Derivative liability as hedging instrument offset

[Table of Contents](#i6266d2788e5849989ad57be380853c2d_7)Entergy Corporation and SubsidiariesNotes to Financial Statements  
  
  
The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2020 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. 

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| Instrument |  | Balance Sheet Location |  | Gross Fair Value (a) |  | Offsetting Position (b) |  | Net Fair Value (c) (d) |  | Business |
|  |  |  |  | (In Millions) |  |  |
| Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |
| Electricity swaps and options |  | Prepayments and other (current portion) |  | $39 |  | ($1) |  | $38 |  | Entergy Wholesale Commodities |
|  |  |  |  |  |  |  |  |  |  |  |
| Liabilities: |  |   |  |   |  |   |  |  |  |   |
| Electricity swaps and options |  | Other current liabilities (current portion) |  | $1 |  | ($1) |  | $— |  | Entergy Wholesale Commodities |
|  |  |  |  |  |  |  |  |  |  |  |

  


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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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| Derivatives not designated as hedging instruments |  |   |  |   |  |   |  |  |  |   |
| Assets: |  |   |  |   |  |   |  |  |  |   |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |
| Natural gas swaps and options |  | Prepayments and other (current portion) |  | $1 |  | $— |  | $1 |  | Utility |
| Natural gas swaps and options |  | Other deferred debits and other assets (non-current portion) |  | $1 |  | $— |  | $1 |  | Utility |
| Financial transmission rights |  | Prepayments and other |  | $9 |  | $— |  | $9 |  | Utility and Entergy Wholesale Commodities |
| Liabilities: |  |   |  |   |  |   |  |  |  |   |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |
| Natural gas swaps and options |  | Other current liabilities (current portion) |  | $6 |  | $— |  | $6 |  | Utility |
| Natural gas swaps and options |  | Other non-current liabilities (non-current portion) |  | $1 |  | $— |  | $1 |  | Utility |

  
(a)Represents the gross amounts of recognized assets/liabilities(b)Represents the netting of fair value balances with the same counterparty(c)Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheet(d)Excludes cash collateral in the amount of $8 million posted as of December 31, 2021 and $5 million posted as of December 31, 2020. Also excludes letters of credit in the amount of $1 million posted and $39 million held as of December 31, 2020.204
