ENTERGY LOUISIANA, LLC AND SUBSIDIARIES MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS Results of Operations Net Income 2017 Compared to 2016 Net income decreased $305.7 million primarily due to the effect of the enactment of the Tax Cuts and Jobs Act, in December 2017, which resulted in a decrease of $182.6 million in net income in 2017, and the effect of a settlement with the IRS related to the 2010-2011 IRS audit, which resulted in a $136.1 million reduction of income tax expense in 2016.
Also contributing to the decrease in net income were higher other operation and maintenance expenses.
The decrease was partially offset by higher net revenue and higher other income.
See Note 3 to the financial statements for discussion of the effects of the Tax Cuts and Jobs Act and the IRS audit.2016 Compared to 2015 Net income increased $175.4 million primarily due to the effect of a settlement with the IRS related to the 2010-2011 IRS audit, which resulted in a $136.1 million reduction of income tax expense in 2016.
Also contributing to the increase were lower other operation and maintenance expenses, higher net revenue, and higher other income.
The increase was partially offset by higher depreciation and amortization expenses, higher interest expense, and higher nuclear refueling outage expenses.
See Note 3 to the financial statements for discussion of the IRS audit.
Net Revenue 2017 Compared to 2016 Net revenue consists of operating revenues net of: 1) fuel, fuel-related expenses, and gas purchased for resale, 2) purchased power expenses, and 3) other regulatory charges (credits).
Following is an analysis of the change in net revenue comparing 2017 to 2016.
## Table 0 ##
The regulatory credit resulting from reduction of the federal corporate income tax rate variance is due to the reduction of the Vidalia purchased power agreement regulatory liability by $30.5 million and the reduction of the Louisiana Act 55 financing savings obligation regulatory liabilities by $25 million as a result of the enactment of the Tax Cuts and Jobs Act, in December 2017, which lowered the federal corporate income tax rate from 35% to 21%.
The effects of the Tax Cuts and Jobs Act are discussed further in Note 3 to the financial statements.
As a result of these factors, segment operating earnings of $37.1 million in the fourth quarter of 2013, including $3.5 million of unfavorable foreign currency effects, increased $5.2 million, or 16.3%, from 2012 levels.
Operating margin for the Commercial & Industrial Group of 13.1% in the fourth quarter of 2013 improved 150 basis points from 11.6% last year.
Snap-on Tools Group
## Table 1 ##
Segment net sales of $351.1 million in the fourth quarter of 2013 increased $29.5 million, or 9.2%, from 2012 levels.
Excluding $2.9 million of unfavorable foreign currency translation, organic sales increased $32.4 million, or 10.2%, reflecting a double-digit sales increase in the company’s U. S.  franchise operations and a mid single-digit sales gain in the company’s international franchise operations.
Segment gross profit of $146.2 million in the fourth quarter of 2013 increased $10.4 million from 2012 levels.
Gross margin of 41.6% in the quarter decreased 60 basis points from 42.2% last year largely as a result of $2.6 million, or 40 basis points, of unfavorable foreign currency effects.
Segment operating expenses of $95.2 million in the fourth quarter of 2013 increased $5.0 million from 2012 levels primarily due to higher volume-related and other expenses.
The operating expense margin of 27.1% in the quarter improved 90 basis points from 28.0% last year primarily due to benefits from sales volume leverage.
As a result of these factors, segment operating earnings of $51.0 million in the fourth quarter of 2013, including $2.0 million of unfavorable foreign currency effects, increased $5.4 million, or 11.8%, from 2012 levels.
Operating margin for the Snap-on Tools Group of 14.5% in the fourth quarter of 2013 increased 30 basis points from 14.2% last year.
Repair Systems & Information Group
## Table 2 ##
Segment net sales of $264.6 million in the fourth quarter of 2013 increased $23.0 million, or 9.5%, from 2012 levels.
Excluding $15.2 million of sales from Challenger and $0.7 million of favorable foreign currency translation, organic sales in the fourth quarter of 2013 increased $7.1 million, or 2.9%, from prior-year levels.
The year-over-year increase in organic sales is primarily driven by a mid single-digit gain in sales of diagnostic and repair information products to repair shop owners and managers, as well as a mid single-digit increase in sales of undercar equipment.
These year-over-year sales gains were partially offset by a low single-digit decline in sales to OEM dealership service and repair shops.
Operating expenses of $980.3 million in 2012 increased $26.6 million as compared to $953.7 million in 2011.
As a result of year-over-year changes in the company’s year-end stock price, operating expenses in 2012 included $14.7 million of stock-based (“mark-to-market”) expense; operating expenses in 2011 included $1.0 million of mark-to-market expense.
Restructuring costs included in operating expenses totaled $5.6 million and $4.6 million in 2012 and 2011, respectively.
The operating expense margin of 33.4% in 2012 was unchanged from 2011 as benefits from sales volume leverage and savings from ongoing RCI initiatives were offset by higher mark-to-market and other expenses.
Operating earnings before financial services of $409.7 million in 2012 increased $25.5 million from 2011 levels despite $13.7 million of higher mark-to-market expense.
As a percentage of net sales, operating earnings before financial services of 13.9% in 2012, which includes an adverse 50 basis point impact from the higher mark-to-market expense, improved 40 basis points from 13.5% in 2011.
In May 2011, Snap-on and CIT reached an amicable settlement of their respective claims relating to payments during the course of their SOC financial services joint venture and, in the second quarter of 2011, Snap-on recorded an $18.0 million pretax ($11.1 million after tax, or $0.19 per diluted share) arbitration settlement gain.
The $18.0 million arbitration settlement gain is included in “Operating earnings from financial services” on the accompanying Consolidated Statement of Earnings for 2011.
Financial services operating earnings of $106.7 million on revenue of $161.3 million in 2012 compares with operating earnings (before arbitration settlement) of $72.9 million on revenue of $124.3 million in 2011.
The year-over-year increases in both revenue and operating earnings primarily reflected the growth in the company’s on-book finance portfolio.
In 2011, operating earnings from financial services, including the $18.0 million arbitration settlement gain, was $90.9 million.
Operating earnings – The following non-GAAP financial data is being provided as management believes that the nonGAAP measures, which exclude the $18.0 million arbitration settlement gain in 2011, provide a more meaningful comparison of the company’s year-over-year operating performance.

<table><tr><td></td><td>Amount (In Millions)</td></tr><tr><td>2016 net revenue</td><td>$2,438.4</td></tr><tr><td>Regulatory credit resulting from reduction of thefederal corporate income tax rate</td><td>55.5</td></tr><tr><td>Retail electric price</td><td>42.8</td></tr><tr><td>Louisiana Act 55 financing savings obligation</td><td>17.2</td></tr><tr><td>Volume/weather</td><td>-12.4</td></tr><tr><td>Other</td><td>19.0</td></tr><tr><td>2017 net revenue</td><td>$2,560.5</td></tr></table>
<table><tr><td></td><td colspan="4">Fourth Quarter</td><td colspan="2"></td></tr><tr><td><i>(Amounts in millions)</i></td><td colspan="2">2013</td><td colspan="2">2012</td><td colspan="2">Change</td></tr><tr><td>Segment net sales</td><td>$351.1</td><td>100.0%</td><td>$321.6</td><td>100.0%</td><td>$29.5</td><td>9.2%</td></tr><tr><td>Cost of goods sold</td><td>-204.9</td><td>-58.4%</td><td>-185.8</td><td>-57.8%</td><td>-19.1</td><td>-10.3%</td></tr><tr><td>Gross profit</td><td>146.2</td><td>41.6%</td><td>135.8</td><td>42.2%</td><td>10.4</td><td>7.7%</td></tr><tr><td>Operating expenses</td><td>-95.2</td><td>-27.1%</td><td>-90.2</td><td>-28.0%</td><td>-5.0</td><td>-5.5%</td></tr><tr><td>Segment operating earnings</td><td>$51.0</td><td>14.5%</td><td>$45.6</td><td>14.2%</td><td>$5.4</td><td>11.8%</td></tr></table>
<table><tr><td></td><td colspan="4">Fourth Quarter</td><td colspan="2"></td></tr><tr><td><i>(Amounts in millions)</i></td><td colspan="2">2013</td><td colspan="2">2012</td><td colspan="2">Change</td></tr><tr><td>External net sales</td><td>$214.8</td><td>81.2%</td><td>$194.8</td><td>80.6%</td><td>$20.0</td><td>10.3%</td></tr><tr><td>Intersegment net sales</td><td>49.8</td><td>18.8%</td><td>46.8</td><td>19.4%</td><td>3.0</td><td>6.4%</td></tr><tr><td>Segment net sales</td><td>264.6</td><td>100.0%</td><td>241.6</td><td>100.0%</td><td>23.0</td><td>9.5%</td></tr><tr><td>Cost of goods sold</td><td>-142.6</td><td>-53.9%</td><td>-130.4</td><td>-54.0%</td><td>-12.2</td><td>-9.4%</td></tr><tr><td>Gross profit</td><td>122.0</td><td>46.1%</td><td>111.2</td><td>46.0%</td><td>10.8</td><td>9.7%</td></tr><tr><td>Operating expenses</td><td>-61.2</td><td>-23.1%</td><td>-55.8</td><td>-23.1%</td><td>-5.4</td><td>-9.7%</td></tr><tr><td>Segment operating earnings</td><td>$60.8</td><td>23.0%</td><td>$55.4</td><td>22.9%</td><td>$5.4</td><td>9.7%</td></tr></table>

Question: Does the value of External net sales in 2012 greater than that in 2013?