Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 365

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 365
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% Series mortgage bonds in April 2024.

See Note 5 to the financial statements for a discussion of long-term debt.

Parent and Other

Asset write-offs, impairments, and related charges (credits) includes:

•the effects of recording a favorable final judgment of $20 million in fourth quarter 2024 to resolve claims in the Northstar Vermont Yankee, LLC (previously Entergy Nuclear Vermont Yankee) final round Vermont Yankee damages case against the DOE;

•the effects of recording a favorable final judgment of $7 million in fourth quarter 2024 to resolve claims in the Holtec Palisades, LLC (previously Entergy Nuclear Palisades) final round Palisades damages case against the DOE; and

•the effects of recording a favorable final judgment of $40 million in third quarter 2023 to resolve claims in the Indian Point 2 fourth round and Indian Point 3 third round combined damages case against the DOE.

See Note 8 to the financial statements for discussion of the spent nuclear fuel litigation.

Other income (deductions) decreased primarily due to:

•a $320 million ($253 million net-of-tax) non-cash settlement charge recognized as a result of a group annuity contract purchased in 2024 to settle certain pension liabilities.  See Note 11 to the financial statements for discussion of the group annuity contract and settlement charge;

•lower non-service pension income.  See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” below and Note 11 to the financial statements for further discussion of pension and other postretirement benefits costs; and

•an increase of $14 million in the amount of the elimination for consolidation purposes of intercompany dividend income from affiliated preferred membership interest, as discussed above.

Interest expense increased primarily due to the issuance of $1.2 billion of junior subordinated debentures in May 2024 and higher commercial paper balances.  See Note 4 to the financial statements for discussion of Entergy’s commercial paper program.

Income Taxes

The effective income tax rates were 26.4% for 2024 and (41.3%) for 2023.  See Note 3 to the financial statements for a reconciliation of the federal statutory rate of 21% to the effective income tax rates and for additional discussion regarding income taxes.

2023 Compared to 2022

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Results of Operations” in Item 7 of Entergy’s Annual