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Decommissioning Trust Funds | 6 Months Ended
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Jun. 30, 2022
Decommissioning Trust Funds | DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, and Grand Gulf. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents. As discussed in Note 14 to the financial statements herein, in June 2022, Entergy completed the sale of Palisades to Holtec. As part of the transaction, Entergy transferred the Palisades decommissioning trust fund to Holtec. The disposition-date fair value of the decommissioning trust fund was approximately $552 million. Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants did not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds were recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($481) million and ($647) million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $1,692 |  |  | $4 |  |  | $157 |
2021 |  |  |  |  |  |
Debt Securities |  | $2,177 |  |  | $65 |  |  | $12 |
The unrealized gains/(losses) above are reported before deferred taxes of ($1) million as of June 30, 2022 and $2 million as of December 31, 2021 for debt securities. The amortized cost of available-for-sale debt securities was $1,846 million as of June 30, 2022 and $2,125 million as of December 31, 2021. As of June 30, 2022, available-for-sale debt securities had an average coupon rate of approximately 2.86%, an average duration of approximately 6.57 years, and an average maturity of approximately 10.18 years. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (In Millions)
Less than 12 months |  | $1,357 |  |  | $134 |  |  | $770 |  |  | $8 |
More than 12 months |  | 123 |  |  | 23 |  |  | 99 |  |  | 4 |
Total |  | $1,480 |  |  | $157 |  |  | $869 |  |  | $12 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $65 |  |  | $— |
1 year - 5 years | 556 |  |  | 473 |
5 years - 10 years | 501 |  |  | 655 |
10 years - 15 years | 120 |  |  | 389 |
15 years - 20 years | 143 |  |  | 130 |
20 years+ | 307 |  |  | 530 |
Total | $1,692 |  |  | $2,177 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $333 million and $273 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $1 million and $6 million, respectively, and gross losses of $16 million and $1 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $636 million and $797 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $2 million and $17 million, respectively, and gross losses of $28 million and $12 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. The fair value of the Palisades decommissioning trust fund as of December 31, 2021 was $576 million. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below. Entergy Arkansas Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $484.8 |  |  | $0.2 |  |  | $52.2 |
2021 |  |  |  |  |  |
Debt Securities |  | $526.3 |  |  | $11.4 |  |  | $4.7 |
The amortized cost of available-for-sale debt securities was $536.8 million as of June 30, 2022 and $519.6 million as of December 31, 2021. As of June 30, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.27%, an average duration of approximately 6.22 years, and an average maturity of approximately 7.53 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($143.5) million and ($193.9) million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (In Millions)
Less than 12 months |  | $384.2 |  |  | $40.8 |  |  | $183.8 |  |  | $2.9 |
More than 12 months |  | 64.2 |  |  | 11.4 |  |  | 39.5 |  |  | 1.8 |
Total |  | $448.4 |  |  | $52.2 |  |  | $223.3 |  |  | $4.7 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $30.1 |  |  | $— |
1 year - 5 years | 157.9 |  |  | 91.7 |
5 years - 10 years | 201.4 |  |  | 217.4 |
10 years - 15 years | 43.0 |  |  | 146.0 |
15 years - 20 years | 34.3 |  |  | 35.7 |
20 years+ | 18.1 |  |  | 35.5 |
Total | $484.8 |  |  | $526.3 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $8.8 million and $12.3 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $0.03 million and $0.7 million, respectively, and gross losses of $0.3 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $15.9 million and $26.1 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $0.06 million and $1.6 million, respectively, and gross losses of $0.5 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Entergy Louisiana Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $733.3 |  |  | $3.2 |  |  | $56.0 |
2021 |  |  |  |  |  |
Debt Securities |  | $794.2 |  |  | $31.3 |  |  | $3.3 |
The amortized cost of available-for-sale debt securities was $786.1 million as of June 30, 2022 and $766.3 million as of December 31, 2021. As of June 30, 2022, the available-for-sale debt securities had an average coupon rate of approximately 3.50%, an average duration of approximately 6.78 years, and an average maturity of approximately 12.34 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($202.9) million and ($271.6) million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (In Millions)
Less than 12 months |  | $528.8 |  |  | $48.5 |  |  | $206.9 |  |  | $1.4 |
More than 12 months |  | 41.8 |  |  | 7.5 |  |  | 42.9 |  |  | 1.9 |
Total |  | $570.6 |  |  | $56.0 |  |  | $249.8 |  |  | $3.3 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $25.2 |  |  | $— |
1 year - 5 years | 198.9 |  |  | 157.8 |
5 years - 10 years | 156.6 |  |  | 173.0 |
10 years - 15 years | 70.3 |  |  | 123.0 |
15 years - 20 years | 78.5 |  |  | 80.2 |
20 years+ | 203.8 |  |  | 260.2 |
Total | $733.3 |  |  | $794.2 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $120.3 million and $62.5 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $0.2 million and $1.5 million, respectively, and gross losses of $6.7 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $240.9 million and $170.9 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $1.1 million and $4.8 million, respectively, and gross losses of $12.2 million and $3.3 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. System Energy System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $474.3 |  |  | $0.2 |  |  | $49.2 |
2021 |  |  |  |  |  |
Debt Securities |  | $524.5 |  |  | $11.8 |  |  | $2.9 |
The amortized cost of available-for-sale debt securities was $523.2 million as of June 30, 2022 and $515.6 million as of December 31, 2021. As of June 30, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.46%, an average duration of approximately 6.61 years, and an average maturity of approximately 9.51 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($134.6) million and ($181.8) million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
| (In Millions)
Less than 12 months |  | $443.6 |  |  | $45.1 |  |  | $276.6 |  |  | $2.3 |
More than 12 months |  | 16.7 |  |  | 4.1 |  |  | 11.3 |  |  | 0.6 |
Total |  | $460.3 |  |  | $49.2 |  |  | $287.9 |  |  | $2.9 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $9.9 |  |  | $— |
1 year - 5 years | 199.2 |  |  | 156.8 |
5 years - 10 years | 142.5 |  |  | 161.8 |
10 years - 15 years | 7.2 |  |  | 58.6 |
15 years - 20 years | 29.8 |  |  | 1.9 |
20 years+ | 85.7 |  |  | 145.4 |
Total | $474.3 |  |  | $524.5 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $67.8 million and $101.6 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $0.1 million and $1.9 million, respectively, and gross losses of $4.6 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $104 million and $175.7 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $0.2 million and $3.1 million, respectively, and gross losses of $5.3 million and $1.8 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Allowance for expected credit losses Entergy estimates the expected credit losses for its available-for-sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible, it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of June 30, 2022, Entergy did not record an allowance for expected credit losses related to available-for-sale securities. As of December 31, 2021, Entergy’s allowance for expected credit losses related to available-for-sale securities was $0.4 million. Entergy did not record any impairments of available-for-sale debt securities for the three months ended June 30, 2022. Entergy recorded $1.5 million in impairments of available-for-sale debt securities for the six months ended June 30, 2022. Entergy did not record any impairments of available-for-sale debt securities for the three and six months ended June 30, 2021.
Entergy Arkansas [Member] |
Decommissioning Trust Funds | DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, and Grand Gulf. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents. As discussed in Note 14 to the financial statements herein, in June 2022, Entergy completed the sale of Palisades to Holtec. As part of the transaction, Entergy transferred the Palisades decommissioning trust fund to Holtec. The disposition-date fair value of the decommissioning trust fund was approximately $552 million. Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants did not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds were recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($481) million and ($647) million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $1,692 |  |  | $4 |  |  | $157 |
2021 |  |  |  |  |  |
Debt Securities |  | $2,177 |  |  | $65 |  |  | $12 |
The unrealized gains/(losses) above are reported before deferred taxes of ($1) million as of June 30, 2022 and $2 million as of December 31, 2021 for debt securities. The amortized cost of available-for-sale debt securities was $1,846 million as of June 30, 2022 and $2,125 million as of December 31, 2021. As of June 30, 2022, available-for-sale debt securities had an average coupon rate of approximately 2.86%, an average duration of approximately 6.57 years, and an average maturity of approximately 10.18 years. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (In Millions)
Less than 12 months |  | $1,357 |  |  | $134 |  |  | $770 |  |  | $8 |
More than 12 months |  | 123 |  |  | 23 |  |  | 99 |  |  | 4 |
Total |  | $1,480 |  |  | $157 |  |  | $869 |  |  | $12 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $65 |  |  | $— |
1 year - 5 years | 556 |  |  | 473 |
5 years - 10 years | 501 |  |  | 655 |
10 years - 15 years | 120 |  |  | 389 |
15 years - 20 years | 143 |  |  | 130 |
20 years+ | 307 |  |  | 530 |
Total | $1,692 |  |  | $2,177 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $333 million and $273 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $1 million and $6 million, respectively, and gross losses of $16 million and $1 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $636 million and $797 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $2 million and $17 million, respectively, and gross losses of $28 million and $12 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. The fair value of the Palisades decommissioning trust fund as of December 31, 2021 was $576 million. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below. Entergy Arkansas Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $484.8 |  |  | $0.2 |  |  | $52.2 |
2021 |  |  |  |  |  |
Debt Securities |  | $526.3 |  |  | $11.4 |  |  | $4.7 |
The amortized cost of available-for-sale debt securities was $536.8 million as of June 30, 2022 and $519.6 million as of December 31, 2021. As of June 30, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.27%, an average duration of approximately 6.22 years, and an average maturity of approximately 7.53 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($143.5) million and ($193.9) million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (In Millions)
Less than 12 months |  | $384.2 |  |  | $40.8 |  |  | $183.8 |  |  | $2.9 |
More than 12 months |  | 64.2 |  |  | 11.4 |  |  | 39.5 |  |  | 1.8 |
Total |  | $448.4 |  |  | $52.2 |  |  | $223.3 |  |  | $4.7 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $30.1 |  |  | $— |
1 year - 5 years | 157.9 |  |  | 91.7 |
5 years - 10 years | 201.4 |  |  | 217.4 |
10 years - 15 years | 43.0 |  |  | 146.0 |
15 years - 20 years | 34.3 |  |  | 35.7 |
20 years+ | 18.1 |  |  | 35.5 |
Total | $484.8 |  |  | $526.3 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $8.8 million and $12.3 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $0.03 million and $0.7 million, respectively, and gross losses of $0.3 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $15.9 million and $26.1 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $0.06 million and $1.6 million, respectively, and gross losses of $0.5 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Entergy Louisiana Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $733.3 |  |  | $3.2 |  |  | $56.0 |
2021 |  |  |  |  |  |
Debt Securities |  | $794.2 |  |  | $31.3 |  |  | $3.3 |
The amortized cost of available-for-sale debt securities was $786.1 million as of June 30, 2022 and $766.3 million as of December 31, 2021. As of June 30, 2022, the available-for-sale debt securities had an average coupon rate of approximately 3.50%, an average duration of approximately 6.78 years, and an average maturity of approximately 12.34 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($202.9) million and ($271.6) million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (In Millions)
Less than 12 months |  | $528.8 |  |  | $48.5 |  |  | $206.9 |  |  | $1.4 |
More than 12 months |  | 41.8 |  |  | 7.5 |  |  | 42.9 |  |  | 1.9 |
Total |  | $570.6 |  |  | $56.0 |  |  | $249.8 |  |  | $3.3 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $25.2 |  |  | $— |
1 year - 5 years | 198.9 |  |  | 157.8 |
5 years - 10 years | 156.6 |  |  | 173.0 |
10 years - 15 years | 70.3 |  |  | 123.0 |
15 years - 20 years | 78.5 |  |  | 80.2 |
20 years+ | 203.8 |  |  | 260.2 |
Total | $733.3 |  |  | $794.2 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $120.3 million and $62.5 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $0.2 million and $1.5 million, respectively, and gross losses of $6.7 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $240.9 million and $170.9 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $1.1 million and $4.8 million, respectively, and gross losses of $12.2 million and $3.3 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. System Energy System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $474.3 |  |  | $0.2 |  |  | $49.2 |
2021 |  |  |  |  |  |
Debt Securities |  | $524.5 |  |  | $11.8 |  |  | $2.9 |
The amortized cost of available-for-sale debt securities was $523.2 million as of June 30, 2022 and $515.6 million as of December 31, 2021. As of June 30, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.46%, an average duration of approximately 6.61 years, and an average maturity of approximately 9.51 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($134.6) million and ($181.8) million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
| (In Millions)
Less than 12 months |  | $443.6 |  |  | $45.1 |  |  | $276.6 |  |  | $2.3 |
More than 12 months |  | 16.7 |  |  | 4.1 |  |  | 11.3 |  |  | 0.6 |
Total |  | $460.3 |  |  | $49.2 |  |  | $287.9 |  |  | $2.9 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $9.9 |  |  | $— |
1 year - 5 years | 199.2 |  |  | 156.8 |
5 years - 10 years | 142.5 |  |  | 161.8 |
10 years - 15 years | 7.2 |  |  | 58.6 |
15 years - 20 years | 29.8 |  |  | 1.9 |
20 years+ | 85.7 |  |  | 145.4 |
Total | $474.3 |  |  | $524.5 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $67.8 million and $101.6 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $0.1 million and $1.9 million, respectively, and gross losses of $4.6 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $104 million and $175.7 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $0.2 million and $3.1 million, respectively, and gross losses of $5.3 million and $1.8 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Allowance for expected credit losses Entergy estimates the expected credit losses for its available-for-sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible, it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of June 30, 2022, Entergy did not record an allowance for expected credit losses related to available-for-sale securities. As of December 31, 2021, Entergy’s allowance for expected credit losses related to available-for-sale securities was $0.4 million. Entergy did not record any impairments of available-for-sale debt securities for the three months ended June 30, 2022. Entergy recorded $1.5 million in impairments of available-for-sale debt securities for the six months ended June 30, 2022. Entergy did not record any impairments of available-for-sale debt securities for the three and six months ended June 30, 2021.
Entergy Louisiana [Member] |
Decommissioning Trust Funds | DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, and Grand Gulf. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents. As discussed in Note 14 to the financial statements herein, in June 2022, Entergy completed the sale of Palisades to Holtec. As part of the transaction, Entergy transferred the Palisades decommissioning trust fund to Holtec. The disposition-date fair value of the decommissioning trust fund was approximately $552 million. Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants did not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds were recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($481) million and ($647) million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $1,692 |  |  | $4 |  |  | $157 |
2021 |  |  |  |  |  |
Debt Securities |  | $2,177 |  |  | $65 |  |  | $12 |
The unrealized gains/(losses) above are reported before deferred taxes of ($1) million as of June 30, 2022 and $2 million as of December 31, 2021 for debt securities. The amortized cost of available-for-sale debt securities was $1,846 million as of June 30, 2022 and $2,125 million as of December 31, 2021. As of June 30, 2022, available-for-sale debt securities had an average coupon rate of approximately 2.86%, an average duration of approximately 6.57 years, and an average maturity of approximately 10.18 years. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (In Millions)
Less than 12 months |  | $1,357 |  |  | $134 |  |  | $770 |  |  | $8 |
More than 12 months |  | 123 |  |  | 23 |  |  | 99 |  |  | 4 |
Total |  | $1,480 |  |  | $157 |  |  | $869 |  |  | $12 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $65 |  |  | $— |
1 year - 5 years | 556 |  |  | 473 |
5 years - 10 years | 501 |  |  | 655 |
10 years - 15 years | 120 |  |  | 389 |
15 years - 20 years | 143 |  |  | 130 |
20 years+ | 307 |  |  | 530 |
Total | $1,692 |  |  | $2,177 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $333 million and $273 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $1 million and $6 million, respectively, and gross losses of $16 million and $1 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $636 million and $797 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $2 million and $17 million, respectively, and gross losses of $28 million and $12 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. The fair value of the Palisades decommissioning trust fund as of December 31, 2021 was $576 million. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below. Entergy Arkansas Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $484.8 |  |  | $0.2 |  |  | $52.2 |
2021 |  |  |  |  |  |
Debt Securities |  | $526.3 |  |  | $11.4 |  |  | $4.7 |
The amortized cost of available-for-sale debt securities was $536.8 million as of June 30, 2022 and $519.6 million as of December 31, 2021. As of June 30, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.27%, an average duration of approximately 6.22 years, and an average maturity of approximately 7.53 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($143.5) million and ($193.9) million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (In Millions)
Less than 12 months |  | $384.2 |  |  | $40.8 |  |  | $183.8 |  |  | $2.9 |
More than 12 months |  | 64.2 |  |  | 11.4 |  |  | 39.5 |  |  | 1.8 |
Total |  | $448.4 |  |  | $52.2 |  |  | $223.3 |  |  | $4.7 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $30.1 |  |  | $— |
1 year - 5 years | 157.9 |  |  | 91.7 |
5 years - 10 years | 201.4 |  |  | 217.4 |
10 years - 15 years | 43.0 |  |  | 146.0 |
15 years - 20 years | 34.3 |  |  | 35.7 |
20 years+ | 18.1 |  |  | 35.5 |
Total | $484.8 |  |  | $526.3 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $8.8 million and $12.3 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $0.03 million and $0.7 million, respectively, and gross losses of $0.3 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $15.9 million and $26.1 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $0.06 million and $1.6 million, respectively, and gross losses of $0.5 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Entergy Louisiana Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $733.3 |  |  | $3.2 |  |  | $56.0 |
2021 |  |  |  |  |  |
Debt Securities |  | $794.2 |  |  | $31.3 |  |  | $3.3 |
The amortized cost of available-for-sale debt securities was $786.1 million as of June 30, 2022 and $766.3 million as of December 31, 2021. As of June 30, 2022, the available-for-sale debt securities had an average coupon rate of approximately 3.50%, an average duration of approximately 6.78 years, and an average maturity of approximately 12.34 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($202.9) million and ($271.6) million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (In Millions)
Less than 12 months |  | $528.8 |  |  | $48.5 |  |  | $206.9 |  |  | $1.4 |
More than 12 months |  | 41.8 |  |  | 7.5 |  |  | 42.9 |  |  | 1.9 |
Total |  | $570.6 |  |  | $56.0 |  |  | $249.8 |  |  | $3.3 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $25.2 |  |  | $— |
1 year - 5 years | 198.9 |  |  | 157.8 |
5 years - 10 years | 156.6 |  |  | 173.0 |
10 years - 15 years | 70.3 |  |  | 123.0 |
15 years - 20 years | 78.5 |  |  | 80.2 |
20 years+ | 203.8 |  |  | 260.2 |
Total | $733.3 |  |  | $794.2 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $120.3 million and $62.5 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $0.2 million and $1.5 million, respectively, and gross losses of $6.7 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $240.9 million and $170.9 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $1.1 million and $4.8 million, respectively, and gross losses of $12.2 million and $3.3 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. System Energy System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $474.3 |  |  | $0.2 |  |  | $49.2 |
2021 |  |  |  |  |  |
Debt Securities |  | $524.5 |  |  | $11.8 |  |  | $2.9 |
The amortized cost of available-for-sale debt securities was $523.2 million as of June 30, 2022 and $515.6 million as of December 31, 2021. As of June 30, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.46%, an average duration of approximately 6.61 years, and an average maturity of approximately 9.51 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($134.6) million and ($181.8) million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
| (In Millions)
Less than 12 months |  | $443.6 |  |  | $45.1 |  |  | $276.6 |  |  | $2.3 |
More than 12 months |  | 16.7 |  |  | 4.1 |  |  | 11.3 |  |  | 0.6 |
Total |  | $460.3 |  |  | $49.2 |  |  | $287.9 |  |  | $2.9 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $9.9 |  |  | $— |
1 year - 5 years | 199.2 |  |  | 156.8 |
5 years - 10 years | 142.5 |  |  | 161.8 |
10 years - 15 years | 7.2 |  |  | 58.6 |
15 years - 20 years | 29.8 |  |  | 1.9 |
20 years+ | 85.7 |  |  | 145.4 |
Total | $474.3 |  |  | $524.5 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $67.8 million and $101.6 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $0.1 million and $1.9 million, respectively, and gross losses of $4.6 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $104 million and $175.7 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $0.2 million and $3.1 million, respectively, and gross losses of $5.3 million and $1.8 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Allowance for expected credit losses Entergy estimates the expected credit losses for its available-for-sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible, it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of June 30, 2022, Entergy did not record an allowance for expected credit losses related to available-for-sale securities. As of December 31, 2021, Entergy’s allowance for expected credit losses related to available-for-sale securities was $0.4 million. Entergy did not record any impairments of available-for-sale debt securities for the three months ended June 30, 2022. Entergy recorded $1.5 million in impairments of available-for-sale debt securities for the six months ended June 30, 2022. Entergy did not record any impairments of available-for-sale debt securities for the three and six months ended June 30, 2021.
System Energy [Member] |
Decommissioning Trust Funds | DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, and Grand Gulf. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents. As discussed in Note 14 to the financial statements herein, in June 2022, Entergy completed the sale of Palisades to Holtec. As part of the transaction, Entergy transferred the Palisades decommissioning trust fund to Holtec. The disposition-date fair value of the decommissioning trust fund was approximately $552 million. Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants did not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds were recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($481) million and ($647) million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $1,692 |  |  | $4 |  |  | $157 |
2021 |  |  |  |  |  |
Debt Securities |  | $2,177 |  |  | $65 |  |  | $12 |
The unrealized gains/(losses) above are reported before deferred taxes of ($1) million as of June 30, 2022 and $2 million as of December 31, 2021 for debt securities. The amortized cost of available-for-sale debt securities was $1,846 million as of June 30, 2022 and $2,125 million as of December 31, 2021. As of June 30, 2022, available-for-sale debt securities had an average coupon rate of approximately 2.86%, an average duration of approximately 6.57 years, and an average maturity of approximately 10.18 years. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (In Millions)
Less than 12 months |  | $1,357 |  |  | $134 |  |  | $770 |  |  | $8 |
More than 12 months |  | 123 |  |  | 23 |  |  | 99 |  |  | 4 |
Total |  | $1,480 |  |  | $157 |  |  | $869 |  |  | $12 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $65 |  |  | $— |
1 year - 5 years | 556 |  |  | 473 |
5 years - 10 years | 501 |  |  | 655 |
10 years - 15 years | 120 |  |  | 389 |
15 years - 20 years | 143 |  |  | 130 |
20 years+ | 307 |  |  | 530 |
Total | $1,692 |  |  | $2,177 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $333 million and $273 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $1 million and $6 million, respectively, and gross losses of $16 million and $1 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $636 million and $797 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $2 million and $17 million, respectively, and gross losses of $28 million and $12 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. The fair value of the Palisades decommissioning trust fund as of December 31, 2021 was $576 million. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below. Entergy Arkansas Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $484.8 |  |  | $0.2 |  |  | $52.2 |
2021 |  |  |  |  |  |
Debt Securities |  | $526.3 |  |  | $11.4 |  |  | $4.7 |
The amortized cost of available-for-sale debt securities was $536.8 million as of June 30, 2022 and $519.6 million as of December 31, 2021. As of June 30, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.27%, an average duration of approximately 6.22 years, and an average maturity of approximately 7.53 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($143.5) million and ($193.9) million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (In Millions)
Less than 12 months |  | $384.2 |  |  | $40.8 |  |  | $183.8 |  |  | $2.9 |
More than 12 months |  | 64.2 |  |  | 11.4 |  |  | 39.5 |  |  | 1.8 |
Total |  | $448.4 |  |  | $52.2 |  |  | $223.3 |  |  | $4.7 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $30.1 |  |  | $— |
1 year - 5 years | 157.9 |  |  | 91.7 |
5 years - 10 years | 201.4 |  |  | 217.4 |
10 years - 15 years | 43.0 |  |  | 146.0 |
15 years - 20 years | 34.3 |  |  | 35.7 |
20 years+ | 18.1 |  |  | 35.5 |
Total | $484.8 |  |  | $526.3 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $8.8 million and $12.3 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $0.03 million and $0.7 million, respectively, and gross losses of $0.3 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $15.9 million and $26.1 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $0.06 million and $1.6 million, respectively, and gross losses of $0.5 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Entergy Louisiana Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $733.3 |  |  | $3.2 |  |  | $56.0 |
2021 |  |  |  |  |  |
Debt Securities |  | $794.2 |  |  | $31.3 |  |  | $3.3 |
The amortized cost of available-for-sale debt securities was $786.1 million as of June 30, 2022 and $766.3 million as of December 31, 2021. As of June 30, 2022, the available-for-sale debt securities had an average coupon rate of approximately 3.50%, an average duration of approximately 6.78 years, and an average maturity of approximately 12.34 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($202.9) million and ($271.6) million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (In Millions)
Less than 12 months |  | $528.8 |  |  | $48.5 |  |  | $206.9 |  |  | $1.4 |
More than 12 months |  | 41.8 |  |  | 7.5 |  |  | 42.9 |  |  | 1.9 |
Total |  | $570.6 |  |  | $56.0 |  |  | $249.8 |  |  | $3.3 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $25.2 |  |  | $— |
1 year - 5 years | 198.9 |  |  | 157.8 |
5 years - 10 years | 156.6 |  |  | 173.0 |
10 years - 15 years | 70.3 |  |  | 123.0 |
15 years - 20 years | 78.5 |  |  | 80.2 |
20 years+ | 203.8 |  |  | 260.2 |
Total | $733.3 |  |  | $794.2 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $120.3 million and $62.5 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $0.2 million and $1.5 million, respectively, and gross losses of $6.7 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $240.9 million and $170.9 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $1.1 million and $4.8 million, respectively, and gross losses of $12.2 million and $3.3 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. System Energy System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2022 and December 31, 2021 are summarized as follows:
|  | Fair Value |  | Total Unrealized Gains |  | Total Unrealized Losses
|  | (In Millions)
2022 |  |  |  |  |  |
Debt Securities |  | $474.3 |  |  | $0.2 |  |  | $49.2 |
2021 |  |  |  |  |  |
Debt Securities |  | $524.5 |  |  | $11.8 |  |  | $2.9 |
The amortized cost of available-for-sale debt securities was $523.2 million as of June 30, 2022 and $515.6 million as of December 31, 2021. As of June 30, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.46%, an average duration of approximately 6.61 years, and an average maturity of approximately 9.51 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2022 on equity securities still held as of June 30, 2022 were ($134.6) million and ($181.8) million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  | December 31, 2021
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
| (In Millions)
Less than 12 months |  | $443.6 |  |  | $45.1 |  |  | $276.6 |  |  | $2.3 |
More than 12 months |  | 16.7 |  |  | 4.1 |  |  | 11.3 |  |  | 0.6 |
Total |  | $460.3 |  |  | $49.2 |  |  | $287.9 |  |  | $2.9 |
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2022 and December 31, 2021 were as follows:
| 2022 |  | 2021
| (In Millions)
Less than 1 year | $9.9 |  |  | $— |
1 year - 5 years | 199.2 |  |  | 156.8 |
5 years - 10 years | 142.5 |  |  | 161.8 |
10 years - 15 years | 7.2 |  |  | 58.6 |
15 years - 20 years | 29.8 |  |  | 1.9 |
20 years+ | 85.7 |  |  | 145.4 |
Total | $474.3 |  |  | $524.5 |
During the three months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $67.8 million and $101.6 million, respectively. During the three months ended June 30, 2022 and 2021, gross gains of $0.1 million and $1.9 million, respectively, and gross losses of $4.6 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022 and 2021, proceeds from the dispositions of available-for-sale securities amounted to $104 million and $175.7 million, respectively. During the six months ended June 30, 2022 and 2021, gross gains of $0.2 million and $3.1 million, respectively, and gross losses of $5.3 million and $1.8 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Allowance for expected credit losses Entergy estimates the expected credit losses for its available-for-sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible, it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of June 30, 2022, Entergy did not record an allowance for expected credit losses related to available-for-sale securities. As of December 31, 2021, Entergy’s allowance for expected credit losses related to available-for-sale securities was $0.4 million. Entergy did not record any impairments of available-for-sale debt securities for the three months ended June 30, 2022. Entergy recorded $1.5 million in impairments of available-for-sale debt securities for the six months ended June 30, 2022. Entergy did not record any impairments of available-for-sale debt securities for the three and six months ended June 30, 2021.

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