Goodwill and Other Intangibles (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill did not change during the year ended December 31, 2020.


(in millions)	Texas		East		West/Services/Other		Total
Balance as of January 1, 2021	$	324	$	240	$	15	$	579
Goodwill resulted from the acquisition of Direct Energy	427		648		175		1,250
Impairment losses	—		(35)		—		(35)
Foreign currency translation	—		—		1		1
Balance as of December 31, 2021	$	751	$	853	$	191	$	1,795

Summary of the Components of Intangible Assets Subject to Amortization

The following tables summarize the components of NRG's intangible assets:


(In millions)
Year Ended December 31, 2021	Emission Allowances		Customer and Supply Contracts		Customer Relationships		Marketing Partnerships		Trade Names		Other(b)		Total
January 1, 2021	$	672	$	28	$	527	$	285	$	373	$	140	$	2,025
Purchases	10		—		—		—		—		338		348
Acquisition of businesses (a)	—		610		1,308		—		310		124		2,352
Usage/Sales/Retirements	(1)		—		—		—		—		(364)		(365)
Write-off of fully amortized balances	(51)		—		(158)		—		—		(7)		(216)

Other	4		—		2		(1)		—		(2)		3
December 31, 2021	634		638		1,679		284		683		229		4,147
Less accumulated amortization	(536)		(94)		(518)		(123)		(294)		(71)		(1,636)
Net carrying amount	$	98	$	544	$	1,161	$	161	$	389	$	158	$	2,511

(a)The weighted average life of total acquired amortizable intangibles from the Direct Energy acquisition was 12 years, see Note 4 — Acquisitions, Discontinued Operations and Dispositions for weighted average life of acquired amortizable intangibles for each intangible asset type

(b)RECs are not subject to amortization and had a carrying value of $123 million


(In millions)
Year Ended December 31, 2020	Emission Allowances		Customer and Supply Contracts		Customer Relationships		Marketing Partnerships		Trade Names		Other(b)		Total
January 1, 2020	$	662	$	28	$	573	$	285	$	373	$	130	$	2,051
Purchases	25		—		—		—		—		45		70
Acquisition of businesses (a)	—		—		22		—		—		—		22
Usage/Retirements	—		—		—		—		—		(35)		(35)
Write-off of fully amortized balances	(4)		—		(70)		—		—		—		(74)
Impairment	(14)		—		—		—		—		—		(14)
Other	3		—		2		—		—		—		5
December 31, 2020	672		28		527		285		373		140		2,025
Less accumulated amortization	(563)		(28)		(349)		(99)		(247)		(71)		(1,357)
Net carrying amount	$	109	$	—	$	178	$	186	$	126	$	69	$	668

(a)The weighted average life of acquired intangibles was 5 years for customer relationships

(b)RECs are not subject to amortization and had a carrying value of $28 million

Schedule of Amortization and Retirements of Intangible Expense

The following table presents NRG's amortization of intangible assets for each of the past three years:


	Years Ended December 31,
(In millions)	2021		2020		2019
Emission allowances	$	24	$	28	$	32
Customer and supply contracts	66		12		14
Customer relationships	327		74		44
Marketing partnerships	24		24		15
Trade names	47		27		25
Other(a)	7		3		4
Total amortization	$	495	$	168	$	134

(a)For the years ended December 31, 2021, 2020 and 2019, other intangibles were amortized to depreciation and amortization expense for $3 million, $3 million and $4 million, respectively

Schedule of Estimated Amortization of Intangible Assets for Next Five Years

The following table presents estimated amortization of NRG's intangible assets as of December 31, 2021 for each of the next five years:


(In millions)
Year Ended December 31,	Emission Allowances		Customer and Supply Contracts		Customer Relationships		Marketing Partnerships		Trade Names		Other		Total
2022	$	14	$	143	$	265	$	23	$	47	$	3	$	495
2023	12		120		216		23		46		4		421
2024	12		73		148		23		38		3		297
2025	11		50		110		22		32		4		229
2026	9		52		95		22		24		4		206