Segment Reporting

12 Months Ended

Dec. 31, 2019

As of December 31, 2019, the Company's reportable segments were Generation, Retail and Corporate segments. Retail includes Mass market and C&I customers, as well as other distributed and reliability products. Generation includes all power plant activities, as well as renewables. Intersegment sales are accounted for at market.

On February 4, 2019, the Company completed the sale and deconsolidation of South Central Portfolio. On August 31, 2018, NRG deconsolidated NRG Yield Inc., its Renewables Platform and Carlsbad for financial reporting purposes. In 2018, the financial information for historical periods was recast to reflect the presentation of discontinued operations within the corporate segment. Refer to Note 4, Acquisitions, Discontinued Operations and Dispositions, for further discussion.

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.

The Company had no customer that comprised more than 10% of the Company's consolidated revenues during the years ended December 31, 2019 and 2017. The company had one customer in the Generation segment that comprised 11% of the Company's consolidated revenues during the year ended December 31, 2018.


	For the Year Ended December 31, 2019
(In millions)	Retail		Generation		Corporate^(a)		Eliminations		Total
Operating revenues^(a)	$	7,680	$	3,847	$	—	$	(1,706)	$	9,821
Operating expenses	7,031		2,777		50		(1,705)		8,153
Depreciation and amortization	157		185		31		—		373
Impairment losses	1		4		—		—		5
Development costs	—		7		—		—		7
Total operating cost and expenses	7,189		2,973		81		(1,705)		8,538

(Loss)/Gain on sale of assets	(1)		2		6		—		7
Operating income/(loss)	490		876		(75)		(1)		1,290
Equity in earnings of unconsolidated affiliates	—		2		—		—		2
Impairment losses on investments	—		(101)		(7)		—		(108)
Other income, net	2		32		32		—		66
Loss on debt extinguishment	—		(3)		(48)		—		(51)
Interest expense	(3)		(24)		(386)		—		(413)
Income/(loss) from continuing operations before income taxes	489		782		(484)		(1)		786
Income tax expense/(benefit)	2		2		(3,338)		—		(3,334)
Net income from continuing operations	487		780		2,854		(1)		4,120
Gain from discontinued operations, net of income tax	—		—		321		—		321
Net Income	487		780		3,175		(1)		4,441
Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interests	3		—		—		—		3
Net income attributable to NRG Energy, Inc.	$	484	$	780	$	3,175	$	(1)	$	4,438

Balance sheet
Equity investments in affiliates	$	—	$	388	$	—	$	—	$	388
Capital expenditures	60		134		34		—		228
Goodwill	414		165		—		—		579
Total assets	$	3,573	$	5,467	$	8,531	$	(5,040)	$	12,531


(a) Inter-segment sales and inter-segment net derivative gains and losses included in operating revenues			$	10					$	1,602					$	94					$	—					$	1,706


	For the Year Ended December 31, 2018
(In millions)	Retail		Generation		Corporate^(a)		Eliminations		Total
Operating revenues^(a)	$	7,103	$	3,443	$	—	$	(1,068)	$	9,478
Operating expenses	5,919		3,021		126		(1,069)		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		3,400		161		(1,070)		8,528

Gain on sale of assets	—		2		30		—		32
Operating income/(loss)	1,066		45		(131)		2		982
Equity in earnings of unconsolidated affiliates	—		10		4		(5)		9
Impairment losses on investments	—		(15)		—		—		(15)
Other income/(loss), 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		2		(594)		(4)		467
Income tax expense	1		—		6		—		7
Net income/(loss) from continuing operations	1,062		2		(600)		(4)		460
Loss from discontinued operations, net of income tax	—		—		(192)		—		(192)
Net Income/(loss)	1,062		2		(792)		(4)		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	$	(7)	$	(787)	$	1	$	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	$	7,006	$	(5,404)	$	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
(In millions)	Retail		Generation		Corporate^(a)		Eliminations		Total
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 costs 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)


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