SEC Filings

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

Note 19 — Income Taxes
The income tax provision from continuing operations consisted of the following amounts:
 
Year Ended December 31,
 
2015
 
2014
 
2013
 
(In millions, except percentages)
Current
 
 
 
 
 
State
$
6

 
$
8

 
$
11

Total — current
6

 
8

 
11

Deferred
 
 
 
 
 
U.S. Federal
1,020

 
(50
)
 
(207
)
State
315

 
41

 
(57
)
Foreign
1

 
4

 
(29
)
Total — deferred
1,336

 
(5
)
 
(293
)
Total income tax expense/(benefit)
$
1,342

 
$
3

 
$
(282
)
Effective tax rate
(26.3
)%
 
2.2
%
 
44.5
%
The following represents the domestic and foreign components of income/(loss) before income tax expense/(benefit):
 
Year Ended December 31,
 
2015
 
2014
 
2013
 
(In millions)
U.S. 
$
(5,105
)
 
$
126

 
$
(549
)
Foreign
11

 
9

 
(85
)
Total
$
(5,094
)
 
$
135

 
$
(634
)
A reconciliation of the U.S. federal statutory rate of 35% to NRG's effective rate is as follows:
 
Year Ended December 31,
 
2015
 
2014
 
2013
 
(In millions, except percentages)
(Loss)/Income Before Income Taxes
$
(5,094
)
 
$
135

 
$
(634
)
Tax at 35%
(1,783
)
 
47

 
(222
)
State taxes
(218
)
 
9

 
19

Foreign operations
1

 
1

 
5

Federal and state tax credits, excluding PTCs
(5
)
 
(1
)
 
(36
)
Valuation allowance
3,039

 
6

 
(5
)
Expiration/utilization of capital losses

 

 
10

Reversal of valuation allowance on expired/utilized capital losses

 

 
(10
)
Impact of non-taxable equity earnings
(10
)
 
(11
)
 
(14
)
Book goodwill impairment
340

 

 

Net interest accrued on uncertain tax positions
(3
)
 
(2
)
 
(3
)
Production tax credit
(33
)
 
(48
)
 
(14
)
Recognition of uncertain tax benefits
(15
)
 
(30
)
 
(11
)
Tax expense attributable to consolidated partnerships
12

 
4

 
8

Impact of change in effective state tax rate
19

 
22

 
(21
)
Other
(2
)
 
6

 
12

Income tax expense/(benefit)
$
1,342

 
$
3

 
$
(282
)
Effective income tax rate
(26.3
)%
 
2.2
%
 
44.5
%
For the year ended December 31, 2015, NRG's overall effective tax rate was different than the statutory rate of 35% primarily due to recording of a valuation allowance on the federal and certain state net deferred tax assets that may not be realizable under a “more likely than not” measurement. In addition, a portion of the book goodwill impairment is classified as a permanent reversal impacting the effective tax rate.


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