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Previous: UNITED INVESTORS LIFE VARIABLE ACCOUNT, 485BPOS, 1998-04-30 |
Next: ENTERGY SERVICES INC, 35-CERT, 1998-04-30 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1997 and Ending December 31, 1997
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
ENTERGY SERVICES, INC.
_________________________________________________________________
(Exact Name of Reporting Company)
A Subsidiary Service Company
____________________________________
("Mutual " or "Subsidiary")
Date of Incorporation February 11, 1963. If not Incorporated, Date
of Organization _________________ State or Sovereign Power under
which Incorporated or Organized Delaware Location of Principal
Offices of Reporting Company 639 Loyola Avenue, New Orleans, Louisiana
Name, title and address of officer to whom correspondence concerning this
report should be addressed: Mr. Louis E. Buck, Jr. VP, Chief Accounting
Officer P.O. Box 61000, New Orleans, La. 70161
Name of Principal Holding Company Whose Subsidiaries are served
by Reporting Company:
Entergy Corporation
1 of 28 pages
<PAGE>
2 of 28 pages (Blank)
<PAGE>
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing
Rule 94 provides that on or before the first day of May in
each calendar year, each mutual service company and each
subsidiary service company as to which the Commission shall
have made a favorable finding pursuant to Rule 88, and
every service company whose application for approval or
declaration pursuant to Rule 88 is pending shall file with
the Commission an annual report on Form U-13-60 and in
accordance with the Instructions for that form.
2. Number of Copies
Each annual report shall be filed in duplicate. The company
should prepare and retain at least one extra copy for
itself in case correspondence with reference to the report
becomes necessary.
3. Period Covered by Report
The first report filed by any company shall cover the
period from the date the Uniform System of Accounts was
required to be made effective as to that company under
Rules 82 and 93 to the end of that calendar year.
Subsequent reports should cover a calendar year.
4. Report Format
Reports shall be submitted on the forms prepared by the
Commission. If the space provided on any sheet of such form
is inadequate, additional sheets may be inserted of the
same size as a sheet of the form or folded to each size.
5. Money Amounts Displayed
All money amounts required to be shown in financial
statements may be expressed in whole dollars, in thousands
of dollars or in hundred thousands of dollars, as
appropriate and subject to provisions of Regulation S-X
(SS210.3-01 (b)).
6. Deficits Displayed
Deficits and other like entries shall be indicated by the
use of either brackets or a parenthesis with corresponding
reference in footnotes (Regulation S-X, SS210.3-01(c)).
7. Major Amendments or Corrections
Any company desiring to amend or correct a major omission
or error in a report after it has been filed with the
Commission shall submit an amended report including only
those pages, schedules, and entries that are to be amended
or corrected. A cover letter shall be submitted
requesting the Commission to incorporate the amended report
changes and shall be signed by a duly authorized officer of
the company.
8. Definitions
Definitions contained in Instruction 01-8 to the Uniform
System of Accounts for Mutual Service Companies and
Subsidiary Service Companies, Public Utility Holding
Company Act of 1935, as amended February 2, 1979 shall be
applicable to words or terms used specifically within this
Form U-13-60.
9. Organization Chart
The service company shall submit with each annual report a
copy of its current organization chart.
10. Methods of Allocation
The service company shall submit with each annual report a
listing of the currently effective methods of allocation
being used by the service company and on file with the
Securities and Exchange Commission pursuant to the Public
Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed
The service company shall submit with each annual report a
copy of the annual statement supplied to each associate
company in support of the amount of compensation for use of
capital billed during the calendar year.
3 of 28 pages
<PAGE>
Listing Of Schedules and Analysis of Accounts
Schedule or Page
Description of Schedules and Accounts Account Number Number
Comparative Balance Sheets Schedule I 5
Service Company Property Schedule II 7
Accumulated Provision for Depreciation and
Amortization of Service Company Property Schedule III 8
Investments Schedule IV 9
Accounts Receivable from Associate Companies Schedule V 9
Fuel Stock Expenses Undistributed Schedule VI 10
Stores Expense Undistributed Schedule VII 10
Miscellaneous Current and Accrued Assets Schedule VIII 11
Miscellaneous Deferred Debits Schedule IX 11
Research, Development, or Demonstration
Expenditures Schedule X 11
Proprietary Capital Schedule XI 12
Long-Term Debt Schedule XII 13
Current and Accrued Liabilities Schedule XIII 14
Notes to Financial Statements Schedule XIV 14
Statement of Income Schedule XV 15
Analysis of Billing - Associate Companies Account 457 16
Analysis of Billing - Nonassociate Companies Account 458 17
Analysis of Charges for Service - Associate
and Nonassociate Companies Schedule XVI 18
Schedule of Expense of Department or
Service Function Schedule XVII 19-20
Departmental Analysis of Salaries Various Accounts 21
Outside Services Employed Various Accounts 21
Employee Pensions and Benefits Various Accounts 22
General Advertising Expenses Various Accounts 22
Miscellaneous General Expenses Various Accounts 23
Rents Various Accounts 23
Taxes Other Than Income Taxes Various Accounts 24
Donations Account 426.1 24
Other Deductions Account 426.5 25
Notes to Statement of Income Schedule XVIII 25
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page
Description of Reports or Statements Number
Organization Chart 26
Methods of Allocation 26
Annual Statement of Compensation for Use of Capital Billed 26
Appendix
Information in compliance with Item 4 of SEC letter dated
December 29, 1986 26 - D
4 of 28 pages
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Schedule I - Comparative Balance Sheet
(In Thousands)
Give balance sheet of the Company as of December 31 of the current and
prior year.
Account Assets and Other Debits As of December 31
Current Prior
Service Company Property
<S> <C> <C> <C>
101 Service company property (Schedule II) $165,986 $ 154,300
107 Construction work in progress (Schedule II) 19,263 16,799
-------- ---------
Total Property 185,249 171,099
-------- ---------
108 Less accumulated provision for depreciation and amortization of service
company property (Schedule III) 109,167 89,253
-------- ---------
Net Service Company Property 76,082 $ 81,846
-------- ---------
Investments
123 Investments in associate companies (Schedule IV) - -
124 Other Investments (Schedule IV) - -
-------- ---------
Total Investments - -
-------- ---------
Current and Accrued Assets
131 Cash 8,601 5,712
134 Special deposits 167 279
135 Working funds 126 150
136 Temporary cash investments (Schedule IV) 25,202 16,662
141 Notes receivable 121 56
143 Accounts receivable 13,996 12,819
144 Accumulated provision of uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 75,606 88,057
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies 1 -
163 Stores expense undistributed (Schedule VII) 6 -
165 Prepayments 22 58
174 Miscellaneous current and accrued assets (Schedule VIII) 512 462
-------- ---------
Total Current and Accrued Assets 124,360 124,255
-------- ---------
Deferred Debits
181 Unamortized debt expense 2 -
184 Clearing accounts 14 -
186 Miscellaneous deferred debits (Schedule IX) 10,398 10,314
188 Research, development, or demonstration expenditures (Schedule X) - -
190 Accumulated deferred income taxes 15,386 2,164
-------- ---------
Total Deferred Debits $ 25,800 $ 12,478
-------- ---------
TOTAL ASSETS AND OTHER DEBITS $226,242 $ 218,579
======== =========
5 of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Schedule I - Comparative Balance Sheet
(In Thousands)
Account Account Liabilities and Proprietary Capital
As of December 31
Current Prior
Proprietary Capital
<S> <C> <C> <C>
201 Common stock issued (Schedule XI) $ 20 $ 20
211 Miscellaneous paid-in-capital (Schedule XI) - -
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) - -
-------- --------
Total Proprietary Capital 20 20
-------- --------
Long-Term Debt
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) - -
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
-------- --------
Total Long-Term Debt - -
-------- --------
Current and Accrued Liabilities
231 Notes payable - -
232 Accounts payable 94,720 103,871
233 Notes payable to associate companies (Schedule XIII) (See Note 3) 29,104 17,052
234 Accounts payable to associate companies (Schedule XIII) 20,287 15,473
236 Taxes accrued 270 678
237 Interest accrued - -
238 Dividends declared - -
241 Tax collections payable 247 1,164
242 Miscellaneous current and accrued liabilities (Schedule XIII) 8,044 23,645
-------- --------
Total Current and Accrued Liabilities 152,672 161,883
-------- --------
Deferred Credits
253 Other deferred credits (See Note 9) 61,443 53,781
255 Accumulated deferred investment tax credits 2,733 2,895
-------- --------
Total Deferred Credits 64,176 56,676
-------- --------
282 Accumulated Deferred Income Taxes 9,374 -
-------- --------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $226,242 $218,579
======== ========
6 of 28 pages
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule II - Service Company Property
(In Thousands)
Balance at Retirements Balance
Beginning or Other (1) at Close
Description of Year Additions Sales Changes of Year
Service Company Property
Account
<S> <C> <C> <C> <C> <C> <C>
301 Organization $ - $ - $ - $ - $ -
303 Miscellaneous Intangible Plant 7,164 1,114 - (1) 8,277
304 Land and Land Rights 1,707 - - 1 1,708
305 Structures and Improvements 8,904 272 297 (1) 8,878
306 Leasehold Improvements 6,748 1,515 - - 8,263
307 Equipment (2) 96,558 7,451 - 1 104,010
308 Office Furniture and 23,668 1,631 - (2) 25,297
Equipment
309 Automobiles, Other Vehicles 152 - - 2 154
and Related Garage Equipment
310 Aircraft and Airport Equipment 9,399 - - - 9,399
311 Other Service Company - - - - -
Property (3)
----------------------------------------------------
SUB-TOTAL $154,300 $ 11,983 $ 297 $ 0 $165,986
107 Construction Work in Progress (4) 16,799 14,447 11,983 - 19,263
----------------------------------------------------
TOTAL $171,099 $ 26,430 $12,280 $ 0 $185,249
====================================================
(1) Provide an explanation of those changes considered material:
Reclassifications of property.
(2) Subaccounts are required for each class of equipment owned. The service
company shall provide a listing by subaccount of equipment additions
during the year and the balance at the close of the year:
Balance at
Subaccount Description Additions Close of Year
Microwave Equipment
General Office $1,635 $6,858
Computer Center 116 4,631
System Operations - 78
Center
EDP Equipment
General Office 1,086 48,737
Computer Center 4,614 25,496
System Operations - 18,210
Center ------ --------
TOTAL $7,451 $104,010
====== ========
(3) Describe other service company property:
(4) Describe construction work in progress: Primarily computer equipment,
fiber optics equipment and furniture/fixtures.
7 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule III - Accumulated Provision for Depreciation
and Amortization of Service Company Property
(In Thousands)
</TABLE>
<TABLE>
<CAPTION>
Balance at Additions Other Balance
Beginning Charged to Changes Add at Close
Description of Year Account 403 Retirements (Deduct) (1) of Year
Account
<S> <C> <C> <C> <C> <C> <C>
301 Organization $ - $ - $ - $ - $ -
303 Miscellaneous Intangible Plant 5,556 734 - - 6,290
304 Land and Land Rights - - - - -
305 Structures and Improvements 677 280 68 - 889
306 Leasehold Improvements 2,797 408 - - 3,205
307 Equipment 61,102 15,129 - 21 76,252
308 Office Furniture and Equipment 14,567 2,570 - - 17,137
309 Automobiles, Other Vehicles
and Related Garage Equipment 613 6 - - 619
310 Aircraft and Airport Equipment 3,941 834 - - 4,775
311 Other Service Company Property - - - - -
-----------------------------------------------------------
TOTAL $ 89,253 $ 19,961 $ 68 $ 21 $ 109,167
===========================================================
(1) Provide an explanation of those changes considered material:
</TABLE>
8 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule IV - Investments
(In Thousands)
Instructions:
Complete the following schedule concerning investments.
Under Account 124 "Other Investments," state each investment separately,
with description, including, the name of issuing company, number of
shares or principal amount, etc.
Under Account 136, "Temporary Cash Investments," list each investment
separately.
Balance at Balance at
Description Beginning of Year Close of Year
Account 123 - Investment in Associate Companies $ - $ -
Account 124 - Other Investments - -
Account 136 - Temporary Cash Investments - Money
Pool (See Note 3) 16,662 -
Temporary Cash Investments -
Federated Investment - 25,202
--------- ----------
TOTAL $ 16,662 $ 25,202
========= ==========
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule V - Accounts Receivable from Associate Companies
(In Thousands)
Instructions:
Complete the following schedule listing accounts receivable from each associate
company. Where the service company has provided accommodation or convenience
payments for associate companies, a separate listing of total payments for
each associate company by subaccount should be provided.
Balance at Balance at
Description Beginning of Year Close of Year
Account 146 - Accounts Receivable from
Associate Companies
See page 9-A $ 88,057 $ 75,606
-------- --------
TOTAL $ 88,057 $ 75,606
======== ========
Total
Analysis of Convenience or Accommodation Payments
Payments: See page 9-A $ 2,416
--------
TOTAL PAYMENTS $ 2,416
========
9 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule V - Accounts Receivable from Associate Companies
(In Thousands)
Balance at Balance at
Description Beginning of Year Close of Year
Account 146 - Accounts Receivable from
Associate Companies
Entergy Arkansas, Inc. $ 4,819 $ 12,115
Entergy Louisiana, Inc. 21,186 20,323
Entergy Mississippi, Inc. 2,909 1,598
Entergy New Orleans, Inc. 8,534 3,633
Entergy Corporation 11,265 4,331
Entergy Operations, Inc. 4,381 3,946
Entergy Power, Inc. 331 -
System Fuels, Inc. 201 53
System Energy - 1,272
Entergy Enterprises, Inc. 688 5,937
Entergy Gulf States, Inc. 33,740 22,398
Money Pool 3 -
-------- --------
TOTAL $ 88,057 $ 75,606
======== ========
Analysis of Convenience or Bulk Power Other
Accommodation Payments: Payments Payments
Entergy Arkansas, Inc. $(183,362) $ -
Entergy Louisiana, Inc. 196,084 -
Entergy Mississippi, Inc. (42,709) -
Entergy New Orleans, Inc. 28,169 -
Entergy Corporation 203,537 931
Entergy Operations, Inc. - -
Entergy Power, Inc. 4,541 -
System Fuels, Inc. - 140
Entergy Enterprises, Inc. - 1,345
Entergy Gulf States, Inc. - -
Nonassociated Companies (206,260) -
-------- --------
$ - $ 2,416
======== ========
9 - A
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule VI - Fuel Stock Expenses Undistributed
(In Thousands)
Instructions:
Report the amount of labor and expenses incurred with
respect to fuel stock expenses during the year and indicate
amount attributable to each associate company. Under the
section headed "Summary" listed below give an overall report
of the fuel functions performed by the service company.
Description Labor Expenses Total
Account 152 - Fuel Stock Expenses None None None
Undistributed
-------------------------------------
TOTAL $ 0 $ 0 $ 0
=====================================
Summary:
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule VII - Stores Expense Undistributed
(In Thousands)
Instructions:
Report the amount of labor and expenses incurred with
respect to stores expense during the year and indicate
amount attributable to each associate company.
Description Labor Expenses Total
Account 163 - Stores Expense
Undistributed $ 4 $ 2 $ 6
-----------------------------------
TOTAL $ 4 $ 2 $ 6
===================================
10 of 28 pages
<PAGE>
ANNUAL REPORT FOR ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule VIII - Miscellaneous Current and Accrued Assets
(In Thousands)
Instructions:
Provide detail of items in this account. Items less than
$10,000 may be grouped, showing the number of items in each
group.
Balance at Balance at
Description Beginning Close of
of Year Year
Account 174 - Miscellaneous Current and Accrued Assets
See page 11 - A $ 462 $ 512
-------- --------
TOTAL $ 462 $ 512
======== ========
ANNUAL REPORT FOR ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule IX - Miscellaneous Deferred Debits
(In Thousands)
Instructions:
Provide detail of items in this account. Items less than
$10,000 may be grouped by class showing the number of items
in each class.
Balance at Balance at
Description Beginning Close of
of Year Year
Account 186 - Miscellaneous Deferred Debits
See page 11-A $ 10,314 $ 10,398
---------- ----------
TOTAL $ 10,314 $ 10,398
========== ==========
ANNUAL REPORT FOR ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule X - Research, Development, or Demonstration Expenditures
(In Thousands)
Instructions.
Provide a description of each material research,
development, or demonstration project which incurred costs
by the service corporation during the year.
Description Amount
Account 188 - Research, Development, or None
Demonstration Expenditures
--------
TOTAL $ -
========
11 of 28 pages
<PAGE>
ANNUAL REPORT FOR ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule VIII - Miscellaneous Current and Accrued Assets
(In Thousands)
Balance at Balance at
Description Beginning Close of
of Year Year
Account 174 - Miscellaneous Current and Accrued Assets
Advance payments $ 462 $ -
Unbilled Expenses and other
receivables - 512
-------- --------
TOTAL $ 462 $ 512
======== ========
ANNUAL REPORT FOR ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule IX - Miscellaneous Deferred Debits
(In Thousands)
Instructions:
Provide detail of items in this account. Items less than
$10,000 may be grouped by class showing the number of items
in each class.
Balance at Balance at
Description Beginning Close of
of Year Year
Account 186 - Miscellaneous Deferred Debits
Long Term Incentive Plan $ 9,936 $ 10,193
Miscellaneous Accounts
Receivable Refund Clearing - 207
Deferred costs for companies
not yet billed 347 5
Other 31 (7)
---------- ----------
TOTAL $ 10,314 $ 10,398
========== ==========
11 - A
<PAGE>
ANNUAL REPORT FOR ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule XI - Proprietary Capital
<TABLE>
<CAPTION>
Number of
Shares Par of Stated Outstanding Close of Period
Account Number Class of Stock Authorized Value Per Share No. of Shares Total Amount
<S> <C> <C> <C> <C>
201 Common Stock Issued 50,000 $10.00 2,000 $20,000
</TABLE>
Instructions:
Classify amounts in each account with brief explanation, disclosing the general
nature of transactions which gave rise to the reported amounts.
Description Amount
Account 211 - Miscellaneous Paid-in Capital None
Account 215 - Appropriated Retained Earnings None
--------
TOTAL $ 0
========
Instructions:
Give particulars concerning net income or (loss) during the year,
distinguishing between compensation for the use of capital owed or net
loss remaining from servicing nonassociates per the General Instructions of
the Uniform System of Accounts. For dividends paid during the year in cash or
otherwise, provide rate percentage, amount of dividend, date declared, and
date paid.
Balance at Net Income Dividends Balance at
Beginning -or (loss) Paid Close of
Description of Year Year
Account 216 - None None None None
Unappropriated
Retained Earnings
------------------------------------------------
TOTAL $ 0 $ 0 $ 0 $ 0
================================================
12 of 28 pages
<PAGE>
ANNUAL REPORT FOR ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule XII - Long-Term Debt
(In Thousands)
Instructions:
Advances from associate companies should be reported separately for advances
on notes, and advances on open account. Names of associate companies from
which advances were received shall be shown under the class and series of
obligation column. For Account 224 - Other long-term debt provide the name
of creditor company or organization, terms of the obligation, date of
maturity, interest rate, and the amount authorized and outstanding.
<TABLE>
<CAPTION>
Terms of
Obligation Balance at Balance at
Class & Series Date of Interest Amount Beginning Close
Name of Creditor of Obligation Maturity Rate Authorized of Year Additions Deductions of Year
<S> <C> <C> <C> <C> <C>
Account 223 - Advances from
Associate
Companies: None None None
Account 224 - Other Long-Term
Debt: None None None
----------------------------------------------------
TOTAL $ 0 $ 0 $ 0 $ 0 $ 0
====================================================
</TABLE>
13 of 28 pages
<PAGE>
ANNUAL REPORT FOR ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule XIII - Current and Accrued Liabilities
(In Thousands)
Instructions:
Provide balance of notes and accounts payable to each associate company.
Give description and amount of miscellaneous current and accrued
liabilities. Items less than $10,000 may be grouped, showing the number
of items in each group.
Balance at Balance at
Description Beginning Close of
of Year Year
Account 233 - Notes Payable to Associate Companies
Money Pool $ 17,052 $ 29,104
----------- -----------
TOTAL $ 17,052 $ 29,104
=========== ===========
Account 234 - Accounts Payable to Associate Companies
See page 14-A $ 15,473 $ 20,287
---------- -----------
TOTAL $ 15,473 $ 20,287
========== ===========
Account 242 - Miscellaneous Current and
Accrued Liabilities
See page 14-A $23,645 $ 8,044
------- -------
TOTAL $23,645 $ 8,044
======= =======
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule XIV - Notes to Financial Statements
Instructions:
The space below is provided for important notes regarding the financial
statements or any account thereof. Furnish particulars as to any significant
contingent assets or liabilities existing at the end of the year. Notes
relating to financial statements shown elsewhere in this report may be
indicated here by reference.
See pages 14-B through 14-H
14 of 28 pages
<PAGE>
ANNUAL REPORT FOR ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule XIII - Current and Accrued Liabilities
(In Thousands)
Balance at Balance at
Description Beginning Close of
of Year Year
Account 234 - Accounts Payable to Associate Companies
Entergy Arkansas, Inc. $ 8,842 $ 9,679
Entergy Louisiana, Inc. 569 820
Entergy Mississippi, Inc. 3,381 5,787
Entergy New Orleans, Inc. 327 332
Entergy Gulf States, Inc. 1,224 247
Entergy Corporation 1,248 -
Entergy Operations, Inc. (251) -
Entergy Power, Inc. - 3,089
Entergy Enterprises, Inc. - -
System Fuels, Inc. - 2
System Energy - 115
Money Pool Interest 133 216
----------- -----------
TOTAL $ 15,473 $ 20,287
=========== ===========
Account 242 - Miscellaneous Current and
Accrued Liabilities
Accrued rent expense 1,030 7,587
Accrued savings plan expense and withholdings 233 (153)
Accrued benefit plans expense and withholdings 2,122 -
Accrued severence pay 1,623 -
Accrued audit expense - -
Accrued claims liability 569 520
Row Transmission Liability - 90
Industry transition liability 18,068 -
------- -------
TOTAL $23,645 $ 8,044
======= =======
14 - A
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule XIV - Notes to Financial Statements
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and System of Accounts
Entergy Services, Inc. (Entergy Services), a wholly
owned subsidiary of Entergy Corporation, was authorized to
conduct business as a service company for Entergy
Corporation and its various subsidiaries (Entergy) by order
of the Securities and Exchange Commission (SEC) dated March
1963 and made permanent March 1965. Entergy Services is
organized along functional lines to accomplish its purpose
of providing management, administrative, and technical
services to Entergy. Such services are priced so that
Entergy Services operates on a break-even basis.
Entergy Services maintains its accounts in accordance
with the Public Utility Holding Company Act of 1935, as
administered by the SEC, and has adopted a system of
accounts consistent with the system of accounts prescribed
by the Federal Energy Regulatory Commission. Certain
reclassifications have been made to conform to current
period presentation.
Use of Estimates in the Preparation of Financial Statements
The preparation of Entergy Services' financial
statements, in conformity with generally accepted accounting
principles, requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and
liabilities, and the reported amounts of revenues and
expenses. Adjustments to the reported amounts of assets and
liabilities may be necessary in the future to the extent
that future estimates or actual results are different from
the estimates used.
Depreciation and Amortization
Depreciation is computed on a straight-line basis at
rates based on the estimated service lives of the various
classes of property, which range from 5 to 15 years.
Amortization of leasehold improvements is computed on a
straight-line basis over the lease term.
Income Taxes
Entergy Services accounts for income taxes pursuant to
Statement of Financial Accounting Standards No. 109
"Accounting for Income Taxes" (SFAS 109). This standard
requires that deferred income taxes be recorded for all
temporary differences between the financial statement and
tax basis of assets and liabilities and loss carryforwards
and be based on enacted tax laws at tax rates that are
expected to be in effect when the temporary differences
reverse.
Entergy Services joins its parent and the other Entergy
Corporation subsidiaries in filing a consolidated Federal
income tax return. Income taxes (benefits) are allocated to
Entergy Services in proportion to its consolidated taxable
income. SEC regulations require that neither Entergy
Services nor its affiliates pay more income taxes than it
would have paid had a separate income tax return been filed.
In addition, Entergy Services files a consolidated Arkansas
and combined Mississippi income tax return with certain
other Entergy Corporation subsidiaries, and separate company
income tax returns for Louisiana, Washington D.C., and
Texas.
Investment tax credits are deferred and amortized based
upon the average useful life of the
14-B
<PAGE>
related property, beginning with the year utilized on the
consolidated tax return.
Cash and Cash Equivalents
Entergy Services considers all unrestricted highly
liquid debt instruments purchased with an original maturity
of three months or less to be cash equivalents.
Fair Value Disclosures
Entergy Services considers the carrying amounts of
financial instruments classified as current assets and
liabilities to be a reasonable estimate of their fair value
because of the short maturity of these instruments.
NOTE 2. INCOME TAXES
Deferred income taxes are provided in recognition of
temporary differences between the financial reporting and
income tax basis of assets and liabilities. Deferred income
tax assets (liabilities) are comprised of the following at
December 31, 1997 and 1996 (in thousands):
1997 1996
Deferred Tax Assets:
Deferred compensation $ 4,155 $ 1,440
Operating reserves 9,829 788
Other 1,402 5
------- -------
Total 15,386 2,233
------- -------
Deferred Tax Liabilities:
Property (9,374) (69)
------- -------
Net Deferred Tax Assets $ 6,012 $ 2,164
======= =======
The benefit associated with these deferred tax assets
has been or will be utilized in the Entergy Corporation
consolidated return. The ultimate realization of these
deferred tax assets for Entergy Services is dependent upon
the allocation of the tax benefit from the Entergy
Corporation consolidated return.
Entergy Services' effective income tax rate was 100% in
1997, 1996, and 1995, compared to the current Federal
statutory income tax rate of 35%. The primary reason for
the difference between the effective and statutory income
tax rates is that Entergy Services collects revenue adequate
to fund its income tax expense. The provision for
intercompany expense (benefit) in lieu of federal income
taxes for the years ended December 31, 1997, 1996, and 1995
consisted of the following (in thousands):
1997 1996 1995
Current:
Federal $12,835 $ - $ -
State 704 933 (254)
------- ------- -------
Total 13,539 933 (254)
------- ------- -------
Deferred:
Federal (6,391) - -
State 2,543 (889) 155
------- ------- -------
Total (3,848) (889) 155
------- ------- -------
Total income tax expense $ 9,691 $ 44 $ (99)
======= ======= =======
14-C
<PAGE>
NOTE 3. LINES OF CREDIT AND RELATED SHORT-TERM BORROWINGS
Entergy Services has SEC authorization, through
November 30, 2001, to effect short-term borrowings from
Entergy Corporation in an aggregate amount outstanding at
any one time of up to $150 million through a borrowing
arrangement with interest rates based on a prime rate. This
borrowing arrangement was not used during 1997, 1996, or
1995. In addition, Entergy Services had $70 million in
unused bank lines of credit at December 31, 1997 and 1996,
which carried commitment fees of 0.125% on the undrawn
balance.
Entergy Services participates with certain other
Entergy companies in a System Money Pool (Money Pool)
arrangement whereby those companies with available funds may
invest in the Money Pool while other companies, except
Entergy Corporation, may borrow on a short-term basis from
the Money Pool, thereby reducing the dependence on external
short-term borrowings. As authorized by the SEC, the
borrowings by Entergy Services from the Money Pool, combined
with any external borrowings, may not exceed the amount of
the unused portion of the borrowing arrangement discussed
above.
The borrowings and applicable interest rates under the
Money Pool arrangement were as follows (dollars in
thousands):
1997 1996 1995
Average borrowing $ 44,163 $ 43,026 $ 44,612
Maximum borrowing at month end $ 50,041 $ 50,642 $ 66,523
Average effective interest rate:
During the year 5.6% 5.4% 6.0%
At end of year 6.3% 5.9% 6.0%
At December 31, 1997 and 1996, Entergy Services'
temporary borrowing position in the Money Pool was $29.1
million and $17.1 million, respectively.
NOTE 4. EMPLOYEE BENEFITS
Employee Benefit Plans
Certain key employees of Entergy Services participate
in the Equity Ownership Plan of Entergy Corporation and
Subsidiaries (Equity Plan) in which they receive shares of
common stock based upon achievement of specified performance
goals, the costs of which are initially deferred and then
charged to income over the restricted period. At December
31, 1997, there were shares with a cost of $10.2 million
included in Other Deferred Debits for Entergy Corporation
common stock purchased related to the Equity Plan. Under
the Equity Plan in 1997 and 1996, Entergy Services recorded
compensation expense of $1.7 million (representing
approximately 49,000 shares) and $1.3 million (representing
approximately 35,000 shares), respectively.
Employees of Entergy Services are also eligible to
participate in the Savings Plan of Entergy Corporation and
Subsidiaries (Savings Plan) upon meeting certain eligibility
requirements. The Savings Plan provides that the employing
Entergy subsidiary may make matching contributions to the
Savings Plan in an amount equal to 50% of the participant's
contribution to the extent that the total participant
contribution is less than or equal to 6% of the
participant's earnings as defined in the Savings Plan. In
1997, 1996, and 1995, Entergy Services contributed $3.9
million, $3.2 million, and $3.3 million, respectively, to
the Savings Plan.
Eligible employees of Entergy Services may participate
in the Employee Stock Ownership Plan of Entergy Corporation
and Subsidiaries (ESOP). The ESOP is a defined contribution
plan. Contributions to the ESOP, and any income thereon,
are invested in Entergy Corporation common stock and are
based
14-D
<PAGE>
on the expected utilization of additional investment tax
credits in the applicable Federal income tax return
of Entergy Corporation and its subsidiaries. There were no
contributions to the ESOP in the years ended December 31,
1997 and 1996. Entergy Services contributed approximately
$250,000 to the ESOP for the year ended December 31, 1995.
No additional investment tax credits are available for
contribution under the ESOP. Therefore, effective January
1998, the ESOP was merged into the Savings Plan.
Effective December 31, 1997, the Gulf States Utilities
Employee Stock Ownership Plan was amended to include
eligible employees of Entergy Services. This plan is a
defined contribution plan. Contributions to this plan, and
any income thereon, are invested in Entergy Corporation
common stock and are based on the expected utilization of
additional investment tax credits in the Federal income tax
return of Entergy Gulf States, Inc.
Pension Plan
Entergy Services has a defined benefit pension plan
covering substantially all of its employees. The pension
plan is noncontributory and provides pension benefits that
are based on employees' credited service and compensation
during the final years before retirement. Entergy Services
funds pension costs in accordance with contribution
guidelines established by the Employee Retirement Income
Security Act of 1974, as amended, and the Internal Revenue
Code of 1986, as amended. The assets of the plan include
common and preferred stocks, fixed income securities,
interest in a money market fund and insurance contracts.
Effective January 1, 1995, all Entergy Services
employees were transferred to the Entergy Corporation
Retirement Plan for non-bargaining employees. This new plan
has provisions substantially identical to the previous plan.
Entergy Services' total 1997, 1996, and 1995 allocated
pension cost, including amounts capitalized, included the
following components (in thousands):
1997 1996 1995
Service cost - benefits earned
during the period $ 8,551 $ 7,481 $ 5,097
Interest cost on the projected
benefit obligation 10,795 7,995 6,064
Actual return on plan assets (9,057) (9,961) (13,202)
Net amortization and deferral 1,862 4,010 8,908
------- ------- ---------
Net pension cost $12,151 $ 9,525 $ 6,867
======= ======= =========
The funded status of the pension plan, with respect to
Entergy Services, at December 31, 1997 and 1996, was as
follows (in thousands):
1997 1996
Actuarial present value of accumulated
pension plan benefits:
Vested $ 114,444 $ 73,939
Nonvested 1,805 1,146
--------- --------
Accumulated benefit obligation $ 116,249 $ 75,085
========= ========
14-E
<PAGE>
Plan assets at fair value $ 119,095 $ 87,971
Projected benefit obligation 169,793 115,637
--------- ---------
Plan assets less than projected
benefit obligation (50,698) (27,666)
Unrecognized prior service cost 2,431 2,658
Unrecognized transition asset (1,311) (1,477)
Unrecognized net loss 47,442 17,831
--------- ---------
Accrued pension liability $ (2,136) $ (8,654)
========= =========
The significant actuarial assumptions used in computing
the information above for 1997, 1996, and 1995 were as
follows: weighted average discount rate, 7.25%, 7.75%, and
7.5%; weighted average rate of increase in future
compensation levels, 4.6%, 4.6%, and 4.6%; and expected long-
term rate of return on plan assets, 9.0%, 9.0%, and 8.5% for
1997, 1996, and 1995, respectively. Transition assets are
being amortized over the average remaining service period of
active participants.
Entergy Services has adopted the Supplemental
Retirement Plan of Entergy Corporation and Subsidiaries and
the Post-Retirement Plan of Entergy Corporation and
Subsidiaries for certain executive officers. Certain
participants in these plans receive benefits based on a
percentage of their salaries. The actuarially projected
obligation for these plans, which is not included in the
pension plan tables above, was recorded during 1992. These
plans are unfunded and benefits are paid from general
company assets. At December 31, 1997, and 1996, the
recorded liability for these plans was approximately $22.4
million and $19.7 million, respectively. The discount rate
used in the determination of these liabilities was 7.75% in
1997 and 8.25% in 1996.
Entergy Services' total recorded pension liability
(including the funded plan covering substantially all
employees and the supplemental unfunded plans described
above) at December 31, 1997 and 1996, was $24.6 million and
$28.4 million, respectively.
Other Postretirement Benefits
Entergy Services also provides certain health care and
life insurance benefits for retired employees.
Substantially all employees may become eligible for these
benefits if they reach retirement age while still working
for Entergy Services.
Effective January 1, 1993, Entergy Services adopted
SFAS No. 106, "Employers' Accounting for Postretirement
Benefits Other Than Pensions" (SFAS 106). The new standard
required the use of an accrual method in accounting for
these benefits. At January 1, 1993, the actuarially
determined accumulated postretirement benefit obligation
(APBO) earned by retirees and active employees was estimated
to be approximately $14.1 million. This obligation is being
amortized as expense over a 20-year period beginning in
1993. Entergy Services is recovering the increased cost of
other postretirement benefits due to the adoption of SFAS
106 under the Services Agreements with the Entergy
companies.
Total postretirement benefit costs of Entergy Services
for 1997, 1996, and 1995, including amounts capitalized,
included the following components (in thousands):
1997 1996 1995
Service cost - benefits earned
during the period $ 2,830 $ 2,960 $ 1,863
Interest cost on APBO 3,097 2,338 1,660
Net amortization and deferral 1,597 1,297 785
------- ------- -------
Net periodic postretirement
benefit cost $ 7,524 $ 6,595 $ 4,308
======= ======= =======
14-F
<PAGE>
The funded status of Entergy Services' postretirement
plans as of December 31, 1997 and 1996, was (in thousands):
1997 1996
Actuarial present value of accumulated
postretirement benefit obligation:
Retirees $ 22,824 $ 12,373
Other fully eligible participants 8,010 6,809
Other active participants 16,848 15,453
-------- --------
Accumulated benefit 47,682 34,635
obligation
Plan assets at fair value - -
-------- --------
Plan assets less than APBO (47,682) (34,635)
Unrecognized transition obligation 10,545 11,249
Unrecognized net loss 16,768 8,440
-------- --------
Accrued postretirement benefit liability $(20,369) $(14,946)
======== ========
The assumed health care cost trend rate used in
measuring the APBO of Entergy Services was 6.8% for 1998,
gradually decreasing each successive year until it reaches
5.0% in 2005. A one percentage increase in the assumed
health care cost trend rate for each year would have
increased the APBO of Entergy Services as of December 31,
1997, by 13.6% and the sum of the service cost and interest
cost by approximately 17.5%. The assumed discount rate and
rate of increase in future compensation used in determining
the APBO were 7.25% for 1997, 7.75% for 1996, 7.5% for 1995,
and 4.6% for 1997, 1996 and 1995, respectively. The
expected long-term rate of return on plan assets was 9.0%
for 1997 and 1996, and 8.5% for 1995.
NOTE 5. LEASES
At December 31, 1997, Entergy Services had
noncancelable operating leases with minimum lease payments
as follows (in thousands):
Minimum lease
Payments
1998 $ 14,697
1999 13,953
2000 12,157
2001 11,893
2002 11,831
Years thereafter 91,589
---------
$ 156,120
=========
Rent expense amounted to approximately $32.7 million
for 1997, $31.5 million for 1996, and $28.7 million for
1995.
NOTE 6. BULK POWER SYSTEM OPERATIONS
Entergy Services acts as agent for the coordination of
joint bulk power system operations among the Entergy
operating companies. All amounts receivable from the power
purchasers or payable to the power suppliers as a result of
the bulk power transactions are recorded in Entergy
Services' accounts receivable or accounts payable balances,
and have no effect on Entergy Services' income or expenses.
14-G
<PAGE>
NOTE 7. SALE AND LEASEBACK OF COMPUTER CENTER
During 1985, Entergy Services entered into an agreement
for the sale and leaseback of the Computer Center land and
building. The related lease has been classified as an
operating lease for accounting purposes and, accordingly,
the net book value of the building has been removed from the
balance sheet. A gain on the sale of approximately $3.5
million was deferred and is being amortized over the primary
term of the lease which is twenty-five years with the option
to extend the lease for six additional consecutive terms of
five years each. Estimated future minimum rental
commitments related to this lease are included in Note 5 -
Leases.
NOTE 8. TRANSACTIONS WITH AFFILIATES
Various Entergy Corporation subsidiaries rent office
facilities and provide certain general and administrative
services to Entergy Services. These expenses amounted to
approximately $1.1 million, $13.7 million, and $14.3 million
in 1997, 1996, and 1995, respectively.
NOTE 9. OTHER DEFERRED CREDITS
Other Deferred Credits (Account 253) consist of the
following (in thousands):
1997 1996
Unamortized gain on the sale of Computer Center (Note 7) $1,874 $2,014
Unamortized portion of accrued sublease loss (Edison Plaza) 2,822
Accrued pension and postretirement benefit liabilities 56,297 51,610
Other 450 157
------- -------
$61,443 $53,781
======= =======
14-H
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule XV Statement of Income
(In Thousands)
Account Description Current Prior
Year Year *
INCOME
<S> <C> <C> <C>
457 Services rendered to associate companies $512,895 $440,283
458 Services rendered to nonassociate companies 263 201
421 Miscellaneous income or loss 17 187
-------- --------
Total Income $513,175 $440,671
-------- --------
EXPENSES - Income Statement
403 Depreciation Expense 19,227 20,383
404 Amortization of Limited-Term Electric Plant 734 -
4081 Taxes Other than Income-Utility Operations 17,965 12,450
4082 Taxes Other Than Income-Other Inc. & Deduc 22 -
4091 Income Taxes - Utility Operating Income 13,539 761
4101 Provision for Deferred Inc Tax-Utility Operating Income (3,848) (76)
4114 Investment Tax Credit Adjustments-Utility Operations (162) (802)
416 Cost/Expense-Mdse, Job, Contract Work 142 -
4171 Expenses - Nonutility Operations 0 53
419 Interest & Dividend Income (0) -
4261 Donations 92 7
4263 Penalties 0 -
4264 Expenditures-Civic, Political, and Related Activities 3,426 2,029
4265 Other Deductions 4,371 5,404
430 Interest on Debt to Associate Companies 2,508 2,339
431 Other Interest Expense 43 777
500-557 Power Production 39,097 34,402
560-574 Transmission & Distribution 18,950 13,193
580-598 Distribution Expense 20,692 9,272
850-894 Gas Operations 508 1,087
901-905 Customer Accounts 41,728 23,291
906-910 Customer Service & Informational Expenses 17,834 20,248
911-917 Sales Expenses 31,438 25,700
920 Administration & General Salaries 89,334 -
921 Office Supplies and Expenses 27,634 9,421
923 Outside Services Employed 56,783 165,511
924 Property Insurance Expense 370 785
925 Injuries & Damages Expense 2,078 17
926 Employee Pension & Benefits 31,795 32,133
928 Regulatory Commission Expense 1,349 3,296
9301 General Advertising Expenses 1,507 -
9302 Miscellaneous General Expense 927 786
931 Rents 34,331 18,795
935 Maintenance of General Plant 4,448 -
-------- --------
Total Expenses - Income Statement $478,862 $401,262
-------- --------
EXPENSES - Balance Sheet
107EXP Capital Charges to Expense 27,277 28,333
184EXP Other Balance Sheet Charges to Expense 7,036 11,076
-------- --------
Total Expenses - Balance Sheet $ 34,313 $ 39,409
======== ========
Net Income or (Loss) $ - $ -
======== ========
* Prior year totals were restated to comply with the FERC Uniform System of
Accounts, which is currently being utilized by Entergy Services, Inc.
These totals should be used for comparative purposes only.
15 of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Analysis of Billing
Associate Companies - Account 457
(In Thousands)
Direct Indirect Compensation Total
Costs Costs For Use Amount
Name of Associate Company Charged Charged of Capital Billed
<S> <C> <C> <C> <C>
Entergy Arkansas, Inc. $ 81,207 $ 13,491 $ - $ 94,698
Entergy Gulf States, Inc. 105,872 16,900 - 122,772
Entergy Louisiana, Inc. 92,660 15,104 - 107,764
Entergy Mississippi, Inc. 44,290 7,234 - 51,524
Entergy New Orleans, Inc. 33,106 4,986 - 38,092
Entergy Corporation 31,506 3,655 - 35,161
System Fuels, Inc. 1,124 213 - 1,337
Entergy Enterprises, Inc. 13,711 1,292 - 15,003
Entergy Operations, Inc. 40,524 5,956 - 46,480
Entergy Power, Inc. 527 99 - 626
Deferred (562) - - (562)
-------------------------------------------
TOTAL $443,965 $ 68,930 $ - $ 512,895
===========================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Analysis of Billing
Nonassociate Companies - Account 458
(In Thousands)
Instruction:
Provide a brief description of the services rendered to each nonassociate
company:
Direct Indirect Compensation Excess Total
Cost Cost For Use Total Or Amount
Name of Nonassociate Charged Charged of Capital Cost Deficiency Billed
Company
<S> <C> <C> <C> <C> <C> <C>
Entergy Aviation
Services $ 263 $ - $ - $ 263 $ - $ 263
--------------------------------------------------------------
TOTAL $ 263 $ - $ - $ 263 $ - $ 263
==============================================================
17 OF 28 PAGES
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule XVI - Analysis of Charges for Service -
Associate and Nonassociate Companies
(In Thousands)
Instruction:
Total cost of service will equal for associate and nonassociate companies
the total amount billed under their separate analysis of billing schedules.
Nonassociate
Associate Company Charges Company Charges Total Charges for Service
Direct Indirect Direct Indirect Direct Indirect
Account Description of Items Cost Cost Total Cost Cost Total Cost Cost Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
EXPENSES - Income
Statement
403 Depreciation
Expense $ - $ 19,227 $ 19,227 $ - $ - $ - $ - $ 19,227 $ 19,227
404 Amortization of
Limited-Term
Electric Plant - 734 734 - - - - 734 734
4081 Taxes Other than
Income-Utility
Operations 13,055 4,906 17,961 4 - 4 13,059 4,906 17,965
4082 Taxes Other than
Income-Other Inc.
& Deduc - 22 22 - - - - 22 22
4091 Income Taxes - Utility
Operating Income - 13,539 13,539 - - - - 13,539 13,539
4101 Provision for Deferred
Inc Tax - Utility
Operating Income - (3,848) (3,848) - - - - (3,848) (3,848)
4114 Investment Tax Credit
Adjustments - Utility
Operations (41) (121) (162) - - - (41) (121) (162)
416 Cost/Expense-Mdse, Job,
Contract Work 142 - 142 - - - 142 - 142
4171 Expenses - Nonutility
Operations - - - - - - - - -
419 Interest & Dividend
Income - - - - - - - - -
4261 Donations 92 - 92 - - - 92 - 92
4263 Penalties - - - - - - - - -
4264 Expenditures-Civic,
Political, and Related
Activities 3,426 - 3,426 - - - 3,426 - 3,426
4265 Other Deductions 4,371 - 4,371 - - - 4,371 - 4,371
431 Other Interest Expense 4 39 43 - - - 4 39 43
500-557 Power Production 38,986 111 39,097 - - - 38,986 111 39,097
560-574 Transmission &
Distribution 18,954 (4) 18,950 - - - 18,954 (4) 18,950
580-598 Distribution Expense 20,688 4 20,692 - - - 20,688 4 20,692
850-894 Gas Operations 508 - 508 - - - 508 - 508
901-905 Customer Accounts 41,733 (5) 41,728 - - - 41,733 (5) 41,728
906-910 Customer Service &
Informational
Expenses 17,829 5 17,834 - - - 17,829 5 17,834
911-917 Sales Expenses 31,467 (29) 31,438 - - - 31,467 (29) 31,438
920 Administration &
General Salaries 64,178 25,098 89,276 58 - 58 64,236 25,098 89,334
921 Office Supplies and
Expenses 25,689 1,845 27,534 100 - 100 25,789 1,845 27,634
923 Outside Services
Employed 55,202 1,539 56,741 42 - 42 55,244 1,539 56,783
924 Property Insurance
Expenses 287 83 370 - - - 287 83 370
925 Injuries & Damages
Expense 1,194 884 2,078 - - - 1,194 884 2,078
926 Employee Pensions
and benefits 29,904 1,886 31,790 5 - 5 29,909 1,886 31,795
928 Regulatory commission
expenses 1,349 - 1,349 - - - 1,349 - 1,349
930.1 General advertising
expenses 1,500 7 1,507 - - - 1,500 7 1,507
930.2 Miscellaneous general
expenses 547 380 927 - - - 547 380 927
931 Rents 34,322 - 34,322 9 - 9 34,331 - 34,331
935 Maintenance of
General Plan 4,403 - 4,403 45 - 45 4,448 - 4,448
---------------------------------------------------------------------------------------------------
Total Expenses -
Income Statement $409,789 $ 66,302 $476,091 $263 - $263 $410,052 $ 66,302 $476,354
---------------------------------------------------------------------------------------------------
EXPENSES - Balance
Sheet
107EXP Capital Charges
to Expense 27,277 - 27,277 - - - 27,277 - 27,277
108EXP Other Balance
Sheet Charges to
Expense 7,034 2 7,036 - - - 7,034 2 7,036
---------------------------------------------------------------------------------------------------
Total Expenses-
Balance Sheet $ 34,311 $ 2 $ 34,313 - - - $ 34,311 $ 2 $ 34,313
---------------------------------------------------------------------------------------------------
TOTAL EXPENSES $444,100 $ 66,304 $510,404 $263 - $263 $444,363 $ 66,304 $510,667
---------------------------------------------------------------------------------------------------
Compensation for use
of Equity Capital - - - - - - - - -
430 Interest on Debt to Associate
Companies - 2,508 2,508 - - - - 2,508 2,508
---------------------------------------------------------------------------------------------------
TOTAL COST OF SERVICE $444,100 $ 68,812 $512,912 $263 - $263 $444,363 $ 68,812 $513,175
===================================================================================================
18 OF 28 PAGES
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule XVII - Schedule of Expense Distribution by
Department or Service Function
(In Thousands)
Instruction:
Indicate each department or service function. (See Instruction 01-3 General
Structure of Accounting System: Uniform System of Accounts).
DEPARTMENT OR SERVICE FUNCTION
Corp
Account Total Planning External
Number Description of Items Amount Overhead Accounting Chairman Corporate Aviation & Analysis Affairs
EXPENSES - Income Statement
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
403 Depreciation Expense $19,227 $19,227 $ - $ - $ - $ - $ - $ -
404 Amortization of Limited-Term Electric Plant 734 734 - - - - - -
4081 Taxes Other than Income-Utility Operations 17,965 9,589 1,226 126 (11,098) 159 287 1,504
4082 Taxes Other Than Income-Other Inc. & Deduc 22 22 - - - - - 0
4091 Income Taxes - Utility Operating Income 13,539 13,539 - - - - - -
4101 Provision for Deferred Inc Tax-Utility (3,848) (3,848) - - - - - -
Operating Income
4114 Investment Tax Credit Adjustments-Utility (162) (162) - - - - - -
Operations
416 Cost/Expense-Mdse, Job, Contract Work 142 - - - - - - 32
4171 Expenses - Nonutility Operations 0 - - - - - - -
419 Interest & Dividend Income (0) (0) - - - - - -
4261 Donations 92 - 0 22 10 - - 59
4263 Penalties 0 0 - - - - - -
4264 Expenditures-Civic, Political, and Related 3,426 - (10) - - - - 3,435
Activities
4265 Other Deductions 4,371 - 15 8 10 - 133 4,058
430 Interest on Debt to Associate Companies 2,508 2,508 - - - - - -
431 Other Interest Expense 43 43 - - - - - -
500-557 Power Production 39,097 (5) 3 - 93 - - (2)
560-574 Transmission & Distribution 18,950 (229) - - 133 - - -
580-598 Distribution Expense 20,692 (376) 19 - 18 1 6 9
850-894 Gas Operations 508 - - - - - - 0
901-905 Customer Accounts 41,728 (56) - - 7 - - 1
906-910 Customer Service & Informational Expenses 17,834 (19) (3) - 30 - - 0
911-917 Sales Expenses 31,438 (22) - - 427 - - 5
920 Administration & General Salaries 89,334 4,323 10,846 1,143 838 1,461 2,553 12,314
921 Office Supplies and Expenses 27,634 0 1,726 1,001 472 2,482 474 2,881
923 Outside Services Employeed 56,783 - 2,298 2,009 1,676 708 26 9,277
924 Property Insurance Expense 370 (0) - - - 0 - -
925 Injuries & Damages Expense 2,078 (5) - - - - 482 42
926 Employee Pension & Benefits 31,795 - 3,104 196 819 357 619 3,228
928 Regulatory Commission Expense 1,349 - 178 - - - - 1,101
9301 General Advertising Expenses 1,507 - 0 17 0 - 1 1,383
9302 Miscellaneous General Expense 927 (1,879) 2,261 9 42 16 1 158
931 Rents 34,331 - 151 89 2 2,708 8 235
935 Maintenance of General Plant 4,448 0 0 - - 1,153 0 1
EXPENSES - Balance Sheet
107EXP Capital Charges to Expense 27,277 (25) 17,946 - - - - 1
184EXP Other Balance Sheet Charges to Expense 7,036 (127) 5,516 2 0 2 - 1
-----------------------------------------------------------------------------
$513,175 $43,232 $ 45,276 $ 4,622 $(6,521) $ 9,047 $ 4,590 $39,723
=============================================================================
19 of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule XVII - Schedule of Expense Distribution by
Department or Service Function
(In Thousands)
DEPARTMENT OR SERVICE FUNCTION
Human
Account Resources & Regulated Retail Retail Total Info.
Number Description of Items Administration Nuclear Operations Services Strategies Technology Treasury
EXPENSES - Income Statement
<S> <C> <C> <C> <C> <C> <C> <C> <C>
403 Depreciation Expense $ - $ - $ - $ - $ - $ - $ -
404 Amortization of Limited-Term Electric Plant - - - - - - -
4081 Taxes Other than Income-Utility Operations 1,475 727 8,483 1,407 34 3,585 461
4082 Taxes Other Than Income-Other Inc. & Deduc - - - - - - -
4091 Income Taxes - Utility Operating Income - - - - - - -
4101 Provision for Deferred Inc Tax-Utility - - 0 - - - -
Operating Income
4114 Investment Tax Credit Adjustments-Utility - - - - - - -
Operations
416 Cost/Expense-Mdse, Job, Contract Work 1 - - 109 - - -
4171 Expenses - Nonutility Operations 0 - - - - - -
419 Interest & Dividend Income - - - - - - -
4261 Donations - 0 1 0 - - -
4263 Penalties - - - - - - -
4264 Expenditures-Civic, Political, and Related - - 1 - - - -
Activities
4265 Other Deductions 7 4 96 15 5 10 10
430 Interest on Debt to Associate Companies - - - - - - -
431 Other Interest Expense - - - - - - -
500-557 Power Production 41 4,724 34,035 10 - 196 2
560-574 Transmission & Distribution (69) - 19,108 2 - 5 -
580-598 Distribution Expense 73 - 20,814 46 - 79 3
850-894 Gas Operations 2 - 506 0 - - -
901-905 Customer Accounts (14) - 38,526 3,202 45 17 -
906-910 Customer Service & Informational Expenses (5) - 5,205 12,611 15 (0) -
911-917 Sales Expenses (5) - 17,040 13,938 55 0 -
920 Administration & General Salaries 10,913 2,031 6,940 785 230 31,114 3,843
921 Office Supplies and Expenses 5,938 299 967 1 49 10,648 696
923 Outside Services Employeed 7,046 9 140 - 15 31,366 2,213
924 Property Insurance Expense - - 0 - - - 370
925 Injuries & Damages Expense - - 926 - - - 633
926 Employee Pension & Benefits (10,888) 1,305 20,428 3,104 72 8,401 1,050
928 Regulatory Commission Expense - - 27 27 - - 16
9301 General Advertising Expenses 103 - - - - 2 1
9302 Miscellaneous General Expense 28 8 246 14 0 1 22
931 Rents 26,358 3 44 61 - 4,628 44
935 Maintenance of General Plant 3,142 - 6 115 - 31 -
EXPENSES - Balance Sheet
107EXP Capital Charges to Expense 1 30 4,724 8 - 4,585 7
184EXP Other Balance Sheet Charges to Expense 74 56 1,368 22 - 122 -
----------------------------------------------------------------------------
$ 44,221 $ 9,196 $179,631 $ 35,477 $ 520 $94,790 $ 9,371
============================================================================
20 OF 28 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Departmental Analysis of Salaries
(In Thousands)
Departmental Salary Expense
Name of Department Included in Amounts Billed to Number of
Indicate each department Total Parent Other Non Personnel
or service function Amount Company Associates Associates End of Year
See page 21-A $ 193,610 $6,438 $187,034 $ 139 3,122
------------------------------------------------------
TOTAL $ 193,610 $6,438 $187,034 $ 139 3,122
======================================================
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Outside Services Employed
(In Thousands)
Instructions:
Provide a breakdown by subaccount of outside services employed. If the
aggregate amounts paid to any one payee and included within one subaccount
is less than $25,000, only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a subtotal for each
type of service.
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased Address Associate Amount
See pages 21-B thru 21-I $ 53,023
21 of 28 pages
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Departmental Analysis of Salaries
(In Thousands)
Departmental Salary Expense
Name of Department Included in Amounts Billed to Number of
Indicate each department Total Parent Other Non Personnel
or service function Amount Company Associates Associates End of Year
<S> <C> <C> <C> <C> <C>
Overhead $ 3,459 $ - $ 3,459 $ - 0
Accounting 11,234 523 10,712 - 41
Chairman 1,163 1,118 45 - 28
Corporate (182) 179 (361) - 100
Aviation 1,471 1,256 197 18 306
Planning & Analysis 2,691 441 2,250 - 204
External Affairs 14,929 1,783 13,146 - 107
Human Resourses & Administration 13,431 69 13,241 121 590
Nuclear 6,336 - 6,336 - 676
Regulated Operations 86,443 248 86,195 - 68
Retail Services 13,507 25 13,482 - 189
Retail Strategies 347 1 346 - 252
Total Information Technology 34,580 500 34,080 - 317
Treasury 4,201 295 3,906 - 244
------------------------------------------------
$193,610 $ 6,438 $187,034 $ 139 3,122
================================================
21 - A
</TABLE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased * Associate Amount
OUTSIDE SERVICES - LEGAL
Adams & Reese NA $ 221
Baird Holm McEachen NA 103
Baker & Botts NA 148
Balch & Bingham NA 278
Bickerstaff Heath & NA 2,995
Broods & Jackson NA 48
Carver Darden NA 43
Clark Thomas & NA 417
Cranford Johnson Robinson NA 192
Friday Eldredge & NA 117
Germer & Gertz NA 297
Healey & Smith NA 34
Hunton & Williams NA 27
Kullman Firm NA 134
McCalla Thompson Pyburn NA 507
Mitchell Williams Seleg NA 94
Monroe & Lemann NA 150
Morgan Lewis & NA 561
Phelps Dunbar LLP NA 222
Peid & Priest NA 442
RIC Group Administrative NA 38
Shaw Pittman Potts NA 35
Sidley & Austin NA 160
Skadden Arps Slate NA 1,404
Slater Law Firm NA 50
Slover & Loftus NA 168
Steptoe & Johnson NA 156
Swidler & Berlin NA 41
Taggart Morton Ogden NA 78
Taylor Porter Brooks NA 55
Thompson & Lewellyn NA 61
Trotter Law Firm NA 103
Williams & Anderson NA 184
Winston & Strawn NA 198
Wise Carter Child & Caraway NA 778
Wright & Talisman NA 65
Wright Lindsey & NA 336
Reimbursements from Other NA (874)
Companies
Others (121) NA 371
--------
Total $ 10,437
--------
21 - B
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
OUTSIDE SERVICES - REGULATORY SERVICES
Atest Consultants, Inc. NA $ 136
City of New Orleans NA 595
Kennedy & Associates NA 33
Stone Pigman Walter NA 134
Other (9) NA 65
--------
Total $ 963
--------
OUTSIDE SERVICE - PROFESSIONAL CONTRACT WORK
4R Group, Inc. NA $ 36
A Milton Smith Group Inc NA 53
Accelerated Development Systems NA 57
Actuarial Sciences Association NA 637
Addison Corp Annual NA 66
Allen R Bares NA 39
Alliance for Competitive NA 152
Amherst Group Limited NA 28
Analysis Group Economics NA 57
Andersen Consulting LLP NA 4,458
Archie Manning NA 27
Arthur Andersen NA 403
Baker Engineering NA 158
Barakat & Chamberlin NA 72
Berliner Assoc NA 484
Black & Veach NA 75
Bryan Associates, Inc. NA 170
Burns & McDonnell NA 60
Burson Marsteller NA 1,047
Cambridge Energy Research NA 37
Sambridge Reports Research NA 218
Change Partners NA 159
Chatham Partners, Inc. NA 236
Conway Consulting NA 159
Coopers & Lybrand, LLP NA 2,123
Corporate Relations Management NA 39
Creative Communications, Inc. NA 30
CSC Consulting NA 1,266
Dan Baw & NA 85
Dan Flora & NA 38
21 - C
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
Database Consultants, Inc. NA $ 142
Davis Harmon Group NA 192
Decisionquest Inc. NA 150
Deloitte & Touche NA 588
Diversified Computer Consultants NA 188
Dun & Bradstreet NA 110
Econat, Inc. NA 695
Economic & Issues NA 121
EDU Tech Industries NA 189
EPRI NA 1,160
Financial Concepts & NA 131
Francis J. Walsh NA 32
Frederick Schneiders Research NA 194
Fry Consultants NA 26
FTN Assoc Ltd. NA 56
Gai Consultants, Inc. NA 91
Gartner Group, Inc. NA 224
GCR & Assoc NA 33
Hackett Group NA 77
Haynie & Associates NA 39
Hewitt Accoc LLC NA 155
Hooper Hooper Owen NA 143
HRL Group, Inc. NA 75
ICF Kaiser Consulting NA 57
Icon & Landis NA 69
Infotech Corporation NA 39
Intenco Energy Consultants NA 35
Intersearch Corp NA 203
JA Wright & NA 703
JRA Assoc NA 50
Kase & Co. NA 70
Kennedy Reporting Service NA 134
KFG Inc. NA 211
Koll Management Services NA 55
KPMG Peat Marwick NA 174
Legier & Materne NA 36
Lyle F Schoenfeldt NA 50
Manatech Management NA 35
Technologies
Market Strategies, Inc. NA 110
Marketing 1:1, Inc. NA 109
Marketing Corp of NA 260
Mckinsey & Co. NA 6,468
MCS Group NA 187
Meta Group NA 32
Metzler & Associates NA 1,431
21 - D
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
MKW Consulting, Inc. NA $ 782
National Economic Research NA 395
National Education Training NA 72
Ned Tannebaum & NA 37
Personnel Research Assoc NA 338
Planning Research Corp NA 57
Powell Tate & NA 40
Prima Consulting NA 46
Public Strategies, Inc. NA 1,709
Public Technology, Inc. NA 64
RHR International Co. NA 687
RKS Research & NA 34
RLW Analytics, Inc. NA 92
RMB Consulting NA 69
RR Donnelley & NA 35
Saterley Consulting NA 33
Savage Consulting Group NA 47
Seek Consulting Group NA 67
Sherri McConnell, Inc. NA 74
Shipley & Associates NA 44
Skadden Arps Slate NA 30
Spectra, Inc. NA 599
Spradley & Spradley NA 36
Strategy Integration NA 80
Swedish Transmission Research NA 35
TB&A Management Consultants NA 255
Thoma & Thoma NA 249
Thomas D. Mouras NA 69
Travis Research Assoc. NA 87
UMS Group, Inc. NA 36
Walk Haydel & NA 37
Walker Information NA 1,232
WEFA Group, Inc. NA 59
WG Shurgar & NA 42
WH Linder & NA 36
Other (140) NA 1,188
--------
Total $ 36,590
--------
OUTSIDE SERVICE - GENERAL NUCLEAR SERVICES
Other (7) NA $ 3
--------
Total $ 3
--------
21 - E
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
OUTSIDE SERVICE - CONTRACT/DESIGN ENGINEERING
Advanced Grounding Concepts NA $ 50
Bohn Bros Construction NA 66
Cate Electric Construction NA 40
CB Commerial Real NA 36
Cetrom Consulting Engineering NA 164
EI Dupont NA 52
Geoscience Engineers, LLC NA 57
Manpower, Inc. NA 47
Petrocon Engineering, Inc. NA 359
Raytheon Engineers NA 197
Sizeler Architects NA 60
Teraquest Metrics, Inc. NA 501
Tinsley Mullen Engineers NA 55
Wink Engineering NA 86
Other (21) NA 79
-------
Total $ 1,849
-------
OUTSIDE SERVICE - ENVIRONMENTAL
Aerotek, Inc. NA $ 174
Metco Environmental, Inc. NA 217
National Environmental Strategies NA 253
Walls Environmental Consulting NA 48
Other (20) NA 80
--------
Total $ 772
--------
OUTSIDE SERVICE - OTHER
AETNA Life & NA $ 361
Air Security International NA 86
American Citadel Guard NA 149
American Meter Services NA 731
AT&T NA 276
Aura Energy Corp NA 32
Battelle Pacific Northwest NA 39
Bay Networks, Inc. NA 133
Belcher Chesson, Inc. NA 53
C Lyle Barney NA 60
Carlos Bastos NA 30
Catherine P. Willems NA 36
Cole Publications NA 105
21 - F
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
Concorde NA $ 57
Consulting Partners NA 83
Continental Traffic Service NA 225
Crestone International LLC NA 38
Cubix Corp. NA 50
Danny Michaels NA 46
Data Transit International NA 36
Day Detectives, Inc. NA 104
Desktop Data, Inc. NA 100
Dolan Wohlers Terwillinger NA 28
Don F. Cass NA 58
Donald B. Fouts NA 129
Donn Young Photography NA 33
Electronic Data Systems NA 48
EMC Corp NA 131
Energy Interactive NA 47
Entergy Corp A 357
Equifax Credit Info NA 68
Farwell Goup NA 25
First Commerce Corp NA 62
Freeport McMoran, Inc. NA 207
Futures NA 41
General Electric NA 103
General Physics Corp NA 1,562
General Reliability NA 54
Georgine K. Berthelot NA 31
Gerald W. Tucker NA 309
Goodyear Capital Corp NA 75
Group 5 West NA 31
Gulf States Utilities A 1,361
Harvey Press, Inc. NA 73
Henry E. Braden NA 27
Honeywell, Inc. NA 40
Huey T. Littleton NA 112
IBM Corp NA 531
Interactive Systems International NA 114
Intercede, Inc. NA 774
Interlynx Technology NA 121
Itron, Inc. NA 33
J. Walter Thompson NA 41
James A. Richardson NA 55
Jim Rubin NA 142
Jones Day Reavis NA 32
Kass Uehling, Inc. NA 37
Korn Ferry International NA 31
21 - G
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
Kurant Direct, Inc. NA $ 59
Kwasha Lipton NA 81
L&R Adjustment Co. NA 49
Lexis Nexis NA 30
LGK Assoc, Inc. NA 32
Logility, Inc. NA 109
Madge Networks NA 30
Maris West & NA 44
Marks Paper Co. NA 136
Marshall, John R. NA (40)
Mid south Communications NA 75
ML Bud Mapes NA 30
MS Claims Service NA 34
MTU Data Systems NA 83
Multi Quest International NA 53
Norstan Communications, Inc. NA 32
Northbridge Group NA 1,513
Omnicron Telecommunications NA 51
Osterio, Inc. NA 28
Pace Systems NA 107
Parker & Associates NA 147
Parviz Rastgoufard PHD NA 84
Pellegrin, Myrden J. NA 26
Periphonics Corp NA 111
Philip R. Sharp NA 101
Pinkerton Security & NA 63
Pittman Portis Communications NA 44
PMCC, Inc. NA 117
Potomac Communications Group NA 97
PPM, Inc. NA 1,268
Press Association Inc. NA 32
PRI Association, inc. NA 93
Price Waterhouse NA 52
Productivity Point International NA 43
Professional Health Services NA 176
Progress & Freedom NA 70
Prosper Business Development NA 31
Quantitative Data Systems NA 33
Reddy Communications, Inc. NA 42
Reed Whittle Assoc NA 542
Repeal PUHCA Now NA 50
Robert H. Tucker NA 98
Royal Bank of NA 71
Royal Food & NA 50
Sir Robert Ried NA 30
21 - H
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
Sir Speedy NA $ 36
Smead H. Grimmett NA 65
Southern Media NA 56
Sprint, Inc. NA 71
Staffmark NA 28
Stan Schlueter NA 27
Strauss Radio Strategies NA 63
Target Vision, Inc. NA 83
Telegyne Brown Engineering NA 109
Timothy J. Ostrowski NA 112
Tivoli Sytems, Inc. NA 35
Todd Electric, Inc. NA 26
Tulane University NA 141
TVA Watch NA 111
Unitrac Software Corp NA 30
Universal Weather & NA 40
University of PA NA 345
Upton Creative Printing NA 41
Utilities International NA 133
Utility Translation Systems NA 71
VCI International NA 77
West Publishing NA 69
Williamson Printing Corp NA 193
WLM, Inc. NA 181
WSI Corp NA 127
Wyatt Co. NA 462
Restructuring Cost Accural-Transition to Competition** NA (18,068)
Other (867) NA 1,985
--------
$ 2,409
Total --------
$ 53,023
========
* The activity shown here may be duplicated in the "Other Deductions - Account
426.5" Schedule.
** This credit represents the reversal of a related expense accrual recorded in
1996.
21 - I
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Employee Pensions and Benefits
(In Thousands)
Instructions:
Provide a listing of each pension plan and benefit program provided by the
service company. Such listing should be limited to $25,000.
Description Amount
Medical & Other Benefits Under Flex Benefit Programs $ 8,535
Savings Plan 3,836
Pension Plans 11,401
Employee Meetings/Functions/Awards 4,155
Educational Reimbursement 396
Post Retirement Plan Benefits 8,782
Employee Stock Investment Plan 292
Other 27
--------
TOTAL $ 37,424
========
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
General Advertising Expenses
(In Thousands)
Instructions:
Provide a listing of the amount included in "General Advertising Expenses,"
classifying the items according to the nature of the advertising and as
defined in the account definition. If a particular class includes an amount
in excess of $3,000 applicable to a single payee, show separately the name
of the payee and the aggregate amount applicable thereto.
Description Name of Payee Amount
Advertising in Adlers $ 5
Newspaper, AIA Foundation 4
periodicals, American Association of 3
billboards, radio, American Gas Cooling 5
etc. American Productivity 30
Andrews Sports Co. 6
Annandale Golf Club 11
Arkansas Home Builders 3
Arkansas Livestock Show 3
Association of Electric 890
Associated Builders 3
Bellemont Motor Hotel 9
Boudreaux's 7
Bravo Special Events 81
Cajun Made Golf 16
Celebration in the Oaks 7
22 of 28 pages
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
General Advertising Expenses
(In Thousands)
Description Name of Payee Amount* Amount
<S> <C> <C>
Advertising in Newspapers, Chateau Sonesta Hotel $ 12
periodicals,
billboards, radio, etc. Chemekete Recreational Club 4
City Energy Club 15
City of Bastrop 8
CoCo Marina #1 13
Colonial Country Club 5
Consumer Views 29
Country Club of 10
Data News Weekly 4
Degray Lake Resort 3
Doubletree Hotel 26
Embassy Suites 9
Freeport McDermott Golf 85
FW Dodge Division 24
FW Dodge McGraw 5
G A Sports 7
GB Enterprises 8
Grambling State University 4
Greater Baton Rouge 4
Holiday Inn 11
Hospitality Group of 11
Hotel Intercontinental 60
Houston Golf Association 20
Iberville Chamber of Commerce 6
Jack Petty Awards 8
Jackson Public Schools 7
Joe A. Cummins 6
Joels Grand Cuisine 59
Kramer School Artloft 55
Krewe of Bacchus 6
Krewe of Midcity 20
KYFX 13
Louisiana 4H Foundation 5
Louisiana Department of 54
Louisiana Home Builders 6
Louisiana State University 19
Louisiana Tech Athletics 3
Lake Charles Harbor 15
Lakewood Country Club 5
Le Meridien New Orleans 8
Lexis Nexis 14
Marriott 3
Metrovision Partnership Foundation 11
22 - A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
General Advertising Expenses
(In Thousands)
Description Name of Payee Amount* Amount
<S> <C> <C>
Advertising in Newspapers, Mikes on the Avenue $ 5
periodicals,
billboards, radio, etc. Minden South Webster 6
Minority Business News 6
Mystick Krewe of Carnival 3
New Orleans Brass 15
New Orleans Busniness 10
New Orleans Hilton 12
New Orleans Saints 14
NGV Coalition 13
Nokia Sugar Bowl 22
Ormond Country Club 4
Ouachita Enterprise Corp 8
Pace Systems 45
Parish of St. 8
Pelican Point Golf 112
Public Forum Institute 5
Pyramid Discount Golf 6
Radison Hotel 42
Reed Exhibition Co. 6
Royal Sonesta Hotel 29
Saenger Theatre 9
Santa Maria Golf 5
Sheraton New Orleans 85
Steps to Success 10
Superdome Box Office 6
Thompson Temples TX 21
Tiger Athletic Foundation 8
Tulane University 16
UALR Basketball 8
US West Education 49
Waste Management of 3
Westin Canal Place 79
White House Promotions, Inc. 45
White Oak Plantation 8
Windsor Court Hotel 5
Wolf Trap Foundation 10
WWL AM Sinclair 45
WWL TV 24
Zulu Social Aid 3
Advertising Matter such as Aramark Corporation 16
Posters, Bulletins
booklets and related items Balboa Co. 8
22 - B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
General Advertising Expenses
(In Thousands)
Description Name of Payee Amount* Amount
<S> <C> <C>
Advertising Matter such as Bano Quality Produce $ 4
Posters, Bulletins
booklets and related items Bertrand Designs 7
Betty Hunley Designs 16
Bylites, Inc. 23
Capital Advertising Specialties 19
Coburns Wholesale Distribution 19
Daly Enterprise 20
Dollar Embroidery 4
Exhibit Designs, Inc. 21
Garland Co. 3
Hang It Up 4
Henderson Advertising 12
IAQ Publications, Inc. 6
Ivey Co. 8
Kass Uehling, Inc. 5
Kays Composition Co. 6
Lands End, Inc. 7
Lee Wayne Co. 17
Lloyd Schuh Advertising, Inc. 16
Marvin Fabers Advertising 11
Message Factors, Inc. 64
North Webster Industrial 15
Party Basket 4
Rohm's Floral Designs 9
Smith Service Company 10
Synectics, Inc. 13
VCI International 28
VI Comm, Inc. 5
Fees and expenses of A Bear Productions 9
advertising agencies and
commercial artists Advantage Sales Promotions 3
American Business Information 5
Ann Lee & 18
Archie Manning 25
Brown & Bigelow 3
Colonnade Group, Inc. 33
Cranford, Johnson, Robinson, Wood 908
Creative Graphics 8
Doug Rye & 23
Dun & Bradstreet 28
22 - C
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
General Advertising Expenses
(In Thousands)
Description Name of Payee Amount* Amount
<S> <C> <C>
Fees and expenses of Ernst & Young $ 75
advertising agencies and
commercial artists Expertelligence, Inc. 6
Farwell Group 6
Flake Wilkerson Market 12
Houston Advanced Research 10
Imarket, Inc. 5
Interactive Personalities, Inc. 25
Intersearch Corp. 293
J Walter Thompson 8,580
J&J Specialty Advertising 39
John Alden Service 4
K1 Concepts 16
Leading Authorities, Inc. 20
Maris West 61
Market Analysis 5
Market Facts, Inc. 30
Marketing 1:1, Inc. 25
Marketing Management Group 7
MCS Group 1,266
Networkers Corp. 11
Planergy, Inc. 6
Public Strategies, Inc. 206
Public Technology, Inc. 15
Robertson & Associates 13
Ron Aschenbach 5
Struebbe Marketing 63
Synergy Marketing Association 45
Thoma & Thoma Creative Services 354
TQS Research, Inc. 8
Travis Research Assoc 144
Understanding Unlimited 53
Vignes Lakes, LLC 5
Wilson & Associates 4
Printing of Booklets, Dodgers, Culver Co., Inc. 10
Bulletins, etc.
IPC Printing 10
Jossey Bass Publishing 5
Kwik Kopy 7
New Orleans Publishing Group 29
Quick Print Printing 3
Sherwood Printing Co. 9
Towery Publishing, Inc. 4
Village West Publishing 9
22 - D
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
General Advertising Expenses
(In Thousands)
Description Name of Payee Amount* Amount
<S> <C> <C>
Supplies & Expenses in Preparing AAA Rent All $ 32
Advertising Materials
Allwin Direct 4
American Express Travel 26
Arkansas Business 4
BCI Training Systems 18
Brown, Robert R 11
Capital Region Builders 16
Carver, Margaret M 4
Convention Connection, Inc. 36
Cordaro, John J 6
Crescent Sound 4
Davis, Steven M 3
Dejarnette, Michael 3
Dempsey Thomas Films 3
Dennis Wright Plumbing 4
Dupuis, Michael 10
Edison Electric Institute 6
Elite Aviation 4
Enmon, James V 5
Entergy Corporation 6
Fluor Daniel, Inc. 65
Futures 8
Henderson, Wendy 4
Hester, Ann D 3
Home Builders Association 34
Honeywell DMC Services 6
Ingram, Barbara P 5
Jenkins, Marilyn Jo 17
Jeter, James R 3
Johnson, Sheldon G 3
Labi Service Corp. 6
Legiscon, Inc. 6
Lupberger, Edwin A 17
Machu Picchu Travel 7
Mail Comm, inc. 12
Martin, Mark Allen 6
New Orleans Airport 4
Parkdale Mall Merchants 3
Qualitative Marketing Software 4
Segura, Karl A 5
Service Merchandise 6
Spell, Wayne F 8
Steudlein, Sandra M 14
22 - E
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
General Advertising Expenses
(In Thousands)
Description Name of Payee Amount* Amount
<S> <C> <C>
Supplies & Expenses in Preparing Stringfellow, Jamie $ 7
Advertising Materials Taylor, Timothy R 3
Thomas, George J 4
Total Audio Visual 4
United Mail Service 14
Video Monitoring Services 6
Vince's Service Center 3
Wal Mart Stores 11
Waters, Stephen R 6
Winterrowd, Michael P 10
Others Others (828) 586
-------
TOTAL $16,664
=======
</TABLE>
* The activity shown here may be duplicated in the "Other Deductions -
Account 426.5" Schedule.
22 - F
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Miscellaneous General Expenses
(In Thousands)
Instructions:
Provide a listing of the amount included in "Miscellaneous General Expenses,"
classifying such expenses according to their nature. Payments and expenses
permitted by Section 321(b)(2) of the Federal Election Campaign Act, as
amended by Public Law 94-283 in 1976 (2 U.S.C. SS441(b)(2)) shall be
separately classified.
Description Amount
Employee development $ 1,847
Employee relocation and outplacement 6,845
Applicant expenses 2,580
Industry Association Dues/Corporate Membership 4,566
Other corporate expenses 661
--------
TOTAL $ 16,499
========
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Rents
(In Thousands)
Instructions.
Provide a listing of the amount included in "Rents," classifying such
expenses by major groupings of property, as defined in the account
definition of the Uniform System of Accounts.
Type of Property Amount
Building & Property $ 22,928
Equipment & Facilities 4,938
Computer hardware 4,793
Computer software 36
--------
TOTAL $ 32,695
========
23 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Taxes Other Than Income Taxes
(In Thousands)
Instructions:
Provide an analysis of "Taxes Other Than Income Taxes." Separate the
analysis into two groups: (1) other than U.S. Government taxes, and
(2) U.S. Government taxes. Specify each of the various kinds of taxes
and show the amounts thereof. Provide a subtotal for each class
of tax.
Kind of Tax Amount
See page 24-A $ 17,263
--------
TOTAL $ 17,263
========
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Donations - Account 426.1
(In Thousands)
Instructions:
Provide a listing of the amount included in Account 426.1, "Donations,"
classifying such expenses by its purpose. The aggregate number and amount
of all items of less than $3,000 may be in lieu of details.
Name of Recipient Purpose of Donation Amount
Donations:
Susan Jochimsen Bookcovers for Community/
Business Ptnrship 10
Clout Ministerial Alliance Unsung Heros Community Banquet 5
NAACP A New Beginning Program 5
Others (59) 28
Employee Services:
Manage Contributions 35
Other 9
----
TOTAL $ 92
====
24 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Taxes Other Than Income Taxes
(In Thousands)
Kind of Tax Amount
Taxes Other Than U.S. Government Taxes
Property taxes $ 2,679
Unemployment taxes 574
Franchise taxes -
Other taxes 3
-------
Total $ 3,256
-------
U.S. Government Taxes
FICA taxes 13,798
Unemployment taxes 209
-------
Total $14,007
-------
TOTAL $17,263
=======
24 - A
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Other Deductions - Account 426.5
(In Thousands)
Instructions:
Provide a listing of the amount included in Account 426.5, "Other Deductions,"
classifying such expenses according to their nature.
Description Name of Payee * Amount
Restructuring Costs- Public Strategies, Inc. $ 1,708
Transition to Competition
Association of Electric 1,109
Burson Marsteller 1,047
J. Walter Thompson 954
Cranford Johnson Robinson Wood 901
J. Bennett Johnston 310
R. Duffy Wall 206
Frederick Schneiders Research 194
Northbridge Group 187
JA Wright & Associates 184
Alliance for Competitive 152
Wright Lindsey & 151
Williams & Anderson 135
Sidley & Austin 123
McKinsey & Co. 118
Robert H. Tucker 98
Potomac Cummunications Group 97
VCI International 96
TVA Watch 83
Mid South Communications 75
Employee Salaries 1,117
Restructuring Cost Accrual Reversal (7,315)
Various Vendors (514) 2,344
Lobbying Expenses Employee Salaries 56
Various Vendors 4
Other Expenses Various Vendors 237
-------
TOTAL $ 4,371
=======
* The activity shown here may be duplicated in the Outside Services Employed
and Advertising Schedules.
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Schedule XVIII - Notes to Statement of Income
Instructions:
The space below is provided for important notes regarding the statement of
income or any account thereof. Furnish particulars as to any significant
increases in services rendered or expenses incurred during the year. Notes
relating to financial statements shown elsewhere in this report may be
indicated here by reference.
See Notes to Financial Statements on pages 14-B thru 14-H
25 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Organization Chart
See page 26 - A
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Methods of Allocation
See pages 26 - B thru 26 - C
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Annual Statement of Compensation for Use of Capital Billed
- None -
26 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Organization Chart
Chairman
Corporate Responsibility
Corporate
Aviation
External Affairs, Human Resources & Administration, and Retail Services
External Affairs
Human Resources & Administration
Retail Strategies
Finance
Accounting
Corporate Planning & Analysis
Treasury
Total Information Technology
Retail Services
Nuclear
Gas Operations
Transmission & Distribution Operations
Operations
Regulated Operations
Nonregulated Operations
26 - A
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Methods of Allocation
Note: Each allocation formula is based on data relevant to the participating
State Legal Entity.
Energy Sales
Based on total kilowatt-hours of energy sold to consumers
Customers
Based on a twelve month average of Residential, Commercial, Industrial,
Government and Municipal general business electric/gas customers.
Employees
Based on the number of full time employees at year-end.
Responsibility Ratio
The Responsibility Ratio of a company is the ratio of the company's load
at time of system peak load. The peak load is the average of the twelve
monthly highest clock hour demands in kilowatts of the Company's
interconnected system, occurring each month coincident with the System
peak load, during the twelve month period ending with the current month.
Composite - Energy Sales, Customers, Employees and Capability/Responsibility
Ratio
Based on four components with equal weighting to each: kilowatt-hour
energy sales, average customers, number of employees and capability
responsibility ratio.
Composite - Transmission, Distribution/Customer Service
Based on four components of equal weighting: kilowatt-hour energy sales;
average customers; number of distribution and customer service/support
employees; and the Transmission/Substation Composite Allocation Method
Transmission Line Miles
Based on the number of miles of transmission lines, weighted for design
voltage. (Voltage < 500kv = 1, Voltage >= 500kv = 2)
Substations
Distribution Substations is based on the number of high voltage
substations weighted for voltage. (Voltage < 500kv = 1,
Voltage >= 500kv = 2)
Composite - Transmission Line Miles and Substations
Based on two components: Transmission line miles with a 30%
weighting and the number of high voltage substations with a 70%
weighting.
26 - B
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Methods of Allocation
Gas Consumption
Based on the volume of natural gas consumed annually by all gas
fired generating units within the Entergy system.
Income and Deduction Ratio
Based on the previous years federal income tax return, total income
plus total deductions.
Level of Service
Based on Entergy Services' total billings to each Client Company
excluding corporate overhead.
System Capacity
Based on the power level, rated in kilowatts, that could be achieved
if all generating units were operating at maximum capability
simultaneously.
Computer Usage for Each System Company
Based on the mainframe computer usage as measured in Computer Resource
Units.
Labor Dollars Billed
Based on total labor dollars billed to each company.
Distribution Line Miles
Based on the number of miles of distribution lines.
Coal Consumption
Based on the quantity of tons of coal delivered annually to each coal
plant within the Entergy System.
Accounts Payable Transactions
Based on the number of accounts payable transactions processed
annually for each Entergy System Company.
26 - C
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Appendix
Information in Compliance With Item 4 of SEC
Letter Dated December 29, 1986
(In Thousands)
Various Project Codes have been established at Entergy Services, Inc.
(Entergy Services) to track the cost of functions performed by Entergy
Services personnel for SFI matters which are billed 100% to SFI.
Amount
Direct Cost:
Labor and related cost $78
Other direct cost 9
Indirect cost 8
---
Total 95
---
Cost of services charged to Service Requests not related to the
transfer of SFI personnel 1,242
------
Total cost of services performed by Entergy Services and $1,337
billed to SFI ======
Amounts billed to Operating Companies for Fuel Oil Program* $716
Deferred Cost/Services 0
Charged to Nuclear Fuel Inventory 621
Charged to Gas and Oil Development and Production Program 0
------
Total $1,337
======
* Amounts charged to the Fuel Oil Program as a component of period cost.
For 1997, based on monthly averages, period costs were allocated 8% to
Entergy Arkansas, Inc. (EAI), 56% to Entergy Louisiana, Inc. (ELI),
26% to Entergy Mississippi, Inc. (EMI), and 10% to Entergy New Orleans,
Inc. (ENOI).
26 - D
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1997
Appendix
Information in Compliance With Item 4 of SEC
Letter Dated December 29, 1986
Allocation of Indirect Cost
Indirect cost is comprised of labor loading and variable
overhead. The labor loading and variable overhead are
allocated to Service Requests on the basis of labor dollars
charged to each Service Request.
Fuel Department Cost
The labor costs of Entergy Services personnel performing
work for SFI are recorded by a process similar to all other
costs incurred by Entergy Services. Various Project Codes
have been established at Entergy Services to track the cost
of functions performed by Entergy Services personnel for SFI
matters which are billed 100% to SFI.
Services Provided
The Management Accounting (MA) Department provides
accounting services to SFI in the following areas: financial
and operating information services, accounting services
relative to SFI's owned and leased properties, fuel oil
inventory accounting, nuclear fuel inventory accounting,
disbursements of royalties and revenues to joint venture
partners, billing of fuels and services provided to the
Operating Companies, assist in the coordination and
preparation of budgets and forecasts for SFI, and providing
data required by various regulatory and other agencies.
Source Systems provides accounts payable services.
The Energy Management Organization (EMO) provides services
that include operation and supervision and maintenance of
fuel oil facilities.
Changes in Organization
As previously reported, the System's fuel planning and
procurement administration was reorganized during 1988,
which redefined the fuels management roles and placed the
responsibility for most fuel procurement decisions with the
Entergy Corporation System Executives.
In general, the Operating Companies execute and administer
power plant gas and coal contracts under an acquisition and
administration policy. Financing nuclear fuel inventory and
fuel oil inventory and facilities, and accounting functions
related to these continuing activities are still performed
by Entergy Services personnel.
26 - E
<PAGE>
27 of 28 pages (Blank)
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Signature Clause
Pursuant to the requirements of the Public Utility Holding Company Act of
1935 and the rules and regulations of the Securities and Exchange Commission
issued thereunder, the undersigned company has duly caused this report to be
signed on its behalf by the undersigned officer thereunto duly authorized.
Entergy Services, Inc.
(Name of Reporting Company)
By: /s/ Louis E. Buck
(Signature of Signing Officer)
Louis E. Buck Vice President & Chief
Accounting Officer
(Printed Name and Title of Signing Officer)
April 30, 1998
28 of 28 pages
<TABLE> <S> <C>
<ARTICLE> OPUR2
<CIK> 0000810347
<NAME> ENTERGY SERVICES, INC.
<SUBSIDIARY>
<NUMBER> 034
<NAME> ENTERGY SERVICES, INC.
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<PERIOD-TYPE> YEAR YEAR
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<PERIOD-END> DEC-31-1997 DEC-31-1996
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<NET-SERVICE-COMPANY-PROPERTY> 76,082 81,846
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<TOTAL-CURRENT-ASSETS> 124,360 124,255
<TOTAL-DEFERRED-DEBITS> 25,800 12,478
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 226,242 218,579
<TOTAL-PROPRIETARY-CAPITAL> 20 20
<TOTAL-LONG-TERM-DEBT> 0 0
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<NOTES-PAYABLE-ASSOCIATE-COMP> 29,104 17,052
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<DEFERRED-INCOME-TAX> 9,374 0
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<SERVICES-ASSOCIATE-COMPANIES> 512,895 440,283
<SERVICES-NON-ASSOCIATE-COMP> 263 201
<MISC-INCOME-OR-LOSS> 17 187
<TOTAL-INCOME> 513,175 440,671
<SALARIES-AND-WAGES> 89,334 0
<EMPLOYEE-PENSION-AND-BENEFIT> 31,795 32,133
<OTHER-EXPENSES> 357,733 369,129
<TOTAL-EXPENSES> 478,862 401,262
<NET-INCOME> 0 0
<TOTAL-EXPENSES-DIRECT-COST> 444,100 351,986
<TOTAL-EXPENSES-INDIRECT-COST> 66,304 86,318
<TOT-EXP-DIRECT-AND-INDIRECT> 510,404 438,304
<PERSONNEL-END-OF-YEAR> 3,122 2,573
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