SEC Filings

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

For the year ended December 31, 2014, NRG's overall effective tax rate was different than the statutory rate of 35% primarily due to the generation of PTCs generated from various wind facilities including assets acquired in the EME transaction, and a benefit resulting from the recognition of uncertain tax benefits, partially offset by state and local income taxes including a change in the effective state rate.
For the year ended December 31, 2013, NRG's overall effective tax rate was different than the statutory rate of 35% primarily due to the generation of ITCs from the Company's Agua Caliente solar project in Arizona of $36 million and PTCs generated from certain Gulf Coast wind facilities of $14 million.
 The temporary differences, which gave rise to the Company's deferred tax assets and liabilities consisted of the following:
 
As of December 31,
 
2015
 
2014
 
(In millions)
Deferred tax liabilities:
 
 
 
Emissions allowances
$
31

 
$
25

Difference between book and tax basis of property

 
127

Derivatives, net
22

 
320

Goodwill

 
202

Cumulative translation adjustments
2

 
8

Investment in projects
838

 
849

Intangibles amortization (excluding goodwill)

 
99

Other

 
2

Total deferred tax liabilities
893

 
1,632

Deferred tax assets:
 
 
 
Deferred compensation, pension, accrued vacation and other reserves
255

 
266

Discount/premium on notes
68

 
99

Difference between book and tax basis of property
1,210

 

Goodwill
39

 

Differences between book and tax basis of contracts
516

 
531

Pension and other postretirement benefits
218

 
157

Equity compensation
50

 
77

Bad debt reserve
6

 
9

U.S. capital loss carryforwards
1

 

U.S. Federal net operating loss carryforwards
1,373

 
1,523

Foreign net operating loss carryforwards
59

 
65

State net operating loss carryforwards
230

 
302

Foreign capital loss carryforwards
1

 
1

Deferred financing costs
6

 
23

Federal and state tax credit carryforwards
439

 
357

Federal benefit on state uncertain tax positions
17

 
17

Intangibles amortization (excluding goodwill)
90

 

Inventory obsolescence
27

 
29

Other
11

 

Total deferred tax assets
4,616

 
3,456

Valuation allowance
(3,575
)
 
(265
)
Total deferred tax assets, net of valuation allowance
1,041

 
3,191

Net deferred tax asset
$
148

 
$
1,559

The following table summarizes NRG's net deferred tax position:
 
As of December 31,
 
2015
 
2014
 
(In millions)
Net deferred tax asset — noncurrent
$
167

 
$
1,580

Net deferred tax liability — noncurrent
(19
)
 
(21
)
Net deferred tax asset
$
148

 
$
1,559


193