Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 929

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 929
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 Subsidiaries Management’s Financial Discussion and Analysis for discussion of accounting for the effects of rate regulation.

Taxation and Uncertain Tax Positions

See “Taxation and Uncertain Tax Positions” in the “Critical Accounting Estimates” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion.

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

Qualified Pension and Other Postretirement Benefits

Entergy Mississippi’s qualified pension and other postretirement reported costs, as described in Note 11 to the financial statements, are affected by numerous factors including the provisions of the plans, changing employee demographics, and various actuarial calculations, assumptions, and accounting mechanisms.  See “Qualified Pension and Other Postretirement Benefits” in the “Critical Accounting Estimates” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion.  Because of the complexity of these calculations, the long-term nature of these obligations, and the importance of the assumptions utilized, Entergy’s estimate of these costs is a critical accounting estimate.

Cost Sensitivity

The following chart reflects the sensitivity of qualified pension cost and qualified projected benefit obligation to changes in certain actuarial assumptions (dollars in thousands).

Actuarial AssumptionChange in AssumptionImpact on 2025 Qualified Pension CostImpact on 2024 Qualified Projected Benefit Obligation  Increase/(Decrease) Discount rate(0.25%)$178$5,973Rate of return on plan assets(0.25%)$726$—Rate of increase in compensation0.25%$249$1,397

The following chart reflects the sensitivity of postretirement benefits cost and accumulated postretirement benefit obligation to changes in certain actuarial assumptions (dollars in thousands).

Actuarial AssumptionChange in AssumptionImpact on 2025 Postretirement Benefits CostImpact on 2024 Accumulated Postretirement Benefit Obligation  Increase/(Decrease) Discount rate(0.25%)$77$912Health care cost trend0.25%$112$594

Each fluctuation above assumes that the other components of the calculation are held constant.

Costs and Employer Contributions

Total qualified pension cost for Entergy Mississippi in 2024 was $3.3 million.  Entergy Mississippi anticipates 2025 qualified pension cost to be $3.5 million.  Entergy Mississippi contributed $15 million to its qualified pension