of approximately $18.8 million.
These factors were partially offset by: x income taxes recorded by Entergy Power Generation, LLC, prior to its liquidation, resulting from the redemption payments it received in connection with its investment in Entergy Nuclear Power Marketing, LLC during the third quarter 2008, which resulted in an income tax expense of approximately $16.1 million; and x book and tax differences for utility plant items and state income taxes at the Utility operating companies, including the flow-through treatment of the Entergy Arkansas write-offs discussed above.
The effective income tax rate for 2007 was 30.7%.
The reduction in the effective income tax rate versus the federal statutory rate of 35% in 2007 is primarily due to: x a reduction in income tax expense due to a step-up in the tax basis on the Indian Point 2 non-qualified decommissioning trust fund resulting from restructuring of the trusts, which reduced deferred taxes on the trust fund and reduced current tax expense; x the resolution of tax audit issues involving the 2002-2003 audit cycle; x an adjustment to state income taxes for Non-Utility Nuclear to reflect the effect of a change in the methodology of computing New York state income taxes as required by that state's taxing authority; x book and tax differences related to the allowance for equity funds used during construction; and x the amortization of investment tax credits.
These factors were partially offset by book and tax differences for utility plant items and state income taxes at the Utility operating companies.
See Note 3 to the financial statements for a reconciliation of the federal statutory rate of 35.0% to the effective income tax rates, and for additional discussion regarding income taxes.
Liquidity and Capital Resources This section discusses Entergy's capital structure, capital spending plans and other uses of capital, sources of capital, and the cash flow activity presented in the cash flow statement.
Capital Structure Entergy's capitalization is balanced between equity and debt, as shown in the following table.
The decrease in the debt to capital percentage from 2008 to 2009 is primarily the result of an increase in shareholders' equity primarily due to an increase in retained earnings, partially offset by repurchases of common stock, along with a decrease in borrowings under Entergy Corporation's revolving credit facility.
The increase in the debt to capital percentage from 2007 to 2008 is primarily the result of additional borrowings under Entergy Corporation's revolving credit facility.
## Table 1 ##
Entergy Corporation and Subsidiaries Notes to Financial Statements 158 decommissioning trust funds held by NYPA were $719 million for the Indian Point 3 plant and $785 million for the FitzPatrick plant.
The fair values are based on the trust statements received from NYPA and are valued by the fund administrator using net asset value as a practical expedient.
Accordingly, these funds are not assigned a level in the fair value hierarchy.
The receivables for the beneficial interests in the decommissioning trust funds are recorded in other deferred debits on the consolidated balance sheet.
Coal Combustion Residuals In June 2010 the EPA issued a proposed rule on coal combustion residuals (CCRs) that contained two primary regulatory options: (1) regulating CCRs destined for disposal in landfills or received (including stored) in surface impoundments as so-called “special wastes” under the hazardous waste program of RCRASubtitle C; or (2) regulating CCRs destined for disposal in landfills or surface impoundments as non-hazardous wastes under Subtitle D of RCRA.
Under both options, CCRs that are beneficially reused in certain processes would remain excluded from hazardous waste regulation.
In April 2015 the EPA published the final CCR rule with the material being regulated under the second scenario presented above - as non-hazardous wastes regulated under RCRA Subtitle D.  The final regulations create new compliance requirements including modified storage, new notification and reporting practices, product disposal considerations, and CCR unit closure criteria.
Entergy believes that on-site disposal options will be available at its facilities, to the extent needed for CCR that cannot be transferred for beneficial reuse.
In December 2016, the Water Infrastructure Improvements for the Nation Act was signed into law, which authorizes states to regulate coal ash rather than leaving primary enforcement to citizen suit actions.
States may submit to the EPA proposals for permit programs.
Entergy is monitoring state agency actions and will participate in the regulatory development process.
NOTE 10.
LEASES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) General As of December 31, 2016, Entergy had capital leases and non-cancelable operating leases for equipment, buildings, vehicles, and fuel storage facilities with minimum lease payments as follows (excluding power purchase agreement operating leases, nuclear fuel leases, and the Grand Gulf and Waterford 3 sale and leaseback transactions, all of which are discussed elsewhere):
## Table 2 ##
Total rental expenses for all leases (excluding power purchase agreement operating leases, nuclear fuel leases, and the Grand Gulf and Waterford 3 sale and leaseback transactions) amounted to $44.4 million in 2016, $63.9 million in 2015, and $59 million in 2014.
As of December 31, 2016 the Registrant Subsidiaries had a capital lease and non-cancelable operating leases for equipment, buildings, vehicles, and fuel storage facilities with minimum lease payments as follows (excluding

<table><tr><td></td><td colspan="2">2009</td><td colspan="2">2008</td><td colspan="2">2007</td></tr><tr><td></td><td>Treasury</td><td></td><td>Treasury</td><td></td><td>Treasury</td><td></td></tr><tr><td></td><td>Shares</td><td>Cost (In Thousands)</td><td>Shares</td><td>Cost (In Thousands)</td><td>Shares</td><td>Cost (In Thousands)</td></tr><tr><td>Beginning Balance, January 1</td><td>58,815,518</td><td>$4,175,214</td><td>55,053,847</td><td>$3,734,865</td><td>45,506,311</td><td>$2,644,390</td></tr><tr><td>Repurchases</td><td>7,680,000</td><td>613,125</td><td>4,792,299</td><td>512,351</td><td>11,581,842</td><td>1,215,578</td></tr><tr><td>Issuances:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Employee Stock-BasedCompensation Plans</td><td>-856,390</td><td>-60,846</td><td>-1,025,408</td><td>-71,636</td><td>-2,029,686</td><td>-124,801</td></tr><tr><td>Directors' Plan</td><td>-4,548</td><td>-326</td><td>-5,220</td><td>-366</td><td>-4,620</td><td>-302</td></tr><tr><td>Ending Balance, December 31</td><td>65,634,580</td><td>$4,727,167</td><td>58,815,518</td><td>$4,175,214</td><td>55,053,847</td><td>$3,734,865</td></tr></table>
<table><tr><td></td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>Net debt to net capital at the end of the year</td><td>53.5%</td><td>55.6%</td><td>54.7%</td></tr><tr><td>Effect of subtracting cash from debt</td><td>3.8%</td><td>4.1%</td><td>2.9%</td></tr><tr><td>Debt to capital at the end of the year</td><td>57.3%</td><td>59.7%</td><td>57.6%</td></tr></table>
<table><tr><td>Year</td><td>OperatingLeases</td><td>CapitalLeases</td></tr><tr><td></td><td colspan="2">(In Thousands)</td></tr><tr><td>2017</td><td>$76,663</td><td>$4,694</td></tr><tr><td>2018</td><td>69,620</td><td>3,255</td></tr><tr><td>2019</td><td>67,218</td><td>3,124</td></tr><tr><td>2020</td><td>51,127</td><td>3,065</td></tr><tr><td>2021</td><td>41,531</td><td>2,887</td></tr><tr><td>Years thereafter</td><td>90,787</td><td>21,891</td></tr><tr><td>Minimum lease payments</td><td>396,946</td><td>38,916</td></tr><tr><td>Less: Amount representing interest</td><td>—</td><td>11,934</td></tr><tr><td>Present value of net minimum lease payments</td><td>$396,946</td><td>$26,982</td></tr></table>

Question: Which year is Beginning Balance, January 1 the highest?