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.

During 2017, NRG Yield acquired several projects totaling 555 MW from NRG. On March 30, 2018, the Company sold to NRG Yield, Inc. 100% of NRG's interests in Buckthorn Renewables, LLC, which owns a 154 MW construction-stage utility-scale solar generation project, located in Texas. These acquisitions were treated as a transfer of entities under common control and accordingly, all historical periods have been recast to reflect the acquisition as if they had occurred at the beginning of the financial statement period.

On June 14, 2017, as described in Note 3, Discontinued Operations and Dispositions, NRG deconsolidated GenOn for financial reporting purposes. The financial information for all historical periods have been recast to reflect the presentation of 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).



	Retail ^(a)		Generation^(a)			Renewables^(a)			NRG Yield				Corporate^(a)			Eliminations			Total
Three months ended March 31, 2018			(In millions)
Operating revenues^(a)	$	1,481	$	327		$	86		$	225			$	2		$	300		$	2,421
Depreciation and amortization	28		67			51			81				8			—			235
Reorganization costs	3		4			—			—				13			—			20
Equity in earnings/(losses) of unconsolidated affiliates	—		2			—			4				(1		)	(7		)	(2		)
Income/(loss) from continuing operations before income taxes	946		(536		)	(40		)	(1		)		(126		)	(11		)	232
Income/(loss) from continuing operations	946		(536		)	(34		)	—				(132		)	(11		)	233
Net Income/(Loss)	946		(536		)	(34		)	—				(132		)	(11		)	233
Net Income/(Loss) attributable to NRG Energy, Inc.	$	940	$	(536	)	$	1		$	21		—	$	(148	)	$	1		$	279
Total assets as of March 31, 2018	$	3,521	$	7,313		$	5,191		$	8,362			$	9,108		$	(9,743	)	$	23,752



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	1	$	(307	)	$	8	$	—	$	(2	)	$	—	$	(300	)



	Retail^(a)			Generation^(a)			Renewables^(a)			NRG Yield			Corporate^(a)(b)			Eliminations			Total
Three months ended March 31, 2017				(In millions)
Operating revenues^(a)	$	1,335		$	965		$	95		$	221		$	10		$	(244	)	$	2,382
Depreciation and amortization	28			97			47			77			8			—			257
Equity in (losses)/earnings of unconsolidated affiliates	—			(13		)	—			19			3			(4		)	5
(Loss)/income from continuing operations before income taxes	(31		)	37			(35		)	(3		)	(137		)	(4		)	(173		)
(Loss)/income from continuing operations	(34		)	37			(29		)	(2		)	(137		)	(4		)	(169		)
Loss from discontinued operations, net of tax	—			—			—			—			(34		)	—			(34		)
Net (Loss)/Income	(34		)	37			(29		)	(2		)	(171		)	(4		)	(203		)
Net (Loss)/Income attributable to NRG Energy, Inc.	$	(33	)	$	37		$	(1	)	$	12		$	(171	)	$	(7	)	$	(163	)



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	1	$	209	$	8	$	—	$	26	$	—	$	244
(b) Includes other income - affiliate	$	—	$	—	$	—	$	—	$	48	$	—	$	48