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Long-term Debt and Finance Leases | 6 Months Ended
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Jun. 30, 2022
Debt Disclosure [Abstract] |
Long-term Debt and Finance Leases | Long-term Debt and Finance Leases Long-term debt and finance leases consisted of the following:
(In millions, except rates) | June 30, 2022 |  | December 31, 2021 |  | Interest rate %
Recourse debt: |  |  |  |  |
Senior Notes, due 2027 | $ | 375 |  |  | $ | 375 |  |  | 6.625
Senior Notes, due 2028 | 821 |  |  | 821 |  |  | 5.750
Senior Notes, due 2029 | 733 |  |  | 733 |  |  | 5.250
Senior Notes, due 2029 | 500 |  |  | 500 |  |  | 3.375
Senior Notes, due 2031 | 1,030 |  |  | 1,030 |  |  | 3.625
Senior Notes, due 2032 | 1,100 |  |  | 1,100 |  |  | 3.875
Convertible Senior Notes, due 2048(a) | 575 |  |  | 575 |  |  | 2.750
Senior Secured First Lien Notes, due 2024 | 600 |  |  | 600 |  |  | 3.750
Senior Secured First Lien Notes, due 2025 | 500 |  |  | 500 |  |  | 2.000
Senior Secured First Lien Notes, due 2027 | 900 |  |  | 900 |  |  | 2.450
Senior Secured First Lien Notes, due 2029 | 500 |  |  | 500 |  |  | 4.450
Tax-exempt bonds | 466 |  |  | 466 |  |  | 1.250 - 4.750
Subtotal recourse debt | 8,100 |  |  | 8,100 |  |  |
Finance leases | 12 |  |  | 13 |  |  | various
Subtotal long-term debt and finance leases (including current maturities) | 8,112 |  |  | 8,113 |  |  |
Less current maturities | (62) |  |  | (4) |  |  |
Less debt issuance costs | (78) |  |  | (83) |  |  |
Discounts | (2) |  |  | (60) |  |  |
Total long-term debt and finance leases | $ | 7,970 |  |  | $ | 7,966 |  |  |
(a)As of the ex-dividend date of July 29, 2022, the Convertible Senior Notes were convertible at a price of $43.77, which is equivalent to a conversion rate of approximately 22.8467 shares of common stock per $1,000 principal amount. 2048 Convertible Senior Notes Accounting for Convertible Senior Notes — Upon issuance, the Convertible Senior Notes were separated into liability and equity components for accounting purposes. The carrying amounts of the liability component was initially calculated by measuring the fair value of similar liabilities that do not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Convertible Senior Notes. This difference represented the debt discount that was amortized to interest expense over seven years, which was determined to be the expected life of the Convertible Senior Notes, using the effective interest rate method. The equity component was recorded in additional paid-in capital and was not remeasured as it continued to meet the conditions for equity classification. Following the adoption of ASU 2020-06 as of January 1, 2022, the Company no longer records the conversion feature of its convertible senior notes in equity. Instead, the Company combined the previously separated equity component with the liability component, which together is now classified as debt, thereby eliminating the subsequent amortization of the debt discount as interest expense. As a result of the provisions of the amended guidance, the Company recorded a $100 million decrease to additional paid-in capital, a $57 million decrease to debt discount, a $57 million increase to retained earnings and a $14 million decrease to long-term deferred tax liabilities. For more information on the adoption of ASU 2020-06, refer to Note 2, Summary of Significant Accounting Policies. Modification to Convertible Senior Notes — On February 22, 2022, the Company irrevocably elected to eliminate the right to settle conversions only in shares of the Company's common stock, such that any conversion after such date, the Company will pay cash per $1,000 principal amount and will settle in cash or a combination of cash and the Company's common stock for the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount. Convertible Senior Notes Features — As of June 30, 2022, the Convertible Senior Notes were convertible, under certain circumstances, into cash or a combination of cash and the Company’s common stock at a price of $44.15 per common share, which is equivalent to a conversion rate of approximately 22.6516 shares of common stock per $1,000 principal amount of Convertible Senior Notes. The Convertible Senior Notes mature on June 1, 2048, unless earlier repurchased, redeemed or converted in accordance with their terms. The Convertible Senior notes are convertible at the option of the holders under certain circumstances. Prior to the close of business on the business day immediately preceding December 1, 2024, the Convertible Senior Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter during specified periods as follows: •from December 1, 2024 until the close of business on the second scheduled trading day immediately before June 1, 2025; and •from December 1, 2047 until the close of business on the second scheduled trading day immediately before the maturity date The following table details the interest expense recorded in connection with the Convertible Senior Notes, due 2048:
| Three months ended June 30, |  | Six months ended June 30,
($ In millions) | 2022 |  | 2021 |  | 2022 |  | 2021
Contractual interest expense | $ | 4 |  |  | $ | 4 |  |  | $ | 8 |  |  | $ | 8 |
Amortization of discount and deferred finance costs | 1 |  |  | 4 |  |  | 1 |  |  | 8 |
Total | $ | 5 |  |  | $ | 8 |  |  | $ | 9 |  |  | $ | 16 |
Effective Interest Rate | 0.76 | % |  | 1.32 | % |  | 1.52 | % |  | 2.65 | %
Receivables Securitization Facilities On February 9, 2022, the Company entered into amendments to its existing Repurchase Facility to, among other things, (i) increase the size of the facility from $75 million to $150 million and (ii) replace LIBOR with term SOFR as the benchmark for the pricing rate. The Repurchase Facility has no commitment fee and borrowings will be drawn at SOFR + 1.30%. On July 26, 2022, the Company renewed its existing Repurchase Facility to, among other things, extend the maturity date to July 26, 2023. As of June 30, 2022, there were no outstanding borrowings. On July 26, 2022, NRG Receivables LLC, a wholly-owned indirect subsidiary of the Company, entered into an amendment to its Receivables Facility dated September 22, 2020 with a group of conduit lenders and banks and Royal Bank of Canada, as Administrative Agent to, among other things, (i) extend the scheduled termination date by one year, (ii) increase the aggregate commitments from $800 million to $1.0 billion, (iii) increase the letter of credit sublimit to equal the aggregate commitments, (iv) replace LIBOR with Term SOFR as the benchmark for borrowings and (v) add new originators. The weighted average interest rate related to usage under the Receivables Facility as of June 30, 2022 was 0.726%. As of June 30, 2022, there were no outstanding borrowings and there were $400 million in letters of credit issued under the Receivables Facility. Bilateral Letter of Credit Facilities On April 29, 2022 and May 27, 2022, the Company increased the size of the facilities by $100 million and $50 million, respectively, to provide additional liquidity, allowing for the issuance of up to $625 million of letters of credit. As of June 30, 2022, $608 million was issued under these facilities.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 + Details
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