Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 339

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 339
---
 quarter 2024 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes and the amortization of accumulated deferred income taxes as a result of tax rate changes, partially offset by certain book and tax differences related to utility plant items and book and tax differences related to the allowance for equity funds used during construction.

The effective income tax rate was 25.4% for the six months ended June 30, 2024.  The difference in the effective income tax rate for the six months ended June 30, 2024 versus the federal statutory rate of 21% was primarily due to the amortization of accumulated deferred income taxes as a result of tax rate changes and the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items and book and tax differences related to the allowance for equity funds used during construction.

Income Tax Legislation and Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation” herein and in the Form 10-K for discussion of income tax legislation and regulation.  See Note 10 to the financial statements herein for discussion of the nuclear production tax credits recorded in second quarter 2025.

93

Table of ContentsEntergy Arkansas, LLC and SubsidiariesManagement's Financial Discussion and Analysis

Liquidity and Capital Resources

Cash Flow

Cash flows for the six months ended June 30, 2025 and 2024 were as follows:

 20252024 (In Thousands)Cash and cash equivalents at beginning of period$4,747 $3,632 Net cash provided by (used in):Operating activities437,887 524,708 Investing activities(493,179)(721,529)Financing activities277,533 979,521 Net increase in cash and cash equivalents222,241 782,700 Cash and cash equivalents at end of period$226,988 $786,332 

Operating Activities

Net cash flow provided by operating activities decreased $86.8 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to:

•the receipt of $92 million in settlement proceeds in May 2024 as a result of the System Energy settlement with the APSC.  See Note 2 to the financial statements in the Form 10-K for a discussion of the System Energy settlement agreement with the APSC;

•higher fuel and