Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 541

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 541
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 to Financial Statements

(b)See “Income Tax Audits - 2016-2018 IRS Audit” below for discussion of the resolution of the 2016-2018 IRS audit in 2023.(c)See Note 2 to the financial statements for discussion of Entergy Louisiana’s reversal of a regulatory liability, primarily associated with the Hurricane Isaac securitization, recognized in 2017 as a result of the Tax Cuts and Jobs Act.(d)See “Other Tax Matters – Act 293 Securitizations” below for discussion of the Entergy Louisiana May 2022 and March 2023 storm cost securitizations.(e)See Note 2 to the financial statements for discussion of the December 2022 FERC order related to the Grand Gulf sale-leaseback renewal complaint.(f)See “Income Tax Audits - State Income Tax Audits” below for discussion of the resolution of the 2014-2018 Arkansas Department of Finance and Administration examination in 2024.(g)See “Other Tax Matters - Arkansas and Louisiana Corporate Income Tax Rate Changes” below for details.Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2024, 2023, and 2022 are:2024Entergy ArkansasEntergy LouisianaEntergy MississippiEntergy New OrleansEntergy TexasSystem Energy (In Thousands)Net income$319,466$890,771$245,407$15,847$293,622$103,500Income taxes74,574225,40980,3152,84265,68429,503Income before income taxes$394,040$1,116,180$325,722$18,689$359,306$133,003Income taxes computed at statutory rate (21%)$82,748$234,398$68,402$3,925$75,454$27,931Increases (reductions) in tax resulting from:     State income taxes net of federal income tax effect13,94050,76013,2101,2485,1644,936Regulatory differences - utility plant items(9,885)(9,988)(3,572)(830)(4,537)(1,475)Equity component of AFUDC(6,032)(7,513)(1,910)(445)(10,045)(1,398