Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 159

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 4
Chunk 159
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 the amortization of state accumulated deferred income taxes as a result of tax rate changes, partially offset by the book and tax differences related to the non-taxable income distributions earned on preferred membership interests and certain book and tax differences related to utility plant items.

The effective income tax rate was 19.6% for the nine months ended September 30, 2024.  The difference in the effective income tax rate for the nine months ended September 30, 2024 versus the federal statutory rate of 21% was primarily due to the book and tax differences related to the non-taxable income distributions earned on preferred membership interests and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes and the amortization of state accumulated deferred income taxes as a result of tax rate changes.

Income Tax Legislation and Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation” herein and in the Form 10-K for discussion of income tax legislation and regulation.  See Note 10 to the financial statements herein for discussion of the nuclear production tax credits recorded in 2025.

Sale of Natural Gas Distribution Business

See Note 13 to the financial statements herein and the “Held For Sale - Natural Gas Distribution Businesses” section in Note 14 to the financial statements in the Form 10-K discussion of the sale of Entergy Louisiana’s natural gas distribution business on July 1, 2025.

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Table of ContentsEntergy Louisiana, LLC and SubsidiariesManagement’s Financial Discussion and Analysis

Liquidity and Capital Resources

Cash Flow

Cash flows for the nine months ended September 30, 2025 and 2024 were as follows:

20252024(In Thousands)Cash and cash equivalents at beginning of period$327,102 $2,772 Net cash provided by (used in):Operating activities1,762,375 1,320,416 Investing activities(2,021,195)(881,330)Financing activities307,958 (340,519)Net increase in cash and cash equivalents49,138 98,567 Cash and cash equivalents at end of period$376,240 $101,339 

Operating Activities

Net cash flow provided by operating activities increased $442 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:

•higher collections from customers;

•the receipt