SEC Filings

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

Customer relationships — These intangibles represent the fair value at the acquisition date of acquired businesses' customer base, primarily for Dominion, Energy Alternatives, Energy Plus, Reliant Energy, Green Mountain Energy, Energy Systems and Energy Curtailment Specialists. The customer relationships are amortized to depreciation and amortization expense based on the expected discounted future net cash flows by year.
Marketing partnerships — Established with the acquisition of Energy Plus, these intangibles represent the fair value at the acquisition date of existing agreements with loyalty and affinity partners. The marketing partnerships are amortized to depreciation and amortization expense based on the expected discounted future net cash flows by year.
Trade names — Established with the Reliant Energy, Green Mountain, Energy Plus and Dominion acquisitions, these intangibles are amortized to depreciation and amortization expense, on a straight-line basis.
Power purchase agreements — Established predominantly with the EME and Alta Wind acquisitions, these represent the fair value of PPAs acquired. These will be amortized to revenues, generally on a straight-line basis, over the term of the PPA.
Other — Consists of renewable energy credits, wind leasehold rights, costs to extend the operating license for STP Units 1 and 2, and the intangible asset related to a purchased ground lease.
The following tables summarize the components of NRG's intangible assets subject to amortization:
 
 
 
Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
Emission
Allowances
 
Energy
Supply
 
Fuel
 
Customer
 
Customer
Relationships
 
Marketing Partnerships
 
Trade
Names
 
PPA
 
Other
 
Total
 
(In millions)
January 1, 2015
$
1,018

 
$
54

 
$
72

 
$
16

 
$
831

 
$
88

 
$
353

 
$
1,269

 
$
268

 
$
3,969

Purchases
77

 

 

 

 
3

 

 

 

 
57

 
137

Usage
(33
)
 

 

 

 

 

 

 

 
(62
)
 
(95
)
Write-off of fully
    amortized balances
(154
)
 

 

 

 

 

 

 

 

 
(154
)
Impairment

 

 

 

 

 

 
(6
)
 

 
(5
)
 
(11
)
Other
12

 

 

 

 

 

 
(5
)
 
(6
)
 
(12
)
 
(11
)
December 31, 2015
920

 
54

 
72

 
16

 
834

 
88

 
342

 
1,263

 
246

 
3,835

Less accumulated amortization(a)
(502
)
 
(47
)
 
(65
)
 
(6
)
 
(624
)
 
(41
)
 
(137
)
 
(75
)
 
(28
)
 
(1,525
)
Net carrying amount
$
418

 
$
7

 
$
7

 
$
10

 
$
210

 
$
47

 
$
205

 
$
1,188

 
$
218

 
$
2,310

(a) Adjusted for write-off of fully amortized emissions allowances of $154 million.
 
 
 
Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
Emission
Allowances
 
Energy
Supply
 
Fuel
 
Customer
 
Customer
Relationships
 
Marketing Partnerships
 
Trade
Names
 
PPA
 
Other
 
Total
 
(In millions)
January 1, 2014
$
871

 
$
54

 
$
72

 
$
859

 
$
743

 
$
88

 
$
318

 
$
14

 
$
98

 
$
3,117

Purchases
141

 

 

 

 
8

 

 

 

 
33

 
182

Acquisition of businesses
12

 

 

 

 
80

 

 
35

 
1,252

 
162

 
1,541

Usage

 

 

 

 

 

 

 

 
(34
)
 
(34
)
Write-off of fully amortized balances

 

 

 
(843
)
 

 

 

 

 

 
(843
)
Other
(6
)
 

 

 

 

 

 

 
3

 
9

 
6

December 31, 2014
1,018

 
54

 
72

 
16

 
831

 
88

 
353

 
1,269

 
268

 
3,969

Less accumulated amortization(a)
(557
)
 
(42
)
 
(63
)
 
(4
)
 
(557
)
 
(27
)
 
(114
)
 
(25
)
 
(13
)
 
(1,402
)
Net carrying amount
$
461

 
$
12

 
$
9

 
$
12

 
$
274


$
61


$
239

 
$
1,244

 
$
255


$
2,567

(a) Adjusted for write-off of fully amortized customer contracts of $843 million.

164