Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 1169

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 1169
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 2024 were: ETR Adjusted EPS, Adjusted FFO/Debt Ratio, Safety, Customer NPS, and DIB, with ETR Adjusted EPS being the most heavily weighted at 60% and the remaining measures each weighted at 10%.

Minimum, target, and maximum performance goals were established for each of the measures, with no payout for results less than the designated minimum, a 25% payout opportunity for results at the minimum, a 100% payout opportunity for results at target, and a 200% payout opportunity for results equal to or exceeding the maximum.  Payout opportunities for results between the minimum and target, and target and maximum performance achievement levels, respectively, were determined by straight line interpolation, with the EAM result being determined formulaically by the weighted average of the payouts determined for each of the performance measures.

Quantitative Performance Measures

All the performance measures used to determine the EAM except the DIB performance measure are purely quantitative measures.  Following are summary descriptions of each of the quantitative performance measures, including the rationale for their selection and targets set for 2024:

MeasureRationaleGoalETR Adjusted EPSNon-GAAP measure, which is the earnings measure by which we provide external guidance, adjusted to eliminate the effect of: (i) major storms, including the impact on total debt of pending securitizations; (ii) resolutions during the year of certain unresolved regulatory litigation matters; (iii) unrealized gains or losses on equity securities; (iv) income tax law changes; and (v) any adjustments to contributions to pension investments or trusts related to post-retirement benefits that are elective and deviate from original plan assumptions (collectively, the “Pre-Determined Exclusions”)•Based on an objective financial measure that we and our investors consider to be important in evaluating our financial performance•Based on the same measure we use for internal and external financial reporting•Provides both discipline and transparency•Target performance was set to equal management’s expectation for the Company’s Adjusted EPS as reflected in its financial plan, or $3.60 per share ($7.20 per share pre-Stock Split)•Minimum performance: $3.51 per share ($7.02 per share pre-Stock Split)•Maximum performance: $3.69 per share ($7.38 per share pre-Stock Split)

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MeasureRationaleGoalAdjusted FFO/Debt RatioNon-GAAP measure, which is the ratio of: (i) adjusted funds from operations calculated as