Segment Reporting

The Company's segment structure reflects how management currently makes financial decisions and allocates resources. The Company's businesses are segregated into the Generation, Retail and corporate segments. Generation includes all power plant activities, domestic and international, as well as renewables. Retail includes Mass customers and Business Solutions, which includes C&I customers and other distributed and reliability products. Intersegment sales are accounted for at market.

As described in Note 3, Acquisitions, Discontinued Operations and Dispositions, the Company has determined that the South Central Portfolio, NRG Yield Inc. and its Renewables Platform, Carlsbad, and GenOn all qualified for treatment as discontinued operations. The financial information for all historical periods has been recast to reflect the presentation of 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) and net income/(loss) attributable to NRG Energy, Inc.

During the year ended December 31, 2018, the Company had one customer in the Generation segment that comprised 11% of the Company's consolidated revenues. During the years ended December 31, 2017 and 2016, the Company had no customer that comprised more than 10% of the Company's consolidated revenues.



	For the Year Ended December 31, 2018
	Retail ^(a)			Generation^(a)			Corporate^(a)			Eliminations			Total
	(In millions)
Operating revenues^(a)	$	7,103		$	3,432		$	11		$	(1,068	)	$	9,478
Operating expenses	5,919			3,019			125			(1,066		)	7,997
Depreciation and amortization	116			272			33			—			421
Impairment losses	1			98			—			—			99
Development costs	1			9			2			(1		)	11
Total operating cost and expenses	6,037			3,398			160			(1,067		)	8,528
Gain on sale of assets	—			2			30			—			32
Operating income/(loss)	1,066			36			(119		)	(1		)	982
Equity in earnings of unconsolidated affiliates	—			10			4			(5		)	9
Impairment losses on investments	—			(15		)	—			—			(15		)
Other income/(expenses), net	—			20			(1		)	(1		)	18
Loss on debt extinguishment	—			—			(44		)	—			(44		)
Interest expense	(3		)	(58		)	(422		)	—			(483		)
Income/(loss) from continuing operations before income taxes	1,063			(7		)	(582		)	(7		)	467
Income tax expense	1			—			6			—			7
Net income/(loss) from continuing operations	1,062			(7		)	(588		)	(7		)	460
Loss from discontinued operations, net of income tax	—			—			(192		)	—			(192		)
Net Income/(loss)	1,062			(7		)	(780		)	(7		)	268
Less: Net income/(loss) attributable to noncontrolling interests and redeemable noncontrolling interests	1			9			(5		)	(5		)	—
Net income/(loss) attributable to NRG Energy, Inc.	$	1,061		$	(16	)	$	(775	)	$	(2	)	$	268

Balance sheet
Equity investments in affiliates	$	—		$	412		$	—		$	—		$	412
Capital expenditures	90			267			31			—			388
Goodwill	408			165			—			—			573
Total assets	$	3,291		$	5,735		$	7,003		$	(5,401	)	$	10,628



(a) Inter-segment sales and inter-segment net derivative gains and losses included in operating revenues	$	9	$	1,085	$	(26	)	$	—	$	1,068



	For the Year Ended December 31, 2017
	Retail ^(a)			Generation^(a)			Corporate^(a)			Eliminations			Total
	(In millions)
Operating revenues^(a)	$	6,369		$	3,615		$	13		$	(923	)	$	9,074
Operating expenses	5,377			3,071			243			(925		)	7,766
Depreciation and amortization	110			454			35			(3		)	596
Impairment losses	8			1,526			—			—			1,534
Development costs	3			13			6			—			22
Total operating cost and expenses	5,498			5,064			284			(928		)	9,918
Other income - affiliate	—			—			87			—			87
Gain on sale of assets	—			15			1			—			16
Operating income/(loss)	871			(1,434		)	(183		)	5			(741		)
Equity in (losses)/earnings of unconsolidated affiliates	—			(14		)	5			(5		)	(14		)
Impairment losses on investments	—			(75		)	(4		)	—			(79		)
Other income, net	—			23			28			—			51
Loss on debt extinguishment	—			—			(49		)	—			(49		)
Interest expense	(6		)	(100		)	(451		)	—			(557		)
Income/(loss) from continuing operations before income taxes	865			(1,600		)	(654		)	—			(1,389		)
Income tax (benefit)/expense	(8		)	2			(38		)	—			(44		)
Net income/(loss) from continuing operations	873			(1,602		)	(616		)	—			(1,345		)
Loss from discontinued operations, net of income tax	—			—			(992		)	—			(992		)
Net Income/(loss)	873			(1,602		)	(1,608		)	—			(2,337		)
Less: Net income/(loss) attributable to noncontrolling interests and redeemable noncontrolling interests	1			4			(189		)	—			(184		)
Net income/(loss) attributable to NRG Energy, Inc.	$	872		$	(1,606	)	$	(1,419	)	$	—		$	(2,153	)

Balance sheet
Equity investments in affiliates	$	—		$	179		$	95		$	(92	)	$	182
Capital expenditures	82			148			20			—			250
Goodwill	374			165			—			—			539
Total assets	$	2,655		$	9,090		$	17,402		$	(5,792	)	$	23,355



(a) Inter-segment sales and inter-segment net derivative gains and losses included in operating revenues	$	4	$	877	$	42	$	—	$	923



	For the Year Ended December 31, 2016
	Retail			Generation^(a)			Corporate^(a)			Eliminations			Total
	(In millions)
Operating revenues^(a)	$	6,330		$	3,633		$	74		$	(1,122	)	$	8,915
Operating expenses	5,162			3,322			353			(1,129		)	7,708
Depreciation and amortization	114			593			52			(3		)	756
Impairment losses	1			452			30			—			483
Development costs	4			15			29			—			48
Total operating costs and expenses	5,281			4,382			464			(1,132		)	8,995
Other income - affiliate	—			—			193			—			193
Loss on sale of assets	(1		)	—			(79		)	—			(80		)
Operating income/(loss)	1,048			(749		)	(276		)	10			33
Equity in (losses)/earnings of unconsolidated affiliates	—			(63		)	45			—			(18		)
Impairment losses on investments	—			(248		)	(20		)	—			(268		)
Other (expense)/income, net	(6		)	22			33			(2		)	47
Loss on debt extinguishment	—			—			(142		)	—			(142		)
Interest expense	6			(96		)	(495		)	2			(583		)
Income/(loss) from continuing operations before income taxes	1,048			(1,134		)	(855		)	10			(931		)
Income tax expense/(benefit)	1			(1		)	25			—			25
Net income/(loss) from continuing operations	$	1,047		$	(1,133	)	(880		)	10			(956		)
Income from discontinued operations, net of income tax	—			—			65			—			65
Net Income/(loss)	1,047			(1,133		)	(815		)	10			(891		)
Less: Net loss attributable to noncontrolling interests and redeemable noncontrolling interests	—			(1		)	(104		)	(12		)	(117		)
Net income/(loss) attributable to NRG Energy, Inc.	$	1,047		$	(1,132	)	$	(711	)	$	22		$	(774	)



(a) Inter-segment sales and inter-segment net derivative gains and losses included in operating revenues	$	16	$	999	$	107	$	—	$	1,122