Segment Reporting

The Company's segment structure reflects how management currently makes financial decisions and allocates resources. The Company's businesses are segregated as follows: Generation, which includes generation, international and BETM; Retail, which includes Mass customers and Business Solutions, which includes C&I customers and other distributed and reliability products; Renewables, which includes solar and wind assets, excluding those in NRG Yield; NRG Yield; and corporate activities. The financial information for the three and six months ended June 30, 2016 has been recast to reflect the current segment structure.

On September 1, 2016, NRG Yield acquired the remaining 51.05% interest in CVSR Holdco LLC, which indirectly owns the CVSR solar facility, from the Company. On March 27, 2017, NRG Yield acquired from NRG a 16% interest in the Agua Caliente solar project, and NRG's interests in seven utility-scale solar projects located in Utah. Both acquisitions were treated as a transfer of entities under common control and accordingly, all historical periods have been recast to reflect the acquisition as if they had occurred at the beginning of the financial statement period.

On June 14, 2017, as described in Note 3, Discontinued Operations and Dispositions, NRG deconsolidated GenOn for financial reporting purposes. The financial information for all historical periods have been recast to reflect the deconsolidation of GenOn and to present discontinued operations within the corporate segment.

NRG’s chief operating decision maker, its chief executive officer, evaluates the performance of its segments based on operational measures including adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA, free cash flow and capital for allocation, as well as net income/(loss).



	Generation^(a)			Retail ^(a)		Renewables^(a)			NRG Yield			Corporate^(a)			Eliminations			Total
Three months ended June 30, 2017	(In millions)
Operating revenues^(a)	$	882		$	1,603	$	123		$	284		$	3		$	(194	)	$	2,701
Depreciation and amortization	95			29		50			78			8			—			260
Impairment losses	41			—		22			—			—			—			63
Equity in (losses)/earnings of unconsolidated affiliates	(15		)	—		(2		)	16			3			(5		)	(3		)
(Loss)/income from continuing operations before income taxes	(89		)	330		(52		)	53			(135		)	(4		)	103
(Loss)/income from continuing operations	(90		)	341		(47		)	45			(146		)	(4		)	99
Loss from discontinued operations, net of tax	—			—		—			—			(741		)	—			(741		)
Net (Loss)/Income	(90		)	341		(47		)	45			(887		)	(4		)	(642		)
Net (Loss)/income attributable to NRG Energy, Inc.	$	(90	)	$	341	$	(22	)	$	50	—	$	(920	)	$	15		$	(626	)
Total assets as of June 30, 2017	$	8,539		$	2,439	$	5,193		$	8,513		$	10,954		$	(10,433	)	$	25,205



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	171	$	1	$	10	$	3	$	9	$	—	$	194



	Generation^(a)			Retail^(a)		Renewables^(a)			NRG Yield^(a)		Corporate^(a)			Eliminations			Total
Three months ended June 30, 2016	(In millions)
Operating revenues^(a)	$	504		$	1,536	$	101		$	283	$	10		$	(186	)	$	2,248
Depreciation and amortization	97			29		47			75		14			—			262
Impairment losses	17			—		27			—		12			—			56
Equity in earnings/(losses) of unconsolidated affiliates	2			—		(2		)	14		27			(37		)	4
Loss on sale of assets	—			—		—			—		(83		)	—			(83		)
Loss on debt extinguishment, net	—			—		—			—		(80		)	—			(80		)
(Loss)/income from continuing operations before income taxes	(458		)	657		(75		)	76		(295		)	(43		)	(138		)
(Loss)/income from continuing operations	(458		)	657		(71		)	64		(312		)	(43		)	(163		)
Loss from discontinued operations, net of tax	—			—		—			—		(113		)	—			(113		)
Net (Loss)/Income	(458		)	657		(71		)	64		(425		)	(43		)	(276		)
Net (Loss)/Income attributable to NRG Energy, Inc.	$	(458	)	$	661	$	(66	)	$	48	$	(449	)	$	(7	)	$	(271	)



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	166	$	1	$	4	$	2	$	13	$	—	$	186



	Generation^(a)			Retail ^(a)		Renewables^(a)(b)			NRG Yield		Corporate^(a)			Eliminations			Total
Six months ended June 30, 2017	(In millions)
Operating revenues^(a)	$	1,848		$	2,938	$	220		$	502	$	11		$	(436	)	$	5,083
Depreciation and amortization	192			57		99			153		16			—			517
Impairment losses	41			—		22			—		—			—			63
Equity in (losses)/earnings of unconsolidated affiliates	(28		)	—		(3		)	35		7			(9		)	2
(Loss)/income from continuing operations before income taxes	(54		)	303		(89		)	51		(273		)	(9		)	(71		)
(Loss)/Income from continuing operations	(56		)	311		(79		)	44		(281		)	(9		)	(70		)
Loss from discontinued operations, net of tax	—			—		—			—		(775		)	—			(775		)
Net (Loss)/Income	(56		)	311		(79		)	44		(1,056		)	(9		)	(845		)
Net (Loss)/Income attributable to NRG Energy, Inc.	$	(56	)	$	311	$	(26	)	$	58	$	(1,089	)	$	12		$	(790	)



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	406	$	11	$	4	$	—	$	15	$	—	$	436



	Generation^(a)(c)			Retail^(a)		Renewables^(a)			NRG Yield^(a)		Corporate^(a)			Eliminations			Total
Six months ended June 30, 2016	(In millions)
Operating revenues^(a)	$	1,637		$	2,906	$	197		$	517	$	28		$	(378	)	$	4,907
Depreciation and amortization	197			57		95			149		30			—			528
Impairment losses	17			—		27			—		12			—			56
Equity in (losses)/earnings of unconsolidated affiliates	(5		)	—		(8		)	18		6			(14		)	(3		)
Loss on sale of assets	—			—		—			—		(83		)	—			(83		)
Impairment loss on investment	(137		)	—		—			—		(2		)	—			(139		)
Loss on debt extinguishment, net	—			—		—			—		(69		)	—			(69		)
(Loss)/income from continuing operations before income taxes	(433		)	808		(122		)	78		(495		)	(9		)	(173		)
(Loss)/income from continuing operations	(433		)	807		(111		)	66		(540		)	(9		)	(220		)
Loss from discontinued operations, net of tax	—			—		—			—		(9		)	—			(9		)
Net (Loss)/Income	(433		)	807		(111		)	66		(549		)	(9		)	(229		)
Net (Loss)/Income attributable to NRG Energy, Inc.	$	(433	)	$	807	$	(96	)	$	58	$	(558	)	$	33		$	(189	)



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	330	$	5	$	8	$	6	$	29	$	—	$	378