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SEC Filing Details

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

In addition to the VCP, on May 29, 2008, DNREC requested that NRG's Indian River Power LLC participate in the development and performance of a Natural Resource Damage Assessment at the Burton Island Old Ash Landfill. NRG is currently working with DNREC and other trustees to close out the assessment process.
For further discussion of these matters, refer to Note 22, Commitments and Contingencies.
Note 25 — Cash Flow Information
Detail of supplemental disclosures of cash flow and non-cash investing and financing information was:
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
(In millions)
Interest paid, net of amount capitalized
$
868

 
$
890

 
$
924

Income taxes paid (a)
9

 
14

 
12

Non-cash investing and financing activities:
 
 
 
 
 
Additions/(decrease) to fixed assets for accrued capital expenditures
70

 
35

 
(44
)
(a) In 2017, income taxes paid of $11 million are offset by $2 million in income tax refunds. In 2015, income taxes paid of $13 million are offset by $1 million in income tax refunds.
Note 26 — Guarantees
NRG and its subsidiaries enter into various contracts that include indemnification and guarantee provisions as a routine part of the Company's business activities. Examples of these contracts include asset purchases and sale agreements, commodity sale and purchase agreements, retail contracts, joint venture agreements, EPC agreements, operation and maintenance agreements, service agreements, settlement agreements, and other types of contractual agreements with vendors and other third parties, as well as affiliates. These contracts generally indemnify the counterparty for tax, environmental liability, litigation and other matters, as well as breaches of representations, warranties and covenants set forth in these agreements. The Company is obligated with respect to customer deposits associated with the Company's retail businesses. In some cases, NRG's maximum potential liability cannot be estimated, since the underlying agreements contain no limits on potential liability.
The following table summarizes the maximum potential exposures that can be estimated for NRG's guarantees, indemnities, and other contingent liabilities by maturity:
 
By Remaining Maturity at December 31,
 
2017
 
 
Guarantees
Under
1 Year
 
1-3 Years
 
3-5 Years
 
Over
5 Years
 
Total
 
2016 Total
 
(In millions)
Letters of credit and surety bonds(a)
$
1,467


$
66


$
7


$
93


$
1,633


$
1,837

Asset sales guarantee obligations




257


55


312


677

Other guarantees


32




613


645


253

Total guarantees
$
1,467


$
98


$
264


$
761


$
2,590


$
2,767

(a)
Excludes$92 million and $272 million of letters of credit issued under the intercompany revolving credit agreement between NRG and GenOn as of December 31, 2017 and 2016, respectively.
Letters of credit and surety bonds — As of December 31, 2017, NRG and its consolidated subsidiaries were contingently obligated for a total of $1.6 billion under letters of credit and surety bonds. Most of these letters of credit and surety bonds are issued in support of the Company's obligations to perform under commodity agreements and obligations associated with future closure and maintenance of ash sites, as well as for financing or other arrangements. A majority of these letters of credit and surety bonds expire within one year of issuance, and it is typical for the Company to renew them on similar terms.
The material indemnities, within the scope of ASC 460, are as follows:
Asset sales — The purchase and sale agreements which govern NRG's asset or share investments and divestitures customarily contain guarantees and indemnifications of the transaction to third parties. The contracts indemnify the parties for liabilities incurred as a result of a breach of a representation or warranty by the indemnifying party, or as a result of a change in tax laws. These obligations generally have a discrete term and are intended to protect the parties against risks that are difficult to predict or estimate at the time of the transaction. In several cases, the contract limits the liability of the indemnifier. NRG has no reason to believe that the Company currently has any material liability relating to such routine indemnification obligations.

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