Entergy Corporation and Subsidiaries Management's Financial Discussion and Analysis 31 The Vermont Yankee acquisition included a 10-year PPA under which the former owners will buy the power produced by the plant, which is through the expiration in 2012 of the current operating license for the plant.
The PPA includes an adjustment clause under which the prices specified in the PPA will be adjusted downward monthly, beginning in November 2005, if power market prices drop below PPA prices.
Accordingly, because the price is not fixed, the table above does not report power from that plant as sold forward after November 2005.
A sale of power on a unit contingent basis coupled with an availability guarantee provides for the payment to the power purchaser of contract damages, if incurred, in the event the seller fails to deliver power as a result of the failure of the specified generation unit to generate power at or above a specified availability threshold.
To date, Entergy has not incurred any payment obligation to any power purchaser pursuant to an availability guarantee.
All of Entergy's outstanding availability guarantees provide for dollar limits on Entergy's maximum liability under such guarantees.
Some of the agreements to sell the power produced by Entergy's Non-Utility Nuclear power plants contain provisions that require an Entergy subsidiary to provide collateral to secure its obligations under the agreements.
The Entergy subsidiary may be required to provide collateral based upon the difference between the current market and contracted power prices in the regions where the Non-Utility Nuclear business sells its power.
The primary form of the collateral to satisfy these requirements would be an Entergy Corporation guaranty.
Cash and letters of credit are also acceptable forms of collateral.
At December 31, 2004, based on power prices at that time, Entergy had in place as collateral $545.5 million of Entergy Corporation guarantees and $47.5 million of letters of credit.
In the event of a decrease in Entergy Corporation's credit rating to specified levels below investment grade, Entergy may be required to replace Entergy Corporation guarantees with cash or letters of credit under some of the agreements.
In addition to selling the power produced by its plants, the Non-Utility Nuclear business sells installed capacity to load-serving distribution companies in order for those companies to meet requirements placed on them by the ISO in their area.
Following is a summary of the amount of the Non-Utility Nuclear business' installed capacity that is currently sold forward, and the blended amount of the Non-Utility Nuclear business' planned generation output and installed capacity that is currently sold forwar
## Table 0 ##
As of December 31, 2004, approximately 99% of Entergy's counterparties to Non-Utility Nuclear's energy and capacity contracts have investment grade credit rating
Entergy Corporation and Subsidiaries Notes to Financial Statements Fuel and purchased power cost recovery Entergy Arkansas, Entergy Gulf States Louisiana, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas are allowed to recover fuel and purchased power costs through fuel mechanisms included in electric and gas rates that are recorded as fuel cost recovery revenues.
The difference between revenues collected and the current fuel and purchased power costs is generally recorded as “Deferred fuel costs” on the Utility operating companies’ financial statements.
The table below shows the amount of deferred fuel costs as of December 31, 2013 and 2012 that Entergy expects to recover (or return to customers) through fuel mechanisms, subject to subsequent regulatory review.
## Table 1 ##
(a) 2013 and 2012 include $100.1 million for Entergy Gulf States Louisiana, $68 million for Entergy Louisiana, and $4.1 million for Entergy New Orleans of fuel, purchased power, and capacity costs, which do not currently earn a return on investment and whose recovery periods are indeterminate but are expected to be over a period greater than twelve months.
Entergy Arkansas Production Cost Allocation Rider The APSC approved a production cost allocation rider for recovery from customers of the retail portion of the costs allocated to Entergy Arkansas as a result of the System Agreement proceedings, which are discussed in the “System Agreement Cost Equalization Proceedings” section below.
These costs cause an increase in Entergy Arkansas’s deferred fuel cost balance because Entergy Arkansas pays the costs over seven months but collects them from customers over twelve months.
Energy Cost Recovery Rider Entergy Arkansas’s retail rates include an energy cost recovery rider to recover fuel and purchased energy costs in monthly customer bills.
The rider utilizes the prior calendar-year energy costs and projected energy sales for the twelve-month period commencing on April 1 of each year to develop an energy cost rate, which is redetermined annually and includes a true-up adjustment reflecting the over- or under-recovery, including carrying charges, of the energy costs for the prior calendar year.
The energy cost recovery rider tariff also allows an interim rate request depending upon the level of over- or under-recovery of fuel and purchased energy costs.
In October 2005 the APSC initiated an investigation into Entergy Arkansas's interim energy cost recovery rate.
The investigation focused on Entergy Arkansas's 1) gas contracting, portfolio, and hedging practices; 2) wholesale purchases during the period; 3) management of the coal inventory at its coal generation plants; and 4) response to the contractual failure of the railroads to provide coal deliveries.
In March 2006 the APSC extended its investigation to cover the costs included in Entergy Arkansas’s March 2006 annual energy cost rate filing, and a hearing was held in the APSC investigation in October 2006.
Entergy Corporation and Subsidiaries Notes to Financial Statements As of December?31, 2017, System Energy, in connection with the Grand Gulf sale and leaseback transactions, had future minimum lease payments (reflecting an implicit rate of 5.13%) that are recorded as long-term debt, as follows:
## Table 2 ##
NOTE 11. ?
RETIREMENT, OTHER POSTRETIREMENT BENEFITS, AND DEFINED CONTRIBUTION PLANS??
(Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Qualified Pension Plans Entergy has eight qualified pension plans covering substantially all employees.
The Entergy Corporation Retirement Plan for Non-Bargaining Employees (Non-Bargaining Plan I), the Entergy Corporation Retirement Plan for Bargaining Employees (Bargaining Plan I), the Entergy Corporation Retirement Plan II for Non-Bargaining Employees (Non-Bargaining Plan II), the Entergy Corporation Retirement Plan II for Bargaining Employees, the Entergy Corporation Retirement Plan III, and the Entergy Corporation Retirement Plan IV for Bargaining Employees?are non-contributory final average pay plans and provide pension benefits that are based on employees’ credited service and compensation during employment.
?Effective as of the close of business on December 31, 2016, the Entergy Corporation Retirement Plan IV for Non-Bargaining Employees (Non-Bargaining Plan IV) was merged with and into Non-Bargaining Plan II.
At the close of business on December 31, 2016, the liabilities for the accrued benefits and the assets attributable to such liabilities of all participants in Non-Bargaining Plan IV were assumed by and transferred to Non-Bargaining Plan II.
There was no loss of vesting or benefit options or reduction of accrued benefits to affected participants as a result of this plan merger.
Non-bargaining employees whose most recent date of hire is after June 30, 2014 participate in the Entergy Corporation Cash Balance Plan for Non-Bargaining Employees (Non-Bargaining Cash Balance Plan).
Certain bargaining employees hired or rehired after June 30, 2014, or such later date provided for in their applicable collective bargaining agreements, participate in the Entergy Corporation Cash Balance Plan for Bargaining Employees (Bargaining Cash Balance Plan).
The Registrant Subsidiaries participate in these four plans: Non-Bargaining Plan I, Bargaining Plan I, Non-Bargaining Cash Balance Plan, and Bargaining Cash Balance Plan.
The assets of the six final average pay qualified pension plans are held in a master trust established by Entergy, and the assets of the two cash balance pension plans are held in a second master trust established by Entergy. ?
?Each pension plan has an undivided beneficial interest in each of the investment accounts in its respective master trust that is maintained by a trustee. ?
?Use of the master trusts permits the commingling of the trust assets of the pension plans of Entergy Corporation and its Registrant Subsidiaries for investment and administrative purposes. ?
?Although assets in the master trusts are commingled, the trustee maintains supporting records for the purpose of allocating the trust level equity in net earnings (loss) and the administrative expenses of the investment accounts in each trust to the various participating pension plans in that particular trust. ?
?The fair value of the trusts’ assets is determined by the trustee and certain investment managers. ?
?For each trust, the trustee calculates a daily earnings factor, including realized and
MetLife, Inc.  Notes to Consolidated Financial Statements — (Continued) The following is a summary of Stock Option exercise activity for the:
## Table 3 ##
Performance Shares Beginning in 2005, certain members of management were awarded Performance Shares under (and as defined in) the 2005 Stock Plan.
Participants are awarded an initial target number of Performance Shares with the final number of Performance Shares payable being determined by the product of the initial target multiplied by a factor of 0.0 to 2.0.
The factor applied is based on measurements of the Company’s performance with respect to: (i) the change in annual net operating earnings per share, as defined; and (ii) the proportionate total shareholder return, as defined, with reference to the three-year performance period relative to other companies in the S&P Insurance Index with reference to the same three-year period.
Performance Share awards will normally vest in their entirety at the end of the threeyear performance period (subject to certain contingencies) and will be payable entirely in shares of the Company’s common stock.
The following is a summary of Performance Share activity for the year ended December 31, 2007:
## Table 4 ##
Performance Share amounts above represent aggregate initial target awards and do not reflect potential increases or decreases resulting from the final performance factor to be determined at the end of the respective performance period.
As of December 31, 2007, the three year performance period for the 2005 Performance Share grants was completed.
Included in the immediately preceding table are 965,525 outstanding Performance Shares to which the final performance factor will be applied.
The calculation of the performance factor is expected to be finalized during the second quarter of 2008 after all data necessary to perform the calculation is publicly available.
Performance Share awards are accounted for as equity awards but are not credited with dividend-equivalents for actual dividends paid on the Holding Company’s common stock during the performance period.
Accordingly, the fair value of Performance Shares is based upon the closing price of the Holding Company’s common stock on the date of grant, reduced by the present value of estimated dividends to be paid on that stock during the performance period.
Compensation expense related to initial Performance Shares granted prior to January 1, 2006 and expected to vest is recognized ratably during the performance period.
Compensation expense related to initial Performance Shares granted on or after January 1, 2006 and expected to vest is recognized ratably over the performance period or the period to retirement eligibility, if shorter.
Performance Shares expected to vest and the related compensation expenses may be further adjusted by the performance factor most likely to be achieved, as estimated by management, at the end of the performance period.
Compensation expense of $90 million, $74 million and $24 million, related to Performance Shares was recognized for the years ended December 31, 2007, 2006 and 2005, respectively.
As of December 31, 2007, there were $57 million of total unrecognized compensation costs related to Performance Share awards.
It is expected that these costs will be recognized over a weighted average period of 1.72 years.
Long-Term Performance Compensation Plan Prior to January 1, 2005, the Company granted stock-based compensation to certain members of management under the LTPCP.
Each participant was assigned a target compensation amount (an “Opportunity Award”) at the inception of the performance period with the final compensation amount determined based on the total shareholder return on the Company’s common stock over the three-year performance period, subject to limited further adjustment approved by the Company’s Board of Directors.
Payments on the Opportunity Awards were normally payable in their entirety (subject to certain contingencies) at the end of the three-year performance period, and were paid in whole or in part with shares of the Company’s common stock, as approved by the Company’s Board of Directors.
There were no new grants under the LTPCP during the years ended December 31, 2007, 2006 and 2005.
A portion of each Opportunity Award under the LTPCP was settled in shares of the Holding Company’s common stock while the remainder was settled in cash.
The portion of the Opportunity Award settled in shares of the Holding Company’s common stock was accounted for as an equity award with the fair value of the award determined based upon the closing price of the Holding Company’s common stock on the date of grant.
The compensation expense associated with the equity award, based upon the grant date fair value, was recognized into expense ratably over the respective three-year performance period.
The portion of the Opportunity Award settled in cash was accounted for as a liability and was remeasured using the closing price of the Holding Company’s common stock on the final day of each subsequent reporting period during the three-year performance period.
The final LTPCP performance period concluded during the six months ended June 30, 2007.
Final Opportunity Awards in the amount of 618,375 shares of the Company’s common stock and $16 million in cash were paid on April 18, 2007.
No significant compensation
expected policy assessments based on the level of guaranteed minimum benefits generated using multiple scenarios of separate account returns.
The scenarios use best estimate assumptions consistent with those used to amortize DAC.
Because separate account balances have had positive returns relative to the prior year, current estimates of future benefits are lower than that previously projected which resulted in a decrease in this liability in the current period.
Partially offsetting these increases, higher DAC amortization of $49 million resulted from business growth and favorable investment results.
Latin America Region.
The decrease in operating earnings was primarily driven by lower net investment income.
Net investment income decreased by $297 million due to a decrease of $383 million from lower yields, partially offset by an increase of $86 million due to an increase in average invested assets.
The decrease in yields was due, in part, to the impact of changes in assumptions for measuring the effects of inflation on certain inflation-indexed fixed maturity securities.
This decrease was partially offset by a reduction of $221 million in the related insurance liability primarily due to lower inflation.
The increase in net investment income attributable to an increase in average invested assets was primarily due to business growth and, as such, was largely offset by increases in policyholder benefits and interest credited expense.
Higher claim experience in Mexico resulted in a $45 million decline in operating earnings.
The nationalization and reform of the pension business in Argentina impacted both the current year and prior year earnings, resulting in a net $36 million decline in operating earnings.
In addition, operating earnings decreased due to a net income tax increase of $8 million in Mexico, resulting from a change in assumption regarding the repatriation of earnings, partially offset by the favorable impact of a lower effective tax rate in 2009.
Partially offsetting these decreases in operating earnings was the combination of growth in Mexico’s individual and institutional businesses and higher premium rates in its institutional business, which increased operating earnings by $51 million.
Pesification in Argentina impacted both the current year and prior year earnings, resulting in a net $73 million increase in operating earnings.
This benefit was largely due to a reassessment of our approach in managing existing and potential future claims related to certain social security pension annuity contract holders in Argentina resulting in a liability release.
Lower expenses of $8 million resulted primarily from the impact of operational efficiencies achieved through our Operational Excellence initiative.
EMEI Region.
The impact of foreign currency transaction gains and a tax benefit, both of which occurred in the prior year, contributed $12 million to the decline in operating earnings.
Our investment of $9 million in our distribution capability and growth initiatives in 2009 also reduced operating earnings.
There was an increase in net investment income of $76 million, which was due to an increase of $65 million from an improvement in yields and $11 million from an increase in average invested assets.
The increase in yields was primarily due to favorable results on the trading securities portfolio, stemming from the equity markets experiencing some recovery in 2009.
As our trading portfolio backs unit-linked policyholder liabilities, the trading portfolio results were entirely offset by a corresponding increase in interest credited expense.
The increase in net investment income attributable to an increase in average invested assets was primarily due to business growth and was largely offset by increases in policyholder benefits and interest credited expense, also due to business growth.
Banking, Corporate & Other
## Table 5 ##
Banking, Corporate & Other recognized the full year impact of our forward and reverse residential mortgage platform acquisitions, a strong residential mortgage refinance market, healthy growth in the reverse mortgage arena, and a favorable interest spread environment.
Our forward and reverse residential mortgage production of $37.4 billion in 2009 is up 484% compared to 2008 production.
The increase in mortgage production drove higher investments in residential mortgage loans held-for-sale and mortgage servicing rights.
At December 31, 2009, our residential mortgage loans servicing portfolio was $64.1 billion comprised of agency (Federal National Mortgage Association (“FNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”) or Government National Mortgage Association (“GNMA”) securities) portfolios.
Transaction and time deposits, which provide a relatively stable source of funding and liquidity and are used to fund loans and fixed income securities purchases, grew 48% in 2009 to $10.2 billion.
Borrowings decreased 10% in 2009 to $2.4 billion.
During 2009, we participated in the Federal Reserve Bank of New York Term Auction Facility, which provided short term liquidity with low funding costs.
Factory Stores We extend our reach to additional consumer groups through our 259 factory stores worldwide, which are principally located in major outlet centers.
During Fiscal 2015, we added 30 new factory stores and closed six factory stores.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td> 2005</td><td> 2006</td><td> 2007</td><td> 2008</td><td> 2009</td></tr><tr><td> Non-Utility Nuclear:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Percent of capacity sold forward:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Bundled capacity and energy contracts</td><td>13%</td><td>13%</td><td>13%</td><td>13%</td><td>13%</td></tr><tr><td>Capacity contracts</td><td>58%</td><td>67%</td><td>36%</td><td>22%</td><td>10%</td></tr><tr><td>Total</td><td>71%</td><td>80%</td><td>49%</td><td>35%</td><td>23%</td></tr><tr><td>Planned net MW in operation</td><td>4,155</td><td>4,200</td><td>4,200</td><td>4,200</td><td>4,200</td></tr><tr><td>Average capacity contract price per kW per month</td><td>$1.2</td><td>$1.1</td><td>$1.1</td><td>$1.0</td><td>$0.9</td></tr><tr><td>Blended Capacity and Energy (based on revenues)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>% of planned generation and capacity sold forward</td><td>93%</td><td>87%</td><td>65%</td><td>36%</td><td>12%</td></tr><tr><td>Average contract revenue per MWh</td><td>$40</td><td>$42</td><td>$43</td><td>$44</td><td>$43</td></tr></table>
<table><tr><td></td><td>2013</td><td>2012</td></tr><tr><td></td><td colspan="2">(In Millions)</td></tr><tr><td>Entergy Arkansas</td><td>$68.7</td><td>$97.3</td></tr><tr><td>Entergy Gulf States Louisiana (a)</td><td>$109.7</td><td>$99.2</td></tr><tr><td>Entergy Louisiana (a)</td><td>$37.6</td><td>$94.6</td></tr><tr><td>Entergy Mississippi</td><td>$38.1</td><td>$26.5</td></tr><tr><td>Entergy New Orleans (a)</td><td>-$19.1</td><td>$1.9</td></tr><tr><td>Entergy Texas</td><td>-$4.1</td><td>-$93.3</td></tr></table>
<table><tr><td></td><td>Amount (In Thousands)</td></tr><tr><td>2018</td><td>$17,188</td></tr><tr><td>2019</td><td>17,188</td></tr><tr><td>2020</td><td>17,188</td></tr><tr><td>2021</td><td>17,188</td></tr><tr><td>2022</td><td>17,188</td></tr><tr><td>Years thereafter</td><td>240,625</td></tr><tr><td>Total</td><td>326,565</td></tr><tr><td>Less: Amount representing interest</td><td>292,209</td></tr><tr><td>Present value of net minimum lease payments</td><td>$34,356</td></tr></table>
<table><tr><td></td><td colspan="3"> Years Ended December 31,</td></tr><tr><td></td><td> 2007</td><td> 2006</td><td> 2005</td></tr><tr><td></td><td colspan="3"> (In millions)</td></tr><tr><td>Total intrinsic value of stock options exercised</td><td>$122</td><td>$65</td><td>$39</td></tr><tr><td>Cash received from exercise of stock options</td><td>$110</td><td>$83</td><td>$72</td></tr><tr><td>Tax benefit realized from stock options exercised</td><td>$43</td><td>$23</td><td>$13</td></tr></table>
<table><tr><td></td><td> Performance   Shares</td><td> Weighted Average   Grant Date   Fair Value</td></tr><tr><td>Outstanding at January 1, 2007</td><td>1,849,575</td><td>$42.24</td></tr><tr><td>Granted</td><td>916,075</td><td>$60.86</td></tr><tr><td>Forfeited</td><td>-75,525</td><td>$49.20</td></tr><tr><td>Outstanding at December 31, 2007</td><td>2,690,125</td><td>$48.39</td></tr><tr><td>Performance Shares expected to vest at December 31, 2007</td><td>2,641,669</td><td>$48.20</td></tr></table>
<table><tr><td></td><td colspan="2">Years Ended December 31,</td><td></td><td></td></tr><tr><td></td><td>2009</td><td>2008</td><td>Change</td><td>% Change</td></tr><tr><td></td><td colspan="3">(In millions)</td><td></td></tr><tr><td> Operating Revenues</td><td></td><td></td><td></td><td></td></tr><tr><td>Premiums</td><td>$19</td><td>$27</td><td>$-8</td><td>-29.6%</td></tr><tr><td>Net investment income</td><td>477</td><td>808</td><td>-331</td><td>-41.0%</td></tr><tr><td>Other revenues</td><td>1,092</td><td>184</td><td>908</td><td>493.5%</td></tr><tr><td>Total operating revenues</td><td>1,588</td><td>1,019</td><td>569</td><td>55.8%</td></tr><tr><td> Operating Expenses</td><td></td><td></td><td></td><td></td></tr><tr><td>Policyholder benefits and claims and policyholder dividends</td><td>4</td><td>46</td><td>-42</td><td>-91.3%</td></tr><tr><td>Interest credited to policyholder account balances</td><td>—</td><td>7</td><td>-7</td><td>-100.0%</td></tr><tr><td>Interest credited to bank deposits</td><td>163</td><td>166</td><td>-3</td><td>-1.8%</td></tr><tr><td>Capitalization of DAC</td><td>—</td><td>-3</td><td>3</td><td>-100.0%</td></tr><tr><td>Amortization of DAC and VOBA</td><td>3</td><td>5</td><td>-2</td><td>-40.0%</td></tr><tr><td>Interest expense</td><td>1,027</td><td>1,033</td><td>-6</td><td>-0.6%</td></tr><tr><td>Other expenses</td><td>1,336</td><td>699</td><td>637</td><td>91.1%</td></tr><tr><td>Total operating expenses</td><td>2,533</td><td>1,953</td><td>580</td><td>29.7%</td></tr><tr><td>Provision for income tax expense (benefit)</td><td>-617</td><td>-495</td><td>-122</td><td>-24.6%</td></tr><tr><td>Operating earnings</td><td>-328</td><td>-439</td><td>111</td><td>25.3%</td></tr><tr><td>Preferred stock dividends</td><td>122</td><td>125</td><td>-3</td><td>-2.4%</td></tr><tr><td>Operating earnings available to common shareholders</td><td>$-450</td><td>$-564</td><td>$114</td><td>20.2%</td></tr></table>

Question: In the year with the most Premiums, what is the growth rate of Interest credited to bank deposits?
Answer: -0.01807
Reasoning program: subtract(163,166), divide(#0,166)