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Goodwill and Other Intangibles (Tables) | 12 Months Ended
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Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Schedule of Goodwill | The table below presents the changes of goodwill for the years ended December 31, 2022 and 2021 based on the Company's reportable segments.
(in millions) | Texas |  | East |  | West/Services/Other |  |  |  | Total
Balance as of January 1, 2021 | $ | 289 |  |  | $ | 240 |  |  | $ | 50 |  |  |  |  | $ | 579 |
Goodwill resulted from the acquisition of Direct Energy | 427 |  |  | 648 |  |  | 175 |  |  |  |  | 1,250 |
Impairment losses | — |  |  | (35) |  |  | — |  |  |  |  | (35) |
Foreign currency translation | — |  |  | — |  |  | 1 |  |  |  |  | 1 |
Balance as of December 31, 2021 | $ | 716 |  |  | $ | 853 |  |  | $ | 226 |  |  |  |  | $ | 1,795 |
Impairment losses | — |  |  | (130) |  |  | — |  |  |  |  | (130) |
Asset sales | (6) |  |  | — |  |  | — |  |  |  |  | (6) |
Foreign currency translation | — |  |  | — |  |  | (9) |  |  |  |  | (9) |
Balance as of December 31, 2022 | $ | 710 |  |  | $ | 723 |  |  | $ | 217 |  |  |  |  | $ | 1,650 |
Summary of the Components of Intangible Assets Subject to Amortization | The following tables summarize the components of NRG's intangible assets:
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended December 31, 2022 | Emission Allowances |  | Customer and Supply Contracts |  |  |  | Customer Relationships |  | Marketing Partnerships |  | Trade Names |  | Other(b) |  | Total
January 1, 2022 | $ | 634 |  |  | $ | 638 |  |  |  |  | $ | 1,679 |  |  | $ | 284 |  |  | $ | 683 |  |  | $ | 229 |  |  | $ | 4,147 |
Purchases | 26 |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | 404 |  |  | 430 |
Acquisition of businesses (a) | — |  |  | — |  |  |  |  | 55 |  |  | — |  |  | — |  |  | — |  |  | 55 |
Usage/Sales/Retirements | (33) |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | (341) |  |  | (374) |
Write-off of fully amortized balances | (14) |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (14) |
Other | 11 |  |  | (3) |  |  |  |  | (4) |  |  | — |  |  | (4) |  |  | — |  |  | — |
December 31, 2022 | 624 |  |  | 635 |  |  |  |  | 1,730 |  |  | 284 |  |  | 679 |  |  | 292 |  |  | 4,244 |
Less accumulated amortization | (528) |  |  | (235) |  |  |  |  | (787) |  |  | (146) |  |  | (341) |  |  | (75) |  |  | (2,112) |
Net carrying amount | $ | 96 |  |  | $ | 400 |  |  |  |  | $ | 943 |  |  | $ | 138 |  |  | $ | 338 |  |  | $ | 217 |  |  | $ | 2,132 |
(a)The weighted average life of acquired amortizable intangibles was six years for customer relationships (b)RECs are not subject to amortization and had a carrying value of $186 million
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended December 31, 2021 | Emission Allowances |  | Customer and Supply Contracts |  |  |  | Customer Relationships |  | Marketing Partnerships |  | Trade Names |  | Other(b) |  | Total
January 1, 2021 | $ | 672 |  |  | $ | 28 |  |  |  |  | $ | 527 |  |  | $ | 285 |  |  | $ | 373 |  |  | $ | 140 |  |  | $ | 2,025 |
Purchases | 10 |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | 338 |  |  | 348 |
Acquisition of businesses (a) | — |  |  | 610 |  |  |  |  | 1,308 |  |  | — |  |  | 310 |  |  | 124 |  |  | 2,352 |
Usage/Retirements | (1) |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | (364) |  |  | (365) |
Write-off of fully amortized balances | (51) |  |  | — |  |  |  |  | (158) |  |  | — |  |  | — |  |  | (7) |  |  | (216) |
Other | 4 |  |  | — |  |  |  |  | 2 |  |  | (1) |  |  | — |  |  | (2) |  |  | 3 |
December 31, 2021 | 634 |  |  | 638 |  |  |  |  | 1,679 |  |  | 284 |  |  | 683 |  |  | 229 |  |  | 4,147 |
Less accumulated amortization | (536) |  |  | (94) |  |  |  |  | (518) |  |  | (123) |  |  | (294) |  |  | (71) |  |  | (1,636) |
Net carrying amount | $ | 98 |  |  | $ | 544 |  |  |  |  | $ | 1,161 |  |  | $ | 161 |  |  | $ | 389 |  |  | $ | 158 |  |  | $ | 2,511 |
(a)The weighted average life of total acquired amortizable intangibles from the Direct Energy acquisition was 12 years (b)RECs are not subject to amortization and had a carrying value of $123 million
Schedule of Amortization and Retirements of Intangible Expense | The following table presents NRG's amortization of intangible assets for each of the past three years:
| Years Ended December 31,
(In millions) | 2022 |  | 2021 |  | 2020
Emission allowances | $ | 6 |  |  | $ | 24 |  |  | $ | 28 |
Customer and supply contracts | 141 |  |  | 66 |  |  | 12 |
Customer relationships | 269 |  |  | 327 |  |  | 74 |
Marketing partnerships | 23 |  |  | 24 |  |  | 24 |
Trade names | 47 |  |  | 47 |  |  | 27 |
Other(a) | 4 |  |  | 7 |  |  | 3 |
Total amortization | $ | 490 |  |  | $ | 495 |  |  | $ | 168 |
(a)For the years ended December 31, 2022, 2021 and 2020, other intangibles were amortized to depreciation and amortization expense for $4 million, $3 million and $3 million, respectively
Schedule of Estimated Amortization of Intangible Assets for Next Five Years | The following table presents estimated amortization of NRG's intangible assets as of December 31, 2022 for each of the next five years:
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended December 31, | Emission Allowances |  |  |  | Customer and Supply Contracts |  | Customer Relationships |  | Marketing Partnerships |  | Trade Names |  | Other |  | Total
2023 | $ | 18 |  |  |  |  | $ | 119 |  |  | $ | 226 |  |  | $ | 23 |  |  | $ | 46 |  |  | $ | 4 |  |  | $ | 436 |
2024 | 19 |  |  |  |  | 73 |  |  | 159 |  |  | 23 |  |  | 38 |  |  | 3 |  |  | 315 |
2025 | 18 |  |  |  |  | 50 |  |  | 118 |  |  | 22 |  |  | 31 |  |  | 4 |  |  | 243 |
2026 | 10 |  |  |  |  | 52 |  |  | 103 |  |  | 22 |  |  | 23 |  |  | 3 |  |  | 213 |
2027 | 10 |  |  |  |  | 30 |  |  | 74 |  |  | 22 |  |  | 23 |  |  | 3 |  |  | 162 |

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