Segment Reporting

The Company's segment structure reflects how management currently makes financial decisions and allocates resources. The Company's businesses are segregated as follows: Generation, which includes generation, international and BETM; Retail, which includes Mass customers and Business Solutions, which includes C&I customers and other distributed and reliability products; Renewables, which includes solar and wind assets, excluding those in NRG Yield; NRG Yield; and corporate activities. Intersegment sales are accounted for at market.

NRG Yield includes certain of the Company's contracted generation assets. During 2017, NRG Yield acquired several projects totaling 555 MW for cash consideration of approximately $245 million from NRG. These acquisitions were treated as a transfer of entities under common control and accordingly, the financial information for years ended December 31, 2017, 2016, and 2015 have been recast to reflect these changes.

On June 14, 2017, as described in Note 3, Discontinued Operations, Acquisitions and Dispositions, NRG deconsolidated GenOn for financial reporting purposes. The financial information for years ended December 31, 2017, 2016, and 2015 have been recast to present GenOn as discontinued operations within the corporate segment.

NRG’s chief operating decision maker, its chief executive officer, evaluates the performance of its segments based on operational measures including adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA, free cash flow and capital for allocation, as well as net income/(loss) and net income/(loss) attributable to NRG Energy, Inc.

During the years ended December 31, 2017, 2016 and 2015, the Company had no customer which comprised more than 10% of the Company's consolidated revenues.



	For the Year Ended December 31, 2017
	Generation^(a)			Retail ^(a)			Renewables^(a)			NRG Yield^(a)			Corporate^(a)			Eliminations				Total
	(In millions)
Operating revenues^(a)	$	3,773		$	6,380		$	424		$	1,009		$	14		$	(971	)		$	10,629
Operating expenses	3,300			5,372			211			348			220			(964		)		8,487
Depreciation and amortization	377			117			196			334			32			—				1,056
Impairment losses	1,504			7			154			44			—			—				1,709
Development costs	13			2			45			—			7			—				67
Total operating cost and expenses	5,194			5,498			606			726			259			(964		)		11,319
Other income - affiliate	—			—			—			—			87			—				87
Gain/(loss) on sale of assets	20			—			(5		)	—			1			—				16
Operating (loss)/income	(1,401		)	882			(187		)	283			(157		)	(7		)		(587		)
Equity in (losses)/earnings of unconsolidated affiliates	(14		)	—			—			71			6			(32		)		31
Impairment losses on investments	(74		)	—			—			—			(5		)	—				(79		)
Other income, net	22			1			—			4			11			—				38
Loss on debt extinguishment	—			—			(1		)	(3		)	(49		)	—				(53		)
Interest expense	(29		)	(6		)	(98		)	(306		)	(451		)	—				(890		)
(Loss)/income from continuing operations before income taxes	(1,496		)	877			(286		)	49			(645		)	(39		)		(1,540		)
Income tax expense/(benefit)	2			(9		)	(20		)	72			(37		)	—				8
Net (loss)/income from continuing operations	$	(1,498	)	$	886		$	(266	)	$	(23	)	$	(608	)	$	(39	)		$	(1,548	)
Loss from discontinued operations, net of income tax	—			—			—			—			(789		)	—				$	(789	)
Net (Loss)/Income	(1,498		)	886			(266		)	(23		)	(1,397		)	(39		)		(2,337		)
Less: Net income/(loss) attributable to noncontrolling interests and redeemable noncontrolling interests	—			2			(103		)	(87		)	(4		)	8				(184		)
Net (loss)/income attributable to NRG Energy, Inc.	$	(1,498	)	$	884		$	(163	)	$	64		$	(1,393	)	$	(47	)		$	(2,153	)

Balance sheet
Equity investments in affiliates	$	179		$	—		$	4		$	852		$	3		$	—			$	1,038
Capital expenditures ^(b)	481			82			521			31			12			—				1,127
Goodwill	165			374			—			—			—			—				539
Total assets	$	7,209		$	2,630		$	5,129		$	8,283		$	8,919		$	(8,852	)	—	$	23,318



(a) Inter-segment sales and net derivative gains and losses included in operating revenues	$	910	$	5	$	31	$	—	$	25	$	—	$	971

(b) Includes accruals.



	For the Year Ended December 31, 2016
	Generation^(a)			Retail ^(a)			Renewables^(a)			NRG Yield^(a)			Corporate^(a)			Eliminations			Total
	(In millions)
Operating revenues^(a)	$	3,833		$	6,335		$	406		$	1,035		$	77		$	(1,174	)	$	10,512
Operating expenses	3,545			5,164			217			325			323			(1,178		)	8,396
Depreciation and amortization	516			111			185			303			57			—			1,172
Impairment losses	430			1			54			185			32			—			702
Development costs	15			4			40			—			30			—			89
Total operating cost and expenses	4,506			5,280			496			813			442			(1,178		)	10,359
Other income - affiliate	—			—			—			—			193			—			193
Loss on sale of assets	—			(1		)	—			—			(79		)				(80		)
Operating (loss)/income	(673		)	1,054			(90		)	222			(251		)	4			266
Equity in (losses)/earnings of unconsolidated affiliates	(5		)	—			(58		)	60			13			17			27
Impairment losses on investments	(142		)	—			(105		)	—			(21		)	—			(268		)
Other income, net	21			(6		)	1			3			19			(4		)	34
Loss on debt extinguishment	—			—			—			—			(142		)	—			(142		)
Interest expense	(26		)	6			(98		)	(284		)	(495		)	2			(895		)
(Loss)/income from continuing operations before income taxes	(825		)	1,054			(350		)	1			(877		)	19			(978		)
Income tax (benefit)/expense	(1		)	1			(20		)	(1		)	26			—			5
Net (loss)/income from continuing operations	(824		)	1,053			(330		)	2			(903		)	19			(983		)
Income from discontinued operations, net of income tax	—			—			—			—			92						92
Net (Loss)/Income	(824		)	1,053			(330		)	2			(811		)	19			(891		)
Less: Net (loss)/income attributable to noncontrolling interests and redeemable noncontrolling interests	—			(2		)	(13		)	(54		)	18			(66		)	(117		)
Net (loss)/income attributable to NRG Energy, Inc.	$	(824	)	$	1,055		$	(317	)	$	56		$	(829	)	$	85		$	(774	)

Balance sheet
Equity investments in affiliates	$	204		$	—		$	26		$	886		$	4		$	—		$	1,120
Capital expenditures^(b)	522			12			330			23			110			—			997
Goodwill	276			374			12			—			—			—			662
Total assets	$	13,514		$	2,332		$	4,921		$	8,962		$	11,891		$	(10,938	)	$	30,682



(a) Inter-segment sales and net derivative gains and losses included in operating revenues	$	1,033	$	4	$	24	$	8	$	105	$	—	$	1,174

(b) Includes accruals.



	For the Year Ended December 31, 2015
	Generation^(a)			Retail^(a)			Renewables^(a)			NRG Yield^(a)			Corporate^(a)			Eliminations			Total
	(In millions)
Operating revenues^(a)	$	5,179		$	6,913		$	383		$	968		$	38		$	(1,153	)	$	12,328
Operating expenses	4,198			6,138			187			338			502			(1,135		)	10,228
Depreciation and amortization	693			132			176			303			47			—			1,351
Impairment losses	4,655			36			13			1			133			22			4,860
Development costs	26			4			61			—			63			—			154
Total operating costs and expenses	9,572			6,310			437			642			745			(1,113		)	16,593
Other income - affiliate	—			—			—			—			193			—			193
Gain on postretirement benefits curtailment	21			—			—			—			—			—			21
Operating (loss)/income	(4,372		)	603			(54		)	326			(514		)	(40		)	(4,051		)
Equity in earnings/(losses)of unconsolidated affiliates	10			—			(7		)	31			—			2			36
Impairment losses on investments	(14		)	—			—			—			(42		)	—			(56		)
Other income, net	18			(4		)	3			3			13			(7		)	26
Loss on sale of equity method investment	—			—			—			—			(14		)	—			(14		)
Loss on debt extinguishment	—			—			—			(9		)	19			—			10
Interest expense	(25		)	2			(79		)	(267		)	(574		)	6			(937		)
(Loss)/income from continuing operations before income taxes	(4,383		)	601			(137		)	84			(1,112		)	(39		)	(4,986		)
Income tax expense/(benefit)	—			1			(18		)	12			1,350			—			1,345
Net (loss)/income from continuing operations	$	(4,383	)	600			(119		)	72			(2,462		)	(39		)	(6,331		)
Loss from discontinued operations, net of income tax	—			—			—			—			(105		)	—			(105		)
Net (Loss)/Income	(4,383		)	600			(119		)	72			(2,567		)	(39		)	(6,436		)
Less: Net income/(loss) attributable to noncontrolling interests and redeemable noncontrolling interests	—			—			6			19			(37		)	(42		)	(54		)
Net (loss)/income attributable to NRG Energy, Inc.	$	(4,383	)	$	600		$	(125	)	$	53		$	(2,530	)	$	3		$	(6,382	)



(a) Inter-segment sales and net derivative gains and losses included in operating revenues	$	896	$	6	$	31	$	29	$	191	$	—	$	1,153