Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 550

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 550
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 reconciliation of Entergy’s beginning and ending amount of unrecognized tax benefits is as follows: 202420232022 (In Thousands)Gross balance at January 1$2,439,910 $6,393,599 $5,759,968 Additions based on tax positions related to the current year12,731 332,884 792,134 Additions for tax positions of prior years21,149 194,894 37,259 Reductions for tax positions of prior years (a)(85,715)(1,300,381)(195,762)Settlements (a)(33,208)(3,181,086)— Gross balance at December 312,354,867 2,439,910 6,393,599 Offsets to gross unrecognized tax benefits:   Loss and tax credit carryovers(2,079,778)(2,160,484)(5,566,212)Cash paid to taxing authorities(27,000)— (82,000)Unrecognized tax benefits net of unused tax attributes and payments (b)$248,089 $279,426 $745,387 (a)Amounts in 2023 are primarily related to the resolution of the 2016-2018 IRS audit as discussed in “Income Tax Audits - 2016-2018 IRS Audit” below.  Amounts in 2024 are primarily related to the resolution of 2014-2018 Arkansas tax examination as discussed in  “Income Tax Audits - State Income Tax Audits” below.(b)Potential tax liability above what is payable on tax returns.The balances of unrecognized tax benefits include $1,900 million, $1,899 million, and $3,254 million as of December 31, 2024, 2023, and 2022, respectively, which, if recognized, would lower the effective income tax 

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

rates.  Because of the effect of deferred tax accounting, the remaining balances of unrecognized tax benefits of $455 million, $541 million, and $3,140 million as of December 31, 2024, 2023, and 2022, respectively, if disallowed, would not affect the annual effective income tax rate but would accelerate the payment of cash to the taxing authority to an earlier period.Entergy accrues interest expense, if any, related to unrecognized