SEC Filings

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

Interest Expense
NRG's interest expense increased by $9 million for the year ended December 31, 2015, compared to the same period in 2014 due to the following:
 
(In millions)
Increase due to the acquisition of EME in April 2014 and Alta Wind in August 2014
$
51

Increase for the 2022 Senior Notes issued in January 2014 and the 2024 Senior Notes issued in April 2014
24

Increase due to issuance of the NRG Yield Operating LLC 2024 Senior Notes issued in 2014
17

Decrease in derivative interest expense primarily from changes in fair value of interest rate swaps
(40
)
Decrease due to the redemption of 7.625% and 8.5% Senior Notes due 2019
(38
)
Other
(5
)
 
$
9

Income Tax Expense
For the year ended December 31, 2015, NRG recorded income tax expense of $1,342 million on a pre-tax loss of $5,094 million. For the same period in 2014, NRG recorded an income tax expense of $3 million on pre-tax income of $135 million. The effective tax rate was (26.3)% and 2.2% for the years ended December 31, 2015, and 2014, respectively.
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.
 
Year Ended December 31,
 
2015
 
2014
 
(In millions
except as otherwise stated)
(Loss)/Income Before Income Taxes
$
(5,094
)
 
$
135

Tax at 35%
(1,783
)
 
47

State taxes
(218
)
 
9

Foreign operations
1

 
1

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

 
6

Book goodwill impairment
340

 

Impact of non-taxable entity earnings
(10
)
 
(11
)
Net interest accrued on uncertain tax positions
(3
)
 
(2
)
Production tax credits
(33
)
 
(48
)
Recognition of uncertain tax benefits
(15
)
 
(30
)
Tax expense attributable to consolidated partnerships
12

 
4

Impact of change in effective state tax rate
19

 
22

Other
(2
)
 
6

Income tax expense
$
1,342


$
3

Effective income tax rate
(26.3
)%
 
2.2
%
The effective income tax rate may vary from period to period depending on, among other factors, the geographic and business mix of earnings and losses and changes in valuation allowances in accordance with ASC 740, Income Taxes, or ASC 740. These factors and others, including the Company's history of pre-tax earnings and losses, are taken into account in assessing the ability to realize deferred tax assets.

75