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Goodwill and Identifiable Intangible Assets and Liabilities
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Identifiable Intangible Assets and Liabilities GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS AND LIABILITIES
Goodwill

As of December 31, 2024 and 2023, the carrying value of goodwill totaled $2.807 billion and $2.583 billion, respectively.

Retail Segment
Texas Segment
Retail Reporting Unit (a)
Texas Generation Reporting Unit
Total Goodwill
(in millions)
Balance at December 31, 2023
$2,461 $122 $2,583 
Goodwill recorded in connection with the Energy Harbor Merger (b)
224 
Balance at December 31 2024
$2,461 $122 $2,807 
____________
(a)Goodwill of $1.944 billion is deductible for tax purposes over 15 years on a straight-line basis.
(b)Allocation of goodwill attributable to the Energy Harbor acquisition to reporting units is pending completion of purchase accounting measurement period.
Goodwill is required to be evaluated for impairment at least annually or whenever events or changes in circumstances indicate an impairment may exist. We have selected October 1 as our annual goodwill test date. On the most recent goodwill testing date, we applied qualitative factors and determined that it was more likely than not that the fair value of our Retail and Texas Generation reporting units exceeded their carrying value at October 1, 2024. Significant qualitative factors evaluated included reporting unit financial performance and market multiples, general macroeconomic, industry, and market conditions, cost factors, customer attrition, interest rates, market capitalization, and changes in reporting unit book value.

Identifiable Intangible Assets and Liabilities

Identifiable intangible assets are comprised of the following:
December 31, 2024December 31, 2023
Identifiable Intangible AssetGross
Carrying
Amount		Accumulated
Amortization		NetGross
Carrying
Amount		Accumulated
Amortization		Net
(in millions)
Retail customer relationship$2,173 $1,977 $196 $2,088 $1,866 $222 
Software and other technology-related assets601 293 308 536 315 221 
Retail and wholesale contracts503 353 150 233 217 16 
Long-term service agreements18 5 13 18 5 13 
Other identifiable intangible assets (a)218 13 205 62 11 51 
Total identifiable intangible assets subject to amortization$3,513 $2,641 872 $2,937 $2,414 523 
Retail trade names (not subject to amortization)1,341 1,341 
Total identifiable intangible assets$2,213 $1,864 
____________
(a)Includes mining development costs and environmental allowances (emissions allowances and renewable energy certificates).

Identifiable intangible liabilities are comprised of the following:
Year Ended December 31,
Identifiable Intangible Liability20242023
(in millions)
Long-term service agreements
$108 $122 
Wholesale power and fuel purchase contracts
47 9 
Total identifiable intangible liabilities$155 $131 
Amortization of finite-lived identifiable intangible assets and liabilities (including the classification in the consolidated statements of operations) consisted of:
Identifiable Intangible Assets/LiabilitiesConsolidated Statements of OperationsRemaining useful lives of identifiable intangible assets at December 31,
2024 (weighted average in years)		Year Ended December 31,
202420232022
(in millions)
Retail customer relationshipDepreciation and amortization2$111 $98 $137 
Software and other technology-related assetsDepreciation and amortization360 58 69 
Retail and wholesale contractsOperating revenues/Fuel, purchased power costs, and delivery fees3(12)8 7 
Other identifiable intangible assetsFuel, purchased power costs, and delivery fees/Depreciation and amortization4414 357 391 
Total intangible asset expense, net$573 $521 $604 

Amounts recorded in depreciation and amortization totaled $173 million, $158 million, and $208 million for the years ended December 31, 2024, 2023, and 2022, respectively. Amounts include all expenses associated with environmental allowances including expenses accrued to comply with emissions allowance programs and renewable portfolio standards which are presented in fuel, purchased power costs, and delivery fees in the consolidated statements of operations. Emissions allowance obligations are accrued as associated electricity is generated and renewable energy certificate obligations are accrued as retail electricity delivery occurs.

The following is a description of the separately identifiable intangible assets recorded in fresh start reporting and in connection with purchase accounting from acquisitions.

•Retail customer relationship — Retail customer relationship intangible asset represents the fair value of our non-contracted retail customer base, including residential and business customers, and is amortized using an accelerated method based on historical customer attrition rates and reflecting the expected pattern in which economic benefits are realized over their estimated useful life.

•Retail and wholesale contracts — These intangible assets and liabilities represent the value of various acquired retail and wholesale contracts and fuel and transportation purchase contracts. The contracts were identified as either assets or liabilities based on the respective fair values utilizing prevailing market prices for commodities or services compared to the fixed prices contained in these agreements. The intangible assets or liabilities are amortized in relation to the economic terms of the related contracts.

•LTSA — Our acquired LTSA intangibles represent the estimated fair value of favorable or unfavorable contract obligations with respect to long-term plant maintenance agreements and are amortized based on the expected usage of the service agreements over the contract terms. The majority of the plant maintenance services relate to capital improvements and the related amortization of the plant maintenance agreements is recorded to property, plant, and equipment.

•Retail trade names — Our retail trade name intangible assets represent the fair value of our retail brands, including the trade names of TXU EnergyTM, Ambit Energy, 4Change EnergyTM, Homefield Energy, Dynegy Energy Services, TriEagle Energy, Public Power, and U.S. Gas & Electric, and were determined to be indefinite-lived assets not subject to amortization. These intangible assets are evaluated for impairment at least annually in accordance with accounting guidance related to other indefinite-lived intangible assets. We have selected October 1 as our test date. Significant qualitative factors evaluated included trade name financial performance, general macroeconomic, industry, and market conditions, customer attrition and interest rates. On the most recent testing date, we determined that it was more likely than not that the fair value of our retail trade name intangible asset exceeded its carrying value at October 1, 2024.
Estimated Amortization of Identifiable Intangible Assets

As of December 31, 2024, the estimated aggregate amortization expense of identifiable intangible assets, excluding environmental allowances, for each of the next five fiscal years is as shown below.
YearEstimated Amortization Expense
(in millions)
2025$231 
2026$167 
2027$72 
2028$51 
2029$34