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. The financial information for the three months ended March 31, 2018 has been recast to reflect the current segment structure.

On February 4, 2019, as described in Note 4, Discontinued Operations and Dispositions, the Company completed the sale of and deconsolidated the South Central Portfolio. On August 31, 2018, as described in Note 4, Discontinued Operations and Dispositions, NRG deconsolidated NRG Yield, Inc., its Renewables Platform and Carlsbad for financial reporting purposes. The financial information for the three months ended March 31, 2018 has been recast to reflect the presentation of these entities 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)and net income/(loss) attributable to NRG Energy, Inc.



	Three months ended March 31, 2019^(a)
	Retail		Generation			Corporate			Eliminations			Total
	(In millions)
Operating revenues^(b)	$	1,607	$	823		$	1		$	(266	)	$	2,165
Depreciation and amortization	31		46			8			—			85
Reorganization costs	1		1			11			—			13
Equity in losses of unconsolidated affiliates	—		(20		)	27			(28		)	(21		)
Income/(loss) from continuing operations before income taxes	111		114			(100		)	(27		)	98
Income/(loss) from continuing operations	111		114			(104		)	(27		)	94
Income from discontinued operations, net of tax	—		—			388			—			388
Net Income attributable to NRG Energy, Inc.	$	111	$	114		$	284		$	(27	)	$	482
Total assets as of March 31, 2019	$	3,309	$	5,489		$	5,680		$	(4,948	)	$	9,530



^(a) Includes intersegment revenues and costs associated with the internal transfer of power, which is based on average annualized market prices and results in higher revenues in Generation and higher cost of operations in Retail that are eliminated in consolidation
^(b) Operating revenues include intersegment sales and net derivative gains and losses of:	$	3	$	235	$	28	$	—	$	266



	Three months ended March 31, 2018^(a)
	Retail		Generation			Corporate			Eliminations			Total
	(In millions)
Operating revenues^(b)	$	1,480	$	270		$	1		$	314		$	2,065
Depreciation and amortization	26		86			9			(1		)	120
Reorganization costs	3		4			13			—			20
Equity in earnings/(losses) of unconsolidated affiliates	—		2			(1		)	—			1
Income/(loss) from continuing operations before income taxes	944		(573		)	(128		)	1			244
Income/(loss) from continuing operations	944		(573		)	(134		)	1			238
Loss from discontinued operations, net of tax	—		—			(5		)	—			(5		)
Net Income/(Loss)	944		(573		)	(139		)	1			233
Net Income/(Loss) attributable to NRG Energy, Inc.	$	943	$	(565	)	$	(100	)	$	1		$	279



^(a) Includes intersegment revenues and costs associated with our internal transfer of power, which is based on average annualized market prices and results in higher revenues in Generation and higher cost of operations in Retail that are eliminated in consolidation
^(b) Operating revenues include intersegment sales and net derivative gains and losses of:	$	1	$	(309	)	$	(6	)	$	—	$	(314	)