Earnings Per Share (Notes)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Earnings/(Loss) Per Share

Basic earnings/(loss) per common share is computed by dividing net income/(loss) less accumulated preferred stock dividends by the weighted average number of common shares outstanding. Shares issued and treasury shares repurchased during the year are weighted for the portion of the year that they were outstanding. Diluted earnings/(loss) per share is computed in a manner consistent with that of basic earnings/(loss) per share while giving effect to all potentially dilutive common shares that were outstanding during the period.

Dilutive effect for equity compensation and other equity instruments — The outstanding non-qualified stock options, non-vested restricted stock units, and market stock units are not considered outstanding for purposes of computing basic earnings/(loss) per share. However, these instruments are included in the denominator for purposes of computing diluted earnings/(loss) per share under the treasury stock method. The if-converted method was used to determine the dilutive effect of embedded derivatives in the Company's 2.822% Preferred Stock for the years ended December 31, 2015 and 2014. During 2016, the Company repurchased 100% of the outstanding shares of its 2.822% preferred stock.

The reconciliation of NRG's basic earnings/(loss) per share to diluted earnings/(loss) per share is shown in the following table:

	Year Ended December 31,
	2016			2015			2014
	(In millions, except per share amounts)
Basic (loss)/earnings per share attributable to NRG common stockholders
Net (loss)/income attributable to NRG Energy, Inc.	$	(774	)	$	(6,382	)	$	134
Dividends for preferred shares	5			20			9
Dividends for refinancing of preferred shares	—			—			47
Gain on redemption of 2.822% redeemable perpetual preferred shares	(78		)	—			—
(Loss)/Income Available to Common Stockholders	$	(701	)	$	(6,402	)	$	78
Weighted average number of common shares outstanding	316			329			334
(Loss)/Earnings per weighted average common share —basic	$	(2.22	)	$	(19.46	)	$	0.23
Diluted (loss)/earnings per share attributable to NRG common stockholders
Weighted average number of common shares outstanding	316			329			334
Incremental shares attributable to the issuance of equity compensation (treasury stock method)	—			—			5
Total dilutive shares	316			329			339
(Loss)/Earnings per weighted average common share — diluted	$	(2.22	)	$	(19.46	)	$	0.23

The following table summarizes NRG's outstanding equity instruments that are anti-dilutive and were not included in the computation of the Company's diluted earnings/(loss) per share:

	Year Ended December 31,
	2016	2015	2014
	(In millions of shares)
Equity compensation	5	6	1
Embedded derivative of 2.822% redeemable perpetual preferred stock	—	16	16
Total	5	22	17