Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 643

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 643
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 pension and postretirement weighted-average asset allocations by asset category at December 31, 2024 and 2023 and the target asset allocation and ranges for 2024 are as follows:Pension Asset AllocationTargetRangeActual 2024Actual 2023Domestic Equity Securities22%18%to26%23%33%International Equity Securities13%10%to16%13%18%Intermediate Fixed Income Securities4%3%to5%5%9%Long Duration Fixed Income Securities61%57%to65%59%40%Other—%—%to10%—%—%Postretirement Asset AllocationNon-Taxable and Taxable TargetRangeActual 2024Actual 2023Domestic Equity Securities14%9%to19%16%28%International Equity Securities10%5%to15%9%17%Fixed Income Securities76%71%to81%75%55%Other—%—%to5%—%—%In determining its expected long-term rate of return on plan assets used in the calculation of benefit plan costs, Entergy reviews past performance, current and expected future asset allocations, and capital market assumptions of its investment consultant and some investment managers.The expected long-term rate of return for the qualified pension plans’ assets is based primarily on the geometric average of the historical annual performance of a representative portfolio weighted by the target asset allocation defined in the table above, along with other indications of expected return on assets.  The time period reflected is a long-dated period spanning several decades.The expected long-term rate of return for the non-taxable postretirement trust assets is determined using the same methodology described above for pension assets, but the aggregate asset allocation specific to the non-taxable postretirement assets is used.For the taxable postretirement trust assets, the investment allocation includes tax-exempt fixed income securities.  This asset allocation, in combination with the same methodology employed to determine the expected return for other postretirement assets (as described above), and with a modification to reflect applicable taxes, is used to produce the expected long-term rate of return for taxable postretirement trust assets.Concentrations of Credit RiskEntergy’s investment guidelines mandate the avoidance of risk concentrations.  Types of concentrations specified to be avoided include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country, geographic area, and individual security issuance.  As of December 31, 2024, all investment managers and assets were