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 acquisitions as if they had occurred at the beginning of the financial statement period.

On June 14, 2017, as described in Note 3, Acquisitions, 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 June 30, 2018	(In millions)
Operating revenues^(a)	$	1,817		$	1,218	$	113		$	307	$	7		$	(540	)	$	2,922
Depreciation and amortization	31			66		40			82		8			—			227
Impairment losses	—			74		—			—		—			—			74
Reorganization costs	1			3		3			—		16			—			23
Equity in earnings/(losses) of unconsolidated affiliates	—			—		5			29		—			(16		)	18
(Loss)/income from continuing operations before income taxes	(84		)	273		(17		)	103		(134		)	(12		)	129
(Loss)/income from continuing operations	(84		)	272		(12		)	96		(139		)	(12		)	121
Loss from discontinued operations, net of tax	—			—		—			—		(25		)	—			(25		)
Net (Loss)/Income	(84		)	272		(12		)	96		(164		)	(12		)	96
(Loss)/Income attributable to NRG Energy, Inc.	$	(88	)	$	272	$	(35	)	$	73	$	(244	)	$	94		$	72
Total assets as of June 30, 2018	$	7,217		$	4,306	$	4,117		$	8,448	$	9,675		$	(10,816	)	$	22,947



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	2	$	546	$	9	$	—	$	(17	)	$	—	$	540



	Retail^(a)		Generation^(a)			Renewables^(a)			NRG Yield		Corporate^(a)			Eliminations			Total
Three months ended June 30, 2017	(In millions)
Operating revenues^(a)	$	1,603	$	882		$	119		$	288	$	3		$	(194	)	$	2,701
Depreciation and amortization	29		95			49			79		8			—			260
Impairment losses	—		41			22			—		—			—			63
Equity in (losses)/earnings of unconsolidated affiliates	—		(15		)	(2		)	16		3			(5		)	(3		)
Income/(loss) from continuing operations before income taxes	330		(89		)	(51		)	52		(134		)	(5		)	103
Income/(loss) from continuing operations	341		(90		)	(46		)	44		(145		)	(5		)	99
Loss from discontinued operations, net of tax	—		—			—			—		(741		)	—			(741		)
Net Income/(Loss)	341		(90		)	(46		)	44		(886		)	(5		)	(642		)
Net Income/(Loss) attributable to NRG Energy, Inc.	$	341	$	(90	)	$	(21	)	$	38	$	(919	)	$	25		$	(626	)



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	1	$	171	$	3	$	—	$	19	$	—	$	194



	Retail^(a)		Generation^(a)			Renewables^(a)			NRG Yield		Corporate^(a)			Eliminations			Total
Six months ended June 30, 2018	(In millions)
Operating revenues^(a)	$	3,298	$	1,545		$	199		$	532	$	9		$	(240	)	$	5,343
Depreciation and amortization	59		133			90			163		17			—			462
Impairment losses	—		74			—			—		—			—			74
Reorganization costs	4		7			3			—		29			—			43
Equity in earnings/(losses) of unconsolidated affiliates	—		2			5			33		(1		)	(23		)	16
Income/(Loss) from continuing operations before income taxes	861		(264		)	(56		)	102		(260		)	(22		)	361
Income/(Loss) from continuing operations	861		(265		)	(45		)	96		(271		)	(22		)	354
Income from discontinued operations, net of tax	—		—			—			—		(25		)	—			(25		)
Net Income/(Loss)	861		(265		)	(45		)	96		(296		)	(22		)	329
Net Income/(Loss) attributable to NRG Energy, Inc.	$	851	$	(265	)	$	(33	)	$	94	$	(392	)	$	96		$	351



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	3	$	239	$	17	$	—	$	(19	)	$	—	$	240



	Retail ^(a)		Generation^(a)			Renewables^(a)			NRG Yield		Corporate^(a)			Eliminations			Total
Six months ended June 30, 2017
Operating revenues^(a)	$	2,938	$	1,848		$	213		$	509	$	11		$	(436	)	$	5,083
Depreciation and amortization	57		192			96			156		16			—			517
Impairment losses	—		41			22			—		—			—			63
Equity in (losses)/earnings of unconsolidated affiliates	—		(28		)	(3		)	35		7			(9		)	2
Income/(loss) from continuing operations before income taxes	303		(52		)	(87		)	49		(275		)	(9		)	(71		)
Income/(loss) from continuing operations	311		(54		)	(77		)	42		(283		)	(9		)	(70		)
Loss from discontinued operations, net of tax	—		—			—			—		(775		)	—			(775		)
Net Income/(loss)	311		(54		)	(77		)	42		(1,058		)	(9		)	(845		)
Net Income/(loss) attributable to NRG Energy, Inc.	$	311	$	(54	)	$	(24	)	$	50	$	(1,091	)	$	18		$	(790	)



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	11	$	406	$	4	$	—	$	15	$	—	$	436