UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1996 and Ending December 31, 1996
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
Entergy Enterprises, Inc.
(Exact Name of Reporting Company)
A Subsidiary Service Company
("Mutual" or "Subsidiary")
Date of Incorporation December 30, 1983 If not Incorporated, Date of
Organization State or Sovereign Power under which Incorporated or
Organized Louisiana
Location of Principal Executive Offices of Reporting Company
900 S. Shackleford, Little Rock, Arkansas 72211
Name, title, and address of officer to whom correspondence concerning this
report should be addressed:
Mr. Gerald D. McInvale Chief Financial Officer & Executive Vice President
(Name) (Title)
P. O. Box 61000, New Orleans, LA. 70116
(Address)
Name of Principal Holding Company Whose Subsidiaries are served by Reporting
Company:
Entergy Corporation
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2 of 28 pages (Blank)
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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 become 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, 210.3-01(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
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<TABLE>
<CAPTION>
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Account Number Number
<S> <C> <C>
Comparative Balance Sheet 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
Comparative Income Statement 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 Account 920 21
Outside Services Employed Account 923 21
Employee Pensions and Benefits Account 926 22
General Advertising Expenses Account 930.1 22
Miscellaneous General Expenses Account 930.2 23
Rents Account 931 23
Taxes Other Than Income Taxes Account 408 24
Donations Account 426.1 24
Other Deductions Account 426.5 25
Notes to Statement of Income Schedule XVIII 25
Annual Report of Entergy Integrated Solutions, Inc. Schedule XIX 26
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page
Description of Reports or Statements Number
Organization Chart 27
Methods of Allocation 27
Annual Statement of Compensation for Use of Capital Billed 27
Disclaimer of Subsidization 27
</TABLE>
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<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
Schedule I - Comparative Balance Sheet
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) $5,963,020 $3,570,707
107 Construction work in progress (Schedule II)
------------ ------------
Total Property 5,963,020 3,570,707
------------ ------------
108 Less accumulated provision for depreciation and amortization of service
company property (Schedule III) 2,324,315 1,435,109
------------ ------------
Net Service Company Property 3,638,705 2,135,598
------------ ------------
Investments
123 Investments in associate companies (Schedule IV) 80,448,888 91,795,937
124 Other Investments (Schedule IV) 1,876,038
128 Special Funds (Schedule IV) 82,993 30,000
------------ ------------
Total Investments 80,531,881 93,701,975
------------ ------------
Current and Accrued Assets
131 Cash 2,042,513 361,927
135 Working funds 260,990 113,750
136 Temporary cash investments (Schedule IV) 4,482,334
141 Notes receivable
143 Accounts receivable (15,168) 24,286
144 Accumulated provision of uncollectible accounts
146 Accounts receivable from associate companies (Schedule V) 26,308,349 14,506,718
152 Fuel stock expenses undistributed (Schedule VI)
154 Materials and supplies
163 Stores expense undistributed (Schedule VII)
165 Prepayments
174 Miscellaneous current and accrued assets (Schedule VIII) 9,758
------------ ------------
Total Current and Accrued Assets 28,596,684 19,498,773
------------ ------------
Deferred Debits
181 Unamortized debt expense
184 Clearing accounts
186 Miscellaneous deferred debits (Schedule IX) (980,702) (215,679)
188 Research, development, or demonstration expenditures (Schedule X)
190 Accumulated deferred income taxes 9,074,876 7,741,826
------------ ------------
Total Deferred Debits 8,094,174 7,526,147
------------ ------------
TOTAL ASSETS AND OTHER DEBITS $120,861,444 $122,862,493
============ ============
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<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
Schedule I - Comparative Balance Sheet
Account Account Liabilities and Proprietary Capital As of December 31
Current Prior
Proprietary Capital
<S> <C> <C> <C>
201 Common stock issued (Schedule XI) $57,400,000 $54,400,000
211 Miscellaneous paid-in-capital (Schedule XI) 150,000,000 125,000,000
215 Appropriated retained earnings (Schedule XI)
216 Unappropriated retained earnings (Schedule XI) (108,951,736) (67,387,677)
------------ ------------
Total Proprietary Capital 98,448,264 112,012,323
------------ ------------
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
227 Capital Leases
------------ ------------
Total Long-Term Debt
------------ ------------
Current and Accrued Liabilities
231 Notes payable
232 Accounts payable 9,295,609 2,828,276
233 Notes payable to associate companies (Schedule XIII)
234 Account payable to associate companies (Schedule XIII) 1,077,669 542,369
236 Taxes accrued 702,794 1,086,097
237 Interest accrued
238 Dividends declared
241 Tax collections payable (114,979) 61,246
242 Miscellaneous current and accrued liabilities (Schedule XIII) 5,401,980 2,149,908
------------ ------------
Total Current and Accrued Liabilities 16,363,073 6,667,896
------------ ------------
Deferred Credits
253 Other deferred credits (See Note 9) 6,050,107 4,182,274
255 Accumulated deferred investment tax credits
------------ ------------
Total Deferred Credits 6,050,107 4,182,274
------------ ------------
282 Accumulated Deferred Income Taxes
------------ ------------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $120,861,444 $122,862,493
============ ============
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</TABLE>
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<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule II - Service Company Property
Balance at Retirements Balance
Beginning or Other (1) at Close
Description of Year Additions Sales Changes of Year
<S> <C> <C> <C> <C>
Service Company Property
Account
301 Organization $126,136 $126,136
303 Miscellaneous Intangible Plant $16,660 $17,516 (856)
304 Land and Land Rights
305 Structures and Improvements
306 Leasehold Improvements 951,264 931,270 1,882,534
307 Equipment
308 Office Furniture and
Equipment 2,493,307 1,461,899 3,955,206
309 Automobiles, Other Vehicles
and Related Garage Equipment
310 Aircraft and Airport Equipment
311 Other Service Company
Property (3)
----------------------------------------------------------
SUB-TOTAL 3,570,707 2,409,829 17,516 5,963,020
----------------------------------------------------------
107 Construction Work in Progress
----------------------------------------------------------
TOTAL $3,570,707 $2,409,829 $17,516 $5,963,020
==========================================================
</TABLE>
(1) Provide an explanation of those changes considered material:
(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
Office Furniture and Equipment
Furniture $532,205 $1,544,744
Computer Equipment 719,985 1,619,095
Telephone 209,709 791,367
---------- ----------
TOTAL $1,461,899 $3,955,206
========== ==========
(3) Describe other service company property:
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<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule III - Accumulated Provision for Depreciation and Amortization of
Service Company Property
Balance at Additions Other Balance
Beginning Charged to Changes Add at Close
Description of Year Account 403 Retirements (Deduct) (1) of Year
<S> <C> <C> <C> <C> <C> <C>
Account
301 Organization $75,678 $25,227 $0 $0 $100,905
303 Miscellaneous Intangible Plant
304 Land and Land Rights
305 Structures and Improvements
306 Leasehold Improvements 514,245 189,960 0 0 704,205
307 Equipment
308 Office Furniture and Fixtures 845,186 674,019 0 0 1,519,205
309 Automobiles, Other Vehicles
and Related Garage Equipment
310 Aircraft and Airport Equipment
311 Other Service Company
Property
---------------------------------------------------------
TOTAL $1,435,109 $889,206 $0 $0 $2,324,315
=========================================================
(1) Provide an explanation of those changes considered material:
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule IV - Investments
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.
</TABLE>
<TABLE>
<CAPTION>
Balance at Balance at
Description Beginning of Year Close of Year
<S> <C> <C>
Account 123 - Investment in Associate Companies
Entergy Integrated Solutions, Inc. (13,500 Shares Common Stock) $91,795,937 $77,619,369
Entergy Operations Services, Inc. (3,000 Shares Common Stock) 0 2,829,519
Account 124 - Other Investments
First Pacific Networks, Inc. (1,715,235 shares, $.001 Par
Common Stock) 1,876,038 0
Account 128 - Special Funds
California, Florida, Houston & EOSI office security deposits 30,000 82,993
Account 136 - Temporary Cash Investments
Commercial paper 4,482,334 0
----------- -----------
TOTAL $98,184,309 $80,531,881
=========== ===========
</TABLE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule V - Accounts Receivable from Associate Companies
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.
<TABLE>
<CAPTION>
Balance at Balance at
Description Beginning of Year Close of Year
<S> <C> <C>
Account 146 - Accounts Receivable from Associate Companies
Entergy Richmond Power Corp. $0 $14,631
Entergy Power Development Corp. 14,035,540 5,950,724
Entergy Argentina S.A., Ltd. 163,458 0
Entergy S.A. 0 658
Entergy Power Development International Corp. 0 10,393,507
Entergy Power, Inc. 282,516 332,088
Entergy Power Edegel 0 3,607,123
Entergy ISI (3,543) 73,093
Entergy Pakistan, Ltd. 20,828 24,570
Entergy Power CBA Holding, Ltd. 0 85,538
Entergy Power Marketing Corp. 0 1,053,972
Entergy Operations Services, Inc. 0 100,603
Entergy Power Operations Corp. 0 908,031
Entergy Power Edesur Holding 0 86,179
Entergy Technologies Holding Corp. 0 3,677,603
Entergy Power Operations Pakistan, Ltd. 0 29
Entergy Services Inc. 3,993 0
Entergy Power Holdings I, Ltd. 3,926 0
----------- -----------
TOTAL $14,506,718 $26,308,349
=========== ===========
Total
Analysis of Convenience or Accommodation Payments: Payments
Entergy Integrated Solutions, Inc. - Consulting $333,735
--------
TOTAL PAYMENTS $333,735
========
</TABLE>
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule VI - Fuel Stock Expenses Undistributed
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 Undistributed None None None
--------------------------
TOTAL - 0 - - 0 - - 0 -
==========================
Summary:
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule VII - Stores Expense Undistributed
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 None None None
------------------------------
TOTAL - 0 - - 0 - - 0 -
==============================
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule VIII - Miscellaneous Current and Accrued Assets
Instructions:
Provide detail of items in this account. Items less than $10,000 may be
grouped, showing the number of items in each group.
<TABLE>
<CAPTION>
Balance at Balance at
Description Beginning of Year Close of Year
<S> <C> <C>
Account 174 - Miscellaneous Current and Accrued Assets
Interest Receivable on Temporary Investments $9,758 $0
------ --
$9,758 $0
====== ==
</TABLE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule IX - Miscellaneous Deferred Debits
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 of Year Close of Year
Account 186 - Miscellaneous Deferred Debits
Employee Benefits ($135,281) ($1,068,792)
Non-Productive Time (80,398) 83,490
Intercompany Suspense 0 4,600
--------- ----------
TOTAL ($215,679) ($980,702)
========= ==========
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule X - Research, Development or Demonstration Expenditures
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 Demonstration Expenditures None
-----
TOTAL - 0 -
=====
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule XI - Proprietary Capital
<TABLE>
<CAPTION>
Number of Shares Par or Stated Outstanding Close of Period
Account Number Class of Stock Authorized Value Per Share No. of Shares Total Amount
<S> <C> <C> <C> <C> <C>
201 Common Stock Issued 100,000 None 57,400 $57,400,000
</TABLE>
Instructions:
Classify amounts in each account with brief explanation, disclosing the general
nature of transactions which give rise to the reported amounts.
Description Amount
Account 211 Miscellaneous Paid-in Capital $150,000,000
Capital contribution from Entergy Corporation
to invest in Entergy ISI
Account 215 Appropriated Retained Earnings None
------------
TOTAL $150,000,000
============
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.
<TABLE>
<CAPTION>
Balance at Net Income Dividends Balance at
Description Beginning of Year -or (loss) Paid Close of Year
<S> <C> <C> <C> <C>
Account 216 - Unappropriated Retained Earnings ($67,387,677) ($41,564,060) None ($108,951,737)
---------------------------------------------------------------
TOTAL ($67,387,677) ($41,564,060) - 0 - ($108,951,737)
===============================================================
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</TABLE>
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule XII - Long-Term Debt
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(1) of Year
<S> <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
=====================================================
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</TABLE>
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule XIII - Current and Accrued Liabilities
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.
<TABLE>
<CAPTION>
Balance at Balance at
Description Beginning of Year Close of Year
<S> <C> <C>
Account 233 - Notes Payable to Associate Companies None None
-------- --------
TOTAL $0 $0
======== ========
Account 234 - Accounts Payable to Associate Companies
Entergy Services, Inc. $533,486 $702,567
Entergy Power, Inc. 0 13,200
Entergy Power S.A. 0 8,645
Entergy Power Marketing Corp. 0 302,920
Entergy Corporation 8,883 50,337
-------- ----------
TOTAL $542,369 $1,077,669
======== ==========
Account 242 - Miscellaneous Current and Accrued Liabilities
Benefit Plans $2,160,572 $3,144,126
Outside Directors Stock Plan (11,116) (22,201)
Accrued Liabilities - Office Relocations 0 2,280,055
Accrued Revenues 452 0
---------- ----------
TOTAL $2,149,908 $5,401,980
========== ==========
</TABLE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
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-A through 14-F.
14 of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC.
(UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule XIV - Notes to Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Organization
Entergy Enterprises, Inc. (Enterprises or the Company),
formerly Electec, Inc., is a diversified subsidiary of
Entergy Corporation (Entergy) chartered in December 1983 to
market the Entergy System's (the System) capabilities,
expertise, and resources, and to engage in preliminary
development activity relating to investments in qualifying
facilities under the Public Utility Regulatory Policies Act
(PURPA).
Enterprises' principal activities now include; (1)
preliminary development activities with respect to various
investment opportunities for the Entergy System, (2) market
to non-associates the System's expertise and capabilities in
energy-related areas, including the expertise of Entergy
Power, Inc. (EPI) gained from its bulk power business, (3)
market to non-associates intellectual property developed by
System companies, (4) provide various consulting,
management, administrative and support services to associate
companies, excluding certain associate companies, (5)
provide directly, or indirectly through one or more special
purpose subsidiary companies of Entergy or Enterprises,
various operations and maintenance services to non-associate
or associate companies (other than the excluded companies),
and (6) develop and field test a proposed telecommunications
system for advanced energy management and other utility
applications.
Enterprises was first authorized to conduct business as a
subsidiary company for the System by order of the SEC dated
January 11, 1983.
All transactions between Enterprises and the System
companies are on a full cost reimbursement basis.
B. System of Accounts
The accompanying financial statements include the accounts
of Enterprises. The financial statements report
Enterprises' subsidiary, Entergy Systems and Service, Inc.
(Entergy Systems) under the equity method of accounting for
investments in common stock. The accounts of Enterprises
are maintained in accordance with the system of accounts
prescribed by the SEC.
C. Cash and Cash Equivalents
For the purpose of Statement of Cash Flows, Enterprises
considers all highly liquid instruments purchased with an
original maturity of three months or less to be cash
equivalents.
D. Depreciation and Amortization
Depreciation is computed on the declining balance method for
Enterprises over the estimated useful lives of the furniture
and equipment. Leasehold costs and improvements are
amortized over their estimated useful lives (five years).
E. Goodwill
Intangible assets consist primarily of goodwill that
represents the excess of cost over the fair value of net
assets acquired, and the balance is being amortized over
five years using the straight-line method.
F.Use of Estimates in the Preparation of Financial Statements
The preparation of 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 at the date of the
financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results
could differ from those estimates.
G.Income Taxes
The company accounts for income taxes pursuant to Statement
of Financial Accounting Standards No. 109 "Accounting For
Income Taxes" (FAS 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 that
deferred tax balances be based on enacted tax laws at tax
rates that are expected to be in effect when the temporary
differences reverse.
The Company joins its parent and the other Entergy
subsidiaries in filing a consolidated Federal income tax
return. Income taxes (or benefits) are allocated to the
Company in proportion to its contribution to consolidated
taxable income.
2. TRANSACTIONS WITH AFFILIATES
Entergy Services provides technical and consulting services
and other assistance to Enterprises at cost (except as
indicated in Note 1) which amounted to $4,367,000,
$2,875,000 and $1,474,000 for the years 1996, 1995 and 1994,
respectively.
3. INCOME TAXES
The tax sharing agreement with Entergy provides that the
Company will receive tax benefit for its taxable loss.
Accordingly, a long-term receivable has been recorded at
December 31, 1996 to reflect the tax benefit of the
Company's cumulative loss in jurisdictions in which the
Company files combined or consolidated returns. (Federal,
Arkansas, and Mississippi for 1996)
Deferred income taxes are provided in recognition of
temporary differences between the financial reporting and
income tax basis of assets and liabilities and loss
carryforwards. Deferred income tax assets (liabilities) are
comprised of the following at December 31, 1996 and 1995.
1996 1995
Deferred Tax Assets/(Liabilities):
Equipment and fixed assets 273,578 158,301
Deferred charges and other 3,203,615 2,177,221
Unrealized loss on marketable securities 2,142,726 3,117,676
Other intangible assets 1,665,592 1,594,141
Business Development Assignment 1,789,365 694,487
State net operating loss carryforwards 325,753 325,753
------------ ------------
Gross deferred tax asset/(liability) 9,400,629 8,067,579
State Deferred tax valuation allowance (325,753) (325,753)
------------- ------------
Net Deferred Tax Assets/(Liabilities) $ 9,074,876 $ 7,741,826
============= ============
The ultimate realization of these deferred tax assets is
dependent upon future taxable income sufficient to offset
the related deductions and loss carryforwards within the
applicable carryforward period. The valuation allowance is
based upon management's conclusions that sufficient positive
evidence, as defined as FAS 109, regarding the realization
of certain tax carryforward items does not exist and
generally relate to state loss carryforwards in states in
which Entergy or its subsidiaries do not file a combined or
consolidated return.
The provision for intercompany (benefit) expense in lieu of
federal income taxes for the year ended December 31, 1996
and 1995 consisted of the following:
1996 1995
(In dollars)
Current:
Federal $ 265,910 $ 464,956
State 98,270 (274,720)
------------- ------------
Total Current Income Tax Expense (Benefit) 364,180 190,236
------------- ------------
Deferred:
Federal (1,443,681) (4,762,907)
State 110,630 (945,261)
Valuation Allowance - -
------------- ------------
Total Deferred Income Tax Expense (1,333,051) (5,708,168)
------------- ------------
Recorded income tax expense $ (968,871) $ (5,517,932)
============= ============
The Company's total income taxes differ from the amounts
computed by applying the statutory Federal income tax rate
to income before taxes. The primary reason for the
difference is the effect of state income taxes.
At December 31, 1996, the Company had net operating loss
carryforwards available for state income tax reporting
purposes of approximately $3.3 million. These net operating
loss carryforwards expire during various periods through
2011 depending on the taxing jurisdiction.
4. INVESTMENT IN FIRST PACIFIC NETWORKS, INC. (FPN)
During 1995, the Company experienced a continuing decline in
market value per share of its investment in the common stock
of FPN, and management determined that the decline in market
value of the FPN investment was other than temporary.
Accordingly, in 1995 the Company recognized such decline in
the market value of its FPN investment in its results of
operations as an other than temporary decline. In December
1996, the Company wrote-off the book value of its investment
in FPN.
In March 1994, Enterprises consummated with FPN an amendment
to a Product License Agreement (the "License Agreement")
entered into in July 1991 in connection with utility
applications, being jointly developed by Enterprises and
FPN, for FPN's patented communications technology. The
original License Agreement primarily provided Enterprises an
exclusive irrevocable license to make, use and sell the
"Core Technology" in the "New Products" and sub-license to
"Qualifying Utilities" the right to manufacture and provide
the New Products to end users. The amendment removed
Enterprises' right to manufacture or have manufactured the
New Products. As consideration for the amendment of its
rights, Enterprises received $2 million upon the execution
of the amendment, which was recorded as a reduction of its
investment in the original license agreement amount, and a
$7 million unsecured, non-interest bearing obligation
payable on demand after March 15, 1998. Given FPN's limited
success to date in commercializing its patented
communications technology, Enterprises is uncertain as to
FPN's ability to meet its $7 million obligation.
Consequently, enterprises has fully reserved this
receivable.
As a result of reliability problems encountered in
connection with the testing of the New Products on May 24,
1995, Enterprises and FPN entered into a new amendment to
the Product (the "Second Amended Agreement"), which, among
other things, (i) terminated the parties' joint effort to
complete the development of the New Products, (ii) retained
and expanded Enterprises' exclusive license to make, use and
market the New Products within the territorial limits of the
Entergy System; and (iii) modified Enterprises' right to
share in revenues derived from the marketing of the new
Products outside the Entergy System. Although the Second
Amended Agreement contemplates that FPN may proceed
independently with the development of the New Products,
given the above referenced problems and the resulting
uncertainty concerning the long-term commercial success of
the New Products, the Company has recognized a $1.6 million
loss on the write-down of the remaining unamortized balance
of the product license fee at December 31, 1995.
5. INVESTMENT IN SYSTEMS AND SERVICE INTERNATIONAL, INC.
In 1992, Enterprises formed a new subsidiary, Entergy
Integrated Solutions, Inc. (EISI), formerly Entergy Systems
and Service, Inc., to enter into the business of providing
energy management services with an initial focus on
efficient lighting technologies. On December 29, 1992,
Entergy Systems acquired a 9.95% equity interest in Systems
and Service International, Inc. (SASI), a manufacturer of
efficient lighting products. Entergy Systems also made a
loan to SASI, acquired the business and assets of SASI's
distribution subsidiary, and entered into an agreement to
distribute SASI's products.
In April, 1995, Entergy Systems consummated a series of
transactions with SASI which, among other things; amended
the existing Distribution Agreement to provide for lower
prices and eliminated minimum order quantities; provided for
Entergy System's purchase of certain additional SASI
developed technology; provided for a Confidentiality and Non-
Competition Agreement with SASI; and provided for the
redemption of Entergy System's common stock investment in
SASI.
In January 1997, EIS exercised its option to buy certain
Patents ($250,000) and other technology assets ($850,000)
from SASI which have ceased business operations.
6. COMMON STOCK
At December 31, 1996, Enterprises is authorized, by its
Charter, to issue 100,000 shares of its common stock.
During 1996, Enterprises received a capital contribution of
$25 million. No shares of common stock were issued in the
transaction. The proceeds of this contribution were used to
provide an additional capital contribution to Entergy ISI
with no additional common stock issued. In 1996 the Company
issued 3,000 shares of common stock for $3,000,000 primarily
to fund Entergy Operations Services, Inc., a wholly owned
subsidiary of Entergy Enterprises, Inc.
It is anticipated that Enterprises' cash flow generated by
ongoing operations may not be sufficient to fund all of
Enterprises' obligations. On June 30, 1995, the SEC
authorized Entergy to invest up to $350 million through
December 31, 1997 in Enterprises. In addition to common
stock, such investments may take the form of capital
contributions, loans, and/or guarantees of the indebtedness
or other obligations of Enterprises or certain of its
affiliated companies.
7. COMMITMENTS & CONTINGENCIES
On June 21, 1993, Catalyst Technologies, Inc. ("Catalyst")
filed a petition titled Catalyst Technologies, Inc. v.
Electec, Inc. Francois D. V. de La Barre, and Richard
McCarthy III, Civil District Court for the Parish of
Orleans, No. 93-10063, Division "C" against Electec, Inc.,
the predecessor Company of Enterprises. The petition
alleges breach of contract and obligation of good faith and
fair dealings and bad faith breach of contract by Electec in
conjunction with an agreement whereby Catalyst was required
to raise a specified amount of funding in exchange for the
right to acquire Electec's computer software technology
marketing rights. Discovery in this matter has now been
concluded. Trial is set for July 14, 1997. Catalyst's
experts have rendered their opinion that Catalyst's damages
range from $231 million to $258 million. Enterprises'
experts have rendered their opinion that Catalyst's damages
range from $0 to $600,000. The Company intends to contest
the case vigorously; however, no assurance can be given as
to the timing or outcome of this matter.
Panda Energy Corporation (Panda) has commenced litigation in
the Dallas District Court naming Entergy, Entergy
Enterprises, Entergy Power Incorporated, Entergy Power Asia
LTD, and the Company as defendants. The allegations against
the defendants include, among others, tortuous interference
with contractual relations, conspiracy, misappropriation of
corporate opportunity, unfair competition and fraud, and
constructive trust issues. Panda seeks damages of
approximately $4.8 billion, of which $3.6 billion is claimed
in punitive damages.
During 1996, the trial court granted an order that was, in
effect, a summary judgment in favor of the defendants.
However, Panda Energy Corporation has appealed and all
parties have filed their briefs and are awaiting the
appellate court's decision. The Company and Entergy
continue to believe that this lawsuit is without merit, that
the damages claimed are not supportable, and that some or
all of the claims against Entergy will be dismissed.
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule XV Statement of Income
Account Description Current Year Prior Year
Income
<S> <C> <C> <C>
457 Services rendered to associate companies $36,370,110 $15,879,036
458 Services rendered to nonassociate companies 303,107 137,673
418 Subsidiary Income (39,347,049) (30,457,116)
419 Interest Income 165,574 149,723
421 Miscellaneous income or loss (1,849,332) 0
----------- -----------
Total Income (4,357,590) (14,290,684)
----------- -----------
Expense
920 Salaries and wages 17,064,825 10,574,432
921 Office supplies and expenses 8,443,813 4,977,511
922 Administrative expense transferred - credit (4,199,340) (5,935,364)
923 Outside services employed 12,324,987 6,558,581
924 Property insurance 828,330 56,179
925 Injuries and damages 77,550 31,381
926 Employee pensions and benefits 679,502 684,522
928 Regulatory commission expense
930.1 General advertising expenses 0 29,001
930.2 Miscellaneous general expenses 40,961 61,156
931 Rents 1,778,426 1,427,145
932 Maintenance of structures and equipment 669 10,648
940 Active Development
403 Depreciation and amortization expense 891,920 1,428,488
408 Taxes other than income taxes 221,306 15,149
409 Income taxes 364,180 190,236
410 Provision for deferred income taxes (1,333,051) (5,708,168)
411 Provision for deferred income taxes - credit
411.5 Investment Tax Credit
426.1 Donations 4,900 32,090
426.4 Political Contributions
426.5 Other deductions 17,447 9,297,761
427 Interest on long-term debt
430 Interest on debt to associate companies
431 Other interest expense 45 0
----------- -----------
Total Expense 37,206,470 23,730,748
----------- -----------
Net Income or (Loss) ($41,564,060) ($38,021,432)
============ ============
15 of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Analysis of Billing
Associate Companies - Account 457
Direct Indirect Compensation Total
Costs Costs For Use Amount
Name of Associate Company Charged Charged of Capital Billed
457-1 457-2 457-3
<S> <C> <C> <C> <C>
Entergy ISI $333,935 $0 $333,935
Entergy S.A. 143,629 58,487 202,116
Entergy Argentina S.A. 214,742 74,095 288,837
Entergy Edesur 72,958 31,726 104,684
Entergy Transener S.A. 453,518 163,051 616,569
Entergy Operations Services Inc. 316,473 19,121 335,594
Entergy Richmond Power Corp. 65,067 20,015 85,082
Entergy Power Edegel Inc. 2,618,339 1,038,288 3,656,627
Entergy Power CBA Holding Ltd. 65,689 20,957 86,646
Entergy Pakistan, Ltd. 75,464 32,375 107,839
Entergy Power, Inc. 1,855,347 855,226 2,710,573
Entergy Power Development Corp. 9,181,900 5,993,290 15,175,190
Entergy Power Operations Pakistan LDC 656,827 251,225 908,052
Entergy Technologies Holding Company 2,820,206 182,622 3,002,828
Entergy Power Marketing Corp. 2,535,733 900,019 3,435,752
Entergy Power Development International 2,173,530 3,146,256 5,319,786
--------------------------------------------------
TOTAL $23,583,357 $12,786,753 - 0 - $36,370,110
==================================================
16 of 28 pages
</TABLE>
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Analysis of Billing
Nonassociate Companies - Account 458
Instruction:
Provide a brief description of the services rendered to each nonassociate
company:
<TABLE>
<CAPTION>
Direct Indirect Compensation Excess Total
Cost Cost For Use Total Or Amount
Name of Nonassociate Company Charged Charged of Capital Cost Deficiency Billed
458-1 458-2 458-3 458-4
<S> <C> <C> <C> <C> <C>
Vidalia-Catalyst (Construction Management) $201,437 $119,049 $320,486 ($65,421) $255,065
Costanera 45,960 18,051 64,011 (15,969) 48,042
-----------------------------------------------------------------------------------
TOTAL $247,397 $137,100 $384,497 ($81,390) $303,107
===================================================================================
</TABLE>
17 OF 28 PAGES
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule XVI - Analysis of Charges for Service - Associate and Nonassociate Companies
Instruction:
Total cost of service will equal for associate and nonassociate companies the total amount billed under their separate analysis
of billing schedules.
Associate Company Charges Nonassociate Company Charges Total Charges for Service
Direct Indirect Direct Indirect Direct Indirect
Acct Description of Items Cost Cost Total Cost Cost Total Cost Cost Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages $10,652,923 $ 5,775,949 $16,428,872 $ 45,960 $ 18,051 $ 64,011 $10,698,883 $ 5,794,000 $16,492,883
921 Office Supplies
and Expenses 13,328,349 7,226,550 20,554,899 13,328,349 7,226,550 20,554,899
922 Administrative
Expense Transferred
- Credit (4,199,341) (2,276,857) (6,476,198) (4,199,341) (2,276,857) (6,476,198)
923 Outside Services
Employed 2,493,536 1,351,980 3,845,516 201,437 119,049 320,486 2,694,973 1,471,029 4,166,002
924 Property Insurance 846 459 1,305 846 459 1,305
925 Injuries and Damages 1,500 813 2,313 1,500 813 2,313
926 Employee Pensions
and Benefits 203,264 110,209 313,473 203,264 110,209 313,473
928 Regulatory Commission
Expense
930.1 General Advertising
Expenses
930.2 Miscellaneous General
Expenses 14,474 7,848 22,322 14,474 7,848 22,322
931 Rents 1,087,457 589,613 1,677,070 1,087,457 589,613 1,677,070
932 Maintenance of
Structures and
Equipment 78 42 120 78 42 120
403 Depreciation and
Amortization Expense
408 Taxes Other Than
Income Taxes
409 Income Taxes
410 Provision for Deferred
Income Taxes
411 Provision for Deferred
Income Taxes - Credit
411.5 Investment Tax Credit
426.1 Donations
426.4 Political Contributions 271 147 418 271 147 418
426.5 Other Deductions
427 Interest on Long
-Term Debt
431 Other Interest Expense
--------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 23,583,357 12,786,753 36,370,110 247,397 137,100 384,497 23,830,754 12,923,853 36,754,607
--------------------------------------------------------------------------------------------------------
Compensation for use
of Equity Capital
430 Interest on Debt to
Associate Companies
--------------------------------------------------------------------------------------------------------
TOTAL COST OF SERVICE $23,583,357 $12,786,753 $36,370,110 $247,397 $137,100 $384,497 $23,830,754 $12,923,853 $36,754,607
========================================================================================================
18 of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule XVII - Schedule of Expense Distribution by Department or Service Function
Instruction:
Indicate each department or service function. (See Instruction 01-3 General Structure of Accounting System:
Uniform System of Accounts).
DEPARTMENT OR SERVICE FUNCTION
Acct. Total Demand Side Bulk Entergy Technical
Number Description Amount Executive Management Development Legal Adminis- Power Power Mktg Services
of Items tration
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages $17,064,825 $2,611,749 $ 776,861 $ 4,878,554 $1,106,872 $1,781,959 $ 888,973 $1,104,941 $3,914,915
921 Office Supplies and
Expenses 8,443,813 1,624,401 188,017 3,210,795 432,966 1,157,816 161,359 325,017 1,343.446
922 Admin. Exp.
Transferred-Credit (4,199,340) (39,793) (2,382,561) (454,098) (382,355) (940,534)
923 Outside Services
Employed 12,324,987 2,948,276 3,596,415 2,516,423 1,688,292 719,009 138,554 401,310 316,711
924 Property Insurance 828,330 798,347 29,983
925 Injuries and Damages 77,550 9,629 67,863 57
926 Employee Pensions
and Benefits 679,502 122,879 5,386 198,555 681 307,015 4,170 40,814
928 Regulatory Commission
Expense
930.1 General Advertising
Expenses 0
930.2 Miscellaneous General
Expenses 40,961 57,751 (17,380) 515 75
931 Rents 1,778,426 1,200 1,171 1,222,452 520,880 7,642 25,080
932 Maint. of Structures
and Equipment 669 78 591
940 Active Development
403 Depreciation and
Amortization Exp. 891,920 619,161 114,612 138,986 2,336 7,181 9,643
408 Taxes Other Than
Income Taxes 221,306 4,367 62,001 154,938
409 Income Taxes 364,180 (657,396) 1,012,567 9,009
410 Provision for
Deferred Inc. Taxes (1,333,051) (987,311) (341,957) (3,783)
411 Provision for
Deferred Inc.
Taxes-Credit
411.5 Investment Tax Credit
426.1 Donations 4,900 4,000 650 250
426.4 Political
Contributions
426.5 Other Deductions 17,447 15,564 1,885
427 Interest on
Long-Term Debt
431 Other Interest
Expense 45 45
--------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $37,206,470 $7,965,188 $3,037,755 $10,578,895 $2,774,713 $4,940,403 $1,343,824 $1,850,393 $4,715,301
========================================================================================================
19 of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule XVII - Schedule of Expense Distribution by Department or Service Function
Instruction:
Indicate each department or service function. (See Instruction 01-3 General Structure of Accounting System:
Uniform System of Accounts).
DEPARTMENT OR SERVICE FUNCTION
Acct.
Number Description of Items
<S> <C> <C>
920 Salaries and Wages
921 Office Supplies and Expenses
922 Admin. Exp. Transferred-Credit This page is not used
923 Outside Services Employed
924 Property Insurance
925 Injuries and Damages
926 Employee Pensions and Benefits
928 Regulatory Commission Expense
930.1 General Advertising Expenses
930.2 Miscellaneous General Expenses
931 Rents
932 Maint. of Structures and Equipment
940 Active Development
403 Depreciation and Amortization Exp.
408 Taxes Other Than Income Taxes
409 Income Taxes
410 Provision for Deferred Inc. Taxes
411 Provision for Deferred Inc. Taxes-Credit
411.5 Investment Tax Credit
426.1 Donations
426.4 Political Contributions
426.5 Other Deductions
427 Interest on Long-Term Debt
431 Other Interest Expense
TOTAL EXPENSES
20 of 28 pages
</TABLE>
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Departmental Analysis of Salaries - Account 920
<TABLE>
<CAPTION>
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>
Executive $2,611,749 $2,514,417 $9,797 2
Development 11,564,245 11,133,282 43,378 78
Legal 1,106,872 1,065,622 4,152 4
Administration 1,781,959 1,715,551 6,684 16
--------------------------------------------------------
TOTAL $17,064,825 $16,428,872 $64,011 100
========================================================
</TABLE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
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-A thru 21-F $12,324,987
===========
21 of 28 pages
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
Relationship
"A"- Associate
"NA" - Non
From Whom Purchased Address Associate Amount
<S> <C> <C> <C>
Akin, Gump, Strauss, Hauer 1900 Penzoil Place NA 227,932
So. Tower 711 Louisiana Street
Houston, TX 77002
Arthur, Robinson & Hedderwicks GPO Box 1776Q NA 40,455
Melbourne, Australia
Black & Veatch P.O. Box 27-258 NA 116,193
Kansas City, MO 64180
Booz-Allen & Hamilton P.O. Box 10655 NA 297,514
Newark, NJ 07193
Braunstein, Stephen 816 Congress Avenue NA 149,154
Suite 1100
Austin, TX 78701
Buchanan Ingersoll One Oxford Centre NA 153,197
301 Grant Street
Pittsburgh, PA 15219
Carregal & Funes Chemical Bank NA 186,995
Enhiesta, SA
Chadbourne & Parke 1101 Vermont Avenue NW NA 228,803
Washington, D. C. 20005
Clifford Chance 30th Floor Jardine House NA 146,584
One Connaught Place
Hong Kong
China International Engineering No. 32 Che Chong NA 61,750
Zhuang Xilu
Beijing 100044, China
Coopers & Lybrand 317 Seventeenth Street NA 687,351
Denver, CO 80202
Computer Systems Authority 6800 LBJ Freeway NA 26,797
Suite 181
Dallas, TX 75240
21A of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
Relationship
"A"- Associate
"NA" - Non
From Whom Purchased Address Associate Amount
<S> <C> <C> <C>
Cyberlan Techonologies P.O. Box 16443 NA 58,290
Little Rock, AR 72231
ENSR Consulting P.O. Box 17589 NA 25,663
Newark, NJ 07194
Entergy P.O. Box 61830 A 201,437
New Orleans, LA 70161
Entergy Services, Inc. 639 Loyola Avenue A 2,881,154
New Orleans, LA 70113
Friday, Eldridge & Clark 400 West Capitol NA 134,729
Little Rock, AR 72201
F.G. Hyde, Inc. 16316 E. Soriano Dr. NA 87,155
Hacienda Heights, CA 91745
GECC P.O. Box 318, Church St NA 133,629
Station, NY 10008-0318
Gordon, Arata, McCollam 201 St Charles Ave
40th Floor NA 187,777
New York, NY 70170
Hambros Corp. Level 33 Collinswales House NA 30,801
Collins Street
Melbourne, Victoria 3000
Harteneck Lopez y Cia 10 East 50th Street NA 68,380
Swiss Bank Corp
New York, NY
Heidrick & Struggles P.O. Box 92227 NA 35,284
Chicago, IL 60675-4590
Hunton & Williams 200 Park Ave NA 26,294
New York, NY 10166
IBJ Schroder Bank & Trust Co. No. 1 State Street NA 70,000
New York, NY 10004
21B of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
Relationship
"A"- Associate
"NA" - Non
From Whom Purchased Address Associate Amount
<S> <C> <C> <C>
ILEX Association 104 Gloucester Green NA 29,444
Oxford, UK OXI 2HR
Inform 500 N. Michigan Ave NA 161,485
Suite 1600
Chicago, IL 60611
N. Hunter Johnston 1776 Eye Street NW, Ste. 245 NA 66,745
Washington, D.C. 20006
Howard Karren 2701 Westheimer NA 56,844
Suite 11-H
Houston, TX 77098
Lamalie Amrop International P.O. Box 340468 NA 95,535
Tampa, FL 33694
Locke Purnell Rain Harrell 2200 Ross Avenue, Ste. 2200 NA 442,145
Dallas, TX 75201
Charlene Marsh 3 Coray Circle NA 48,525
Little Rock, AR 72211
McDermott, Will & Emery 50 Rockefeller Plaza NA 300,300
New York, NY 10020-1605
M.W. Rice 2222 Breckenridge NA 40,191
Little Rock, AR 72207
Mayer Brown & Platt 190 South Lasalle Street NA 229,606
Chicago, IL 60604
Antonia Meneses 13605 S. Divine Hwy NA 45,193
Ste 136-508
Miami, FL 33176
Irvine Mermelstein 1570 Kuehnle Ave NA 33,436
Ann Arbor, MI 48103
Metzler & Associates 520 Lake Cook Road NA 838,643
Deerfield, IL 60015
21C of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
Relationship
"A"- Associate
"NA" - Non
From Whom Purchased Address Associate Amount
<S> <C> <C> <C>
Montagu-Smith & Co., Ltd. 11 Maunsel Street NA 115,124
Westminister, London SWIP 2QL
Morrison & Foerster LLP P.O. Box 60000 NA 81,055
San Francisco, CA 94160
Organization Resources 1211 Ave of theAmericas NA 43,034
New York, NY 10036
Overseas Private Investment Co. 1100 New York Ave N.W. NA 30,000
Washington, DC 20527-0001
Carlo Pellegatta CP Marketing NA 79,526
Via A Dello Pergola II
Milan, Italy 20159
Phelps Dunbar 400 Poydras Street NA 569,811
Texaco Center
New Orleans, LA 70130
Pillsbury Madison & Sutro P.O. Box 60000 NA 67,142
San Francisco, CA 94160
Power Management P.O. Box 26945
Greenville, SC 29615
Price Waterhouse P.O. Box 890377 NA 31,640
Dallas, TX 75389-0377
RHR International P.O. Box 95122 NA 61,845
Chicago, IL 60694
Reid & Priest 40 West 57th Street NA 359,799
New York, NY 10019
Kevin Resch 15225 Pocahantos Rd NA 80,500
Apple Valley, CA 92307
Risk Advisory 300-300 Fifth Avenue SW NA 36,074
Calgary, Alberta T2P 3C4
Clair Ross #3 Financial Center NA 27,300
Little Rock, AR 72211
21D of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
Relationship
"A"- Associate
"NA" - Non
From Whom Purchased Address Associate Amount
<S> <C> <C> <C>
SSI, Inc. dba Spencer Stuart NA 262,552
P.O. Box 98991
Chicago, IL 60693
Signet International P.O. Box 22 NA 39,467
Mabelvale, AR 72103
Simpson Crowden Consultants, Ltd. 97/99 Park Street NA 65,253
London WIY3HA
Simpson Thatcher & Bartlett Asia Pacific Finance Tower, 32nd Floor NA 46,446
3 Garden Road
Central, Hong Kong
Skadden, Arps, Slate, Meagher 919 Third Ave NA 237,562
New York, NY 10022
Stone & Webster P.O. Box 1611 NA 27,031
Boston, MA 02205-1611
David Stoner 3136 Ridgefield Road NA 38,612
Charlottesville, VA 22911
Stroock, Stroock & Lavan 2029 Century Park East NA 97,100
Suite 1800
LosAngeles, CA 90067
Michael J. Suter 1206 California Street NA 67,935
Huntington Beach, CA 92648
TRG Associates 50 York Street NA 54,058
Guilford, CT 06437
Thoma & Thoma Creative Svcs. 2107 South Broadway NA 84,126
Little Rock, AR 72206
Clayton Utz Level 27-35 NA 28,241
No. 1 O'Connell Street
Sydney, NSW 2000
Williams & Anderson 111 Center Street, 22nd Floor NA 32,760
Little Rock, AR 72201
21E of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
Relationship
"A"- Associate
"NA" - Non
From Whom Purchased Address Associate Amount
<S> <C> <C> <C>
Winthrop, Stimson, Putnam One Battery Park Plaza NA 52,702
New York, NY 10004-1490
Phil Young Three Financial Center NA 35,200
Little Rock, AR 72211
Zai*Net Software, Inc. 747 Third Ave NA 50,018
New York, NY 10017
Others (144) Various 871,664
-----------
Total $12,324,987
===========
21F of 28 pages
</TABLE>
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Employee Pensions and Benefits - Account 926
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
Moving Expense Reimbursement $661,126
Other 18,376
--------
TOTAL $679,502
========
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
General Advertising Expenses - Account 930.1
Instructions:
Provide a listing of the amount included in Account 930.1, "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.
Name of Payee Amount Amount
None
---
TOTAL $0
===
22 of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Miscellaneous General Expenses - Account 930.2
Instructions:
Provide a listing of the amount included in Account 930.2, "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
Director Fees and Expenses $27,371
Miscellaneous 13,590
-------
TOTAL $40,961
=======
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Rents - Account 931
Instructions.
Provide a listing of the amount included in Account 931, "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 $1,728,693
Office Equipment 49,733
----------
TOTAL $1,778,426
==========
23 of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Taxes Other Than Income Taxes - Account 408
Instructions:
Provide an analysis of Account 408, "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
Franchise $216,939
Social Security Tax (Argentina) 4,367
--------
TOTAL $221,306
========
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Donations - Account 426.1
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 Amount
Baptist Health Corporate sponsorship $3,000
Others (6) Various charitable and educational 1,900
------
TOTAL $4,900
======
24 of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Other Deductions - Account 426.5
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
Club Membership and Dues Various $17,447
-------
TOTAL $17,447
=======
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
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 14A - 14F
25 of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1996
Schedule XIX - Annual Report of Entergy Integrated Solutions, Inc.
UNITED STATES OF AMERICA
BEFORE THE SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
In the Matter of .
.
Entergy Corporation .
Entergy Enterprises, Inc. .
Entergy Integrated Solutions, Inc. .
(formerly Entergy Systems and Service, Inc. .
and prior thereto Systems and .
Service U.S.A., Inc.) . CERTIFICATE PURSUANT
. TO RULE 24
File No. 70-7947 .
File No. 70-8509 .
.
(Public Utility Holding Company .
Act of 1935) .
Pursuant to Rule 24 promulgated by the Securities and Exchange
Commission (SEC) under the Public Utility Holding Company Act of 1935,
as amended, modified by the application(s)-declaration(s) in the above
referenced files and the related orders dated December 28, 1992 and
July 27, 1995 (collectively, the "Orders"), this is to certify that the
following paragraphs report transactions carried out by Entergy
Integrated Solutions, Inc. (EIS)<FN1> during the three (3) month and twelve
(12) month periods ended December 31, 1996 pursuant to the
authorization of the SEC and provide such other information as is
required to be reported in accordance with the provisions of the
Orders.
I. Development of Energy Efficiency Technology and Manufacturing
Processes of Systems & Service International, Inc. (SASI)
Due to repeated failures by SASI to make progress in lowering
overall production costs and the availability of other electronic
ballasts from other manufacturers at lower cost, EIS suspended its
purchase of Ballast units from SASI in the fourth quarter of 1996.
Given the reduced manufacturing orders, SASI was unable to sustain its
manufacturing operations and ceased production of all products
(including the Monitor) in the same quarter. As a result, the
Exclusive Distribution Agreement and Manufacturing Agreement with SASI
were formally terminated on or about January 20, 1997. Consistent with
EIS' authorization to engage in the energy management services business
(and to acquire technologies related thereto), effective January 29,
1997, EIS exercised its option to purchase all of SASI's right, title
and interest to the Monitor technology for the sum of $250,000.00.
This acquisition was made necessary by EIS' extensive use and reliance
on SASI's Monitor in its business operations. The Monitor is currently
being produced for EIS by another manufacturer. Since Ballast
inventories are adequate, the Ballast is not being produced at this
time.
II. Use of SASI's Products Within the BASE Region
EIS has utilized the Monitor and the Ballast in energy service
applications in the "Base Region." The following is a summary which
indicates such installations and projected energy conservation which
will result in savings of generating capacity.
Number of Annual Projected
Installations Savings
kw's kwh's
19 18.08 151,040.11
III. Other SASI Transactions
Due to the cessation of SASI's business operations in the fourth
quarter of 1997 (see II above), EIS exercised its rights under the $2.7
million promissory note (the "Note") issued by SASI on December 29,
1992 (in connection with the initial EIS-SASI transactions). On
January 29, 1997, the parties agreed that SASI's remaining obligations
under the Note would be satisfied through the reduction of future
payments due and payable by EIS under the Asset Purchase Agreement
between EIS and SASI, dated April 29, 1995 (reported in EIS' Supplement
Certificate Pursuant to Rule 24, dated May 5, 1995).
IV. Future Reporting Re: SASI and SASI Products
Inasmuch as the Exclusive Distribution Agreement and Manufacturing
Agreement between EIS and SASI have been terminated and SASI has ceased
business operations (see II above), EIS proposes to discontinue any
further reports on the development of SASI's energy efficiency
technology and manufacturing processes, as well as the use of SASI's
products within the Base Region. EIS will continue to report all other
information that is required to be submitted pursuant to the Orders.
V. Summary of Total Assets and Revenues of EIS By Type of Activity
Energy Management Funding of other
& DSM Consulting Contractors
Total Assets* $90,902,709.13 $0 $0
Total Revenues $9,988,116.17 $0 $0
* Excludes assets that are not appropriately allocated to any specific
business activity, but which support EIS's general business operations.
VI. Summary of Total Assets and Revenues of EIS By Geographic Region
Base Region U.S. (excluding Base World (excluding
Region) U.S.)
Total Assets ** $24,071,599.79 $43,163,357.29 $0
Total Revenues $3,279,720.34 $6,708,395.83 $0
** Excludes assets that are not dedicated to EIS's business activities
in any specific geographic region.
VII. Financial Statements
EIS's unaudited Balance Sheets, as of December 31, 1996, and as of
the reporting date, respectively, and Income Statements for the three
month period ending December 31, 1996, and for the calendar year to
date, respectively, are attached hereto.
VIII. Information Reported on an Annual Basis
A. Statement of Estimated Kilowatts Saved (12 months ending
12/31/96)
Base Region Outside Base Region
Energy Management Services 3,724.78 11,042.42
DSM Services (Utility Sponsor) - 0 - - 0 -
B. Terminated and/or Canceled Contracts
<TABLE>
<CAPTION>
Contract Amount of Loss Reason for
Customer Value to Entergy Termination/Cancellation
<S> <C> <C> <C>
Munro Petroleum & Terminal Corp $111,230 $ 25,728 Irreconcilable differences
Hershey Energy Systems 24,285 24,285 relating to the system's energy
Roanoke Retail Corp 20,940 20,940 efficiency level.
Ft. Myers Retail Corp 20,666 20,666 "
Alabama Lighting Maintenance 17,848 17,848 "
Chicago Edison 16,082 16,082 "
Canadian SASI 15,847 15,847 "
Jr. Food Mart of Arkansas 13,783 13,783 "
Lewis Corporation 57,818 52,709 "
Georgia Lumen Maintenance 13,044 13,044 "
Illinois System & Service 10,671 10,671 "
Interstate North Sports Assoc. 10,548 10,548 "
Misc customers (< $10,000) 259,148 185,529 "
Misc HES customers (< $10,000) 264,399 264,399 "
</TABLE>
C. Bad Debt Expenses
Customer Amount of Bad Debt Expense or Loss
Munro Petroleum & Terminal Corp $ 34,411
Hershey Energy Systems 24,285
Roanoke Retail Corp 20,940
Ft. Myers Retail Corp 20,666
Alabama Lighting Maintenance 17,848
Chicago Edison 16,082
Canadian SASI 15,847
Jr. Food Mart of Arkansas 13,783
Lewis Corporation 13,342
Georgia Lumen Maintenance 13,044
Illinois System & Service 10,671
Interstate North Sports Assoc. 10,548
Misc customers (< $10,000) 185,529
Misc HES customers (< $10,000) 40,340
D. Schedule of Projects Over $100,000
EMS or DSM Investment Estimate Future
Customer Services Total Project Value
Century Graphics EMS $ 42,448 $ 57,912
Kroger EMS 40,127 62,767
Con-way Central Express EMS 68,983 36,554
IH-10 Bowl EMS 46,225 59,485
McKesson EMS 65,096 42,236
B & K Foods EMS 28,091 79,436
Villa Rica Supermarket EMS 35,890 74,060
East Hills Athletic Club EMS 40,564 71,229
Meiners' Country Mart EMS 24,359 88,176
Craig Collection EMS 40,059 78,680
Celotex EMS 27,249 93,364
Saia Motor Freight EMS 59,805 66,382
Blue Springs Ford Sales EMS 54,860 72,512
Fair Oaks Ford EMS 51,303 78,014
Main Street Foods EMS 17,060 118,018
Merchants Transfer EMS 25,394 112,568
East Hills Athletic Club EMS 66,758 72,618
United Parcel Service EMS 194,079 108,548
Fleming Companies EMS 45,073 121,621
Williamson Cadillac EMS 69,004 111,749
Tooling Specialists EMS 49,655 147,685
Triangle Auto Center EMS 63,562 143,293
Hyatt Corp EMS 223,306 24,306
Delta Beverage Group EMS 107,615 146,124
Celotex Corp EMS 67,195 191,578
Koons of Tysons Corner EMS 159,578 178,799
Weavexx EMS 206,851 177,266
All Star Dodge EMS 21,812 78,265
Alcoa Closure Systems EMS 75,157 25,308
Bohn Bros EMS 40,553 60,001
Combined Entertainment EMS 29,066 71,678
Fleming Companies EMS 19,398 81,387
George Ballas Buick-GMC EMS 21,330 80,350
Rice Enterprises EMS 31,946 73,727
Scarborough Tennis East Club EMS 38,489 70,941
Spreen EMS 21,505 88,231
Canyon Automotive EMS 28,692 82,138
Gerry Lane Enterprises EMS 62,783 52,546
Fleming Supermarkets EMS 52,664 64,856
McCormick & Company EMS 30,611 87,399
Kustom Fit EMS 46,951 73,097
Fleming Supermarkets EMS 45,599 74,570
Metro Toyota EMS 29,940 90,351
Kroger EMS 60,035 61,899
Fleming Companies EMS 63,787 186,163
Suttle Motor EMS 41,845 89,510
Freedom Ford EMS 34,057 99,023
Eskridge Oldsmobile EMS 33,939 101,802
Kroger EMS 59,501 76,337
Cameron EMS 41,254 95,163
R & B Holding Co EMS 93,847 43,476
Parkway Pontiac EMS 119,938 24,884
Beck Oil EMS 42,459 104,796
Kroger EMS 53,583 95,360
Fleming Supermarkets EMS 41,436 114,101
Rockenbach Chevrolet Sales EMS 33,481 125,641
Fleming Supermarkets EMS 41,767 134,550
Miracle Recreation Equipment EMS 125,624 58,128
Tifton Aluminum EMS 93,801 93,900
Fleming Supermarkets EMS 60,268 131,362
Altec Industries EMS 70,965 128,475
Weavexx EMS 154,019 47,540
GE Lighting EMS 275,124 (59,844)
SD Warren EMS 75,782 145,090
Brother Industries EMS 140,749 81,086
International Tennis Corp EMS 95,183 144,244
Zinn Company EMS 88,462 167,888
Don Bohn Ford EMS 129,714 130,164
Fleming Companies EMS 83,388 193,419
Westpoint Stevens EMS 283,117 (192)
Kroger EMS 76,712 224,100
Joseph T. Ryerson & Son EMS 158,985 202,274
Landmark Chevrolet EMS 268,284 151,716
_______________________________
<FN1> By amendment to its Certificate of Incorporation, Entergy Systems and
Service, Inc. changed its name to "Entergy Integrated Solutions, Inc.",
effective May 7, 1996
<PAGE>
Entergy Integrated Solutions Inc.
Statement of Operations
Quarter Ended December 31, 1996
(Unaudited)
Revenue $ 9,988,116.00
Operating Expense 9,926,344.00
---------------------
Gross Margin 61,772.00
Selling Expense 4,127,551.00
Marketing 1,108,888.00
Administrative & General Expense 3,637,407.00
Other Expense/Income 18,692,555.00
---------------------
Net Operating Profit (Loss) Before Taxes (27,504,629.00)
Income taxes (9,675,896.00)
---------------------
Net Profit (Loss) $ (17,828,733.00)
=====================
<PAGE>
Entergy Integrated Solutions Inc.
Balance Sheet
December 31, 1996
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 16,183,050.62
Accounts receivable 2,946,133.16
Other current assets 165,794.73
------------------
Total current assets 19,294,978.51
------------------
Investments:
Investment in SASI, Inc. -
Note receivable - SASI, Inc. 2,430,000.00
HES service contracts, net 2,726,102.33
------------------
Total investments 5,156,102.33
------------------
Fixed Assets:
Furniture and equipment, net 11,171,644.00
Intangible assets, net 310,500.85
Equipment inventory held for installation 23,667,752.05
Installations in process 6,749,751.45
Installed equipment 54,812,970.14
------------------
Total fixed assets 96,712,618.49
------------------
Deferred Debits:
Miscellaneous deferred debits 9,238,003.39
SASI technology -
Deferred income taxes 9,099,544.66
Other assets, net 2,299,692.54
------------------
Total deferred debits 20,637,240.59
------------------
TOTAL ASSETS $ 141,800,939.92
==================
<PAGE>
Entergy Integrated Solutions Inc.
Balance Sheet
December 31, 1996
(Unaudited)
LIABILITIES AND CAPITAL
Current & accrued liabilities:
Accounts payable $ 1,048,152.82
Accrued liabilities 10,591,174.34
Current portion of capital lease obligations 107,298.23
-----------------
Total current & accrued liabilities 11,746,625.39
-----------------
Long-term liabilities:
Note payable - Entergy Corp. -
Capital lease obligations 83,214.84
Other long-term liabilities 6,200,367.00
-----------------
Total long-term liabilities 6,283,581.84
-----------------
Deferred Credits:
Service contract revenue 46,151,364.94
-----------------
Total deferred credits 46,151,364.94
-----------------
Capital:
Common stock, no par value, 50,000 shares authorized,
13,500 shares issued and outstanding 13,500,000.00
Paid in capital 150,000,000.00
Accumulated deficit (85,880,632.25)
-----------------
Total capital 77,619,367.75
-----------------
Total liabilities and capital $ 141,800,939.92
=================
<PAGE>
Entergy Integrated Solutions Inc.
Total Assets & Revenues by Activity
December 31, 1996
(Unaudited)
Assets by Activity:
Energy Management & DSM Services $ 90,902,709.13
==================
Revenues by Activity:
Energy Management & DSM Services $ 9,988,116.00
==================
<PAGE>
Entergy Integrated Solutions Inc.
Total Assets & Revenues by Geographic Region
December 31, 1996
(Unaudited)
Assets by Region:
Inside Base Region $ 24,071,599.79
Outside Base Region 43,163,357.29
------------------
Total Assets 67,234,957.08
==================
Revenues by Region:
Inside Base Region $ 3,279,720.34
Outside Base Region 6,708,395.83
------------------
Total Revenues 9,988,116.17
==================
<PAGE>
Entergy Integrated Solutions Inc.
Statement of Operations
Year-To-Date Ended March 31, 1997
(Unaudited)
Revenue $ 9,416,608.00
Operating Expense 6,844,702.00
--------------------
Gross Margin 2,571,906.00
Selling Expense 4,094,105.00
Marketing Expense 115,527.00
Administrative & General Expense 4,038,542.00
Other Expense/Income 2,486,971.00
--------------------
Net Operating Profit (Loss) Before Taxes (8,163,239.00)
Income taxes (2,946,957.00)
--------------------
Net Profit (Loss) $ (5,216,282.00)
====================
<PAGE>
Entergy Integrated Solutions Inc.
Balance Sheet
March 31, 1997
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 11,870,730.58
Accounts receivable 2,806,201.68
Other current assets 295,037.79
-------------------
Total current assets 14,971,970.05
-------------------
Investments:
Investment in SASI, Inc. -
Note receivable - SASI, Inc. -
HES service contracts, net 2,493,213.11
-------------------
Total investments 2,493,213.11
-------------------
Fixed Assets:
Furniture and equipment, net 10,442,842.91
Intangible assets, net 232,875.64
Equipment inventory held for installation 15,294,754.89
Installations in process 10,341,457.90
Installed equipment 62,093,189.25
-------------------
Total fixed assets 98,405,120.59
-------------------
Deferred Debits:
Miscellaneous deferred debits 9,348,093.88
SASI technology 1,100,000.00
Deferred income taxes 12,046,500.85
Other assets, net 2,213,037.15
-------------------
Total deferred debits 24,707,631.88
-------------------
TOTAL ASSETS $ 140,577,935.63
===================
<PAGE>
Entergy Integrated Solutions Inc.
Balance Sheet
March 31, 1997
(Unaudited)
LIABILITIES AND CAPITAL
Current & accrued liabilities:
Accounts payable $ 482,917.52
Accrued liabilities 7,462,340.71
Current portion of capital lease obligations 107,298.23
------------------
Total current & accrued liabilities 8,052,556.46
------------------
Long-term liabilities:
Note payable - Entergy Corp. -
Capital lease obligations 51,564.21
Other long-term liabilities 4,727,119.49
------------------
Total long-term liabilities 4,778,683.70
------------------
Deferred Credits:
Service contract revenue 55,343,609.50
------------------
Total deferred credits 55,343,609.50
------------------
Capital:
Common stock, no par value, 50,000 shares authorized,
13,500 shares issued and outstanding 13,500,000.00
Paid in capital 150,000,000.00
Accumulated deficit (91,096,914.03)
------------------
Total capital 72,403,085.97
------------------
Total liabilities and capital $ 140,577,935.63
==================
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
Organization Chart
See pages 27-A
Methods of Allocation
Indirect costs are allocated monthly to each project on the direct dollars
charged to the project.
Annual Statement of Compensation for Use of Capital Billed
- Not applicable -
Disclaimer of Subsidization
Enterprises represents that no Domestic Associate Company has subsidized the
operations of Central Costanera, S.A. or Edesure, S. A. and, further, that
the transfer of any personnel from, and the rendering of services by the
Domestic Associate Companies in connection with these companies have not
adversely affected the services provided by such companies to their respective
customers.
27 of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
Organization Charts
For the Year Ended December 31, 1996
Ed Lupberger - Chairman of the Board & President
Michael Bemis - Executive Vice President
Terry Ogletree - Executive Vice President
John Brayman - Executive Vice President
Gerald McInvale - Executive Vice President, Chief Financial Officer &
Treasurer
Mike Thompson - Senior Vice President, Chief Legal Officer & Secretary
Robert Cushman - Vice President - Finance
Robert Keegan - Vice President
Lawrence Folks - Vice President
Kenneth Oberg - Vice President - Operations
Charles Brown III - Vice President
Herbert Zureich Jr. - Vice President
David Carter - Vice President
John Ludwig - Vice President
William Regan - Vice President - Treasurer
Fred Nugent - Asst. Secretary
Stephen Refsell - Asst. Secretary
28 of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
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 Enterprises, Inc.
(Name of Reporting Company)
By: /s/ Gerald D. McInvale
(Signature of Signing Officer)
Gerald D. McInvale, Executive Vice President
Chief Financial Officer and Treasurer
(Print Name and Title of Signing Officer)
Date: May 1, 1996
28 of 28 pages
<TABLE> <S> <C>
<ARTICLE> OPUR2
<CIK> 0000833411
<NAME> ENTERGY ENTERPRISES, INC.
<SUBSIDIARY>
<NUMBER> 024
<NAME> ENTERGY ENTERPRISES, INC.
<S> <C> <C>
<PERIOD-TYPE> YEAR YEAR
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1995
<PERIOD-END> DEC-31-1996 DEC-31-1995
<BOOK-VALUE> PER-BOOK PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 3,638,705 2,135,598
<TOTAL-INVESTMENTS> 80,531,881 93,701,975
<TOTAL-CURRENT-ASSETS> 28,596,684 19,498,773
<TOTAL-DEFERRED-DEBITS> 8,094,174 7,526,147
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 120,861,444 122,862,493
<TOTAL-PROPRIETARY-CAPITAL> 98,448,264 112,012,323
<TOTAL-LONG-TERM-DEBT> 0 0
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0 0
<OTHER-CURR-AND-ACCRUED-LIAB> 16,363,073 6,667,896
<TOTAL-DEFERRED-CREDITS> 6,050,107 4,182,274
<DEFERRED-INCOME-TAX> 0 0
<TOT-LIABIL-AND-PROPRIET-CAP> 120,861,444 122,862,493
<SERVICES-ASSOCIATE-COMPANIES> 36,370,110 15,879,036
<SERVICES-NON-ASSOCIATE-COMP> 303,107 137,673
<MISC-INCOME-OR-LOSS> (1,849,332) 0
<TOTAL-INCOME> (4,357,590) (14,290,684)
<SALARIES-AND-WAGES> 17,064,825 10,574,432
<EMPLOYEE-PENSION-AND-BENEFIT> 679,502 684,522
<OTHER-EXPENSES> 19,462,143 12,471,794
<TOTAL-EXPENSES> 37,206,470 23,730,748
<NET-INCOME> (41,564,060) (38,021,432)
<TOTAL-EXPENSES-DIRECT-COST> 23,830,754 9,081,502
<TOTAL-EXPENSES-INDIRECT-COST> 12,923,853 6,804,465
<TOT-EXP-DIRECT-AND-INDIRECT> 36,754,607 15,885,967
<PERSONNEL-END-OF-YEAR> 100 68
</TABLE>
