Income Taxes (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic)

9 Months Ended

Sep. 30, 2017

Income Taxes (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic)

GenOn

GenOn’s income tax expense consisted of the following:



	Three months ended September 30,						Nine months ended September 30,
(In millions except otherwise noted)	2017			2016			2017			2016
Income before income taxes	$	72		$	284		$	49		$	268
Income tax expense	—			21			7			20
Effective tax rate	—		%	7.4		%	14.3		%	7.5		%

For the three months ended September 30, 2017, GenOn's overall effective tax rate was different than the statutory rate of 35% primarily due to a change in the valuation allowance.

For the nine months ended September 30, 2017, GenOn's overall effective tax rate was different than the statutory rate of 35% primarily due to a change in the valuation allowance, partially offset by the impact of state income taxes.

For the three and nine months ended September 30, 2016, GenOn's overall effective tax rate was different than the statutory rate of 35% primarily due to a change in the valuation allowance, offset by the impact of state income taxes associated with the disposition of generating stations during the year.

GenOn Americas Generation

GenOn Americas Generation's allocated income taxes resulting from its operations for the three and nine months ended September 30, 2017 and 2016 was zero. GenOn Americas Generation's pro forma income taxes resulting from its operations for the three and nine months ended September 30, 2017 and 2016 was zero due to the valuation allowance recorded on its stand-alone financial results.

GenOn Mid-Atlantic

GenOn Mid-Atlantic’s allocated income taxes resulting from its operations for the three and nine months ended September 30, 2017 and 2016 was zero. GenOn Mid-Atlantic’s pro forma income taxes resulting from its operations was zero and a tax expense of $23 million during the three months ended September 30, 2017 and 2016, respectively. The pro forma income tax provision attributable to income before taxes was zero and a tax expense of $25 million during the nine months ended September 30, 2017 and 2016, respectively.