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Acquisitions and Dispositions (Tables) | 9 Months Ended
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Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract] |
Schedule of Line of Credit Facilities | The Company also increased its collective liquidity and collateral facilities by $3.4 billion as of the Acquisition Closing Date to meet the additional liquidity requirements related to the acquisition, as detailed in the following table:
| (In millions)
Available on Acquisition Closing Date |
Revolving Credit Facility commitment increase | $ | 802 |
Revolving Credit Facility new tranche | 273 |
Facility agreement in connection with the sale of pre-capitalized trust securities | 874 |
Available as of December 31, 2020 |
Credit default swap facility | 150 |
Revolving accounts receivable financing facility | 750 |
Repurchase facility | 75 |
Bilateral letter of credit facilities | 475 |
Total Increases to Liquidity and Collateral Facilities | $ | 3,399 |
Schedule of Purchase Price Allocation | The purchase price is provisionally allocated as follows:
| (In millions)
Current Assets |
Cash and cash equivalents | $ | 152 |
Funds deposited by counterparties | 21 |
Restricted cash | 9 |
Accounts receivable, net | 1,802 |
Inventory | 106 |
Derivative instruments | 1,014 |
Cash collateral paid in support of energy risk management activities | 233 |
Prepayments and other current assets | 183 |
Total current assets | 3,520 |
Property, plant and equipment, net | 151 |
Other Assets |
Goodwill(a) | 1,257 |
Intangible assets, net: |
Customer relationships(b) | 1,277 |
Customer and supply contracts(b) | 610 |
Trade names(b) | 310 |
Renewable energy credits | 124 |
Total intangible assets, net | 2,321 |
Derivative instruments | 531 |
Other non-current assets | 31 |
Total other assets | 4,140 |
Total Assets | $ | 7,811 |
Current Liabilities |
Accounts payable | $ | 1,120 |
Derivative instruments | 1,266 |
Cash collateral received in support of energy risk management activities | 21 |
Accrued expenses and other current liabilities | 690 |
Total current liabilities | 3,097 |
Other Liabilities |
Derivative instruments | 562 |
Deferred income taxes | 338 |
Other non-current liabilities | 115 |
Total other liabilities | 1,015 |
Total Liabilities | $ | 4,112 |
Direct Energy Purchase Price | $ | 3,699 |
(a) Goodwill arising from the acquisition is attributed to the value of the platform acquired and the synergies expected from combining the operations of Direct Energy with NRG's existing businesses. Goodwill was provisionally allocated to the Texas, East, and West/Services/Other segments of $424 million, $663 million and $170 million, respectively. Goodwill expected to be deductible for tax purposes is $337 million (b) The weighted average amortization period for total amortizable intangible assets is 12 years The following measurement period adjustments were recognized during the quarter ended September 30, 2021:
(In millions) | Increase/(Decrease)
Assets |
Goodwill | $ | 11 |
Intangible assets, net | (32) |
Total decrease in assets | $ | (21) |
Liabilities |
Accounts payable | $ | (270) |
Accrued expenses and other current liabilities | 248 |
Deferred income taxes | (1) |
Other non-current liabilities | 2 |
Total decrease in liabilities | $ | (21) |
Schedule of Derivative Liabilities at Fair Value | The fair values of derivatives assets and liabilities as of the Acquisition Closing Date were as follows:
| Fair Value
(In millions) | Total |  | Level 1 |  | Level 2 |  | Level 3
Derivatives assets | $ | 1,545 |  |  | $ | 155 |  |  | $ | 1,272 |  |  | $ | 118 |
Derivatives liabilities | $ | 1,828 |  |  | $ | 207 |  |  | $ | 1,489 |  |  | $ | 132 |
Schedule of Supplemental Information | For the three and nine months ended September 30, 2021 Direct Energy contributed revenue and income before income taxes as follows:
(In millions) | Three months ended September 30, 2021 |  | Nine months ended September 30, 2021
Revenue | $ | 3,599 |  |  | $ | 10,718 |
Income before income taxes | 2,010 |  |  | 3,457 |
Schedule of Pro Forma Financial Information | Supplemental Pro Forma Financial Information for the nine months ended September 30, 2021 and 2020(a) The following table provides pro forma combined financial information of NRG and Direct Energy, after giving effect to the Direct Energy acquisition and related financing transactions as if they had occurred on January 1, 2020. The pro forma financial information has been prepared for illustrative and informational purposes only, and is not intended to project future operating results or indicative of what our financial performance would have been had the transactions occurred on the date assumed. No effect has been given to operating synergies.
(In millions) | Nine months ended September 30, 2021 |  | Nine months ended September 30, 2020
Total operating revenues | $ | 19,932 |  |  | $ | 16,039 |
Net Income | 2,585 |  |  | 832 |
(a) Pro forma comparative financial information for the three months ended September 30, 2021 and 2020 has not been included as computation of such information is impracticable as Direct Energy's pre-acquisition financial statements for the three months ended September 30, 2020 were not prepared in accordance with GAAP
Schedule of Classified Held for Sale | As of September 30, 2021, the following is classified as held for sale in the Consolidated Balance Sheet:
| (In millions)(a)
Current assets(b) | $ | 51 |
Property, plant and equipment, net | 391 |
Other non-current assets | 3 |
Total non-current assets(c) | 394 |
Total assets held for sale | $ | 445 |
Current liabilities(d) | 14 |
Non-current liabilities(e) | 61 |
Total liabilities held for sale | $ | 75 |
(a) Property, plant and equipment, net for the East and West/Services/Other segments was $242 million and $149 million, respectively. The remaining assets and liabilities were primarily in the East segment (b) Included in prepayments and other current assets in the Consolidated Balance Sheet (c) Included in other non-current assets in the Consolidated Balance Sheet (d) Included in accrued expenses and other current liabilities in the Consolidated Balance Sheet (e) Included in other non-current liabilities in the Consolidated Balance Sheet

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