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Fair Value of Financial Instruments (Tables) | 6 Months Ended
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Jun. 30, 2018
Fair Value Disclosures [Abstract] |
Estimated carrying amounts and fair values of NRG's recorded financial instruments not carried at fair market value | The following table presents the level within the fair value hierarchy for long-term debt, including current portion as of June 30, 2018 and December 31, 2017:
| As of June 30, 2018 |  | As of December 31, 2017
| Level 2 |  | Level 3 |  | Level 2 |  | Level 3
| (In millions)
Long-term debt, including current portion | $ | 9,586 |  |  | $ | 6,577 |  |  | $ | 8,934 |  |  | $ | 7,960 |
The estimated carrying amounts and fair values of NRG's recorded financial instruments not carried at fair market value are as follows:
| As of June 30, 2018 |  | As of December 31, 2017
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
| (In millions)
Assets: |  |  |  |  |  |  |
Notes receivable (a) | $ | 21 |  |  | $ | 18 |  |  | $ | 16 |  |  | $ | 15 |
Liabilities: |  |  |  |  |  |  |
Long-term debt, including current portion (b) | 15,969 |  |  | 16,163 |  |  | 16,603 |  |  | 16,894 |
(a) Includes the current portion of notes receivable which is recorded in prepayments and other current assets on the Company's consolidated balance sheets. (b) Excludes deferred financing costs, which are recorded as a reduction to long-term debt on the Company's consolidated balance sheets.
Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis | The following tables present assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheets on a recurring basis and their level within the fair value hierarchy:
| As of June 30, 2018
| Fair Value
(In millions) | Total |  | Level 1 |  | Level 2 |  | Level 3
Investments in securities (classified within other non-current assets) | $ | 22 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 19 |
Nuclear trust fund investments: |  |  |  |  |  |  |
Cash and cash equivalents | 25 |  |  | 25 |  |  | — |  |  | — |
U.S. government and federal agency obligations | 42 |  |  | 42 |  |  | — |  |  | — |
Federal agency mortgage-backed securities | 97 |  |  | — |  |  | 97 |  |  | — |
Commercial mortgage-backed securities | 16 |  |  | — |  |  | 16 |  |  | — |
Corporate debt securities | 101 |  |  | — |  |  | 101 |  |  | — |
Equity securities | 342 |  |  | 342 |  |  | — |  |  | — |
Foreign government fixed income securities | 6 |  |  | — |  |  | 6 |  |  | — |
Other trust fund investments: |  |  |  |  |  |  |
U.S. government and federal agency obligations | 1 |  |  | 1 |  |  | — |  |  | — |
Derivative assets: |  |  |  |  |  |  |
Commodity contracts | 1,169 |  |  | 188 |  |  | 481 |  |  | 500 |
Interest rate contracts | 108 |  |  | — |  |  | 108 |  |  | — |
Measured using net asset value practical expedient: |  |  |  |  |  |  |
Equity securities — nuclear trust fund investments | 65 |  |  |  |  |  |  |  |  |  |
Total assets | $ | 1,994 |  |  | $ | 601 |  |  | $ | 809 |  |  | $ | 519 |
Derivative liabilities: |  |  |  |  |  |  |
Commodity contracts | 971 |  |  | 236 |  |  | 388 |  |  | 347 |
Interest rate contracts | 23 |  |  | — |  |  | 23 |  |  | — |
Total liabilities | $ | 994 |  |  | $ | 236 |  |  | $ | 411 |  |  | $ | 347 |
| As of December 31, 2017
| Fair Value
(In millions) | Total |  | Level 1 |  | Level 2 |  | Level 3
Investments in securities (classified within other non-current assets) | $ | 22 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 19 |
Nuclear trust fund investments: |  |  |  |  |  |  |
Cash and cash equivalents | 47 |  |  | 45 |  |  | 2 |  |  | — |
U.S. government and federal agency obligations | 43 |  |  | 42 |  |  | 1 |  |  | — |
Federal agency mortgage-backed securities | 82 |  |  | — |  |  | 82 |  |  | — |
Commercial mortgage-backed securities | 14 |  |  | — |  |  | 14 |  |  | — |
Corporate debt securities | 99 |  |  | — |  |  | 99 |  |  | — |
Equity securities | 334 |  |  | 334 |  |  | — |  |  | — |
Foreign government fixed income securities | 5 |  |  | — |  |  | 5 |  |  | — |
Other trust fund investments: |  |  |  |  |  |  |
U.S. government and federal agency obligations | 1 |  |  | 1 |  |  | — |  |  | — |
Derivative assets: |  |  |  |  |  |  |
Commodity contracts | 745 |  |  | 191 |  |  | 509 |  |  | 45 |
Interest rate contracts | 53 |  |  | — |  |  | 53 |  |  | — |
Measured using net asset value practical expedient: |  |  |  |  |  |  |
Equity securities — nuclear trust fund investments | 68 |  |  |  |  |  |  |
Total assets | $ | 1,513 |  |  | $ | 616 |  |  | $ | 765 |  |  | $ | 64 |
Derivative liabilities: |  |  |  |  |  |  |
Commodity contracts | 693 |  |  | 257 |  |  | 359 |  |  | 77 |
Interest rate contracts | 59 |  |  | — |  |  | 59 |  |  | — |
Total liabilities | $ | 752 |  |  | $ | 257 |  |  | $ | 418 |  |  | $ | 77 |
Reconciliation of beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs | The following tables reconcile, for the three and six months ended June 30, 2018 and 2017, the beginning and ending balances for financial instruments that are recognized at fair value in the condensed consolidated financial statements, at least annually, using significant unobservable inputs:
| Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
| Three months ended June 30, 2018 |  | Six months ended June 30, 2018
(In millions) | Debt Securities |  | Derivatives(a) |  | Total |  | Debt Securities |  | Derivatives(a) |  | Total
Beginning balance | $ | 19 |  |  | $ | (22 | ) |  | $ | (3 | ) |  | $ | 19 |  |  | $ | (32 | ) |  | $ | (13 | )
Contracts acquired in Xoom acquisition | — |  |  | 12 |  |  | 12 |  |  | — |  |  | 12 |  |  | 12 |
Total losses — realized/unrealized: |  |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings | — |  |  | (21 | ) |  | (21 | ) |  | — |  |  | (19 | ) |  | (19 | )
Purchases | — |  |  | (4 | ) |  | (4 | ) |  | — |  |  | (3 | ) |  | (3 | )
Transfers into Level 3 (b) | — |  |  | 193 |  |  | 193 |  |  | — |  |  | 197 |  |  | 197 |
Transfers out of Level 3 (b) | — |  |  | (5 | ) |  | (5 | ) |  | — |  |  | (2 | ) |  | (2 | )
Ending balance as of June 30, 2018 | $ | 19 |  |  | $ | 153 |  |  | $ | 172 |  |  | $ | 19 |  |  | $ | 153 |  |  | $ | 172 |
Losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of June 30, 2018 | — |  |  | 20 |  |  | 20 |  |  | — |  |  | 17 |  |  | 17 |
(a) | Consists of derivative assets and liabilities, net.
(b) | Transfers into/out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. All transfers in/out are with Level 2.
| Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
| Three months ended June 30, 2017 |  | Six months ended June 30, 2017
(In millions) | Debt Securities |  | Derivatives(a) |  | Total |  | Debt Securities |  | Derivatives(a) |  | Total
Beginning balance | $ | 18 |  |  | $ | (56 | ) |  | $ | (38 | ) |  | $ | 17 |  |  | $ | (68 | ) |  | $ | (51 | )
Total gains — realized/unrealized: |  |  |  |  |  |  |  |  |  |  |
Included in earnings | — |  |  | 40 |  |  | 40 |  |  | 1 |  |  | 46 |  |  | 47 |
Included in nuclear decommissioning obligation | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Purchases | — |  |  | 5 |  |  | 5 |  |  | — |  |  | 9 |  |  | 9 |
Transfers into Level 3 (b) | — |  |  | 3 |  |  | 3 |  |  | — |  |  | (5 | ) |  | (5 | )
Transfers out of Level 3 (b) | — |  |  | (3 | ) |  | (3 | ) |  | — |  |  | 7 |  |  | 7 |
Ending balance as of June 30, 2017 | $ | 18 |  |  | $ | (11 | ) |  | $ | 7 |  |  | $ | 18 |  |  | $ | (11 | ) |  | $ | 7 |
Gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of June 30, 2017 | — |  |  | 22 |  |  | 22 |  |  | — |  |  | 7 |  |  | 7 |
(a) | Consists of derivative assets and liabilities, net.
(b) | Transfers into/out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. All transfers in/out are with Level 2.
Significant unobservable inputs used developing fair valueets, Quantitative Information | The following tables quantify the significant unobservable inputs used in developing the fair value of the Company's Level 3 positions as of June 30, 2018 and December 31, 2017:
| Significant Unobservable Inputs
| June 30, 2018
| Fair Value |  |  |  | Input/Range
| Assets |  | Liabilities |  | Valuation Technique |  | Significant Unobservable Input |  | Low |  | High |  | Weighted Average
| (In millions) |  |  |  |  |  |  |  |  |  |
Power Contracts | $ | 481 |  |  | $ | 330 |  |  | Discounted Cash Flow |  | Forward Market Price (per MWh) |  | $ | 6 |  |  | $ | 198 |  |  | $ | 35 |
FTRs | 19 |  |  | 17 |  |  | Discounted Cash Flow |  | Auction Prices (per MWh) |  | (48 | ) |  | 47 |  |  | — |
| $ | 500 |  |  | $ | 347 |  |  |  |  |  |  |  |  |  |  |
| Significant Unobservable Inputs
| December 31, 2017
| Fair Value |  |  |  | Input/Range
| Assets |  | Liabilities |  | Valuation Technique |  | Significant Unobservable Input |  | Low |  | High |  | Weighted Average
| (In millions) |  |  |  |  |  |  |  |  |  |
Power Contracts | $ | 34 |  |  | $ | 65 |  |  | Discounted Cash Flow |  | Forward Market Price (per MWh) |  | $ | 10 |  |  | $ | 142 |  |  | $ | 33 |
FTRs | 11 |  |  | 12 |  |  | Discounted Cash Flow |  | Auction Prices (per MWh) |  | (28 | ) |  | 46 |  |  | — |
| $ | 45 |  |  | $ | 77 |  |  |  |  |  |  |  |  |  |  |
Fair value inputs, sensitivity analysis | The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of June 30, 2018 and December 31, 2017:
Significant Unobservable Input |  | Position |  | Change In Input |  | Impact on Fair Value Measurement
Forward Market Price Power |  | Buy |  | Increase/(Decrease) |  | Higher/(Lower)
Forward Market Price Power |  | Sell |  | Increase/(Decrease) |  | Lower/(Higher)
FTR Prices |  | Buy |  | Increase/(Decrease) |  | Higher/(Lower)
FTR Prices |  | Sell |  | Increase/(Decrease) |  | Lower/(Higher)
Net counterparty credit exposure by industry sector and by counterparty credit quality | The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and NPNS, and non-derivative transactions. The exposure is shown net of collateral held, and includes amounts net of receivables or payables.
| Net Exposure (a) (b)
Category by Industry Sector | (% of Total)
Utilities, energy merchants, marketers and other | 76 | %
Financial institutions | 24 |
Total as of June 30, 2018 | 100 | %
| Net Exposure (a) (b)
Category by Counterparty Credit Quality | (% of Total)
Investment grade | 76 | %
Non-Investment grade/Non-Rated | 24 |
Total as of June 30, 2018 | 100 | %
(a) | Counterparty credit exposure excludes uranium and coal transportation contracts because of the unavailability of market prices.
(b) | The figures in the tables above exclude potential counterparty credit exposure related to RTOs, ISOs, registered commodity exchanges and certain long term contracts.

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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258 + Details
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- Definition Tabular disclosure of quantitative information about the inputs used in the fair value measurement of assets. This disclosure may include, but is not limited to, the fair value of the asset, valuation technique used to measure fair value, the inputs used to measure fair value, the ranges of the inputs, and the weighted averages of the inputs. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258 + Details
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