Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 546

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 546
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 on income tax returns.  Entergy evaluates the available positive and negative evidence to estimate whether sufficient future taxable income of the appropriate character will be generated to realize the benefits of existing deferred tax assets.  When the evaluation 

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

indicates that Entergy will not be able to realize the existing benefits, a valuation allowance is recorded to reduce deferred tax assets to the realizable amount.Because it is more likely than not that the benefits from certain state net operating losses and other deferred tax assets will not be utilized, valuation allowances totaling $339 million as of December 31, 2024 and $372 million as of December 31, 2023 have been provided on the deferred tax assets related to federal and state jurisdictions in which Entergy does not currently expect to be able to utilize certain separate company tax return attributes, preventing realization of such deferred tax assets.  Certain accelerated tax deductions which generated taxable losses in various taxing jurisdictions, and which have a limited term carryover period, have resulted in the impairment of the realizability of such carryovers and are reflected in the valuation allowance disclosed above.Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2024 and 2023 are as follows:2024Entergy ArkansasEntergy LouisianaEntergy MississippiEntergy New OrleansEntergy TexasSystem Energy (In Thousands)Deferred tax liabilities:      Plant basis differences - net($1,530,196)($2,729,299)($849,623)($272,182)($727,242)($466,361)Regulatory assets(219,773)(497,177)(37,374)(72,389)(100,959)(75,606)Nuclear decommissioning trusts/receivables(185,725)(202,364)— — — (175,341)Pension, net regulatory asset(101,887)(84,732)(26,064)(9,687)(16,569)— Power purchase agreements11,993 (97,846)1,140 (12,385)(5,148)— Deferred fuel— (4,785)(17,234)(1,247)— (78)Other(24,430)(106,590)(5,231)(5,133)(4,512)(13,572)Total(2,050,018)(3,722,793