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Acquisitions, Discontinued Operations and Dispositions (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract] |
Schedule of Collective Collateral Facilities | The Company also increased its collective 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 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 | 173 |
Total current assets | 3,510 |
Property, plant and equipment, net | 151 |
Other Assets |
Goodwill(a) | 1,250 |
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 | 4,133 |
Total Assets | $ | 7,794 |
| (In millions)
Current Liabilities |
Accounts payable | $ | 1,116 |
Derivative instruments | 1,266 |
Cash collateral received in support of energy risk management activities | 21 |
Accrued expenses and other current liabilities | 670 |
Total current liabilities | 3,073 |
Other Liabilities |
Derivative instruments | 562 |
Deferred income taxes | 320 |
Other non-current liabilities | 115 |
Total other liabilities | 997 |
Total Liabilities | $ | 4,070 |
Direct Energy Purchase Price | $ | 3,724 |
(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 allocated to the Texas, East, and West/Services/Other segments of $427 million, $648 million , and $175 million, respectively. Goodwill expected to be deductible for tax purposes is $322 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 December 31, 2021:
| (In millions)
Assets |
Prepayments and other current assets | $ | (10) |
Goodwill | (7) |
Total decrease in assets | $ | (17) |
Liabilities |
Accounts payable | $ | (4) |
Accrued expenses and other current liabilities | (20) |
Deferred income taxes | (18) |
Total decrease in liabilities | $ | (42) |
Net measurement period adjustments | $ | 25 |
The purchase price was allocated as follows:
| (In millions)
Account receivable | $ | 98 |
Accounts payable | (73) |
Other net current and non-current working capital | 5 |
Marketing partnership | 154 |
Customer relationships | 85 |
Trade name | 28 |
Other intangible assets | 26 |
Goodwill (a) | 6 |
Stream Purchase Price | $ | 329 |
(a)Goodwill arising from the acquisition is attributed to the value of the platform acquired and the synergies expected from combining the operations of Stream Energy with NRG's existing businesses. Goodwill of $5 million and $1 million was assigned to the Texas and East segments, respectively, and is not deductible for tax purposes
Fair Values of Derivative Assets and Liabilities as of Acquisition Closing Date | 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 |
The following tables present assets and liabilities measured and recorded at fair value on the Company's consolidated balance sheets on a recurring basis and their level within the fair value hierarchy:
| As of December 31, 2021
| Fair Value
(In millions) | Total |  | Level 1 |  | Level 2 |  | Level 3
Investments in securities (classified within other current and non-current assets) | $ | 32 |  |  | $ | 15 |  |  | $ | 17 |  |  | $ | — |
Nuclear trust fund investments: |  |  |  |  |  |  |
Cash and cash equivalents | 33 |  |  | 33 |  |  | — |  |  | — |
U.S. government and federal agency obligations | 112 |  |  | 111 |  |  | 1 |  |  | — |
Federal agency mortgage-backed securities | 100 |  |  | — |  |  | 100 |  |  | — |
Commercial mortgage-backed securities | 44 |  |  | — |  |  | 44 |  |  | — |
Corporate debt securities | 122 |  |  | — |  |  | 122 |  |  | — |
Equity securities | 494 |  |  | 494 |  |  | — |  |  | — |
Foreign government fixed income securities | 4 |  |  | — |  |  | 4 |  |  | — |
Other trust fund investments (classified within other non-current assets): |  |  |  |  |  |  |
U.S. government and federal agency obligations | 1 |  |  | 1 |  |  | — |  |  | — |
Derivative assets: |  |  |  |  |  |  |
Foreign exchange contracts | 1 |  |  | — |  |  | 1 |  |  | — |
Commodity contracts | 7,139 |  |  | 981 |  |  | 5,701 |  |  | 457 |
Measured using net asset value practical expedient: |  |  |  |  |  |  |
Equity securities-nuclear trust fund investments | 99 |  |  |  |  |  |  |
Equity securities (classified within other non-current assets) | 7 |  |  |  |  |  |  |
Total assets | $ | 8,188 |  |  | $ | 1,635 |  |  | $ | 5,990 |  |  | $ | 457 |
Derivative liabilities: |  |  |  |  |  |  |
Foreign exchange contracts | $ | 1 |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |
Commodity contracts | $ | 4,798 |  |  | $ | 626 |  |  | $ | 4,008 |  |  | $ | 164 |
Total liabilities | $ | 4,799 |  |  | $ | 626 |  |  | $ | 4,009 |  |  | $ | 164 |
| As of December 31, 2020
| Fair Value
(In millions) | Total |  | Level 1 |  | Level 2 |  | Level 3
Investments in securities (classified within other current or non-current assets) | $ | 25 |  |  | $ | 10 |  |  | $ | 15 |  |  | $ | — |
Nuclear trust fund investments: |  |  |  |  |  |  |
Cash and cash equivalents | 23 |  |  | 23 |  |  | — |  |  | — |
U.S. government and federal agency obligations | 70 |  |  | 69 |  |  | 1 |  |  | — |
Federal agency mortgage-backed securities | 89 |  |  | — |  |  | 89 |  |  | — |
Commercial mortgage-backed securities | 36 |  |  | — |  |  | 36 |  |  | — |
Corporate debt securities | 144 |  |  | — |  |  | 144 |  |  | — |
Equity securities | 434 |  |  | 434 |  |  | — |  |  | — |
Foreign government fixed income securities | 7 |  |  | 1 |  |  | 6 |  |  | — |
Other trust fund investments (classified within other non-current assets): |  |  |  |  |  |  |
U.S. government and federal agency obligations | 1 |  |  | 1 |  |  | — |  |  | — |
Derivative assets: |  |  |  |  |  |  |
Commodity contracts | 821 |  |  | 59 |  |  | 623 |  |  | 139 |
Measured using net asset value practical expedient: |  |  |  |  |  |  |
Equity securities-nuclear trust fund investments | 87 |  |  |  |  |  |  |
Equity securities (classified within other non-current assets) | 8 |  |  |  |  |  |  |
Total assets | $ | 1,745 |  |  | $ | 597 |  |  | $ | 914 |  |  | $ | 139 |
Derivative liabilities: |  |  |  |  |  |  |
Commodity contracts | $ | 884 |  |  | $ | 86 |  |  | $ | 643 |  |  | $ | 155 |
Total liabilities | $ | 884 |  |  | $ | 86 |  |  | $ | 643 |  |  | $ | 155 |
Business Acquisition, Pro Forma Information | The following table provides unaudited 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, 2019. 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.
| For the Year Ended December 31,
(In millions) | 2021 |  | 2020 |  | 2019
Total operating revenues | $ | 26,987 |  |  | $ | 21,326 |  |  | $ | 23,673 |
Income from continuing operations | 2,225 |  |  | 471 |  |  | 3,623 |
Summary of Results of Discontinued Operations | Summarized results of South Central discontinued operations for the year ended December 31, 2019 were as follows:
|  | (In millions)
Operating revenues |  | $ | 31 |
Operating costs and expenses |  | (23) |
Gain from operations of discontinued components |  | 8 |
Gain on disposal of discontinued operations, net of tax |  | 20 |
Gain from discontinued operations, including disposal, net of tax |  | $ | 28 |
Summarized results of NRG Yield, Inc. and Renewables Platform and Carlsbad discontinued operations for the year ended December 31, 2019 were as follows:
|  | (In millions)
Operating revenues |  | $ | 19 |
Operating costs and expenses |  | (9) |
Other expenses |  | (5) |
Gain/(loss) from discontinued operations, net of tax |  | 5 |
Gain/(loss) on disposal of discontinued operations, net of tax |  | 265 |
Income/(expense) from California property tax indemnification |  | 22 |
Income/(expense) from other commitments, indemnification and fees |  | 4 |
Income/(loss) on disposal of discontinued operations, net of tax |  | 291 |
Income/(loss) from discontinued operations, net of tax |  | $ | 296 |

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