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Summary of Significant Accounting Policies | 6 Months Ended
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Jun. 30, 2025
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Depreciation and Amortization The Company's depreciation and amortization included in the condensed consolidated statement of operations consisted of the following:
| Three months ended June 30, |  | Six months ended June 30,
(In millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Amortization of capitalized contract costs related to fulfillment | $ | 48 |  |  | $ | 27 |  |  | $ | 89 |  |  | $ | 48 |
Amortization of capitalized contract costs related to customer acquisition | 70 |  |  | 48 |  |  | 137 |  |  | 92 |
Amortization of customer relationships and other intangible assets | 155 |  |  | 217 |  |  | 308 |  |  | 418 |
Depreciation of property, plant and equipment | 71 |  |  | 68 |  |  | 136 |  |  | 135 |
Total depreciation and amortization | $ | 344 |  |  | $ | 360 |  |  | $ | 670 |  |  | $ | 693 |
Credit Losses Retail trade receivables are reported on the consolidated balance sheet net of the allowance for credit losses within accounts receivables, net. Long-term receivables are recorded net of allowance for credit losses in other non-current assets on the consolidated balance sheet. The Company accrues a provision for current expected credit losses based on (i) estimates of uncollectible revenues by analyzing accounts receivable aging and current and reasonable forecasts of expected economic factors including, but not limited to, unemployment rates and weather-related events, (ii) historical collections and delinquencies, and (iii) counterparty credit ratings for commercial and industrial customers. The following table represents the activity in the allowance for credit losses for the three and six months ended June 30, 2025 and 2024:
| Three months ended June 30, |  | Six months ended June 30,
(In millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Beginning balance | $ | 144 |  |  | $ | 140 |  |  | $ | 152 |  |  | $ | 145 |
Provision for credit losses | 57 |  |  | 58 |  |  | 113 |  |  | 133 |
Write-offs | (91) |  |  | (86) |  |  | (170) |  |  | (178) |
Recoveries collected | 11 |  |  | 9 |  |  | 23 |  |  | 19 |
Other | 6 |  |  | 6 |  |  | 9 |  |  | 8 |
Ending balance | $ | 127 |  |  | $ | 127 |  |  | $ | 127 |  |  | $ | 127 |
Other Balance Sheet Information The following table presents the accumulated depreciation included in property, plant and equipment, net and accumulated amortization included in customer relationships, net and other intangible assets, net:
(In millions) | June 30, 2025 |  | December 31, 2024
Property, plant and equipment accumulated depreciation | $ | 1,632 |  |  | $ | 1,508 |
Customer relationships and other intangible assets accumulated amortization | 3,656 |  |  | 3,632 |
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash The following table provides a reconciliation of cash and cash equivalents, restricted cash and funds deposited by counterparties reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statements of cash flows:
(In millions) | June 30, 2025 |  | December 31, 2024
Cash and cash equivalents | $ | 180 |  |  | $ | 966 |
Funds deposited by counterparties | 446 |  |  | 199 |
Restricted cash | 17 |  |  | 8 |
Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows | $ | 643 |  |  | $ | 1,173 |
Funds deposited by counterparties consist of cash held by the Company as a result of collateral posting obligations from its counterparties related to NRG's hedging program. Though some amounts are segregated into separate accounts, not all funds are contractually restricted. Based on the Company's intention, these funds are not available for the payment of general corporate obligations; however, they are available for liquidity management. Depending on market fluctuations and the settlement of the underlying contracts, the Company will refund this collateral to the counterparties pursuant to the terms and conditions of the underlying trades. Since collateral requirements fluctuate daily and the Company cannot predict if any collateral will be held for more than twelve months, the funds deposited by counterparties are classified as a current asset on the Company's balance sheet, with an offsetting liability for this cash collateral received within current liabilities. Restricted cash consists primarily of funds held by the Company that are restricted due to contractual or legal obligations. Recent Accounting Developments — Guidance Not Yet Adopted ASU 2023-09 – In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures, or ASU 2023-09. The guidance in ASU 2023-09 enhances income tax disclosures by requiring disclosure of specific categories in the effective tax rate reconciliation and additional information for reconciling items that meet a quantitative threshold. Further the amendments of ASU 2023-09 require certain disclosures on income tax expense and income taxes paid. The Company plans to adopt the new guidance for the annual period ending December 31, 2025, on a prospective basis. The Company is currently evaluating the impact of adopting ASU 2023-09 on its disclosures. ASU 2024-03 – In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) – Disaggregation of Income Statement Expenses, or ASU 2024-03. The guidance in ASU 2024-03 requires more detailed information about specified categories of expenses included in certain captions presented on the face of the income statement. This ASU is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting ASU 2024-03 on its disclosures. ASU 2024-04 – In November 2024, the FASB issued ASU No. 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20) – Induced Conversions of Convertible Debt Instruments, or ASU 2024-04. The guidance in ASU 2024-04 clarifies the requirements related to accounting for the settlement of a debt instrument as an induced conversion when changes are made to conversion features as part of an offer to settle the instrument. This ASU is effective for annual periods beginning after December 15, 2025, with early adoption permitted. The amendments may be applied either (1) prospectively to any settlements of convertible debt instruments that occur after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements, with a cumulative adjustment-effect adjustment to equity. The Company is currently evaluating the impact of adopting ASU 2024-04 on its disclosures. ASU 2025-05 – In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses for Accounts Receivable and Contract Assets, or ASU 2025-05. The amendment provides a practical expedient that allows entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when estimating expected credit losses for current accounts receivable and current contract assets. The amendments of ASU 2025-05 should be applied prospectively and are effective for annual and interim periods beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-05 on its consolidated financial statements and related disclosures.

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- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/235/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483426/235-10-50-1 + Details
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