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, Renewables and international; Retail, which includes Mass customers and Business Solutions, which includes C&I customers and other distributed and reliability products; and corporate activities. The financial information for the three and nine months ended September 30, 2018 has been recast to reflect the current segment structure.

On August 31, 2018, as described in Note 3, Acquisitions, Discontinued Operations and Dispositions, NRG deconsolidated NRG Yield, Inc., its Renewables Platform and Carlsbad for financial reporting purposes. The financial information for all historical periods has been recast to reflect the presentation of these entities as discontinued operations within the corporate segment.

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 has 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)		Corporate^(a)			Eliminations				Total
Three months ended September 30, 2018	(In millions)
Operating revenues^(a)	$	2,203		$	1,579	$	1		$	(722	)		$	3,061
Depreciation and amortization	30			73		7			2				112
Reorganization costs	6			3		18			—				27
Gain on sale of assets	—			—		14			—				14
Equity in earnings of unconsolidated affiliates	—			20		2			(2		)		20
Loss on debt extinguishment, net	—			—		(19		)	—				(19		)
(Loss)/income from continuing operations before income taxes	(127		)	595		349			(504		)		313
(Loss)/income from continuing operations	(127		)	595		342			(504		)		306
Loss from discontinued operations, net of tax	—			—		(354		)	—				(354		)
Net (Loss)/Income	(127		)	595		(12		)	(504		)		(48		)
(Loss)/Income attributable to NRG Energy, Inc. common stockholders	$	(127	)	$	579	$	(23	)	$	(501	)	—	$	(72	)
Total assets as of September 30, 2018	$	3,465		$	6,699	$	7,979		$	(6,693	)		$	11,450



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	1	$	740	$	(19	)	$	—	$	722



	Retail^(a)		Generation^(a)		Corporate^(a)			Eliminations			Total
Three months ended September 30, 2017	(In millions)
Operating revenues^(a)	$	1,936	$	1,313	$	—		$	(509	)	$	2,740
Depreciation and amortization	28		128		8			(1		)	163
Reorganization costs	5		3		4			—			12
Equity in earnings of unconsolidated affiliates	—		9		3			(3		)	9
Income/(loss) from continuing operations before income taxes	72		272		(157		)	(1		)	186
Income/(loss) from continuing operations	72		272		(158		)	(1		)	185
Loss from discontinued operations, net of tax	—		—		(22		)	—			(22		)
Net Income/(Loss)	72		272		(180		)	(1		)	163
Net Income/(Loss) attributable to NRG Energy, Inc. common stockholders	$	72	$	256	$	(159	)	$	2		$	171



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	3	$	493	$	13	$	—	$	509



	Retail^(a)		Generation^(a)		Corporate^(a)				Eliminations			Total
Nine months ended September 30, 2018	(In millions)
Operating revenues^(a)	$	5,497	$	3,216	$	10			$	(928	)	$	7,795
Depreciation and amortization	86		259		25				—			370
Impairment losses	—		74		—				—			74
Reorganization costs	10		10		50			—	—			70
Gain on sale of assets	—		1		29				—			30
Equity in earnings of unconsolidated affiliates	—		27		4				(5		)	26
Loss on debt extinguishment, net	—		—		(22		)		—			(22		)
Income/(Loss) from continuing operations before income taxes	733		303		812				(1,228		)	620
Income/(Loss) from continuing operations	733		302		794				(1,228		)	601
Loss from discontinued operations, net of tax	—		—		(320		)		—			(320		)
Net Income/(Loss)	733		302		474				(1,228		)	281
Net Income/(Loss) attributable to NRG Energy, Inc. common stockholders	$	732	$	293	$	479			$	(1,224	)	$	280



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	7	$	944	$	(23	)	$	—	$	928



	Retail ^(a)		Generation^(a)			Corporate^(a)				Eliminations			Total
Nine months ended September 30, 2017
Operating revenues^(a)	$	4,868	$	3,289		$	13			$	(924	)	$	7,246
Depreciation and amortization	81		385			26				(2		)	490
Impairment losses	—		60			—				—			60
Reorganization costs	5		3			10			—	—			18
Gain on sale of assets	—		4			—				—			4
Equity in (losses)/earnings of unconsolidated affiliates	—		(21		)	6				(5		)	(20		)
Income/(loss) from continuing operations before income taxes	371		185			(433		)		(4		)	119
Income/(loss) from continuing operations	380		183			(443		)		(4		)	116
Loss from discontinued operations, net of tax	—		—			(798		)		—			(798		)
Net Income/(loss)	380		183			(1,241		)		(4		)	(682		)
Net Income/(loss) attributable to NRG Energy, Inc. common stockholders	$	380	$	169		$	(1,169	)		$	1		$	(619	)



(a) Operating revenues include inter-segment sales and net derivative gains and losses of:	$	3	$	872	$	49	$	—	$	924