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SEC Filing Details

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

For the year ended December 31, 2017, NRG's overall effective tax rate was different than the statutory rate of 35% primarily due to tax expense recorded from the revaluation of the existing net deferred tax asset and state taxes, partially offset by the change in valuation allowance, establishing the AMT credit receivable and the generation of PTC’s from various wind facilities. The tax expense recorded for revaluation of the net deferred tax asset is required to reflect the reduction in the corporate income tax rate from 35% to 21% in accordance with the Tax Cuts and Jobs Act of 2017, or the Tax Act.
For the year ended December 31, 2016, NRG's overall effective tax rate was different than the statutory rate of 35% primarily due to the change in valuation allowance, the impact of non-taxable equity earnings and current state tax expense, partially offset by the generation of PTCs from various wind facilities.
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.
 The temporary differences, which gave rise to the Company's deferred tax assets and liabilities consisted of the following:
 
As of December 31,
 
2017
 
2016
 
(In millions)
Deferred tax liabilities:
 
 
 
Emissions allowances
$
15

 
$
31

Derivatives, net
15

 

Cumulative translation adjustments

 
11

Investment in projects
231

 
378

Discount/premium on notes
2

 
5

Deferred financing costs
2

 
2

Discontinued operations

 
6

Total deferred tax liabilities
265

 
433

Deferred tax assets:
 
 
 
Deferred compensation, accrued vacation and other reserves
141

 
256

Difference between book and tax basis of property
596

 
530

Goodwill
38

 
83

Differences between book and tax basis of contracts
68

 
60

Pension and other postretirement benefits
74

 
122

Equity compensation
10

 
11

Bad debt reserve
14

 
12

U.S. capital loss carryforwards
1

 
1

U.S. Federal net operating loss carryforwards
596

 
728

Foreign net operating loss carryforwards
66

 
63

State net operating loss carryforwards
140

 
106

Foreign capital loss carryforwards
1

 
1

Federal and state tax credit carryforwards
376

 
446

Federal benefit on state uncertain tax positions
7

 
12

Intangibles amortization (excluding goodwill)
101

 
115

Derivatives, net

 
106

Inventory obsolescence
12

 
5

Other

 
7

Discontinued operations

 
2,093

Total deferred tax assets
2,241

 
4,757

Valuation allowance
(1,863
)
 
(2,032
)
Discontinued operations

 
(2,087
)
Total deferred tax assets, net of valuation allowance
378

 
638

Net deferred tax asset
$
113

 
$
205


194