Variable Interest Entities, or VIEs

Entities that are not Consolidated

Through its consolidated subsidiary, NRG Solar Ivanpah LLC, NRG owns a 54.6% interest in Ivanpah Master Holdings LLC, or Ivanpah, the owner of three solar electric generating projects located in the Mojave Desert with a total capacity of 392 MW. NRG considers this investment a VIEs under ASC 810, Consolidation, and NRG is not considered the primary beneficiary. The Company accounts for its interest under the equity method of accounting.

The Ivanpah solar electric generating projects were funded in large part by loans guaranteed by the U.S. DOE and equity from the projects' partners. During the first quarter of 2018, all interested parties sought a restructuring of Ivanpah's debt in order to avoid a potential event of default with respect to the loans in connection with several recent events. Ensuing negotiations culminated in a settlement during the second quarter of 2018 between the parties which resulted in certain transactions, including the release of reserves totaling $95 million to fund equity distributions to the partners, which reduced the equity at risk, and the prepayment of certain of the debt balance outstanding, and the amendment of certain of Ivanpah's governing documents. The equity distributions and prepayment of debt were funded by the agreed upon release of reserve funds. These events were considered to be a reconsideration event in accordance with ASC 810, Consolidation. As a result, NRG determined that it is not the primary beneficiary and deconsolidated Ivanpah. NRG recognized a loss of $22 million on the deconsolidation and subsequent recognition of Ivanpah as an equity method investment during the nine months ended September 30, 2018. The deconsolidation of Ivanpah reduced the Company's assets by approximately $1.3 billion, which was primarily property, plant and equipment, and reduced the Company's liabilities by $1.2 billion, which was primarily long-term debt. NRG's maximum exposure to loss is limited to its equity investment, which was $45 million as of September 30, 2018.

Entities that are Consolidated

The Company has a controlling financial interest in certain entities, which have been identified as VIEs under ASC 810. These arrangements are primarily related to tax equity arrangements entered into with third-parties in order to finance the cost of solar energy systems under operating leases eligible for certain tax credits as further described in Note 2, Summary of Significant Accounting Policies to the Company's 2017 Form 10-K.

The summarized financial information for the Company's consolidated VIEs consisted of the following:



(In millions)	September 30, 2018		December 31, 2017
Current assets	$	6	$	6
Net property, plant and equipment	76		80
Other long-term assets	31		36
Total assets	113		122
Current liabilities	2		3
Long-term debt	29		30
Other long-term liabilities	8		7
Total liabilities	39		40
Redeemable noncontrolling interest	19		19
Net assets less noncontrolling interests	$	55	$	63