XML 28 R16.htm IDEA: XBRL DOCUMENT v3.25.2
Goodwill and Identifiable Intangible Assets and Liabilities
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Identifiable Intangible Assets and Liabilities GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS AND LIABILITIES
Goodwill

As of June 30, 2025 and December 31, 2024, the carrying value of goodwill totaled $2.810 billion and $2.807 billion, respectively.
Retail SegmentTexas Segment
Retail Reporting Unit (a)
Texas Reporting Unit
Goodwill Pending AllocationTotal Goodwill
(in millions)
Balance at December 31, 2024
$2,461 $122 $224 $2,807 
Measurement period adjustment recorded in connection with the Energy Harbor Merger (b)227 — (224)3 
Balance at June 30, 2025
$2,688 $122 $— $2,810 
____________
(a)Goodwill of $1.944 billion is deductible for tax purposes over 15 years on a straight line basis.
(b)Includes the allocation of goodwill attributable to the Energy Harbor acquisition to the retail reporting unit (see Note 2 for additional information).

Identifiable Intangible Assets and Liabilities

Identifiable intangible assets are comprised of the following:
June 30, 2025December 31, 2024
Identifiable Intangible Asset
Gross
Carrying
Amount
Accumulated
Amortization		Net
Gross
Carrying
Amount
Accumulated
Amortization		Net
(in millions)
Retail customer relationships$2,173 $2,022 $151 $2,173 $1,977 $196 
Software and other technology-related assets640 329 311 601 293 308 
Retail and wholesale contracts503 392 111 503 353 150 
Long-term service agreements18 6 12 18 5 13 
Other identifiable intangible assets (a)341 15 326 218 13 205 
Total identifiable intangible assets subject to amortization$3,675 $2,764 911 $3,513 $2,641 872 
Retail trade names (not subject to amortization)1,341 1,341 
Total identifiable intangible assets$2,252 $2,213 
____________
(a)Includes mining development costs and environmental allowances (emissions allowances and renewable energy certificates).

Identifiable intangible liabilities are comprised of the following:
Identifiable Intangible LiabilityJune 30,
2025		December 31,
2024
(in millions)
Long-term service agreements$101 $108 
Wholesale power and fuel purchase contracts43 47 
Total identifiable intangible liabilities$144 $155 
Amortization of finite-lived identifiable intangible assets and liabilities (including the classification in the condensed consolidated statements of operations) consisted of the following:
Identifiable Intangible Assets/LiabilitiesCondensed Consolidated Statements of OperationsThree Months Ended June 30,Six Months Ended June 30,
2025202420252024
(in millions)
Retail customer relationshipsDepreciation and amortization$22 $31 $45 $53 
Software and other technology-related assetsDepreciation and amortization18 15 36 28 
Retail and wholesale contractsOperating revenues/Fuel, purchased power costs, and delivery fees(2)(3)(4)(4)
Other identifiable intangible assets (a)Fuel, purchased power costs, and delivery fees/Depreciation and amortization87 92 223 196 
Total intangible asset expense, net$125 $135 $300 $273 
___________
(a)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 condensed 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.

Estimated Amortization of Identifiable Intangible Assets

As of June 30, 2025, 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$227 
2026$170 
2027$71 
2028$51 
2029$33