Entergy (ETR) Sees Q3 Impairments of ~$1.6B from Two Nuclear Power
Facilities
Entergy (NYSE: ETR) is currently in the
process of preparing financial statements for third quarter 2015 financial
reporting. In connection with preparation of such financial statements, the
Company has concluded that in the Company’s third quarter results, the Company
will report non-cash asset impairments for its Pilgrim Nuclear Power Station
and its James A. FitzPatrick Nuclear Power Plant totaling approximately $1.6
billion on a pre-tax basis and approximately $1.1 billion after-tax. These
impairments will be classified as a special item, and therefore, excluded from
operational results.
Under generally accepted accounting
principles, long-lived assets are typically accounted for on a historical cost
basis unless a triggering event occurs which requires an impairment evaluation.
Both plants experienced a triggering event in the third quarter. Applying the
accounting rules after these events led to the impairments and related charges.
The resulting charges, per share, by plant, are summarized below.
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