Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 267

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 7
Chunk 267
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 and tariffs and further similar changes may impact Entergy’s business, operations, results of operations, and liquidity and capital resources.  Potential impacts may include increases in costs associated with Entergy’s capital investments or operation and maintenance expenses; operational impacts, such as supply chain, manufacturing, or raw materials sourcing disruptions which may affect Entergy’s ability to make planned capital investments as and when expected and needed; legal uncertainties, such as potential legal or other challenges to presidential tariff authority; or broader economic risks, including shifting customer demand, impacts on customer investment decisions, and volatile or uncertain credit and capital markets, which may affect Entergy’s ability to access needed capital.  The nature and extent of any such effects will depend on, among other things, the specifics of the changes that are ultimately implemented both domestically and internationally, the responses of vendors, suppliers, and other counterparties to those changes, indirect effects on the price and availability of non-tariffed goods, and the effectiveness of mitigation measures.

Capital Structure and Resources

Entergy’s debt to capital ratio is shown in the following table.

September 30,2025December 31, 2024Debt to capital64.3%65.3%Effect of excluding securitization bonds(0.2%)(0.2%)Debt to capital, excluding securitization bonds (non-GAAP) (a)64.1%65.1%Effect of subtracting cash(1.2%)(0.7%)Net debt to net capital, excluding securitization bonds (non-GAAP) (a)62.9%64.4%

(a)Calculation excludes the Texas securitization bonds, which are non-recourse to Entergy Texas.

As of September 30, 2025, 19% of the debt outstanding is at the parent company, Entergy Corporation, and 81% is at the Utility segment.  Net debt consists of debt less cash and cash equivalents.  Debt consists of notes payable and commercial paper, finance lease obligations, and long-term debt, including the currently maturing portion.  Capital consists of debt, equity, and subsidiaries’ preferred stock without sinking fund.  Net capital consists of capital less cash and cash equivalents.  The debt to capital ratio excluding securitization bonds and net debt to net capital ratio excluding securitization bonds are non-GAAP measures.  Entergy uses the debt to capital ratios excluding securitization bonds in analyzing