SEC Filings

10-K
NRG ENERGY, INC. filed this Form 10-K on 02/29/2016
Entire Document
 
                

 
Year Ended December 31, 2013
 
Energy
Commodities
 
Interest
Rate
 
Total
 
(In millions)
Accumulated OCI balance at December 31, 2012
$
41

 
$
(72
)
 
$
(31
)
Reclassified from accumulated OCI to income:
 
 
 
 
 
Due to realization of previously deferred amounts
(51
)
 
20

 
(31
)
Mark-to-market of cash flow hedge accounting contracts
9

 
30

 
39

Accumulated OCI balance at December 31, 2013, net of $14 tax
$
(1
)
 
$
(22
)
 
$
(23
)
There were no gains or losses recognized in income from the ineffective portion of cash flow hedges for the year ended December 31, 2013.

Amounts reclassified from accumulated OCI into income and amounts recognized in income from the ineffective portion of cash flow hedges are recorded to operating revenue for commodity contracts and interest expense for interest rate contracts.

Impact of Derivative Instruments on the Statement of Operations
Unrealized gains and losses associated with changes in the fair value of derivative instruments not accounted for as cash flow hedges and ineffectiveness of hedge derivatives are reflected in current period earnings.
The following table summarizes the pre-tax effects of economic hedges that have not been designated as cash flow hedges, ineffectiveness on cash flow hedges, and trading activity on NRG's statement of operations. The effect of commodity hedges is included within operating revenues and cost of operations and the effect of interest rate hedges is included in interest expense.
 
Year Ended December 31,
 
2015
 
2014
 
2013
 
(In millions)
Unrealized mark-to-market results
 
 
 
 
 
Reversal of previously recognized unrealized gains on settled positions related to economic hedges
$
(275
)
 
$
(15
)
 
$
(105
)
Reversal of acquired gain positions related to economic hedges
(106
)
 
(333
)
 
(357
)
Net unrealized gains on open positions related to economic hedges
9

 
361

 
177

Total unrealized mark-to-market (losses)/gains for economic hedging activities
(372
)
 
13

 
(285
)
Reversal of previously recognized unrealized (gains)/losses on settled positions related to trading activity
(46
)
 
1

 
(50
)
Reversal of acquired gain positions related to trading activity
(14
)
 
(32
)
 

Net unrealized (losses)/gains on open positions related to trading activity
(16
)
 
45

 
7

Total unrealized mark-to-market (losses)/gains for trading activity
(76
)
 
14

 
(43
)
Total unrealized (losses)/gains
$
(448
)
 
$
27

 
$
(328
)
 
Year Ended December 31,
 
2015
 
2014
 
2013
 
(In millions)
Unrealized (losses)/gains included in operating revenues
$
(320
)
 
$
515

 
$
(621
)
Unrealized (losses)/gains included in cost of operations
(128
)
 
(488
)
 
293

Total impact to statement of operations — energy commodities
$
(448
)
 
$
27

 
$
(328
)
Total impact to statement of operations — interest rate contracts
$
17

 
$
(31
)
 
$
15

The reversal of gain or loss positions acquired as part of acquisitions were valued based upon the forward prices on the acquisition dates. The roll-off amounts were offset by realized gains or losses at the settled prices and are reflected in revenue or cost of operations during the same period.
For the year ended December 31, 2015, the $9 million gain from economic hedge positions was primarily the result of an increase in the value of forward sales of electricity due to a decrease in power prices.

158