Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value

[Table of Contents](#i6266d2788e5849989ad57be380853c2d_7)Entergy Corporation and SubsidiariesNotes to Financial Statements  


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| 2020 |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |
|  |  | (In Millions) |
| Assets: |  |  |  |  |  |  |  |  |
| Temporary cash investments |  | $1,630  |  |  | $—  |  |  | $—  |  |  | $1,630  |  |
| Decommissioning trust funds (a): |  |  |  |  |  |  |  |  |
| Equity securities |  | 1,533  |  |  | —  |  |  | —  |  |  | 1,533  |  |
| Debt securities |  | 919  |  |  | 1,698  |  |  | —  |  |  | 2,617  |  |
| Common trusts (c) |  |  |  |  |  |  |  | 3,103  |  |
| Power contracts |  | —  |  |  | —  |  |  | 38  |  |  | 38  |  |
| Securitization recovery trust account |  | 42  |  |  | —  |  |  | —  |  |  | 42  |  |
| Escrow accounts |  | 148  |  |  | —  |  |  | —  |  |  | 148  |  |
| Gas hedge contracts |  | 1  |  |  | 1  |  |  | —  |  |  | 2  |  |
| Financial transmission rights |  | —  |  |  | —  |  |  | 9  |  |  | 9  |  |
|  |  | $4,273  |  |  | $1,699  |  |  | $47  |  |  | $9,122  |  |
| Liabilities: |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |
| Gas hedge contracts |  | $6  |  |  | $1  |  |  | $—  |  |  | $7  |  |
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(a)The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices.  Fixed income securities are held in various governmental and corporate securities.  See Note 9 to the financial statements for additional information on the investment portfolios.(b)The decommissioning trust funds fair value presented herein does not include the recognition pursuant to ASU 2016-13 of a credit loss valuation allowance of $0.4 million as of December 31, 2021 and $0.1 million as of December 31, 2020 on debt securities. See Note 16 to the financial statements for additional information on the allowance for expected credit losses.(c)Common trust funds are not publicly quoted and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date.  
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the years ended December 31, 2021, 2020, and 2019:

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|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | 2021 |  | 2020 |  | 2019 |
|  | Power Contracts | Financial transmission rights |  | Power Contracts | Financial transmission rights |  | Power Contracts | Financial transmission rights |
|   | (In Millions) |
| Balance as of January 1, | $38  |  | $9  |  |  | $118  |  | $10  |  |  | ($31) |  | $15  |  |
| Total gains (losses) for the period (a) |  |  |  |  |  |  |  |  |
| Included in earnings | (2) |  | —  |  |  | 1  |  | 1  |  |  | 12  |  | —  |  |
| Included in other comprehensive income | 2  |  | —  |  |  | 77  |  | —  |  |  | 232  |  | —  |  |
| Included as a regulatory liability/asset | —  |  | 162  |  |  | —  |  | 67  |  |  | —  |  | 54  |  |
| Issuances of financial transmission rights | —  |  | 12  |  |  | —  |  | 23  |  |  | —  |  | 35  |  |
|  |  |  |  |  |  |  |  |  |
| Settlements | (38) |  | (179) |  |  | (158) |  | (92) |  |  | (95) |  | (94) |  |
| Balance as of December 31, | $—  |  | $4  |  |  | $38  |  | $9  |  |  | $118  |  | $10  |  |

  
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