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SEC Filing Details

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

Loss on Debt Extinguishment
A loss on debt extinguishment of $53 million was recorded for the year ended December 31, 2017, primarily driven by the redemption of NRG Senior Notes at a price above par value.
A loss on debt extinguishment of $142 million was recorded for the year ended December 31, 2016, primarily driven by the repurchase of NRG Senior Notes at a price above par value and the write-off of the unamortized debt issuance costs related to the replacement of the 2018 Term Loan Facility with the new 2023 Term Loan Facility.
Income Tax Expense
For the year ended December 31, 2017, NRG recorded income tax expense of $8 million on a pre-tax loss of $1,540 million. For the same period in 2016, NRG recorded income tax expense of $5 million on a pre-tax loss of $978 million. The effective tax rate was (0.5)% and (0.5)% for the years ended December 31, 2017 and 2016, respectively.
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 Act.
 
Year Ended December 31,
 
2017
 
2016
 
(In millions
except as otherwise stated)
Loss before income taxes
$
(1,540
)
 
$
(978
)
Tax at 35%
(539
)
 
(342
)
State taxes
19

 

Foreign operations
2

 
10

Tax Act - corporate income tax rate change
733

 

Valuation allowance due to corporate income tax rate change
(660
)
 

Valuation allowance - current period activities
482

 
398

Impact of non-taxable entity earnings
(5
)
 
22

Book goodwill impairment
30

 

Net interest accrued on uncertain tax positions

 
1

Production tax credits
(20
)
 
(26
)
Recognition of uncertain tax benefits
(5
)
 
2

Tax expense attributable to consolidated partnerships
4

 
(1
)
State rate change including true-up to current period activity
18

 
(59
)
AMT refundable credit
(64
)
 

Other
13

 

Income tax expense
$
8


$
5

Effective income tax rate
(0.5
)%
 
(0.5
)%
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, 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.

78