SEC Filings

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

Income Tax Expense/(Benefit)
For the year ended December 31, 2014, NRG recorded an income tax expense of $3 million on pre-tax income of $135 million. For the same period in 2013, NRG recorded an income tax benefit of $282 million on a pre-tax loss of $634 million. The effective tax rate was 2.2% and 44.5% for the years ended December 31, 2014, and 2013, respectively.
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 tax rate.
 
Year Ended December 31,
 
2014
 
2013
 
(In millions
except as otherwise stated)
Income/(Loss) Before Income Taxes
$
135

 
$
(634
)
Tax at 35%
47

 
(222
)
State taxes
9

 
19

Foreign operations
1

 
5

Federal and state tax credits, excluding PTCs
(1
)
 
(36
)
Valuation allowance
6

 
(5
)
Expiration/utilization of capital losses

 
10

Reversal of valuation allowance on expired/utilized capital losses

 
(10
)
Impact of non-taxable entity earnings
(11
)
 
(14
)
Net interest accrued on uncertain tax positions
(2
)
 
(3
)
Production tax credits
(48
)
 
(14
)
Recognition of uncertain tax benefits
(30
)
 
(11
)
Tax expense attributable to consolidated partnerships
4

 
8

Impact of change in effective state tax rate
22

 
(21
)
Other
6

 
12

Income tax expense/(benefit)
$
3

 
$
(282
)
Effective income tax rate
2.2
%
 
44.5
%
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. 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.
Net (loss)/income attributable to noncontrolling interests and redeemable noncontrolling interests
Net loss attributable to noncontrolling interests was $2 million for the year ended December 31, 2014, compared to net income attributable to noncontrolling interest of $34 million for the year ended December 31, 2013. During 2014, income attributable to noncontrolling interests in the Ivanpah and Agua Caliente projects and NRG Yield, Inc. were offset by the share of net losses allocated to tax equity investors in the NRG Home Solar and wind tax equity arrangements using the HLBV method.


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