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Goodwill and Other Intangibles | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill The table below presents the changes of goodwill for the years ended December 31, 2023 and 2022 based on the Company's reportable segments.
(in millions) | Texas |  | East |  | West/Services/Other |  | Vivint Smart Home |  | Total
Balance as of January 1, 2022 | $ | 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 |
Goodwill resulted from the acquisition of Vivint | — |  |  | — |  |  | — |  |  | 3,494 |  |  | 3,494 |
Asset sales | (67) |  |  | (2) |  |  | — |  |  | — |  |  | (69) |
Foreign currency translation | — |  |  | — |  |  | 4 |  |  | — |  |  | 4 |
Balance as of December 31, 2023 | $ | 643 |  |  | $ | 721 |  |  | $ | 221 |  |  | $ | 3,494 |  |  | $ | 5,079 |
Intangible Assets The Company's intangible assets as of December 31, 2023, primarily reflect intangible assets established with the acquisitions of various companies, including Vivint Smart Home, Direct Energy, Stream Energy, other retail acquisitions and Texas Genco. Intangible assets are comprised of the following: •Emission Allowances — These intangibles primarily consist of SO 2 emission allowances, including those established with the 2006 acquisition of Texas Genco, RGGI emission credits and California carbon allowances. These emission allowances are held-for-use and are amortized to cost of operations based on units of production. •Customer and supply contracts — These intangibles include the fair value at the acquisition date of in-market and out-of-market customer and supply contracts from the acquisition of Direct Energy and are amortized to revenue and cost of operations, respectively, based upon the fair market value, as of the acquisition date, for each delivery month. •Customer relationships — These intangibles represent the fair value at the acquisition date of acquired businesses' customer base from the acquisition of Vivint, Direct Energy and other acquisitions. Customer relationships are amortized to depreciation and amortization expense based on the expected discounted future net cash flows by year. •Marketing partnerships — These intangibles represent the fair value at the acquisition date of existing agreements with marketing vendors and loyalty and affinity partners for customer acquisition. Marketing partnerships are amortized to depreciation and amortization expense based on the expected discounted future net cash flows by year. •Technology — These intangibles represent the fair value at the acquisition date of developed technology for Vivint Smart Home integrated software and products. Technology is amortized to depreciation and amortization expense, ratably based on the expected discounted future net cash flows by year. •Trade names — These intangibles are amortized to depreciation and amortization expense on a straight-line basis. •Other — These intangibles primarily include renewable energy credits. RECs are retired, as required, for the applicable compliance period. RECs are expensed to cost of operations based on NRG’s customer usage. Other also included in-market nuclear fuel contracts established from the Texas Genco acquisition in 2006 which were amortized to cost of operations over expected volumes over the life of each contract, costs to extend the operating license for STP Units 1 and 2 and intellectual property related to Goal Zero, which is amortized to depreciation and amortization expense. The following tables summarize the components of NRG's intangible assets:
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended December 31, 2023 | Emission Allowances |  | Customer and Supply Contracts |  |  |  | Customer Relationships |  | Marketing Partnerships |  | Technology |  | Trade Names |  | Other(a) |  | Total
January 1, 2023 | $ | 624 |  |  | $ | 635 |  |  |  |  | $ | 1,730 |  |  | $ | 284 |  |  | $ | — |  |  | $ | 679 |  |  | $ | 292 |  |  | $ | 4,244 |
Purchases | 10 |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 465 |  |  | 475 |
Acquisition of businesses(b) | — |  |  | — |  |  |  |  | 1,773 |  |  | 10 |  |  | 860 |  |  | 160 |  |  | — |  |  | 2,803 |
Usage/Sales/Retirements | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (474) |  |  | (474) |
Write-off of fully amortized balances | (1) |  |  | (28) |  |  |  |  | (43) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (72) |
Sale of STP(c) | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (59) |  |  | (59) |
Other | (5) |  |  | 2 |  |  |  |  | 4 |  |  | 1 |  |  | — |  |  | 2 |  |  | — |  |  | 4 |
December 31, 2023 | 628 |  |  | 609 |  |  |  |  | 3,464 |  |  | 295 |  |  | 860 |  |  | 841 |  |  | 224 |  |  | 6,921 |
Less accumulated amortization | (533) |  |  | (328) |  |  |  |  | (1,300) |  |  | (170) |  |  | (230) |  |  | (401) |  |  | (32) |  |  | (2,994) |
Net carrying amount | $ | 95 |  |  | $ | 281 |  |  |  |  | $ | 2,164 |  |  | $ | 125 |  |  | $ | 630 |  |  | $ | 440 |  |  | $ | 192 |  |  | $ | 3,927 |
(a)RECs are not subject to amortization and had a carrying value of $177 million (b)The weighted average amortization period for total amortizable intangible assets is approximately 10 years. See Note 4, Acquisitions and Dispositions, for weighted average life of acquired amortizable intangibles for each intangible asset type (c)Includes $47 million of intangibles that were amortized
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended December 31, 2022 | Emission Allowances |  | Customer and Supply Contracts |  |  |  | Customer Relationships |  | Marketing Partnerships |  | Trade Names |  | Other(a) |  | Total
January 1, 2022 | $ | 634 |  |  | $ | 638 |  |  |  |  | $ | 1,679 |  |  | $ | 284 |  |  | $ | 683 |  |  | $ | 229 |  |  | $ | 4,147 |
Purchases | 26 |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | 404 |  |  | 430 |
Acquisition of businesses(b) | — |  |  | — |  |  |  |  | 55 |  |  | — |  |  | — |  |  | — |  |  | 55 |
Usage/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)RECs are not subject to amortization and had a carrying value of $186 million (b)The weighted average life of acquired amortizable intangibles was six years for customer relationships The following table presents NRG's amortization of intangible assets for each of the past three years:
| Years Ended December 31,
(In millions) | 2023 |  | 2022 |  | 2021
Emission allowances | $ | 6 |  |  | $ | 6 |  |  | $ | 24 |
Customer and supply contracts | 121 |  |  | 141 |  |  | 66 |
Customer relationships | 556 |  |  | 269 |  |  | 327 |
Marketing partnerships | 24 |  |  | 23 |  |  | 24 |
Technology | 230 |  |  | — |  |  | — |
Trade names | 60 |  |  | 47 |  |  | 47 |
Other(a) | 4 |  |  | 4 |  |  | 7 |
Total amortization | $ | 1,001 |  |  | $ | 490 |  |  | $ | 495 |
(a)For the year ended December 31, 2023, 2022 and 2021, other intangibles amortized to depreciation and amortization expense were de minimis, $4 million and $3 million, respectively The following table presents estimated amortization of NRG's intangible assets as of December 31, 2023 for each of the next five years:
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended December 31, | Emission Allowances |  |  |  | Customer and Supply Contracts |  | Customer Relationships |  | Marketing Partnerships |  | Technology |  | Trade Names |  | Other |  | Total
2024 | $ | 17 |  |  |  |  | $ | 73 |  |  | $ | 478 |  |  | $ | 24 |  |  | $ | 227 |  |  | $ | 54 |  |  | $ | 3 |  |  | $ | 876 |
2025 | 14 |  |  |  |  | 50 |  |  | 371 |  |  | 23 |  |  | 176 |  |  | 47 |  |  | 3 |  |  | 684 |
2026 | 9 |  |  |  |  | 52 |  |  | 300 |  |  | 23 |  |  | 130 |  |  | 39 |  |  | 3 |  |  | 556 |
2027 | 8 |  |  |  |  | 30 |  |  | 233 |  |  | 23 |  |  | 89 |  |  | 39 |  |  | 3 |  |  | 425 |
2028 | 9 |  |  |  |  | 13 |  |  | 189 |  |  | 15 |  |  | 9 |  |  | 39 |  |  | 2 |  |  | 276 |
Intangible assets held-for-sale — From time to time, management may authorize the transfer from the Company's emission bank of emission allowances held-for-use to intangible assets held-for-sale. Emission allowances held-for-sale are included in other non-current assets on the Company's consolidated balance sheet and are not amortized, but rather expensed as sold. As of December 31, 2023 and 2022, the value of emission allowances held-for-sale was $4 million and $8 million, respectively, within the Corporate segment. Once transferred to held-for-sale, these emission allowances are prohibited from moving back to held-for-use.

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