Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 238

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 4
Chunk 238
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 offset by certain book and tax differences related to utility plant items and book and tax differences related to the allowance for equity funds used during construction.

The effective income tax rate was 20.6% for the nine months ended September 30, 2025.  The difference in the effective income tax rate for the nine months ended September 30, 2025 versus the federal statutory rate of 21% 

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Table of ContentsSystem Energy Resources, Inc.Management’s Financial Discussion and Analysis

was primarily due to certain book and tax differences related to utility plant items and book and tax differences related to the allowance for equity funds used during construction, offset by the accrual for state income taxes.

The effective income tax rates were 24% for the third quarter 2024 and 22.5% for the nine months ended September 30, 2024.  The differences in the effective income tax rates for the third quarter 2024 and the nine months ended September 30, 2024 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by book and tax differences related to the allowance for equity funds used during construction.

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.

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$28,908 $60 Net cash provided by (used in):Operating activities327,440 113,280 Investing activities(146,126)(241,229)Financing activities(82,435)206,084 Net increase in cash and cash equivalents98,879 78,135 Cash and cash equivalents at end of period$127,787 $78,195 

Operating Activities

Net cash flow provided by operating activities increased $214.2 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:

•the receipt of $98.7 million in payments related to the sale of nuclear production tax credits in third quarter 2025.