Goodwill And Identifiable Intangible Assets

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Identifiable Intangible Assets

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

Goodwill

The following table provides information regarding our goodwill balance, which arose in connection with accounting for the Merger. There were no changes to the goodwill balance for the three and nine months ended September 30, 2013. None of the goodwill is being deducted for tax purposes.



Goodwill before impairment charges	$	18,322
Accumulated impairment charges	(13,370		)
Balance at September 30, 2013 and December 31, 2012	$	4,952

In the first quarter 2013, we finalized the fair value calculations supporting the $1.2 billion noncash goodwill impairment charge that was recorded in the fourth quarter 2012. No additional impairment was recorded.

We have determined that in consideration of our most recent forecasts of wholesale power prices in ERCOT, the likelihood of a goodwill impairment has increased. We have initiated an evaluation of goodwill as of September 30, 2013, which will be completed in the fourth quarter 2013 and could result in a noncash goodwill impairment charge in that period.

Identifiable Intangible Assets

Identifiable intangible assets, including amounts that arose in connection with accounting for the Merger, are comprised of the following:



	September 30, 2013						December 31, 2012
Identifiable Intangible Asset	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Retail customer relationship	$	463	$	396	$	67	$	463	$	378	$	85
Favorable purchase and sales contracts	551		333		218		552		314		238
Software and other computer-related assets	348		145		203		320		112		208
Environmental allowances and credits	598		407		191		594		393		201
Mining development costs	196		105		91		163		82		81
Total identifiable intangible assets subject to amortization	$	2,156	$	1,386	770		$	2,092	$	1,279	813
Retail trade name (not subject to amortization)					955						955
Mineral interests (not currently subject to amortization)					11						13
Total identifiable intangible assets					$	1,736					$	1,781

Amortization expense related to identifiable intangible assets (including income statement line item) consisted of:



Identifiable Intangible Asset	Income Statement Line	Three Months Ended September 30,				Nine Months Ended September 30,
Identifiable Intangible Asset	Income Statement Line	2013		2012		2013		2012
Retail customer relationship	Depreciation and amortization	$	6	$	8	$	18	$	25
Favorable purchase and sales contracts	Operating revenues/fuel, purchased power costs and delivery fees	6		5		19		20
Software and other computer-related assets	Depreciation and amortization	14		9		33		24
Environmental allowances and credits	Fuel, purchased power costs and delivery fees	5		6		11		15
Mining development costs	Depreciation and amortization	8		7		23		20
Total amortization expense		$	39	$	35	$	104	$	104

Estimated Amortization of Identifiable Intangible Assets — The estimated aggregate amortization expense of identifiable intangible assets for each of the next five fiscal years is as follows:



Year	Estimated Amortization Expense
2013	$	143
2014	$	138
2015	$	126
2016	$	101
2017	$	78

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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