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Condensed Consolidating Financial Information
 6 Months Ended
Jun. 30, 2017
Condensed Consolidating Financial Information Disclosure [Abstract]  
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information
As of June 30, 2017, the Company had outstanding $5.4 billion of Senior Notes due from 2018 to 2027, as shown in Note 8, Debt and Capital Leases. These Senior Notes are guaranteed by certain of NRG's current and future 100% owned domestic subsidiaries, or guarantor subsidiaries. These guarantees are both joint and several. The non-guarantor subsidiaries include all of NRG's foreign subsidiaries and certain domestic subsidiaries, and NRG Yield, Inc. and its subsidiaries.
Unless otherwise noted below, each of the following guarantor subsidiaries fully and unconditionally guaranteed the Senior Notes as of June 30, 2017:
Ace Energy, Inc.
Norwalk Power LLC
NRG Operating Services, Inc.
Allied Home Warranty GP LLC
NRG Advisory Services LLC
NRG Oswego Harbor Power Operations Inc.
Allied Warranty LLC
NRG Affiliate Services Inc.
NRG PacGen Inc.
Arthur Kill Power LLC
NRG Artesian Energy LLC
NRG Portable Power LLC
Astoria Gas Turbine Power LLC
NRG Arthur Kill Operations Inc.
NRG Power Marketing LLC
Bayou Cove Peaking Power, LLC
NRG Astoria Gas Turbine Operations Inc.
NRG Reliability Solutions LLC
BidURenergy, Inc.
NRG Bayou Cove LLC
NRG Renter's Protection LLC
Cabrillo Power I LLC
NRG Business Services LLC
NRG Retail LLC
Cabrillo Power II LLC
NRG Business Solutions LLC
NRG Retail Northeast LLC
Carbon Management Solutions LLC
NRG Cabrillo Power Operations Inc.
NRG Rockford Acquisition LLC
Cirro Group, Inc.
NRG California Peaker Operations LLC
NRG Saguaro Operations Inc.
Cirro Energy Services, Inc.
NRG Cedar Bayou Development Company, LLC
NRG Security LLC
Clean Edge Energy LLC
NRG Connected Home LLC
NRG Services Corporation
Conemaugh Power LLC
NRG Connecticut Affiliate Services Inc.
NRG SimplySmart Solutions LLC
Connecticut Jet Power LLC
NRG Construction LLC
NRG South Central Affiliate Services Inc.
Cottonwood Development LLC
NRG Curtailment Solutions Holdings LLC
NRG South Central Generating LLC
Cottonwood Energy Company LP
NRG Curtailment Solutions, Inc
NRG South Central Operations Inc.
Cottonwood Generating Partners I LLC
NRG Development Company Inc.
NRG South Texas LP
Cottonwood Generating Partners II LLC
NRG Devon Operations Inc.
NRG SPV #1 LLC
Cottonwood Generating Partners III LLC
NRG Dispatch Services LLC
NRG Texas C&I Supply LLC
Cottonwood Technology Partners LP
NRG Distributed Generation PR LLC
NRG Texas Gregory LLC
Devon Power LLC
NRG Dunkirk Operations Inc.
NRG Texas Holding Inc.
Dunkirk Power LLC
NRG El Segundo Operations Inc.
NRG Texas LLC
Eastern Sierra Energy Company LLC
NRG Energy Efficiency-L LLC
NRG Texas Power LLC
El Segundo Power, LLC
NRG Energy Labor Services LLC
NRG Warranty Services LLC
El Segundo Power II LLC
NRG ECOKAP Holdings LLC
NRG West Coast LLC
Energy Alternatives Wholesale, LLC
NRG Energy Services Group LLC
NRG Western Affiliate Services Inc.
Energy Choice Solutions LLC
NRG Energy Services International Inc.
O'Brien Cogeneration, Inc. II
Energy Plus Holdings LLC
NRG Energy Services LLC
ONSITE Energy, Inc.
Energy Plus Natural Gas LLC
NRG Generation Holdings, Inc.
Oswego Harbor Power LLC
Energy Protection Insurance Company
NRG Greenco
RE Retail Receivables, LLC
Everything Energy LLC
NRG Home & Business Solutions LLC
Reliant Energy Northeast LLC
Forward Home Security, LLC
NRG Home Services LLC
Reliant Energy Power Supply, LLC
GCP Funding Company, LLC
NRG Home Solutions LLC
Reliant Energy Retail Holdings, LLC
Green Mountain Energy Company
NRG Home Solutions Product LLC
Reliant Energy Retail Services, LLC
Gregory Partners, LLC
NRG Homer City Services LLC
RERH Holdings, LLC
Gregory Power Partners LLC
NRG Huntley Operations Inc.
Saguaro Power LLC
Huntley Power LLC
NRG HQ DG LLC
Somerset Operations Inc.
Independence Energy Alliance LLC
NRG Identity Protect LLC
Somerset Power LLC
Independence Energy Group LLC
NRG Ilion Limited Partnership
Texas Genco Financing Corp.
Independence Energy Natural Gas LLC
NRG Ilion LP LLC
Texas Genco GP, LLC
Indian River Operations Inc.
NRG International LLC
Texas Genco Holdings, Inc.
Indian River Power LLC
NRG Maintenance Services LLC
Texas Genco LP, LLC
Keystone Power LLC
NRG Mextrans Inc.
Texas Genco Operating Services, LLC
Langford Wind Power, LLC
NRG MidAtlantic Affiliate Services Inc.
Texas Genco Services, LP
Louisiana Generating LLC
NRG Middletown Operations Inc.
US Retailers LLC
Meriden Gas Turbines LLC
NRG Montville Operations Inc.
Vienna Operations Inc.
Middletown Power LLC
NRG New Roads Holdings LLC
Vienna Power LLC
Montville Power LLC
NRG North Central Operations Inc.
WCP (Generation) Holdings LLC
NEO Corporation
NRG Northeast Affiliate Services Inc.
West Coast Power LLC
New Genco GP, LLC
NRG Norwalk Harbor Operations Inc.
 
 
 
 
NRG conducts much of its business through and derives much of its income from its subsidiaries. Therefore, the Company's ability to make required payments with respect to its indebtedness and other obligations depends on the financial results and condition of its subsidiaries and NRG's ability to receive funds from its subsidiaries. There are no restrictions on the ability of any of the guarantor subsidiaries to transfer funds to NRG. However, there may be restrictions for certain non-guarantor subsidiaries.
The following condensed consolidating financial information presents the financial information of NRG Energy, Inc., the guarantor subsidiaries and the non-guarantor subsidiaries in accordance with Rule 3-10 under the SEC Regulation S-X. The financial information may not necessarily be indicative of results of operations or financial position had the guarantor subsidiaries or non-guarantor subsidiaries operated as independent entities.
In this presentation, NRG Energy, Inc. consists of parent company operations. Guarantor subsidiaries and non-guarantor subsidiaries of NRG are reported on an equity basis. For companies acquired, the fair values of the assets and liabilities acquired have been presented on a push-down accounting basis.
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the three months ended June 30, 2017
(Unaudited)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
NRG Energy, Inc.
(Note Issuer)
 
Eliminations(a)
 
Consolidated
 
(In millions)
Operating Revenues
 
 
 
 
 
 
 
 
 
Total operating revenues
$
1,758

 
$
989

 
$
—

 
$
(46
)
 
$
2,701

Operating Costs and Expenses
 
 
 
 
 
 
 
 
 
Cost of operations
1,307

 
558

 
16

 
(44
)
 
1,837

Depreciation and amortization
102

 
150

 
8

 
—

 
260

Impairment losses
42

 
21

 
—

 
—

 
63

Selling, general and administrative
86

 
38

 
100

 
(1
)
 
223

Acquisition-related transaction and integration costs
—

 
1

 
—

 
—

 
1

Development activity expenses
—

 
13

 
5

 
—

 
18

Total operating costs and expenses
1,537

 
781

 
129

 
(45
)
 
2,402

     Other income - affiliate
—

 
—

 
42

 
—

 
42

Gain on sale of assets
2

 
—

 
—

 
—

 
2

Operating Income/(Loss)
223

 
208

 
(87
)
 
(1
)
 
343

Other Income/(Expense)
 
 
 
 
 
 
 
 
 
Equity in earnings/(losses) of consolidated subsidiaries
57

 
(22
)
 
(123
)
 
88

 
—

Equity in earnings/(losses) of unconsolidated affiliates
—

 
676

 
(645
)
 
(34
)
 
(3
)
Other income
—

 
7

 
3

 
—

 
10

Interest expense
(4
)
 
(121
)
 
(122
)
 


 
(247
)
Total other income/(expense)
53

 
540

 
(887
)
 
54

 
(240
)
Income/(Loss) from Continuing Operations Before Income Taxes
276

 
748

 
(974
)
 
53

 
103

Income tax expense/(benefit)
113

 
267

 
(376
)
 
—

 
4

Income/(Loss) from Continuing Operations
163

 
481

 
(598
)
 
53

 
99

Loss from Discontinued Operations, net of income tax
—

 
(741
)
 
—

 
—

 
(741
)
Net Income/(Loss)
163

 
(260
)
 
(598
)
 
53

 
(642
)
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interests
—

 
(9
)
 
28

 
(35
)
 
(16
)
Net Income/(Loss) Attributable to
NRG Energy, Inc.
$
163

 
$
(251
)
 
$
(626
)
 
$
88

 
$
(626
)

(a)
All significant intercompany transactions have been eliminated in consolidation.









NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the six months ended June 30, 2017
(Unaudited)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
NRG Energy, Inc.
(Note Issuer)
 
Eliminations(a)
 
Consolidated
 
(In millions)
Operating Revenues
 
 
 
 
 
 
 
 
 
Total operating revenues
$
3,357


$
1,851


$
—


$
(125
)

$
5,083

Operating Costs and Expenses
 
 
 
 
 
 
 
 
 
Cost of operations
2,568

 
1,222

 
31

 
(125
)
 
3,696

Depreciation and amortization
203

 
298

 
16

 
—

 
517

Impairment losses
42

 
21

 
—

 
—

 
63

Selling, general and administrative
184

 
84

 
216

 
(2
)
 
482

Acquisition-related transaction and integration costs
—

 
2

 
—

 
—

 
2

Development activity expenses
—

 
25

 
10

 
—

 
35

Total operating costs and expenses
2,997

 
1,652

 
273

 
(127
)
 
4,795

     Other income - affiliate
—

 
—

 
90

 
—

 
90

Gain on sale of assets
4

 
—

 
—

 
—

 
4

Operating Income/(Loss)
364

 
199

 
(183
)
 
2

 
382

Other Income/(Expense)
 
 
 
 
 
 
 
 
 
Equity in (losses)/earnings of consolidated subsidiaries
(20
)
 
(57
)
 
(48
)
 
125

 
—

Equity in earnings/(losses) of unconsolidated affiliates
—

 
707

 
(669
)
 
(36
)
 
2

Other income
1

 
12

 
5

 
—

 
18

Loss on debt extinguishment
—

 
(2
)
 
—

 
—

 
(2
)
Interest expense
(7
)
 
(225
)
 
(239
)
 
—

 
(471
)
Total other (expense)/income
(26
)
 
435

 
(951
)
 
89

 
(453
)
Income/(Loss) from Continuing Operations Before Income Taxes
338

 
634

 
(1,134
)
 
91

 
(71
)
Income tax expense/(benefit)
131

 
237

 
(369
)
 
—

 
(1
)
Income/(Loss) from Continuing Operations
207

 
397

 
(765
)
 
91

 
(70
)
Loss from Discontinued Operations, net of income tax
—

 
(775
)
 
—

 
—

 
(775
)
Net Income/(Loss)
207

 
(378
)
 
(765
)
 
91

 
(845
)
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interests
—

 
(46
)
 
25

 
(34
)
 
(55
)
Net Income/(Loss) Attributable to
NRG Energy, Inc.
$
207

 
$
(332
)
 
$
(790
)
 
$
125

 
$
(790
)
(a)
All significant intercompany transactions have been eliminated in consolidation.
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
For the three months ended June 30, 2017
(Unaudited)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
NRG Energy, Inc.
(Note Issuer)
 
Eliminations(a)
 
Consolidated
 
(In millions)
Net Income/(Loss)
$
163

 
$
(260
)
 
$
(598
)
 
$
53

 
$
(642
)
Other Comprehensive Income/(Loss), net of tax
 
 
 
 
 
 
 
 
 
Unrealized loss on derivatives, net
—

 
(6
)
 
(4
)
 
5

 
(5
)
Foreign currency translation adjustments, net
—

 
1

 
—

 
—

 
1

Available-for-sale securities, net
—

 
—

 
1

 
—

 
1

Defined benefit plans, net
—

 
28

 
28

 
(29
)
 
27

Other comprehensive income/(loss)
—

 
23

 
25

 
(24
)
 
24

Comprehensive Income/(Loss)
163

 
(237
)
 
(573
)
 
29

 
(618
)
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest
—

 
(10
)
 
28

 
(35
)
 
(17
)
Comprehensive Income/(Loss) Attributable to NRG Energy, Inc.
$
163

 
$
(227
)
 
$
(601
)
 
$
64

 
$
(601
)
(a)
All significant intercompany transactions have been eliminated in consolidation.





















NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
For the six months ended June 30, 2017
(Unaudited)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
NRG Energy, Inc.
(Note Issuer)
 
Eliminations(a)
 
Consolidated
 
(In millions)
Net Income/(Loss)
$
207

 
$
(378
)
 
$
(765
)
 
$
91

 
$
(845
)
Other Comprehensive Income/(Loss), net of tax
 
 
 
 
 
 
 
 
 
Unrealized gain on derivatives, net
—

 
(1
)
 
—

 
—

 
(1
)
Foreign currency translation adjustments, net
5

 
5

 
7

 
(9
)
 
8

Available-for-sale securities, net
—

 
—

 
1

 
—

 
1

Defined benefit plans, net
—

 
29

 
27

 
(29
)
 
27

Other comprehensive income
5

 
33

 
35

 
(38
)
 
35

Comprehensive Income/(Loss)
212

 
(345
)
 
(730
)
 
53

 
(810
)
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest
—

 
(47
)
 
25

 
(34
)
 
(56
)
Comprehensive Income/(Loss) Attributable to NRG Energy, Inc.
$
212

 
$
(298
)
 
$
(755
)
 
$
87

 
$
(754
)
(a)
All significant intercompany transactions have been eliminated in consolidation.
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
June 30, 2017
(Unaudited)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
NRG Energy, Inc.
(Note Issuer)
 
Eliminations(a)
 
Consolidated
ASSETS
(In millions)
Current Assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
(19
)
 
$
363

 
$
408

 
$
—

 
$
752

Funds deposited by counterparties
14

 
2

 
3

 
—

 
19

Restricted cash
23

 
443

 
3

 
—

 
469

Accounts receivable - trade, net
783

 
376

 
3

 
—

 
1,162

Accounts receivable - affiliate
195

 
5

 
1

 
(102
)
 
99

Inventory
472

 
241

 
—

 
—

 
713

Derivative instruments
572

 
142

 
4

 
(74
)
 
644

Cash collateral paid in support of energy risk management activities
252

 
25

 
—

 
—

 
277

Prepayments and other current assets
106

 
155

 
40

 
—

 
301

Current assets - held for sale
—

 
33

 
—

 
—

 
33

Total current assets
2,398

 
1,785

 
462


(176
)
 
4,469

Net property, plant and equipment
4,038

 
11,049

 
241

 
(26
)
 
15,302

Other Assets
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
1,158

 
1,040

 
9,626

 
(11,824
)
 
—

Equity investments in affiliates
—

 
1,123

 
4

 
—

 
1,127

Notes receivable, less current portion
—

 
9

 
—

 
—

 
9

Goodwill
359

 
303

 
—

 
—

 
662

Intangible assets, net
560

 
1,336

 
—

 
(3
)
 
1,893

Nuclear decommissioning trust fund
637

 
—

 
—

 
—

 
637

Derivative instruments
187

 
47

 
26

 
(34
)
 
226

Deferred income tax
(6
)
 
(361
)
 
578

 
—

 
211

Non-current assets held-for-sale
—

 
10

 
—

 
—

 
10

Other non-current assets
60

 
537

 
62

 
—

 
659

Total other assets
2,955

 
4,044

 
10,296

 
(11,861
)
 
5,434

Total Assets
$
9,391

 
$
16,878

 
$
10,999

 
$
(12,063
)
 
$
25,205

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
 
Current portion of long-term debt and capital leases
$
—

 
$
622

 
$
420

 
$
—

 
$
1,042

Accounts payable
540

 
187

 
30

 
—

 
757

Accounts payable — affiliate
724

 
(441
)
 
(136
)
 
(130
)
 
17

Derivative instruments
590

 
195

 
—

 
(74
)
 
711

Cash collateral received in support of energy risk management activities
14

 
2

 
3

 


 
19

Accrued expenses and other current liabilities
298

 
5

 
479

 
28

 
810

Accrued expenses and other current liabilities-affiliate
—

 
164

 
—

 
—

 
164

Total current liabilities
2,166

 
734

 
796

 
(176
)
 
3,520

Other Liabilities
 
 
 
 
 
 
 
 
 
Long-term debt and capital leases
244

 
8,616

 
6,982

 
—

 
15,842

Nuclear decommissioning reserve
262

 
—

 
—

 
—

 
262

Nuclear decommissioning trust liability
367

 
—

 
—

 
—

 
367

Deferred income taxes
308

 
—

 
(288
)
 
—

 
20

Derivative instruments
179

 
148

 
—

 
(34
)
 
293

Out-of-market contracts, net
74

 
145

 
—

 
—

 
219

Non-current liabilities held-for-sale
—

 
13

 
—

 
—

 
13

Other non-current liabilities
383

 
316

 
436

 
—

 
1,135

Total non-current liabilities
1,817

 
9,238

 
7,130

 
(34
)
 
18,151

Total liabilities
3,983

 
9,972

 
7,926

 
(210
)
 
21,671

Redeemable noncontrolling interest in subsidiaries
—

 
51

 
—

 
—

 
51

Stockholders’ Equity
5,408

 
6,855

 
3,073

 
(11,853
)
 
3,483

Total Liabilities and Stockholders’ Equity
$
9,391

 
$
16,878

 
$
10,999

 
$
(12,063
)
 
$
25,205

(a)
All significant intercompany transactions have been eliminated in consolidation.
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATING STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2017 (Unaudited)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
NRG Energy, Inc.
(Note Issuer)
 
Eliminations(a)
 
Consolidated
 
(In millions)
Cash Flows from Operating Activities
 
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations
$
207

 
$
397

 
$
(765
)
 
$
91

 
$
(70
)
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
 
 
 
 
 
 
 
 

Distributions from unconsolidated affiliates
—

 
32

 
—

 
(4
)
 
28

Equity in losses/(earnings) of unconsolidated affiliates
—

 
(13
)
 
2

 
9

 
(2
)
Depreciation and amortization
203

 
298

 
16

 
—

 
517

Provision for bad debts
17

 
1

 
—

 
—

 
18

Amortization of nuclear fuel
24

 
—

 
—

 
—

 
24

Amortization of financing costs and debt discount/premiums
—

 
20

 
9

 
—

 
29

Amortization of intangibles and out-of-market contracts
12

 
39

 
—

 
—

 
51

Amortization of unearned equity compensation
—

 
—

 
16

 
—

 
16

Impairment losses
42

 
21

 
—

 
—

 
63

Changes in deferred income taxes and liability for uncertain tax benefits
131

 
237

 
(360
)
 
—

 
8

Changes in nuclear decommissioning trust liability
2

 
—

 
—

 
—

 
2

Changes in derivative instruments
12

 
(12
)
 
7

 
—

 
7

Changes in collateral deposits supporting energy risk management activities
(203
)
 
11

 
3

 

 
(189
)
Proceeds from sale of emission allowances
11

 
—

 
—

 
—

 
11

Gain on sale of assets
(22
)
 
—

 
—

 
—

 
(22
)
Cash (used)/provided by changes in other working capital
(298
)
 
(1,138
)
 
1,153

 
(96
)
 
(379
)
Cash provided/(used) by continuing operations
138

 
(107
)
 
81

 
—

 
112

Cash used by discontinued operations
—

 
(38
)
 
—

 
—

 
(38
)
Net Cash Provided/(used) by Operating Activities
138

 
(145
)
 
81

 
—

 
74

Cash Flows from Investing Activities
 
 
 
 
 
 
 
 
 

Dividends from NRG Yield, Inc.


 


 
45

 
(45
)
 
—

Acquisition of Drop Down Assets, net of cash acquired
—

 
(131
)
 
—

 
131

 
—

Intercompany dividends
—

 
—

 
129

 
(129
)
 
—

Acquisition of business, net of cash acquired


 
(16
)
 
—

 
—

 
(16
)
Capital expenditures
(90
)
 
(436
)
 
(16
)
 
—

 
(542
)
Decrease in notes receivable
—

 
8

 
—

 
—

 
8

Purchases of emission allowances
(30
)
 
—

 


 
—

 
(30
)
Proceeds from sale of emission allowances
59

 
—

 
—

 
—

 
59

Investments in nuclear decommissioning trust fund securities
(279
)
 
—

 
—

 
—

 
(279
)
Proceeds from sales of nuclear decommissioning trust fund securities
277

 
—

 
—

 
—

 
277

Proceeds from renewable energy grants and state rebates
8

 
—

—

—

 
—

 
8

Proceeds from sale of assets, net of cash disposed of
35

 
—

 
—

 
—

 
35

Investments in unconsolidated affiliates
—

 
(30
)
 
—

 
—

 
(30
)
Other
18

 
—

 


—

—

 
18

Cash (used)/provided by continuing operations
(2
)
 
(605
)
 
158

 
(43
)
 
(492
)
Cash used by discontinued operations
 
 
(53
)
 
 
 
 
 
(53
)
Net Cash (Used)/Provided by Investing Activities
(2
)
 
(658
)
 
158

 
(43
)
 
(545
)
Cash Flows from Financing Activities


 
 

 
 

 
 
 
 
Dividends from NRG Yield, Inc.
—

 
(45
)
 
—

 
45

 
—

Payments (for)/from intercompany loans
(122
)
 
369

 
(247
)
 
—

 
—

Acquisition of Drop Down Assets, net of cash acquired
—

 
—

 
131

 
(131
)
 
—

Intercompany dividends


 
(129
)
 


 
129

 
—

Payment of dividends to common and preferred stockholders
—

 
—

 
(19
)
 
—

 
(19
)
Net receipts from settlement of acquired derivatives that include financing elements
—

 
2

 
—

 
—

 
2

Proceeds from issuance of long-term debt
—

 
741

 
205

 
—

 
946

Payments for short and long-term debt
—

 
(316
)
 
(214
)
 
—

 
(530
)
Receivable from affiliate
—

 
(125
)
 
—

 
—

 
(125
)
Contributions to, net of distributions from, noncontrolling interest in subsidiaries
—

 
14

 
—

 
—

 
14

Payment of debt issuance costs
—

 
(32
)
 
(4
)
 
—

 
(36
)
Other - contingent consideration


 
(10
)
 


 
—

 
(10
)
Cash (used)/provided by continuing operations
(122
)
 
469

 
(148
)
 
43

 
242

Cash used by discontinued operations
—

 
(224
)
 
—

 
—

 
(224
)
Net Cash (Used)/Provided by Financing Activities
(122
)
 
245

 
(148
)
 
43

 
18

Change in cash from discontinued operations
—

 
(315
)
 
—

 
—

 
(315
)
Effect of exchange rate changes on cash and cash equivalents
—

 
(8
)
 
—

 
—

 
(8
)
Net Increase (Decrease) in Cash and Cash Equivalents, Restricted Cash, and Funds Restricted by Counterparties
14

 
(251
)
 
91

 
—

 
(146
)
Cash and Cash Equivalents, Restricted Cash, and Funds Restricted by Counterparties at Beginning of Period
4

 
1,059

 
323

 
—

 
1,386

Cash and Cash Equivalents, Restricted Cash, and Funds Restricted by Counterparties at End of Period
$
18


$
808



$
414



$
—

 
$
1,240

(a)
All significant intercompany transactions have been eliminated in consolidation.
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the three months ended June 30, 2016
(Unaudited)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
NRG Energy, Inc.
(Note Issuer)
 
Eliminations(a)
 
Consolidated
 
(In millions)
Operating Revenues
 
 
 
 
 
 
 
 
 
Total operating revenues
$
1,716

 
$
569

 
$
—

 
$
(37
)
 
$
2,248

Operating Costs and Expenses
 
 
 
 
 
 
 
 
 
Cost of operations
1,128

 
342

 
10

 
(37
)
 
1,443

Depreciation and amortization
112

 
144

 
6

 
—

 
262

Impairment losses
—

 
56

 
—

 
—

 
56

Selling, general and administrative
93

 
46

 
127

 
—

 
266

Acquisition-related transaction and integration costs
—

 
—

 
5

 
—

 
5

Development activity expenses
—

 
13

 
5

 
—

 
18

Total operating costs and expenses
1,333

 
601

 
153

 
(37
)
 
2,050

     Other income - affiliate
 
 
 
 
48

 
 
 
48

Loss on sale of assets
—

 
—

 
(83
)
 
—

 
(83
)
Operating Income/(Loss)
383

 
(32
)
 
(188
)
 
—

 
163

Other Income/(Expense)
 
 
 
 
 

 
 
 
 
Equity in (losses)/earnings of consolidated subsidiaries
(50
)
 
(35
)
 
67

 
18

 
—

Equity in earnings of unconsolidated affiliates
2

 
41

 
7

 
(46
)
 
4

Gain on investment
—

 
—

 
7

 
—

 
7

Other income/(loss), net
1

 
2

 
2

 
—

 
5

Loss on debt extinguishment
—

 
(4
)
 
(76
)
 
—

 
(80
)
Interest expense
(4
)
 
(101
)
 
(132
)
 
—

 
(237
)
Total other expense
(51
)
 
(97
)
 
(125
)
 
(28
)
 
(301
)
Income/(Loss) from Continuing Operations Before Income Taxes
332

 
(129
)
 
(313
)
 
(28
)
 
(138
)
Income tax expense/(benefit)
128

 
(33
)
 
(70
)
 
—

 
25

Income/(Loss) from Continuing Operations
204

 
(96
)
 
(243
)
 
(28
)
 
(163
)
(Loss)/ Income from Discontinued Operations, net of income tax
—

 
(116
)
 
3

 
—

 
(113
)
Net Income/(Loss)
204

 
(212
)
 
(240
)
 
(28
)
 
(276
)
Less: Net income attributable to noncontrolling interest and redeemable noncontrolling interest
—

 
10

 
31

 
(46
)
 
(5
)
Net Income/(Loss) Attributable to NRG Energy, Inc.
$
204

 
$
(222
)
 
$
(271
)
 
$
18

 
$
(271
)
(a)
All significant intercompany transactions have been eliminated in consolidation.
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the six months ended June 30, 2016
(Unaudited)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
NRG Energy, Inc.
(Note Issuer)
 
Eliminations(a)
 
Consolidated
 
(In millions)
Operating Revenues
 
 
 
 
 
 
 
 
 
Total operating revenues
$
3,655

 
$
1,310

 
$
—

 
$
(58
)
 
$
4,907

Operating Costs and Expenses
 
 
 
 
 
 
 
 
 
Cost of operations
2,559

 
754

 
19

 
(61
)
 
3,271

Depreciation and amortization
225

 
291

 
12

 
—

 
528

Impairment losses
—

 
56

 
—

 
—

 
56

Selling, general and administrative
191

 
95

 
234

 
—

 
520

Acquisition-related transaction and integration costs
—

 
—

 
6

 
—

 
6

Development activity expenses
—

 
32

 
12

 
—

 
44

Total operating costs and expenses
2,975

 
1,228

 
283

 
(61
)
 
4,425

     Other income - affiliate
—

 
—

 
96

 
—

 
96

Loss on sale of assets
—

 
—

 
(83
)
 
—

 
(83
)
Operating Income/(Loss)
680

 
82

 
(270
)
 
3

 
495

Other Income/(Expense)
 
 
 
 
 

 
 
 
 
Equity in (losses)/earnings of consolidated subsidiaries
(81
)
 
(70
)
 
342

 
(191
)
 
—

Equity in earnings/(losses) of unconsolidated affiliates
3

 
39

 
10

 
(55
)
 
(3
)
Impairment loss on investment
—

 
(139
)
 
—

 
—

 
(139
)
Other income, net
2

 
19

 
2

 
(1
)
 
22

Loss on debt extinguishment
—

 
(4
)
 
(65
)
 
—

 
(69
)
Interest expense
(7
)
 
(207
)
 
(265
)
 
—

 
(479
)
Total other (expense)/income
(83
)
 
(362
)
 
24

 
(247
)
 
(668
)
Income/(Loss) Before Income Taxes
597

 
(280
)
 
(246
)
 
(244
)
 
(173
)
Income tax expense/(benefit)
228

 
(94
)
 
(87
)
 
—

 
47

Income/(Loss) from Continuing Operations
369

 
(186
)
 
(159
)
 
(244
)
 
(220
)
(Loss)/Income from Discontinued Operations, net of income tax
—

 
(15
)
 
6

 
—

 
(9
)
Net Income/(Loss)
369

 
(201
)
 
(153
)
 
(244
)
 
(229
)
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest
—

 
(23
)
 
36

 
(53
)
 
(40
)
Net Income/(Loss) Attributable to NRG Energy, Inc.
$
369

 
$
(178
)
 
$
(189
)
 
$
(191
)
 
$
(189
)
(a)
All significant intercompany transactions have been eliminated in consolidation.
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
For the three months ended June 30, 2016
(Unaudited)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
NRG Energy, Inc.
(Note Issuer)
 
Eliminations(a)
 
Consolidated
 
(In millions)
Net Income/(Loss)
$
204

 
$
(212
)
 
$
(240
)
 
$
(28
)
 
$
(276
)
Other Comprehensive Income/(Loss), net of tax
 
 
 
 
 
 
 
 
 
Unrealized loss on derivatives, net
—

 
(5
)
 
(4
)
 
6

 
(3
)
Foreign currency translation adjustments, net
(2
)
 
(2
)
 
(4
)
 
5

 
(3
)
Available-for-sale securities, net
—

 
—

 
(2
)
 
—

 
(2
)
Other comprehensive loss
(2
)
 
(7
)
 
(10
)
 
11

 
(8
)
Comprehensive Income/(Loss)
202

 
(219
)
 
(250
)
 
(17
)
 
(284
)
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest
—

 
(1
)
 
31

 
(46
)
 
(16
)
Comprehensive Income/(Loss) Attributable to NRG Energy, Inc.
202

 
(218
)
 
(281
)
 
29

 
(268
)
Gain on redemption of preferred shares
—

 
—

 
(78
)
 
—

 
(78
)
Comprehensive Income/(Loss) Available for Common Stockholders
$
202

 
$
(218
)
 
$
(203
)
 
$
29

 
$
(190
)
(a)
All significant intercompany transactions have been eliminated in consolidation.







NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
For the six months ended June 30, 2016
(Unaudited)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
NRG Energy, Inc.
(Note Issuer)
 
Eliminations(a)
 
Consolidated
 
(In millions)
Net Income/(Loss)
$
369

 
$
(201
)
 
$
(153
)
 
$
(244
)
 
$
(229
)
Other Comprehensive Income/(Loss), net of tax
 
 
 
 
 
 
 
 

Unrealized (loss)/gain on derivatives, net
—

 
(55
)
 
20

 
—

 
(35
)
Foreign currency translation adjustments, net
2

 
2

 
2

 
(3
)
 
3

Available-for-sale securities, net
—

 
—

 
1

 
—

 
1

Defined benefit plans, net
1

 
—

 
—

 
—

 
1

Other comprehensive income/(loss)
3

 
(53
)
 
23

 
(3
)
 
(30
)
Comprehensive Income/(Loss)
372

 
(254
)
 
(130
)
 
(247
)
 
(259
)
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest
—

 
(51
)
 
36

 
(53
)
 
(68
)
Comprehensive Income/(Loss) Attributable to NRG Energy, Inc.
372

 
(203
)
 
(166
)
 
(194
)
 
(191
)
Dividends for preferred shares
—

 
—

 
5

 
—

 
5

Gain on redemption of preferred shares
—

 
—

 
(78
)
 
—

 
(78
)
Comprehensive Income/(Loss) Available for Common Stockholders
$
372

 
$
(203
)
 
$
(93
)
 
$
(194
)
 
$
(118
)
(a)
All significant intercompany transactions have been eliminated in consolidation.
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
December 31, 2016
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
NRG Energy, Inc.
(Note Issuer)
 
Eliminations (a)
 
Consolidated
ASSETS
(In millions)
Current Assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
(9
)
 
$
624

 
$
323

 


 
$
938

Funds deposited by counterparties
2

 
—

 
—

 


 
2

Restricted cash
11

 
435

 
—

 
—

 
446

Accounts receivable - trade, net
734

 
321

 
3

 
—

 
1,058

Accounts receivable - affiliate
307

 
(254
)
 
200

 
(139
)
 
114

Inventory
482

 
239

 
—

 
—

 
721

Derivative instruments
962

 
196

 
1

 
(92
)
 
1,067

Cash collateral paid in support of energy risk management activities
116

 
34

 
—

 
—

 
150

Current assets held-for-sale
—

 
9

 
—

 
—

 
9

Prepayments and other current assets
76

 
152

 
62

 
—

 
290

Current assets - discontinued operations
—

 
1,919

 
—

 
—

 
1,919

Total current assets
2,681

 
3,675

 
589

 
(231
)
 
6,714

Net Property, Plant and Equipment
4,219

 
10,926

 
251

 
(27
)
 
15,369

Other Assets
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
1,090

 
1,054

 
10,128

 
(12,272
)
 
—

Equity investments in affiliates
(13
)
 
1,128

 
5

 
—

 
1,120

Notes receivable, less current portion
—

 
16

 
—

 
—

 
16

Goodwill
359

 
303

 
—

 
—

 
662

Intangible assets, net
592

 
1,384

 
—

 
(3
)
 
1,973

Nuclear decommissioning trust fund
610

 
—

 
—

 
—

 
610

Derivative instruments
144

 
44

 
36

 
(43
)
 
181

Deferred income taxes
3

 
—

 
222

 
—

 
225

Non-current assets held for sale
—

 
10

 
—

 
—

 
10

Other non-current assets
67

 
446

 
328

 
—

 
841

Non-current assets - discontinued operations
—

 
2,961

 
—

 
—

 
2,961

Total other assets
2,852

 
7,346

 
10,719

 
(12,318
)
 
8,599

Total Assets
$
9,752

 
$
21,947

 
$
11,559

 
$
(12,576
)
 
$
30,682

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
 
Current portion of long-term debt and capital leases
$
—

 
$
498

 
$
18

 
$
—

 
$
516

Accounts payable
501

 
247

 
34

 
—

 
782

Accounts payable — affiliate
744

 
(452
)
 
(122
)
 
(139
)
 
31

Derivative instruments
947

 
237

 
—

 
(92
)
 
1,092

Cash collateral received in support of energy risk management activities
81

 
—

 
—

 
—

 
81

Accrued expenses and other current liabilities
316

 
209

 
465

 
—

 
990

Current liabilities - discontinued operations
—

 
1,210

 
—

 
—

 
1,210

Total current liabilities
2,589

 
1,949

 
395

 
(231
)
 
4,702

Other Liabilities
 
 
 
 
 
 
 
 
 
Long-term debt and capital leases
244

 
8,252

 
7,461

 
—

 
15,957

Nuclear decommissioning reserve
287

 
—

 
—

 
—

 
287

Nuclear decommissioning trust liability
339

 
—

 
—

 
—

 
339

Deferred income taxes
186

 
125

 
(291
)
 
—

 
20

Derivative instruments
157

 
170

 
—

 
(43
)
 
284

Out-of-market contracts, net
80

 
150

 
—

 
—

 
230

Non-current liabilities held-for-sale
—

 
11

 
—

 
—

 
11

Other non-current liabilities
396

 
431

 
324

 
—

 
1,151

Non-current liabilities - discontinued operations
—

 
3,209

 
—

 
—

 
3,209

Total non-current liabilities
1,689

 
12,348

 
7,494

 
(43
)
 
21,488

Total Liabilities
4,278

 
14,297

 
7,889

 
(274
)
 
26,190

Redeemable noncontrolling interest in subsidiaries
—

 
46

 
—

 
—

 
46

Stockholders’ Equity
5,474

 
7,604

 
3,670

 
(12,302
)
 
4,446

Total Liabilities and Stockholders’ Equity
$
9,752

 
$
21,947

 
$
11,559


$
(12,576
)
 
$
30,682

(a)
All significant intercompany transactions have been eliminated in consolidation.
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2016 (Unaudited)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
NRG Energy, Inc.
(Note Issuer)
 
Eliminations(a)
 
Consolidated
 
(In millions)
Cash Flows from Operating Activities
 
 
 
 
 
 
 
 
 
Net income/(loss) from continuing operations
$
369

 
$
(186
)
 
$
(159
)
 
$
(244
)
 
$
(220
)
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Distributions from unconsolidated affiliates
—

 
40

 
—

 
(11
)
 
29

Equity in (earnings)/losses of unconsolidated affiliates
(3
)
 
2

 
—

 
4

 
3

Depreciation and amortization
225

 
291

 
12

 
—

 
528

Provision for bad debts
16

 
4

 
—

 
—

 
20

Amortization of nuclear fuel
26

 
—

 
—

 
—

 
26

Amortization of financing costs and debt discount/premiums
—

 
16

 
13

 
—

 
29

Adjustment for debt extinguishment
—

 
4

 
10

 
—

 
14

Amortization of intangibles and out-of-market contracts
20

 
62

 
—

 
—

 
82

Amortization of unearned equity compensation
—

 
—

 
16

 
—

 
16

Impairment losses
—

 
195

 
—

 
—

 
195

Changes in deferred income taxes and liability for uncertain tax benefits
460

 
(208
)
 
(251
)
 
—

 
1

Changes in nuclear decommissioning trust liability
13

 
—

 
—

 
—

 
13

Changes in derivative instruments
(64
)
 
54

 
3

 
—

 
(7
)
Changes in collateral deposits supporting energy risk management activities
344

 
(21
)
 
—

 
—

 
323

Proceeds from sale of emission allowances
47

 
(30
)
 
—

 
—

 
17

Loss on sale of assets
—

 
8

 
75

 
—

 
83

Cash (used)/provided by changes in other working capital
(1,148
)
 
239

 
386

 
251

 
(272
)
Net cash provided by continuing operations
305

 
470


105


—

 
880

Cash used by discontinued operations
 
 
(69
)
 
 
 
 
 
(69
)
Net Cash Provided by Operating Activities
305

 
401

 
105

 
—

 
811

Cash Flows from Investing Activities
 
 
 
 
 
 
 
 
 
Dividends from NRG Yield, Inc.
—

 
—

 
39

 
(39
)
 
—

Intercompany dividends
—

 
—

 
12

 
(12
)
 
—

Acquisition of businesses, net of cash acquired
—

 
(17
)
 
—

 
—

 
(17
)
Capital expenditures
(80
)
 
(329
)
 
(33
)
 
—

 
(442
)
Increase in notes receivable
—

 
(3
)
 
—

 
—

 
(3
)
Purchases of emission allowances
(27
)
 
—

 
—

 
—

 
(27
)
Proceeds from sale of emission allowances
25

 
—

 
—

 
—

 
25

Investments in nuclear decommissioning trust fund securities
(280
)
 
—

 
—

 
—

 
(280
)
Proceeds from sales of nuclear decommissioning trust fund securities
267

 
—

 
—

 
—

 
267

Proceeds from renewable energy grants and state rebates
—

 
10

 
—

 
—

 
10

Proceeds from sale of assets, net of cash disposed of
—

 
—

 
25

 
—

 
25

Investments in unconsolidated affiliates
1

 
—

 
—

 
—

 
1

Other
27

 
4

 
—

 
—

 
31

Net cash (used)/provided by continuing operations
(67
)
 
(335
)
 
43


(51
)
 
(410
)
Cash used by discontinued operations
 
 
(60
)
 
 
 
 
 
(60
)
Net Cash (Used)/Provided by Investing Activities
(67
)
 
(395
)
 
43

 
(51
)
 
(470
)
Cash Flows from Financing Activities
 
 
 
 
 
 
 
 
 
Dividends from NRG Yield, Inc.
—

 
(39
)
 
—

 
39

 
—

Payments (for)/from intercompany loans
(179
)
 
45

 
134

 
—

 
—

Intercompany dividends
(52
)
 
40

 
—

 
12

 
—

Payment of dividends to common and preferred stockholders
—

 
—

 
(57
)
 
—

 
(57
)
Payment for preferred shares
—

 
—

 
(226
)
 
—

 
(226
)
Net receipts for settlement of acquired derivatives that include financing elements
—

 
4

 
—

 
—

 
4

Proceeds from issuance of long-term debt
—

 
332

 
2,891

 
—

 
3,223

Payments for short and long-term debt
(1
)
 
(279
)
 
(3,225
)
 
—

 
(3,505
)
Distributions from, net of contributions to, noncontrolling interest in subsidiaries
—

 
(21
)
 
—

 
—

 
(21
)
Payment of debt issuance costs
—

 
—

 
(35
)
 
—

 
(35
)
Other
(3
)
 
(7
)
 
—

 
—

 
(10
)
Net cash used/provided by continuing operations
(235
)
 
75

 
(518
)
 
51

 
(627
)
Cash provided by discontinued operations
 
 
97

 
 
 
 
 
97

Net Cash (Used)/Provided by Financing Activities
(235
)
 
172

 
(518
)
 
51

 
(530
)
Change in cash from discontinued operations
 
 
(32
)
 
 
 
 
 
(32
)
Effect of exchange rate changes on cash and cash equivalents
—

 
(3
)
 
—

 
—

 
(3
)
Net Increase (Decrease) in Cash and Cash Equivalents, Restricted Cash, and Funds Restricted by Counterparties
3

 
207

 
(370
)
 
—

 
(160
)
Cash and Cash Equivalents, Restricted Cash, and Funds Restricted by Counterparties at Beginning of Period
—

 
629

 
693

 
—

 
1,322

Cash and Cash Equivalents, Restricted Cash, and Funds Restricted by Counterparties at End of Period
$
3

 
$
836

 
$
323

 
$
—

 
$
1,162

(a)
All significant intercompany transactions have been eliminated in consolidation.