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SEC Filing Details

10-K
NRG ENERGY, INC. filed this Form 10-K on 03/01/2018
Entire Document
 

By eliminating a large portion of its operations in the PJM market with the deconsolidation of GenOn, NRG concluded that GenOn meets the criteria for discontinued operations, as this represents a strategic shift in the markets in which NRG operates. As such, all prior period results for GenOn have been reclassified as discontinued operations while NRG will record all ongoing results of GenOn as a cost method investment, which was valued at zero at the date of deconsolidation.
Summarized results of discontinued operations were as follows:
 
Year ended December 31,
(In millions)
2017
 
2016
Operating revenues
$
646

 
$
1,862

Operating costs and expenses
(702
)
 
(1,896
)
Gain on sale of assets

 
294

Other expenses
(98
)
 
(168
)
(Loss)/Income from operations of discontinued components, before tax
(154
)
 
92

Income tax expense
9

 
11

(Loss)/Income from operations of discontinued components
(163
)
 
81

Interest income - affiliate
8

 
11

(Loss)/Income from operations of discontinued components, net of tax
(155
)
 
92

Pre-tax loss on deconsolidation
(208
)
 

Settlement consideration and services credit
(289
)
 

Pension and post-retirement liability assumption
(131
)
 

Other
(6
)
 

Loss on disposal of discontinued components, net of tax
(634
)
 

(Loss)/Income from discontinued operations, net of tax
$
(789
)
 
$
92


The following table summarizes the major classes of assets and liabilities classified as discontinued operations as of December 31, 2016. As of June 14, 2017, NRG no longer consolidates GenOn for financial reporting purposes.
(In millions)
 
December 31, 2016
Cash and cash equivalents
 
$
1,034

Other current assets
 
885

Current assets - discontinued operations
 
1,919

Property, plant and equipment, net
 
2,543

Other non-current assets
 
418

Non-current assets - discontinued operations
 
2,961

Current portion of long term debt and capital leases
 
704

Other current liabilities
 
506

Current liabilities - discontinued operations
 
1,210

Long-term debt and capital leases
 
2,050

Out-of-market contracts
 
811

Other non-current liabilities
 
323

Non-current liabilities - discontinued operations
 
$
3,184

Chapter 11 Cases
Prior to the GenOn Entities' filing the Chapter 11 Cases, on June 12, 2017, NRG entered into a restructuring support and lock-up agreement, or the Restructuring Support Agreement, with the GenOn Entities and certain holders of the GenOn and GenOn Americas Generation Senior Notes, that provides for a restructuring and recapitalization of the GenOn Entities through a prearranged plan of reorganization. There is no assurance that the GenOn Entities' plan will be successfully implemented. The principal terms of the Restructuring Support Agreement are described further below.


145