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Goodwill and Identifiable Intangible Assets and Liabilities
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Identifiable Intangible Assets and Liabilities GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS AND LIABILITIES
Goodwill

As of both December 31, 2023 and 2022, the carrying value of goodwill totaled $2.583 billion as there were no additions or impairments in the years then ended. The carrying value of goodwill as of each date consists of the following:

Reportable SegmentReporting UnitCarrying Value of Goodwill
TexasTexas Generation$122 
Retail (a)Retail2,461 
Total$2,583 
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(a)$1.944 billion of goodwill is deductible for tax purposes over 15 years on a straight-line basis.

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, 2023. Significant qualitative factors evaluated included reporting unit financial performance and market multiples, general macroeconomic, industry, and market conditions, cost factors, customer attrition, interest rates and changes in reporting unit book value.
Identifiable Intangible Assets and Liabilities

Identifiable intangible assets are comprised of the following:
December 31, 2023December 31, 2022
Identifiable Intangible AssetGross
Carrying
Amount		Accumulated
Amortization		NetGross
Carrying
Amount		Accumulated
Amortization		Net
Retail customer relationship$2,088 $1,866 $222 $2,088 $1,768 $320 
Software and other technology-related assets536 315 221 475 258 217 
Retail and wholesale contracts233 217 16 233 209 24 
LTSA18 5 13 18 4 14 
Other identifiable intangible assets (a)62 11 51 50 8 42 
Total identifiable intangible assets subject to amortization$2,937 $2,414 523 $2,864 $2,247 617 
Retail trade names (not subject to amortization)1,341 1,341 
Total identifiable intangible assets$1,864 $1,958 
____________
(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 Liability20232022
LTSA
$122 $128 
Fuel and transportation purchase contracts
9 9 
Other identifiable intangible liabilities— 3 
Total identifiable intangible liabilities$131 $140 

Expense related to finite-lived identifiable intangible assets (including the classification in the consolidated statements of operations) consisted of:
Identifiable Intangible AssetsConsolidated Statements of OperationsRemaining useful lives of identifiable intangible assets at December 31,
2023 (weighted average in years)		Year Ended December 31,
202320222021
Retail customer relationshipDepreciation and amortization3$98 $137 $197 
Software and other technology-related assetsDepreciation and amortization458 69 74 
Retail and wholesale contractsOperating revenues/fuel, purchased power costs and delivery fees38 7 (56)
Other identifiable intangible assetsFuel, purchased power costs and delivery fees5357 391 279 
Total intangible asset expense (a)$521 $604 $494 
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(a)Amounts recorded in depreciation and amortization totaled $158 million, $208 million and $275 million for the years ended December 31, 2023, 2022 and 2021, 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 on our 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. In connection with fresh start reporting, the Dynegy Merger, the Crius Transaction and the Ambit Transaction, the intangible assets were adjusted based on their estimated fair value as of the Effective Date, the Dynegy Merger Date, the Crius Acquisition Date and the Ambit Acquisition Date, respectively, based on observable prices or estimates of fair value using valuation models.

•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 being 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 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 as of the Effective Date, the Dynegy Merger Date, the Crius Acquisition Date or the Ambit Acquisition Date utilizing prevailing market prices for commodities or services compared to the fixed prices contained in these agreements. The intangible assets or liabilities are being amortized in relation to the economic terms of the related contracts.

•LTSA — Our acquired LTSA represent the estimated fair value of favorable or unfavorable contract obligations with respect to long-term plant maintenance agreements and are being 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, 2023.

Estimated Amortization of Identifiable Intangible Assets

As of December 31, 2023, the estimated aggregate amortization expense of identifiable intangible assets for each of the next five fiscal years is as shown below.
YearEstimated Amortization Expense
2024$122 
2025$95 
2026$71 
2027$47 
2028$31