Condensed Consolidating Financial Information

6 Months Ended

Jun. 30, 2018

Condensed Consolidating Financial Information Disclosure [Abstract]

Condensed Consolidating Financial Information

As of June 30, 2018, the Company had outstanding $5.4 billion of Senior Notes due from 2022 to 2048, as shown in Note 8, Debt and Capital Leases. These Senior Notes are guaranteed by certain of NRG's current and future 100% owned domestic subsidiaries, or guarantor subsidiaries. These guarantees are both joint and several. The non-guarantor subsidiaries include all of NRG's foreign subsidiaries and certain domestic subsidiaries, and NRG Yield, Inc. and its subsidiaries.

Unless otherwise noted below, each of the following guarantor subsidiaries fully and unconditionally guaranteed the Senior Notes as of June 30, 2018:



Ace Energy, Inc.	New Genco GP, LLC	NRG Northeast Affiliate Services Inc.
Allied Home Warranty GP LLC	Norwalk Power LLC	NRG Norwalk Harbor Operations Inc.
Allied Warranty LLC	NRG Advisory Services LLC	NRG Operating Services, Inc.
Arthur Kill Power LLC	NRG Affiliate Services Inc.	NRG Oswego Harbor Power Operations Inc.
Astoria Gas Turbine Power LLC	NRG Arthur Kill Operations Inc.	NRG PacGen Inc.
Bayou Cove Peaking Power, LLC	NRG Astoria Gas Turbine Operations Inc.	NRG Portable Power LLC
BidURenergy, Inc.	NRG Bayou Cove LLC	NRG Power Marketing LLC
Cabrillo Power I LLC	NRG Business Services LLC	NRG Reliability Solutions LLC
Cabrillo Power II LLC	NRG Cabrillo Power Operations Inc.	NRG Renter's Protection LLC
Carbon Management Solutions LLC	NRG California Peaker Operations LLC	NRG Retail LLC
Cirro Group, Inc.	NRG Cedar Bayou Development Company, LLC	NRG Retail Northeast LLC
Cirro Energy Services, Inc.	NRG Connected Home LLC	NRG Rockford Acquisition LLC
Conemaugh Power LLC	NRG Connecticut Affiliate Services Inc.	NRG Saguaro Operations Inc.
Connecticut Jet Power LLC	NRG Construction LLC	NRG Security LLC
Cottonwood Development LLC	NRG Curtailment Solutions, Inc	NRG Services Corporation
Cottonwood Energy Company LP	NRG Development Company Inc.	NRG SimplySmart Solutions LLC
Cottonwood Generating Partners I LLC	NRG Devon Operations Inc.	NRG South Central Affiliate Services Inc.
Cottonwood Generating Partners II LLC	NRG Dispatch Services LLC	NRG South Central Generating LLC
Cottonwood Generating Partners III LLC	NRG Distributed Energy Resources Holdings LLC	NRG South Central Operations Inc.
Cottonwood Technology Partners LP	NRG Distributed Generation PR LLC	NRG South Texas LP
Devon Power LLC	NRG Dunkirk Operations Inc.	NRG Texas C&I Supply LLC
Dunkirk Power LLC	NRG El Segundo Operations Inc.	NRG Texas Gregory LLC
Eastern Sierra Energy Company LLC	NRG Energy Efficiency-L LLC	NRG Texas Holding Inc.
El Segundo Power, LLC	NRG Energy Labor Services LLC	NRG Texas LLC
El Segundo Power II LLC	NRG ECOKAP Holdings LLC	NRG Texas Power LLC
Energy Alternatives Wholesale, LLC	NRG Energy Services Group LLC	NRG Warranty Services LLC
Energy Choice Solutions LLC	NRG Energy Services International Inc.	NRG West Coast LLC
Energy Plus Holdings LLC	NRG Energy Services LLC	NRG Western Affiliate Services Inc.
Energy Plus Natural Gas LLC	NRG Generation Holdings, Inc.	O'Brien Cogeneration, Inc. II
Energy Protection Insurance Company	NRG Greenco LLC	ONSITE Energy, Inc.
Everything Energy LLC	NRG Home & Business Solutions LLC	Oswego Harbor Power LLC
Forward Home Security, LLC	NRG Home Services LLC	Reliant Energy Northeast LLC
GCP Funding Company, LLC	NRG Home Solutions LLC	Reliant Energy Power Supply, LLC
Green Mountain Energy Company	NRG Home Solutions Product LLC	Reliant Energy Retail Holdings, LLC
Gregory Partners, LLC	NRG Homer City Services LLC	Reliant Energy Retail Services, LLC
Gregory Power Partners LLC	NRG Huntley Operations Inc.	RERH Holdings, LLC
Huntley Power LLC	NRG HQ DG LLC	Saguaro Power LLC
Independence Energy Alliance LLC	NRG Identity Protect LLC	Somerset Operations Inc.
Independence Energy Group LLC	NRG Ilion Limited Partnership	Somerset Power LLC
Independence Energy Natural Gas LLC	NRG Ilion LP LLC	Texas Genco GP, LLC
Indian River Operations Inc.	NRG International LLC	Texas Genco Holdings, Inc.
Indian River Power LLC	NRG Maintenance Services LLC	Texas Genco LP, LLC
Keystone Power LLC	NRG Mextrans Inc.	Texas Genco Services, LP
Louisiana Generating LLC	NRG MidAtlantic Affiliate Services Inc.	US Retailers LLC
Meriden Gas Turbines LLC	NRG Middletown Operations Inc.	Vienna Operations Inc.
Middletown Power LLC	NRG Montville Operations Inc.	Vienna Power LLC
Montville Power LLC	NRG New Roads Holdings LLC	WCP (Generation) Holdings LLC
NEO Corporation	NRG North Central Operations Inc.	West Coast Power LLC

NRG conducts much of its business through and derives much of its income from its subsidiaries. Therefore, the Company's ability to make required payments with respect to its indebtedness and other obligations depends on the financial results and condition of its subsidiaries and NRG's ability to receive funds from its subsidiaries. There are no restrictions on the ability of any of the guarantor subsidiaries to transfer funds to NRG. However, there may be restrictions for certain non-guarantor subsidiaries.

The following condensed consolidating financial information presents the financial information of NRG Energy, Inc., the guarantor subsidiaries and the non-guarantor subsidiaries in accordance with Rule 3-10 under the SEC Regulation S-X. The financial information may not necessarily be indicative of results of operations or financial position had the guarantor subsidiaries or non-guarantor subsidiaries operated as independent entities.

In this presentation, NRG Energy, Inc. consists of parent company operations. Guarantor subsidiaries and non-guarantor subsidiaries of NRG are reported on an equity basis. For companies acquired, the fair values of the assets and liabilities acquired have been presented on a push-down accounting basis.

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

For the three months ended June 30, 2018

(Unaudited)



	Guarantor Subsidiaries			Non-Guarantor Subsidiaries			NRG Energy, Inc. (Note Issuer)			Eliminations^(a)			Consolidated
	(In millions)
Operating Revenues
Total operating revenues	$	2,276		$	659		$	—		$	(13	)	$	2,922
Operating Costs and Expenses
Cost of operations	1,778			282			(4		)	(5		)	2,051
Depreciation and amortization	76			143			8			—			227
Impairment losses	—			74			—			—			74
Selling, general and administrative	110			34			77			(10		)	211
Reorganization costs	1			—			22			—			23
Development costs	—			13			3			—			16
Total operating costs and expenses	1,965			546			106			(15		)	2,602
Gain on sale of assets	—			14			—			—			14
Operating Income/(Loss)	311			127			(106		)	2			334
Other Income/(Expense)
Equity in earnings of consolidated subsidiaries	7			—			355			(362		)	—
Equity in earnings of unconsolidated affiliates	—			18			—			—			18
Other income/(expense), net	4			(26		)	2			—			(20		)
Loss on debt extinguishment, net	—			—			(1		)	—			(1		)
Interest expense	(4		)	(92		)	(106		)	—			(202		)
Total other income/(expense)	7			(100		)	250			(362		)	(205		)
Income Before Income Taxes	318			27			144			(360		)	129
Income tax expense/(benefit)	108			(68		)	(32		)	—			8
Income from Continuing Operations	210			95			176			(360		)	121
Loss from discontinued operations, net of income tax	—			—			(25		)	—			(25		)
Net Income	210			95			151			(360		)	96
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interests	—			(57		)	79			2			24
Net Income Attributable to NRG Energy, Inc.	$	210		$	152		$	72		$	(362	)	$	72


(a)	All significant intercompany transactions have been eliminated in consolidation.

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

For the six months ended June 30, 2018

(Unaudited)



	Guarantor Subsidiaries			Non-Guarantor Subsidiaries			NRG Energy, Inc. (Note Issuer)			Eliminations^(a)			Consolidated
	(In millions)
Operating Revenues
Total operating revenues	$	4,120		$	1,249		$	—		$	(26	)	$	5,343
Operating Costs and Expenses
Cost of operations	3,004			613			9			(17		)	3,609
Depreciation and amortization	149			297			16			—			462
Impairment losses	—			74			—			—			74
Selling, general and administrative	213			60			139			(10		)	402
Reorganization costs	3			—			40			—			43
Development costs	—			23			7			(1		)	29
Total operating costs and expenses	3,369			1,067			211			(28		)	4,619
Gain on sale of assets	3			13			—			—			16
Operating Income/(Loss)	754			195			(211		)	2			740
Other Income/(Expense)
Equity in earnings of consolidated subsidiaries	9			—			685			(694		)	—
Equity in earnings/(losses) of unconsolidated affiliates	—			17			(1		)	—			16
Other income/(expense), net	8			(36		)	5			—			(23		)
Loss on debt extinguishment, net	—			—			(3		)	—			(3		)
Interest expense	(7		)	(164		)	(198		)	—			(369		)
Total other income/(expense)	10			(183		)	488			(694		)	(379		)
Income Before Income Taxes	764			12			277			(692		)	361
Income tax expense/(benefit)	221			(20		)	(194		)	—			7
Income from Continuing Operations	543			32			471			(692		)	354
Loss from discontinued operations, net of income tax	—			—			(25		)	—			(25		)
Net Income	543			32			446			(692		)	329
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interests	—			(119		)	95			2			(22		)
Net Income Attributable to NRG Energy, Inc.	$	543		$	151		$	351		$	(694	)	$	351


(a)	All significant intercompany transactions have been eliminated in consolidation.

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

For the three months ended June 30, 2018

(Unaudited)



	Guarantor Subsidiaries			Non-Guarantor Subsidiaries			NRG Energy, Inc. (Note Issuer)			Eliminations^(a)			Consolidated
	(In millions)
Net Income	$	210		$	95		$	151		$	(360	)	$	96
Other Comprehensive Income, net of tax
Unrealized gain on derivatives, net	—			4			6			(5		)	5
Foreign currency translation adjustments, net	(4		)	(4		)	(5		)	9			(4		)
Available-for-sale securities, net	—			—			1			—			1
Defined benefit plans, net	—			—			(1		)	—			(1		)
Other comprehensive (loss)/income	(4		)	—			1			4			1
Comprehensive Income	206			95			152			(356		)	97
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest	—			(57		)	81			2			26
Comprehensive Income Attributable to NRG Energy, Inc.	$	206		$	152		$	71		$	(358	)	$	71


(a)	All significant intercompany transactions have been eliminated in consolidation.

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

For the six months ended June 30, 2018

(Unaudited)



	Guarantor Subsidiaries			Non-Guarantor Subsidiaries			NRG Energy, Inc. (Note Issuer)			Eliminations^(a)			Consolidated
	(In millions)
Net Income	$	543		$	32		$	446		$	(692	)	$	329
Other Comprehensive (Loss)/Income, net of tax
Unrealized gain on derivatives, net	—			20			21			(22		)	19
Foreign currency translation adjustments, net	(6		)	(6		)	(8		)	14			(6		)
Available-for-sale securities, net	—			—			1			—			1
Defined benefit plans, net	—			—			(2		)	—			(2		)
Other comprehensive (loss)/income	(6		)	14			12			(8		)	12
Comprehensive Income	537			46			458			(700		)	341
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest	—			(119		)	105			2			(12		)
Comprehensive Income Attributable to NRG Energy, Inc.	$	537		$	165		$	353		$	(702	)	$	353


(a)	All significant intercompany transactions have been eliminated in consolidation.

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

June 30, 2018

(Unaudited)



	Guarantor Subsidiaries		Non-Guarantor Subsidiaries			NRG Energy, Inc. (Note Issuer)			Eliminations^(a)			Consolidated
ASSETS	(In millions)
Current Assets
Cash and cash equivalents	$	71	$	395		$	514		$	—		$	980
Funds deposited by counterparties	71		—			—			—			71
Restricted cash	9		277			—			—			286
Accounts receivable, net	1,094		274			3			—			1,371
Inventory	309		176			—			—			485
Derivative instruments	837		36			15			(37		)	851
Cash collateral paid in support of energy risk management activities	209		15			—			—			224
Accounts receivable - affiliate	1,189		123			141			(1,396		)	57
Current assets - held for sale	—		100			—			—			100
Prepayments and other current assets	173		122			35			(2		)	328
Total current assets	3,962		1,518			708			(1,435		)	4,753
Property, plant and equipment, net	2,402		10,164			231			(23		)	12,774
Other Assets
Investment in subsidiaries	486		—			8,111			(8,597		)	—
Equity investments in affiliates	—		1,055			—			—			1,055
Notes receivable, less current portion	—		15			—			—			15
Goodwill	360		179			—			—			539
Intangible assets, net	415		1,448			—			(3		)	1,860
Nuclear decommissioning trust fund	694		—			—			—			694
Derivative instruments	329		61			38			(2		)	426
Deferred income tax	156		34			(64		)	—			126
Non-current assets held-for-sale	—		50			—			—			50
Other non-current assets	81		454			120			—			655
Total other assets	2,521		3,296			8,205			(8,602		)	5,420
Total Assets	$	8,885	$	14,978		$	9,144		$	(10,060	)	$	22,947
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current portion of long-term debt and capital leases	$	—	$	862		$	92		$	(2	)	$	952
Accounts payable	699		230			46			—			975
Accounts payable — affiliate	1,901		(207		)	(269		)	(1,396		)	29
Derivative instruments	695		51			—			(37		)	709
Cash collateral received in support of energy risk management activities	72		—			—			—			72
Current liabilities held-for-sale	—		74			—			—			74
Accrued expenses and other current liabilities	270		123			326			—			719
Accrued expenses and other current liabilities-affiliate	—		—			133			—			133
Total current liabilities	3,637		1,133			328			(1,435		)	3,663
Other Liabilities
Long-term debt and capital leases	245		7,428			7,148			—			14,821
Nuclear decommissioning reserve	274		—			—			—			274
Nuclear decommissioning trust liability	410		—			—			—			410
Deferred income taxes	112		64			(159		)	—			17
Derivative instruments	237		50			—			(2		)	285
Out-of-market contracts, net	58		137			—			—			195
Non-current liabilities held-for-sale	—		12			—			—			12
Other non-current liabilities	410		311			409			—			1,130
Total non-current liabilities	1,746		8,002			7,398			(2		)	17,144
Total liabilities	5,383		9,135			7,726			(1,437		)	20,807
Redeemable noncontrolling interest in subsidiaries	—		69			—			—			69
Stockholders’ Equity	3,502		5,774			1,418			(8,623		)	2,071
Total Liabilities and Stockholders’ Equity	$	8,885	$	14,978		$	9,144		$	(10,060	)	$	22,947


(a)	All significant intercompany transactions have been eliminated in consolidation.

NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED

CONSOLIDATING STATEMENTS OF CASH FLOWS

For the six months ended June 30, 2018

(Unaudited)



	Guarantor Subsidiaries			Non-Guarantor Subsidiaries			NRG Energy, Inc. (Note Issuer)			Eliminations^(a)			Consolidated
	(In millions)
Cash Flows from Operating Activities
Net income	$	543		$	32		$	446		$	(692	)	$	329
Loss from discontinued operations	—			—			(25		)	—			(25		)
Net income from continuing operations	543			32			471			(692		)	354
Adjustments to reconcile net income to net cash provided/(used) by operating activities:
Distributions from unconsolidated affiliates	—			50			—			(7		)	43
Equity in (earnings)/losses of unconsolidated affiliates	—			(17		)	1			—			(16		)
Depreciation, amortization and accretion	162			307			16			—			485
Provision for bad debts	31			—			—			—			31
Amortization of nuclear fuel	24			—			—			—			24
Amortization of financing costs and debt discount/premiums	—			18			9			—			27
Adjustment for debt extinguishment	—			—			3			—			3
Amortization of intangibles and out-of-market contracts	9			39			—			—			48
Amortization of unearned equity compensation	—			—			26			—			26
Impairment losses	—			89			—			—			89
Changes in deferred income taxes and liability for uncertain tax benefits	221			(41		)	(176		)	—			4
Changes in nuclear decommissioning trust liability	41			—			—			—			41
Changes in derivative instruments	(154		)	(43		)	8			(22		)	(211		)
Changes in collateral deposits in support of energy risk management activities	(4		)	(14		)	—			—			(18		)
Gain on sale of emission allowances	(11		)	—			—			—			(11		)
Gain on sale of assets	(3		)	(13		)	—			—			(16		)
Loss on deconsolidation of business	—			22			—			—			22
Changes in other working capital	(298		)	41			(865		)	721			(401		)
Net Cash Provided/(Used) by Operating Activities	561			470			(507		)	—			524
Cash Flows from Investing Activities
Dividends from NRG Yield, Inc.	—			—			52			(52		)	—
Acquisition of Drop Down Assets, net of cash acquired	—			(126		)	—			126			—
Acquisition of business, net of cash acquired	(2		)	(282		)	—			—			(284		)
Capital expenditures	(105		)	(556		)	(30		)	—			(691		)
Decrease in notes receivable	—			4			—			—			4
Purchases of emission allowances	(22		)	—			—			—			(22		)
Proceeds from sale of emission allowances	34			—			—			—			34
Investments in nuclear decommissioning trust fund securities	(346		)	—			—			—			(346		)
Proceeds from the sale of nuclear decommissioning trust fund securities	303			—			—			—			303
Proceeds from sale of assets, net of cash disposed of	10			8			—			—			18
Deconsolidation of business	—			(160		)	—			—			(160		)
Change in investments in unconsolidated affiliates	—			(2		)	—			—			(2		)
Net Cash (Used)/Provided by Investing Activities	(128		)	(1,114		)	22			74			(1,146		)
Cash Flows from Financing Activities
Dividends from NRG Yield, Inc.	—			(52		)	—			52			—
Payment (for)/from intercompany loans	(323		)	108			215			—			—
Acquisition of Drop Down Assets, net of cash acquired	—			—			126			(126		)	—
Payment of dividends to common and preferred stockholders	—			—			(19		)	—			(19		)
Payment for treasury stock	—			—			(500		)	—			(500		)
Proceeds from issuance of long-term debt	—			774			831			—			1,605
Payments for short and long-term debt	—			(564		)	(284		)	—			(848		)
Contributions from, net of distributions to noncontrolling interests in subsidiaries	—			222			—			—			222
Payment of debt issuance costs	—			(24		)	(13		)	—			(37		)
Net Cash (Used)/Provided by Financing Activities	(323		)	464			356			(74		)	423
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash	110			(180		)	(129		)	—			(199		)
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period	41			852			643			—			1,536
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period	$	151		$	672		$	514		$	—		$	1,337


(a)	All significant intercompany transactions have been eliminated in consolidation.

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

For the three months ended June 30, 2017

(Unaudited)



	Guarantor Subsidiaries			Non-Guarantor Subsidiaries			NRG Energy, Inc. (Note Issuer)			Eliminations^(a)			Consolidated
	(In millions)
Operating Revenues
Total operating revenues	$	2,060		$	664		$	—		$	(23	)	$	2,701
Operating Costs and Expenses
Cost of operations	1,530			312			20			(21		)	1,841
Depreciation and amortization	99			153			8			—			260
Impairment losses	42			21			—			—			63
Selling, general and administrative	96			29			97			(1		)	221
Development costs	—			13			5			—			18
Total operating costs and expenses	1,767			528			130			(22		)	2,403
Other income - affiliate	—			—			39			—			39
Gain on sale of assets	2			—			—			—			2
Operating Income/(Loss)	295			136			(91		)	(1		)	339
Other Income/(Expense)
Equity in earnings/(losses) of consolidated subsidiaries	8			—			(149		)	141			—
Equity in losses of unconsolidated affiliates	—			(2		)	(1		)	—			(3		)
Other income, net	—			41			7			(34		)	14
Interest expense	(4		)	(121		)	(122		)	—			(247		)
Total other income/(expense)	4			(82		)	(265		)	107			(236		)
Income/(Loss) from Continuing Operations Before Income Taxes	299			54			(356		)	106			103
Income tax expense/(benefit)	113			267			(376		)	—			4
Income/(Loss) from Continuing Operations	186			(213		)	20			106			99
Loss from discontinued operations, net of income tax	—			(123		)	(618		)	—			(741		)
Net Income/(Loss)	186			(336		)	(598		)	106			(642		)
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest	—			(9		)	28			(35		)	(16		)
Net Income/(Loss) Attributable to NRG Energy, Inc.	$	186		$	(327	)	$	(626	)	$	141		$	(626	)


(a)	All significant intercompany transactions have been eliminated in consolidation.

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

For the six months ended June 30, 2017

(Unaudited)



	Guarantor Subsidiaries			Non-Guarantor Subsidiaries			NRG Energy, Inc. (Note Issuer)			Eliminations^(a)			Consolidated
	(In millions)
Operating Revenues
Total operating revenues	$	3,878		$	1,241		$	—		$	(36	)	$	5,083
Operating Costs and Expenses
Cost of operations	3,050			651			39			(36		)	3,704
Depreciation and amortization	198			303			16			—			517
Impairment losses	42			21			—			—			63
Selling, general and administrative	205			64			213			(1		)	481
Development costs	—			25			10			—			35
Total operating costs and expenses	3,495			1,064			278			(37		)	4,800
Other income - affiliate	—			—			87			—			87
Gain on sale of assets	4			—			—			—			4
Operating Income/(Loss)	387			177			(191		)	1			374
Other Income/(Expense)
Equity in earnings/(losses) of consolidated subsidiaries	13			—			(100		)	87			—
Equity in earnings/(losses) of unconsolidated affiliates	—			4			(2		)	—			2
Other income, net	1			47			13			(35		)	26
Loss on debt extinguishment, net	—			(2		)	—			—			(2		)
Interest expense	(7		)	(225		)	(239		)	—			(471		)
Total other income/(expense)	7			(176		)	(328		)	52			(445		)
Income/(Loss) from Continuing Operations Before Income Taxes	394			1			(519		)	53			(71		)
Income tax expense/(benefit)	131			237			(369		)	—			(1		)
Income/(Loss) from Continuing Operations	263			(236		)	(150		)	53			(70		)
Loss from discontinued operations, net of income tax	—			(160		)	(615		)	—			(775		)
Net Income/(Loss)	263			(396		)	(765		)	53			(845		)
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest	—			(46		)	25			(34		)	(55		)
Net Income/(Loss) Attributable to NRG Energy, Inc.	$	263		$	(350	)	$	(790	)	$	87		$	(790	)


(a)	All significant intercompany transactions have been eliminated in consolidation.

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

For the three months ended June 30, 2017

(Unaudited)



	Guarantor Subsidiaries		Non-Guarantor Subsidiaries			NRG Energy, Inc. (Note Issuer)			Eliminations^(a)			Consolidated
	(In millions)
Net Income/(Loss)	$	186	$	(336	)	$	(598	)	$	106		$	(642	)
Other Comprehensive Income, net of tax
Unrealized loss on derivatives, net	—		(6		)	(4		)	5			(5		)
Foreign currency translation adjustments, net	—		1			—			—			1
Available-for-sale securities, net	—		—			1			—			1
Defined benefit plans, net	—		28			28			(29		)	27
Other comprehensive income	—		23			25			(24		)	24
Comprehensive Income/(Loss)	186		(313		)	(573		)	82			(618		)
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest	—		(10		)	28			(35		)	(17		)
Comprehensive Income/(Loss) Attributable to NRG Energy, Inc.	$	186	$	(303	)	$	(601	)	$	117		$	(601	)


(a)	All significant intercompany transactions have been eliminated in consolidation.

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

For the six months ended June 30, 2017

(Unaudited)



	Guarantor Subsidiaries		Non-Guarantor Subsidiaries			NRG Energy, Inc. (Note Issuer)			Eliminations^(a)			Consolidated
	(In millions)
Net Income/(Loss)	$	263	$	(396	)	$	(765	)	$	53		$	(845	)
Other Comprehensive Income, net of tax
Unrealized loss on derivatives, net	—		(1		)	—			—			(1		)
Foreign currency translation adjustments, net	5		5			7			(9		)	8
Available-for-sale securities, net	—		—			1			—			1
Defined benefit plans, net	—		29			27			(29		)	27
Other comprehensive income	5		33			35			(38		)	35
Comprehensive Income/(Loss)	268		(363		)	(730		)	15			(810		)
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest	—		(47		)	25			(34		)	(56		)
Comprehensive Income/(Loss) Attributable to NRG Energy, Inc.	$	268	$	(316	)	$	(755	)	$	49		$	(754	)


(a)	All significant intercompany transactions have been eliminated in consolidation.

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

December 31, 2017



	Guarantor Subsidiaries		Non-Guarantor Subsidiaries			NRG Energy, Inc. (Note Issuer)			Eliminations^(a)			Consolidated
ASSETS	(In millions)
Current Assets
Cash and cash equivalents	$	—	$	348		$	643		$	—		$	991
Funds deposited by counterparties	37		—			—			—			37
Restricted cash	4		504			—			—			508
Accounts receivable, net	912		163			4			—			1,079
Inventory	338		194			—			—			532
Derivative instruments	646		29			9			(58		)	626
Cash collateral paid in support of energy risk management activities	170		1			—			—			171
Accounts receivable - affiliate	685		133			(129		)	(594		)	95
Current assets held-for-sale	8		107			—			—			115
Prepayments and other current assets	122		112			27			—			261
Total current assets	2,922		1,591			554			(652		)	4,415
Property, plant and equipment, net	2,507		11,188			238			(25		)	13,908
Other Assets
Investment in subsidiaries	266		—			7,581			(7,847		)	—
Equity investments in affiliates	—		1,036			2			—			1,038
Note receivable, less current portion	—		2			38			(38		)	2
Goodwill	360		179			—			—			539
Intangible assets, net	454		1,295			—			(3		)	1,746
Nuclear decommissioning trust fund	692		—			—			—			692
Derivative instruments	126		15			31			—			172
Deferred income taxes	377		(7		)	(236		)	—			134
Non-current assets held for sale	—		43			—			—			43
Other non-current assets	50		459			120			—			629
Total other assets	2,325		3,022			7,536			(7,888		)	4,995
Total Assets	$	7,754	$	15,801		$	8,328		$	(8,565	)	$	23,318
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current portion of long-term debt and capital leases	$	—	$	667		$	59		$	(38	)	$	688
Accounts payable	610		216			55			—			881
Accounts payable — affiliate	742		(297		)	181			(593		)	33
Derivative instruments	556		57			—			(58		)	555
Cash collateral received in support of energy risk management activities	37		—			—			—			37
Current liabilities held-for-sale	—		72			—			—			72
Accrued expenses and other current liabilities	303		162			425			—			890
Accrued expenses and other current liabilities - affiliate	—		—			161			—			161
Total current liabilities	2,248		877			881			(689		)	3,317
Other Liabilities
Long-term debt and capital leases	244		8,733			6,739			—			15,716
Nuclear decommissioning reserve	269		—			—			—			269
Nuclear decommissioning trust liability	415		—			—			—			415
Deferred income taxes	112		64			(155		)	—			21
Derivative instruments	136		61			—			—			197
Out-of-market contracts, net	66		141			—			—			207
Non-current liabilities held-for-sale	—		8			—			—			8
Other non-current liabilities	410		321			391			—			1,122
Total non-current liabilities	1,652		9,328			6,975			—			17,955
Total Liabilities	3,900		10,205			7,856			(689		)	21,272
Redeemable noncontrolling interest in subsidiaries	—		78			—			—			78
Stockholders’ Equity	3,854		5,518			472			(7,876		)	1,968
Total Liabilities and Stockholders’ Equity	$	7,754	$	15,801		$	8,328		$	(8,565	)	$	23,318


(a)	All significant intercompany transactions have been eliminated in consolidation.

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

For the six months ended June 30, 2017

(Unaudited)



	Guarantor Subsidiaries			Non-Guarantor Subsidiaries			NRG Energy, Inc. (Note Issuer)			Eliminations^(a)			Consolidated
	(In millions)
Cash Flows from Operating Activities
Net income/(loss)	$	263		$	(396	)	$	(765	)	$	53		$	(845	)
Loss from discontinued operations	—			(160		)	(615		)	—			(775		)
Net income/(loss) from continuing operations	263			(236		)	(150		)	53			(70		)
Adjustments to reconcile net income/(loss) to net cash provided/(used) by operating activities:
Distributions from unconsolidated affiliates	—			32			—			(4		)	28
Equity in (earnings)/losses of unconsolidated affiliates	—			(4		)	2			—			(2		)
Depreciation, amortization and accretion	198			303			16			—			517
Provision for bad debts	17			1			—			—			18
Amortization of nuclear fuel	24			—			—			—			24
Amortization of financing costs and debt discount/premiums	—			20			9			—			29
Amortization of intangibles and out-of-market contracts	12			39			—			—			51
Amortization of unearned equity compensation	—			—			16			—			16
Impairment losses	42			21			—			—			63
Changes in deferred income taxes and liability for uncertain tax benefits	131			237			(360		)	—			8
Changes in nuclear decommissioning trust liability	2			—			—			—			2
Changes in derivative instruments	12			(12		)	7			—			7
Changes in collateral deposits in support of energy risk management activities	(203		)	11			3			—			(189		)
Proceeds from sale of emission allowances	11			—			—			—			11
Gain on sale of assets	(22		)	—			—			—			(22		)
Changes in other working capital	(329		)	(539		)	538			(49		)	(379		)
Net cash provided/(used) by continuing operations	158			(127		)	81			—			112
Cash used by discontinued operations	—			(38		)	—			—			(38		)
Net Cash Provided/(Used) by Operating Activities	158			(165		)	81			—			74
Cash Flows from Investing Activities
Dividends from NRG Yield, Inc.	—			—			45			(45		)	—
Intercompany dividends	—			—			129			(129		)	—
Acquisition of Drop Down Assets, net of cash acquired	—			(131		)	—			131			—
Acquisition of businesses, net of cash acquired	—			(16		)	—			—			(16		)
Capital expenditures	(90		)	(436		)	(16		)	—			(542		)
Decrease in notes receivable	8			—			—			—			8
Purchases of emission allowances	(30		)	—			—			—			(30		)
Proceeds from sale of emission allowances	59			—			—			—			59
Investments in nuclear decommissioning trust fund securities	(279		)	—			—			—			(279		)
Proceeds from the sale of nuclear decommissioning trust fund securities	277			—			—			—			277
Proceeds from renewable energy grants and state rebates	—			8			—			—			8
Proceeds from sale of assets, net of cash disposed of	35			—			—			—			35
Change in investments in unconsolidated affiliates	—			(30		)	—			—			(30		)
Other	18			—			—			—			18
Net cash (used)/provided by continuing operations	(2		)	(605		)	158			(43		)	(492		)
Cash used by discontinued operations	—			(53		)	—			—			(53		)
Net Cash (Used)/Provided by Investing Activities	(2		)	(658		)	158			(43		)	(545		)
Cash Flows from Financing Activities
Dividends from NRG Yield, Inc.	—			(45		)	—			45			—
Payments (for)/from intercompany loans	—			(129		)	—			129			—
Acquisition of Drop Down Assets, net of cash acquired	—			—			131			(131		)	—
Intercompany dividends	(122		)	369			(247		)	—			—
Payment of dividends to common and preferred stockholders	—			—			(19		)	—			(19		)
Net receipts from settlement of acquired derivatives that include financing elements	—			2			—			—			2
Proceeds from issuance of long-term debt	—			741			205			—			946
Payments for short and long-term debt	—			(316		)	(214		)	—			(530		)
Increase in notes receivable from affiliate	—			(125		)	—			—			(125		)
Distributions to, net of contributions from, noncontrolling interests in subsidiaries	—			14			—			—			14
Payments of debt issuance costs	—			(32		)	(4		)	—			(36		)
Other - contingent consideration	—			(10		)	—			—			(10		)
Net cash (used)/provided by continuing operations	(122		)	469			(148		)	43			242
Cash used by discontinued operations	—			(224		)	—			—			(224		)
Net Cash (Used)/Provided by Financing Activities	(122		)	245			(148		)	43			18
Effect of exchange rate changes on cash and cash equivalents	—			(8		)	—			—			(8		)
Change in cash from discontinued operations	—			(315		)	—			—			(315		)
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash	34			(271		)	91			—			(146		)
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period	13			1,050			323			—			1,386
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period	$	47		$	779		$	414		$	—		$	1,240


(a)	All significant intercompany transactions have been eliminated in consolidation.