Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 368

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 368
---
ing trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.Entergy records decommissioning trust funds on the balance sheet at their fair value.  Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, for unrealized gains/(losses) on investment securities, the Registrant Subsidiaries record an offsetting amount in other regulatory liabilities/assets.  For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other long-term liabilities on the consolidated balance sheets of Entergy and Entergy Louisiana for the unrealized trust earnings not currently expected to be needed to decommission the plant.  Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2025 on equity securities still held as of September 30, 2025 were $277 million and $435 million, respectively.  The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index.  A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index.  The debt securities are generally held in individual government and credit issuances.The available-for-sale debt securities held as of September 30, 2025 and December 31, 2024 are summarized as follows:20252024(In Millions)Fair value$2,155 $2,047 Unrealized gains$28 $7 Unrealized losses$46 $80 As of September 30, 2025 and December 31, 2024, there were no deferred taxes on unrealized gains/(losses).  The amortized cost of available-for-sale debt securities was $2,173 million as of September 30, 2025 and $2,121 million as of December 31, 2024.  As of September 30, 2025, available-for-sale debt securities had an 

83

Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

average coupon rate of approximately 4.16%, an average duration of approximately 6.36 years, and