Attached files
file | filename |
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8-K - ENTERGY CORP /DE/ | a00210.htm |
EX-99.1 - ENTERGY CORP /DE/ | a00210991.htm |
EX-99.2 - ENTERGY CORP /DE/ | a00210992.htm |
Exhibit
99.3
STATEMENT
ON USES AND USEFULNESS OF NON-GAAP FINANCIAL MEASURES
Exhibits
99.1 and 99.2 to this Report on Form 8-K (the "Releases"), contain non-GAAP
financial measures. Generally, a non-GAAP financial measure is a
numerical measure of a company's performance, financial position, or cash flows
that either excludes or includes amounts that are not normally excluded or
included in the most directly comparable measure calculated and presented in
accordance with United States generally accepted accounting principles, or
GAAP. Pursuant to the requirements of Regulation G, Entergy has
provided quantitative reconciliations within the Releases and the presentation
of the non-GAAP financial measures to the most directly comparable GAAP
financial measures.
Certain
non-GAAP measures in the Releases could differ from GAAP only in that the figure
or ratio states or includes operational earnings per
share. Operational earnings per share is presented for each of
Entergy's major business segments as well as on a consolidated
basis. Operational earnings per share is not calculated in accordance
with GAAP because it excludes the effect of "special items." Special
items reflect the effect on earnings of events that are less routine, are
related to prior periods, or are related to discontinued
businesses. In the periods covered by the Releases, Entergy reported
special items for: 1) expenses and dis-synergies incurred in connection with the
plan to pursue the separation of Entergy's non-utility nuclear business and to
enter into a nuclear services joint venture and 2) the dilutive effect of the
unsuccessful remarketing of Entergy Corporation's equity units. In
addition, other financial measures including return on average invested capital
(ROIC), return on average common equity (ROE), and net margin are included on
both an operational and as-reported basis. In each case, the metrics
defined as "operational" would exclude the effect of special items as defined
above. Management believes financial metrics calculated using
operational earnings provides useful information to investors in evaluating the
ongoing results of Entergy's businesses and assists investors in comparing the
company's operating performance to the operating performance of others in the
energy sector. Entergy management frequently references these
non-GAAP financial measures in its decision-making, using them to facilitate
historical and ongoing performance comparisons as well as comparisons to the
performance of peer companies.
Other
non-GAAP measures, total gross liquidity, net debt to net capital ratio, and net
debt ratio including off-balance sheet liabilities are measures Entergy uses
internally for management and board discussions, and cash budgeting and
performance monitoring activities to gauge the overall strength of its
business. Entergy believes the above data provides useful information
to investors in evaluating Entergy's ongoing financial flexibility, and assists
investors in comparing the company's cash availability to the cash availability
of others in the energy sector.
The
non-GAAP financial measures and other reported adjusted items in Entergy's
Releases are used in addition to, and in conjunction with, results presented in
accordance with GAAP. These non-GAAP financial measures should not be
relied upon to the exclusion of GAAP financial measures. These non-GAAP
financial measures reflect an additional way of viewing aspects of our
operations that, when viewed with our GAAP results and the accompanying
reconciliations to corresponding GAAP financial measures, may provide a more
complete understanding of factors and trends affecting our business.
Investors are strongly encouraged to review our consolidated financial
statements and publicly filed reports in their entirety and to not rely on any
single financial measure. Non-GAAP financial measures are not
standardized; therefore, it may not be possible to compare these financial
measures with other companies' non-GAAP financial measures having the same or
similar names.