Segments

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segments

21. Segments

Talen’s operating segments are based on the market areas in which our generation facilities operate and reflect the manner in which our Chief Executive Officer, who is the chief operating decision maker, reviews results and allocate resources. Adjusted EBITDA is the key profit metric used to measure financial performance of each segment. Total assets or other asset metrics are not considered a key metric or reviewed by the chief operating decision maker.

“PJM” is engaged in electricity generation, marketing activities, commodity risk and fuel management within the PJM RTO or ISO markets and is comprised of Susquehanna and Talen’s natural gas and coal generation facilities.

“Other” represents an operating segment that includes the operating and marketing activities of Talen Montana’s proportionate share of Colstrip in the WECC market and other non-material operating and development activities. “Other” also includes the operating activities of Nautilus until Bitcoin mining operations were suspended in October 2024 and the operating activities of our Texas power generation facilities in the ERCOT market prior to their disposal in May 2024. We have determined it appropriate to aggregate results of Talen’s remaining non-reportable segments and other operating activities.

“Corporate and Eliminations” represents a non-reportable segment that includes: (i) general and administrative expenses incurred by our corporate function; (ii) interest expense and other corporate activities not allocated to our operating segments; and (iii) intercompany eliminations. This grouping is presented to reconcile the reportable segments to our consolidated results.

Financial results for the segments and reconciliation to consolidated results:

	PJM		Other		Corporate and Eliminations		Total
Year Ended December 31, 2024 (Successor)
Operating revenues	$	1,866	$	367	$	(118)	$	2,115
Operation, maintenance and development expenses (a)	518		74		—		592
Interest expense and other finance charges	—		—		238		238
Other segment items (b)	573
Adjusted EBITDA	775
Capital expenditures	164		24		1		189
May 18 through December 31, 2023 (Successor)
Operating revenues	$	1,120	$	397	$	(173)	$	1,344
Operation, maintenance and development expenses (a)	294		78		(14)		358
Interest expense and other finance charges	—		—		176		176
Other segment items (b)	449
Adjusted EBITDA	377
Capital expenditures	110		45		6		161
January 1 through May 17, 2023 (Predecessor)
Operating revenues	$	1,052	$	195	$	(37)	$	1,210
Operation, maintenance and development expenses (a)	245		47		(7)		285
Interest expense and other finance charges	—		—		163		163
Other segment items (b)	119
Adjusted EBITDA	688
Capital expenditures	132		53		2		187
Year ended December 31, 2022 (Predecessor)
Operating revenues	$	2,902	$	194	$	(7)	$	3,089
Operation, maintenance and development expenses (a)	519		97		(6)		610
Interest expense and other finance charges	—		—		359		359
Other segment items (b)	1,402
Adjusted EBITDA	981
Capital expenditures	237		69		6		312

__________________

(a)This significant segment expense category aligns with the segment-level information that is regularly provided to the CODM.

(b)Other segment items are primarily comprised of fuel and energy purchases.

Reconciliation of segment Adjusted EBITDA to Net Income (Loss):

	Successor				Predecessor
	Year Ended December 31, 2024		May 18 through December 31, 2023		January 1 through May 17, 2023		Year Ended December 31, 2022
Adjusted EBITDA:
PJM	$	775	$	377	$	688	$	981
Total Segment Adjusted EBITDA	$	775	$	377	$	688	$	981
Reconciling Items:
Interest expense and other finance charges	$	(238)	$	(176)	$	(163)	$	(359)
Income tax benefit (expense)	(98)		(51)		(212)		35
Depreciation, amortization and accretion	(298)		(165)		(200)		(520)
Nuclear fuel amortization	(123)		(108)		(33)		(94)
Reorganization (gain) loss, net	—		—		799		(812)
Unrealized (gain) loss on commodity derivative contracts	62		52		(63)		625
Nuclear decommissioning trust funds gain (loss), net	178		108		57		(184)
Stock-based compensation expense	(33)		(19)		—		—
Long-term incentive compensation expense	(21)		(2)		—		—
Gain (loss) on asset sales, net	884		7		50		—
Non-cash impairments	(1)		(3)		(381)		—
Legal settlements and litigation costs	10		84		(1)		(20)
Unusual market events	1		19		(14)		(29)
Net periodic defined benefit cost	(14)		(2)		3		(12)
Operational and other restructuring activities	(76)		(48)		(17)		(570)
Hedge termination losses, net	—		—		—		(158)
Development expenses	(1)		(7)		(10)		(17)
Non-cash inventory net realizable value, obsolescence, and other charges	(20)		(4)		(56)		(3)
Consolidation of subsidiary gain (loss), net	—		—		—		(170)
"Other" operating segment	71		113		37		103
Noncontrolling interest	21		42		14		(3)
Corporate and Eliminations	(76)		(64)		(30)		(69)
Other items	10		(10)		(3)		(17)
Net Income (Loss)	$	1,013	$	143	$	465	$	(1,293)