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þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Fiscal Year ended December 31, 2004. | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Transition period from to . |
Delaware | 41-1724239 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
211 Carnegie Center Princeton, New Jersey | 08540 | |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Name of Exchange on Which Registered | |
None | None |
Class | Outstanding at March 28, 2005 | |
Common Stock, par value $0.01 per share | 87,045,104 |
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• | Develop the assets in our core regions into integrated businesses well suited to serve the requirements of the load-serving entities in our core markets; | |
• | Reinvest our capital in our existing assets for reasons of repowering, expansion, environmental remediation, operating efficiency, reliability programs, greater fuel optionality, greater merit order diversity, enhanced portfolio effect or alternative use, among others; and | |
• | Where consistent with our “core region” strategy, pursue selective acquisitions to complement the assets and portfolios in our core regions. |
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Alternative | ||||||||||||||||||||||||
Energy | Capacity | Energy | Other | Total | ||||||||||||||||||||
Region | Revenues | Revenues | Revenues | O&M Fees | Revenues*** | Revenues | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Northeast | $ | 853,454 | $ | 264,624 | $ | 49 | $ | — | $ | 133,026 | $ | 1,251,153 | ||||||||||||
South Central | 219,112 | 183,483 | — | — | 15,550 | 418,145 | ||||||||||||||||||
West Coast* | 9,276 | (3,709 | ) | — | (2 | ) | (3,096 | ) | 2,469 | |||||||||||||||
Other | 27,816 | 84,097 | 1,748 | 186 | (8,203 | ) | 105,644 | |||||||||||||||||
Total North America Power Generation** | $ | 1,109,658 | $ | 528,495 | $ | 1,797 | $ | 184 | $ | 137,277 | $ | 1,777,411 | ||||||||||||
* | Consists of our wholly-owned subsidiary, NEO California LLC. Does not include revenues which were produced by assets in which we have a 50% equity interest, primarily West Coast Power, and are reported under the equity method of accounting. |
** | For additional information — see Item 15 — Note 23 of the Consolidated Financial Statements for our consolidated revenues by segment disclosures. |
*** | Includes miscellaneous revenues from the sale of natural gas, recovery of incurred costs under reliability must- run agreements, revenues received under leasing arrangements, revenues from maintenance, revenues from the sale of ancillary services and revenues from entering into certain financial transactions, offset by contract amortization. |
Annual | ||||||||||||||||||||
Net | Equivalent | Average Gross | ||||||||||||||||||
Net Owned | Generation | Availability | Heat Rate | Net Capacity | ||||||||||||||||
Region | Capacity (MW) | (MWh) | Factor | Btu/KWh | Factor | |||||||||||||||
Northeast* | 7,884 | 13,205,017 | 85.6 | % | 10,174 | 19.8 | % | |||||||||||||
South Central | 2,469 | 10,470,786 | 92.1 | % | 9,965 | 52.9 | % | |||||||||||||
West Coast** | 1,315 | 2,354,668 | 80.0 | % | 10,121 | 20.4 | % | |||||||||||||
Other North America | 1,591 | 2,925,653 | 96.3 | % | N/A | 12.0 | % |
* | Net Generation and the other metrics do not include Keystone and Conemaugh. |
** | Includes 50% of the generation owned through our West Coast Power partnership. |
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Annual | ||||||||||||||||||||
Net | Equivalent | Average Gross | ||||||||||||||||||
Net Owned | Generation | Availability | Heat Rate | Net Capacity | ||||||||||||||||
Region | Capacity (MW) | (MWh) | Factor | Btu/KWh | Factor | |||||||||||||||
Flinders Northern Power Station | 520 | 3,924,196 | 93.2 | % | 11,400 | 93.1 | % | |||||||||||||
Flinders Playford Power Station | 240 | 365,642 | 46.0 | % | 16,300 | 18.9 | % | |||||||||||||
Gladstone* | 630 | 3,065,044 | 83.2 | % | 9,600 | 55.4 | % |
* | Includes 37.5% of the generation owned through our Gladstone partnership. |
Northeast Region |
NRG’s | ||||||||||||||||
Net Owned | Percentage | |||||||||||||||
Power | Capacity | Ownership | ||||||||||||||
Name and Location of Facility | Market | (MW) | Interest | Fuel Type | ||||||||||||
Oswego, New York | NYISO | 1,700 | 100 | % | Oil/Gas | |||||||||||
Huntley, New York | NYISO | 760 | 100 | % | Coal | |||||||||||
Dunkirk, New York | NYISO | 600 | 100 | % | Coal | |||||||||||
Arthur Kill, New York | NYISO | 842 | 100 | % | Gas/Oil | |||||||||||
Astoria Gas Turbines, New York | NYISO | 600 | 100 | % | Gas/Oil | |||||||||||
Somerset, Massachusetts | ISO-NE | 136 | 100 | % | Coal/Oil | |||||||||||
Middletown, Connecticut | ISO-NE | 786 | 100 | % | Oil/Gas/Jet Fuel | |||||||||||
Montville, Connecticut | ISO-NE | 498 | 100 | % | Oil/Gas/Diesel | |||||||||||
Devon, Connecticut | ISO-NE | 401 | 100 | % | Gas/Oil/Jet Fuel | |||||||||||
Norwalk Harbor, Connecticut | ISO-NE | 353 | 100 | % | Oil | |||||||||||
Connecticut Jet Power, Connecticut | ISO-NE | 127 | 100 | % | Jet Fuel | |||||||||||
Indian River, Delaware | PJM | 784 | 100 | % | Coal/Oil | |||||||||||
Vienna, Maryland | PJM | 170 | 100 | % | Oil | |||||||||||
Conemaugh, Pennsylvania | PJM | 64 | 4 | % | Coal/Oil | |||||||||||
Keystone, Pennsylvania | PJM | 63 | 4 | % | Coal/Oil |
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South Central Region |
NRG’s | ||||||||||||||||
Net Owned | Percentage | |||||||||||||||
Power | Capacity | Ownership | Fuel | |||||||||||||
Name and Location of Facility | Market | (MW) | Interest | Type | ||||||||||||
Big Cajun II, Louisiana* | SERC-Entergy | 1,489 | 86 | % | Coal | |||||||||||
Big Cajun I, Louisiana | SERC-Entergy | 458 | 100 | % | Gas/Oil | |||||||||||
Bayou Cove, Louisiana | SERC-Entergy | 320 | 100 | % | Gas | |||||||||||
Sterlington, Louisiana | SERC-Entergy | 202 | 100 | % | Gas |
* | We own 100% of Units 1 and 2 and 58% of Unit 3. |
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West Coast Region |
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NRG’s | ||||||||||||||||
Net Owned | Percentage | |||||||||||||||
Power | Capacity | Ownership | Fuel | |||||||||||||
Name and Location of Facility | Market | (MW) | Interest | Type | ||||||||||||
Encina, California | Cal ISO | 483 | 50 | % | Gas/Oil | |||||||||||
El Segundo Power, California | Cal ISO | 335 | 50 | % | Gas | |||||||||||
Long Beach Generating, California* | Cal ISO | 265 | 50 | % | Gas | |||||||||||
San Diego Combustion Turbines, California | Cal ISO | 85 | 50 | % | Gas/Oil | |||||||||||
Saguaro Power Co., Nevada | WECC | 53 | 50 | % | Gas/Oil | |||||||||||
Chowchilla, California | Cal ISO | 49 | 100 | % | Gas | |||||||||||
Red Bluff, California | Cal ISO | 45 | 100 | % | Gas |
* | Retired effective January 1, 2005 |
Other North America |
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NRG’s | ||||||||||||||||
Net Owned | Percentage | |||||||||||||||
Capacity | Ownership | Fuel | ||||||||||||||
Name and Location of Facility | Power Market | (MW) | Interest | Type | ||||||||||||
Audrain, Missouri* | MAIN | 640 | 100% | Gas | ||||||||||||
Rockford I, Illinois | MAIN | 342 | 100% | Gas | ||||||||||||
Rockford II, Illinois | MAIN | 171 | 100% | Gas | ||||||||||||
Rocky Road Power, Illinois | PJM | 175 | 50% | Gas | ||||||||||||
Ilion, New York | NYISO | 60 | 100% | Gas/Oil | ||||||||||||
Dover, Delaware | PJM | 106 | 100% | Gas/Oil | ||||||||||||
James River, Virginia* | SERC-TVA | 55 | 50% | Coal | ||||||||||||
Paxton Creek Cogeneration | PJM | 12 | 100% | Gas | ||||||||||||
Other — 3 projects* | Various | 30 | Various | Various |
* | May sell or dispose of in the next 12 months. |
Australia |
NRG’s | ||||||||||||||
Net Owned | Percentage | |||||||||||||
Capacity | Ownership | Fuel | ||||||||||||
Name and Location of Facility | Purchaser/ Power Market | (MW) | Interest | Type | ||||||||||
Flinders, South Australia | National Electricity Market | 760 | 100% | Coal | ||||||||||
Gladstone Power Station, Queensland | Enertrade/Boyne Smelters | 630 | 37.5% | Coal |
Market Framework |
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Market Development |
Other International |
NRG’s | ||||||||||||||
Net Owned | Percentage | |||||||||||||
Capacity | Ownership | Fuel | ||||||||||||
Name and Location of Facility | Purchaser/ Power Market | (MW) | Interest | Type | ||||||||||
Europe: | ||||||||||||||
Enfield Energy Centre, UK* | UK Electricity Grid | 95 | 25 | % | Gas | |||||||||
Schkopau Power Station, Germany | Vattenfall Europe | 400 | 42 | % | Coal | |||||||||
MIBRAG mbH, Germany** | ENVIA/MIBRAG Mines | 119 | 50 | % | Coal | |||||||||
Brazil: | ||||||||||||||
Itiquira Energetica, Brazil* | COPEL | 154 | 99 | % | Hydro |
* | NRG may sell or dispose of in the next 12 months. |
** | Primarily a coal mining facility. |
Alternative Energy and Services |
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NRG’s | ||||||||||
Percentage | ||||||||||
Net Owned | Ownership | |||||||||
Name and Location of Facility | Purchaser/ MSW Supplier | Capacity | Interest | Fuel Type | ||||||
Newport, MN* | Ramsey and Washington Counties | 1,500 tons/day | 100% | Refuse Derived Fuel | ||||||
Elk River, MN** | Anoka, Hennepin and Sherburne Counties; Tri- County Solid Waste Management Commission | 1,275 tons/day | 85% | Refuse Derived Fuel |
* | The Newport facilities are related strictly to municipal solid waste processing (MSW). |
** | Our 85% interest in the Elk River facility is related strictly to municipal solid waste processing. |
Non-Generation |
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NRG’s | ||||||||||||
Percentage | ||||||||||||
Net Owned | Ownership | |||||||||||
Name and Location of Facility | Customers | Capacity* | Interest | Fuel Type | ||||||||
NRG Energy Center Minneapolis, Minnesota | Approx. 100 steam customers and 45 chilled water customers | Steam: 1,203 mm Btu/hr. (353 MWt) Chilled water: 41,630 tons (146 MWt) | 100% | Gas/Oil | ||||||||
NRG Energy Center San Francisco, California | Approx. 170 steam customers | Steam: 482 mm Btu/hr. (141 MWt) | 100% | Gas | ||||||||
NRG Energy Center Harrisburg, Pennsylvania | Approx. 270 steam customers and 3 chilled water customers | Steam: 440 mm Btu/hr. (129 MWt) Chilled water: 2,400 tons (8 MWt) | 100% | Gas/Oil | ||||||||
NRG Energy Center Pittsburgh, Pennsylvania | Approx. 25 steam and 25 chilled water customers | Steam: 266 mm Btu/hr. (78 MWt) Chilled water: 12,580 tons (44 MWt) | 100% | Gas/Oil | ||||||||
NRG Energy Center San Diego, California | Approx. 20 chilled water customers | Chilled water: 7,425 tons (26 MWt) | 100% | Gas | ||||||||
NRG Energy Center St. Paul, Minnesota | Rock-Tenn Company | Steam: 430 mm Btu/hr. (126 MWt) | 100% | Coal/Gas/Oil | ||||||||
Camas Power Boiler Washington | Georgia-Pacific Corp. | Steam: 200 mm Btu/hr. (59 MWt) | 100% | Biomass | ||||||||
NRG Energy Center Dover, Delaware | Kraft Foods, Inc. | Steam: 190 mm Btu/hr. (56 MWt) | 100% | Coal | ||||||||
NRG Energy Center Bayport, Minnesota | Andersen Corporation and Minnesota Correctional Facility | Steam: 200 mm Btu/hr. (59 MWt) | 100% | Coal/Gas/Propane |
* | Thermal production and transmission capacity is based on 1,000 Btus per pound of steam production or transmission capacity. The unit mmBtu is equal to one million Btus. |
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Gain/(Loss) on | Debt | ||||||||||||||||||
Asset (Location) | Segment | Closing Date | Proceeds | Disposition | Reduction | ||||||||||||||
(In thousands) | |||||||||||||||||||
Calpine Cogeneration | Other North America | 3/07/2004 | $ | 3.0 | $ | 0.7 | $ | — | |||||||||||
Loy Yang (Australia) | Australia | 4/08/2004 | 26.7 | (1.3 | ) | — | |||||||||||||
PERC (Maine) | Other North America | 4/16/2004 | 18.4 | 3.2 | 25.2 | ||||||||||||||
Cobee (Bolivia) | Other International | 4/27/2004 | 50.0 | 2.8 | 24.1 | ||||||||||||||
Hsin Yu (Taiwan) | Other International | 5/13/2004 | 1.0 | 10.3 | 46.4 | ||||||||||||||
McClain (Oklahoma) | Other North America | 7/09/2004 | 160.2 | (3.0 | ) | 156.5 | |||||||||||||
Batesville (Mississippi) | Other North America | 7/24/2004 | 27.6 | 11.0 | 289.3 | ||||||||||||||
NEO projects | Alternative Energy | 9/30/2004 | 5.8 | 6.0 | — | ||||||||||||||
NEO equity projects | Alternative Energy | 9/30/2004 | 6.1 | (3.8 | ) | — | |||||||||||||
CALP, Virginia | Other North America | 11/30/2004 | 14.9 | (4.6 | ) | — | |||||||||||||
Kendall, Illinois | Other North America | 12/01/2004 | 1.0 | (26.5 | ) | 448.4 | |||||||||||||
Total | $ | 314.7 | $ | (5.2 | ) | $ | 989.9 | ||||||||||||
Reorganized NRG |
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Predecessor Company |
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Domestic Environmental Regulatory Matters |
U.S. Federal Environmental Initiatives |
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Regional U.S. Regulatory Initiatives |
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Domestic Site Remediation Matters |
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International Environmental Matters |
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Future decreases in gas prices may adversely impact our financial performance. |
Our revenues are unpredictable because most of our power generation facilities operate, wholly or partially, without long-term power purchase agreements. Further, because wholesale power prices are subject to significant volatility, the revenues that we generate are subject to significant fluctuations. |
Competition in wholesale power markets may have a material adverse effect on our results of operations and cash flows. |
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A substantial portion of our historical cash flow has been derived from a CDWR contract in California and we do not expect to be able to enter into comparable agreements beyond 2004. |
Construction, expansion, refurbishment and operation of power generation facilities involve significant risks that cannot always be covered by insurance or contractual protections and could have a material adverse effect on our revenues and results of operations. |
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• | interruptions to dispatch at our facilities; | |
• | supply interruptions; | |
• | work stoppages; | |
• | labor disputes; | |
• | weather interferences; | |
• | unforeseen engineering, environmental and geological problems; and | |
• | unanticipated cost overruns. |
We are exposed to the risk of fuel and fuel transportation cost increases and volatility and interruption in fuel supply because some of our facilities do not have long-term natural gas, coal or liquid fuel supply agreements. |
• | weather conditions; | |
• | seasonality; | |
• | demand for energy commodities and general economic conditions; |
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• | disruption of electricity, gas or coal transmission or transportation, infrastructure or other constraints or inefficiencies; | |
• | additional generating capacity; | |
• | availability of competitively priced alternative energy sources; | |
• | availability and levels of storage and inventory for fuel stocks; | |
• | natural gas, crude oil, refined products and coal production levels; | |
• | the creditworthiness or bankruptcy or other financial distress of market participants; | |
• | changes in market liquidity; | |
• | natural disasters, wars, embargoes, acts of terrorism and other catastrophic events; and | |
• | federal, state and foreign governmental regulation and legislation. |
The quality of fuel that we rely on at certain of our coal plants may not be available at times. |
We often rely on single suppliers and at times we rely on single customers at our facilities, exposing us to significant financial risks if either should fail to perform their obligations. |
Our operations are subject to hazards customary to the power generation industry. We may not have adequate insurance to cover all of these hazards. |
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We may not have sufficient liquidity to hedge market risks effectively. |
The accounting for our hedging activities may increase the volatility in our quarterly and annual financial results. |
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The value of our assets is subject to the nature and extent of decommissioning and remediation obligations applicable to us. |
Our results are subject to quarterly and seasonal fluctuations. |
Because we own less than a majority of some of our project investments, we cannot exercise complete control over their operations. |
Our access to the capital markets may be limited. |
• | general economic and capital market conditions; | |
• | covenants in our existing debt and credit agreements; | |
• | credit availability from banks and other financial institutions; | |
• | investor confidence in us, our partners and the regional wholesale power markets; | |
• | our financial performance and the financial performance of our subsidiaries; | |
• | our levels of indebtedness; | |
• | maintenance of acceptable credit ratings; | |
• | cash flow; and | |
• | provisions of tax and securities laws that may impact raising capital. |
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Our business is subject to substantial governmental regulation and permitting requirements and may be adversely affected by liability under, or any future inability to comply with, existing or future regulations or requirements. |
Our business faces regulatory risks related to the market rules and regulations imposed by transmission providers, independent system operators and regional transmission organizations. |
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Restrictions in transmission access and expansions in the transmission system could reduce revenues. |
We are subject to claims made after the date that we filed for bankruptcy and other claims that were not discharged in the bankruptcy cases, which could have a material adverse effect on our results of operations and profitability. |
Acts of terrorism could have a material adverse effect on our financial condition, results of operations and cash flows. |
Our international investments face uncertainties. |
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• | fluctuations in currency valuation; | |
• | currency inconvertibility; | |
• | expropriation and confiscatory taxation; | |
• | increased regulation; and | |
• | approval requirements and governmental policies limiting returns to foreign investors. |
• | Lack of comparable financial data due to adoption of Fresh Start reporting; | |
• | Our ability to successfully and timely close transactions to sell certain of our assets; | |
• | The potential impact of our corporate relocation on workforce requirements including the loss of institutional knowledge and the inability to maintain existing processes; | |
• | Hazards customary to the power production industry and power generation operations such as fuel and electricity price volatility, unusual weather conditions, catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to fossil fuel supply costs or availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission or gas pipeline system constraints and the possibility that we may not have adequate insurance to cover losses as a result of such hazards; | |
• | Our potential inability to enter into contracts to sell power and procure fuel on terms and prices acceptable to us; | |
• | The liquidity and competitiveness of wholesale markets for energy commodities; | |
• | Changes in government regulation, including but not limited to the pending changes of market rules, market structures and design, rates, tariffs, environmental laws and regulations and regulatory compliance requirements; | |
• | Price mitigation strategies and other market structures employed by independent system operators, or ISOs, or regional transmission organizations, or RTOs, that result in a failure to adequately compensate our generation units for all of their costs; | |
• | Our ability to borrow additional funds and access capital markets, as well as our substantial indebtedness and the possibility that we may incur additional indebtedness going forward; and | |
• | Significant operating and financial restrictions placed on us contained in the indenture governing our 8% second priority senior secured notes due 2013, our amended and restated credit facility as well as in debt and other agreements of certain of our subsidiaries and project affiliates generally. |
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Net | NRG’S | |||||||||||||||
Owned | Percentage | |||||||||||||||
Capacity | Ownership | |||||||||||||||
Name and Location of Facility | Purchaser/Power Market | (MW) | Interest | Fuel Type | ||||||||||||
Northeast Region: | ||||||||||||||||
Oswego, New York | NYISO | 1,700 | 100% | Oil/Gas | ||||||||||||
Huntley, New York | NYISO | 760 | 100% | Coal | ||||||||||||
Dunkirk, New York | NYISO | 600 | 100% | Coal | ||||||||||||
Arthur Kill, New York | NYISO | 842 | 100% | Gas/Oil | ||||||||||||
Astoria Gas Turbines, New York | NYISO | 600 | 100% | Gas/Oil | ||||||||||||
Somerset, Massachusetts | ISO-NE | 136 | 100% | Coal/Oil | ||||||||||||
Middletown, Connecticut | ISO-NE | 786 | 100% | Oil/Gas/Jet Fuel | ||||||||||||
Montville, Connecticut | ISO-NE | 498 | 100% | Oil/Gas/Diesel | ||||||||||||
Devon, Connecticut | ISO-NE | 401 | 100% | Gas/Oil/Jet Fuel | ||||||||||||
Norwalk Harbor, Connecticut | ISO-NE | 353 | 100% | Oil | ||||||||||||
Connecticut Jet Power, Connecticut | ISO-NE | 127 | 100% | Jet Fuel | ||||||||||||
Indian River, Delaware | PJM | 784 | 100% | Coal/Oil | ||||||||||||
Vienna, Maryland | PJM | 170 | 100% | Oil | ||||||||||||
Conemaugh, Pennsylvania | PJM | 64 | 4% | Coal/Oil | ||||||||||||
Keystone, Pennsylvania | PJM | 63 | 4% | Coal/Oil | ||||||||||||
South Central Region: | ||||||||||||||||
Big Cajun II, Louisiana* | SERC-Entergy | 1,489 | 86% | Coal | ||||||||||||
Big Cajun I, Louisiana | SERC-Entergy | 458 | 100% | Gas/Oil | ||||||||||||
Bayou Cove, Louisiana | SERC-Entergy | 320 | 100% | Gas | ||||||||||||
Sterlington, Louisiana | SERC-Entergy | 202 | 100% | Gas | ||||||||||||
West Coast Region: | ||||||||||||||||
El Segundo Power, California | Cal ISO | 335 | 50% | Gas | ||||||||||||
Encina, California | Cal ISO | 483 | 50% | Gas/Oil | ||||||||||||
Long Beach Generating, California** | Cal ISO | 265 | 50% | Gas | ||||||||||||
San Diego Combustion Turbines, CA | Cal ISO | 85 | 50% | Gas/Oil | ||||||||||||
Saguaro Power Co., Nevada*** | WECC | 53 | 50% | Gas/Oil | ||||||||||||
Chowchilla, California | Cal ISO | 49 | 100% | Gas | ||||||||||||
Red Bluff, California | Cal ISO | 45 | 100% | Gas | ||||||||||||
Other North America: | ||||||||||||||||
Audrain*** | MAIN | 640 | 100% | Gas | ||||||||||||
Rockford I, Illinois | MAIN | 342 | 100% | Gas |
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Net | NRG’S | |||||||||||||||
Owned | Percentage | |||||||||||||||
Capacity | Ownership | |||||||||||||||
Name and Location of Facility | Purchaser/Power Market | (MW) | Interest | Fuel Type | ||||||||||||
Rockford II, Illinois | MAIN | 171 | 100% | Gas | ||||||||||||
Rocky Road Power, Illinois | PJM | 175 | 50% | Gas | ||||||||||||
Ilion, New York | NYISO | 60 | 100% | Gas/Oil | ||||||||||||
Dover, Delaware | PJM | 106 | 100% | Gas/Coal/Oil | ||||||||||||
James River*** | SERC — TVA | 55 | 50% | Coal | ||||||||||||
Paxton Creek Cogeneration | PJM | 12 | 100% | Gas | ||||||||||||
Other — 3 projects*** | Various | 30 | Various | Various | ||||||||||||
Australia: | ||||||||||||||||
Flinders, South Australia | South Australian Pool | 760 | 100% | Coal | ||||||||||||
Gladstone Power Station, Queensland | Enertrade/Boyne Smelters | 630 | 38% | Coal | ||||||||||||
Other International: | ||||||||||||||||
Europe: | ||||||||||||||||
Enfield Energy Centre, UK*** | UK Electricity Grid | 95 | 25% | Gas | ||||||||||||
Schkopau Power Station, Germany | Vattenfall Europe | 400 | 42% | Coal | ||||||||||||
MIBRAG mbH, Germany**** | ENVIA/MIBRAG Mines | 119 | 50% | Coal | ||||||||||||
Brazil: | ||||||||||||||||
Itiquira Energetica, Brazil*** | COPEL | 154 | 99% | Hydro | ||||||||||||
NEO Corporation, Various | Various | 41 | Various | Various |
* | Units 1 and 2 owned 100%, Unit 3 owned 58% |
** | Retired effective January 1, 2005 |
*** | May sell or dispose of in 2005 |
**** | Primarily a coal mining facility |
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NRG’s | ||||||||||||
Percentage | ||||||||||||
Name and Location of | Ownership | |||||||||||
Facility | Customers | Net Owned Capacity* | Interest | Fuel Type | ||||||||
Non-Generation Facilities: | ||||||||||||
NRG Energy Center Minneapolis, Minnesota | Approx. 100 steam customers and 45 chilled water customers | Steam: 1,203 mm Btu/hr. (353 MWt) Chilled water: 41,630 tons (146 MWt) | 100% | Gas/Oil | ||||||||
NRG Energy Center San Francisco, California | Approx. 170 steam customers | Steam: 482 mm Btu/hr. (141 MWt) | 100% | Gas | ||||||||
NRG Energy Center Harrisburg, Pennsylvania | Approx. 270 steam customers and 3 chilled water customers | Steam: 440 mm Btu/hr. (129 MWt) Chilled water: 2,400 tons (8 MWt) | 100% | Gas/Oil | ||||||||
NRG Energy Center Pittsburgh, Pennsylvania | Approx. 25 steam and 25 chilled water customers | Steam: 266 mm Btu/hr. (78 MWt) Chilled water: 12,580 tons (44 MWt) | 100% | Gas/Oil | ||||||||
NRG Energy Center San Diego, California | Approx. 20 chilled water customers | Chilled water: 7,425 tons (26 MWt) | 100% | Gas | ||||||||
NRG Energy Center St. Paul, Minnesota | Rock-Tenn Company | Steam: 430 mm Btu/hr. (126 MWt) | 100% | Coal/Gas/Oil | ||||||||
Camas Power Boiler Washington | Georgia-Pacific Corp. | Steam: 200 mm Btu/hr. (59 MWt) | 100% | Biomass | ||||||||
NRG Energy Center Dover, Delaware | Kraft Foods, Inc. | Steam: 190 mm Btu/hr. (56 MWt) | 100% | Coal | ||||||||
NRG Energy Center Bayport, Minnesota | Andersen Corporation and Minnesota Correctional Facility | Steam: 200 mm Btu/hr. (59 MWt) | 100% | Coal/Gas/Propane |
* | Thermal production and transmission capacity is based on 1,000 Btus per pound of steam production or transmission capacity. The unit mmBtu is equal to one million Btus. |
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NRG’S | ||||||||
Percentage | ||||||||
Ownership | ||||||||
Name and Location of Facility | Customers | Net Owned Capacity | Interest | |||||
Alternative Energy: | ||||||||
Resource Recovery Facilities | ||||||||
Newport, Minnesota | Ramsey and Washington Counties | MSW: 1,500 tons/day | 100% | |||||
Elk River, Minnesota | Anoka, Hennepin, and Sherburne Counties; Tri- County Solid Waste Management Commission | MSW: 1,275 tons/day | 85% |
Item 3 — | Legal Proceedings |
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Table of Contents
Pamela R Gordon, on Behalf of Herself and All Others Similarly Situated v Reliant Energy, Inc. et al.,Case No. 758487, Superior Court of the State of California, County of San Diego(filed on November 27, 2000).Ruth Hendricks, On Behalf of Herself and All Others Similarly Situated and On Behalf of the General Public v. Dynegy Power Marketing, Inc. et al.,Case No. 758565, Superior Court of the State of California, County of San Diego (filed November 29, 2000).The People of the State of California, by and through San Francisco City Attorney Louise H. Renne v. Dynegy Power Marketing, Inc. et al.,Case No. 318189, Superior Court of California, San Francisco County(filed January 18, 2001).Pier 23 Restaurant, A California Partnership, On Behalf of Itself and All Others Similarly Situated v PG&E Energy Trading et al.,Case No. 318343, Superior Court of California, San Francisco County(filed January 24, 2001).Sweetwater Authority, et al. v. Dynegy, Inc. et al.,Case No. 760743, Superior Court of California, County of San Diego(filed January 16, 2001).Cruz M Bustamante, individually, and Barbara Matthews, individually, and on behalf of the general public and as a representative taxpayer suit, v. Dynegy Inc. et al., inclusive.Case No. BC249705, Superior Court of California, Los Angeles County(filed May 2, 2001). |
41
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42
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NRG Bankruptcy Cap on California Claims |
Investigations |
FERC — California Market Manipulation |
43
Table of Contents
Other FERC Proceedings |
California Attorney General |
44
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45
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46
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Additional Litigation |
Item 4 — | Submission of Matters to a Vote of Security Holders |
Item 5 — | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
47
Table of Contents
For the Period | ||||||||||||||||||||
Fourth | Third | Second | First | December 6 - | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | December 31, | ||||||||||||||||
Common Stock Price | 2004 | 2004 | 2004 | 2004 | 2003 | |||||||||||||||
High | $ | 36.18 | $ | 28.43 | $ | 24.80 | $ | 22.50 | $ | 23.05 | ||||||||||
Low | $ | 26.00 | $ | 24.10 | $ | 19.17 | $ | 18.10 | $ | 18.10 | ||||||||||
Closing | $ | 36.05 | $ | 26.94 | $ | 24.80 | $ | 22.20 | $ | 21.90 |
Total Number of Shares | ||||||||||||||||
Purchased as Part of | Maximum Number of | |||||||||||||||
Total Number of | Average Price | Publicly Announced | Shares that May Yet Be | |||||||||||||
Period | Shares Purchased | Paid Per Share | Plans | Purchased Under the Plans | ||||||||||||
December 27, 2004 | 13,000,000* | $ | 31.16 | none | N/A |
* | 13,000,000 shares were purchased other than through a publicly announced plan. The purchase was made in a negotiated transaction. |
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(a) | (b) | (c) | ||||||||||
Number of Securities | ||||||||||||
Remaining Available | ||||||||||||
Number of Securities | for Future Issuance | |||||||||||
to be Issued Upon | Weighted-Average Exercise | Under Compensation | ||||||||||
Exercise of | Price of Outstanding | Plans (Excluding | ||||||||||
Outstanding Options, | Options, Warrants and | Securities Reflected | ||||||||||
Plan Category | Warrants and Rights | Rights | in Column (a)) | |||||||||
Equity compensation plans approved by security holders | 1,904,026 | $ | 22.34 | 2,053,294* | ||||||||
Equity compensation plans not approved by security holders | — | n/a | — | |||||||||
Total | 1,904,026 | $ | 22.34 | 2,053,294* | ||||||||
* | The NRG Energy, Inc. Long-Term Incentive Plan became effective upon our emergence from bankruptcy. The Long-Term Incentive Plan, which was adopted in connection with the NRG plan of reorganization, was approved by our stockholders on August 4, 2004. The Long-Term Incentive Plan provides for grants of stock options, stock appreciation rights, restricted stock, performance awards, deferred stock units and dividend equivalent rights. Our directors, officers and employees, as well as other individuals performing services for, or to whom an offer of employment has been extended by us, are eligible to receive grants under the Long-Term Incentive Plan. A total of 4,000,000 shares of our common stock are available for issuance under the Long-Term Incentive Plan. The purpose of the Long-Term Incentive Plan is to promote our long-term growth and profitability by providing these individuals with incentives to maximize stockholder value and otherwise contribute to our success and to enable us to attract, retain and reward the best available persons for positions of responsibility. The Compensation Committee of our Board of Directors administers the Long-Term Incentive Plan. There were 2,053,294 and 3,367,249 shares of common stock remaining available for grants of stock options under our Long-Term Incentive Plan as of December 31, 2004 and 2003, respectively. |
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Item 6 — | Selected Financial Data |
Reorganized NRG | Predecessor Company | ||||||||||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended December 31, | ||||||||||||||||||||||
December 31, | December 31, | December 5, | |||||||||||||||||||||||
2004 | 2003 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||||
Revenues from majority-owned operations | $ | 2,361,424 | $ | 138,490 | $ | 1,798,387 | $ | 1,938,293 | $ | 2,085,350 | $ | 1,664,980 | |||||||||||||
Corporate relocation charges | 16,167 | — | — | — | — | — | |||||||||||||||||||
Reorganization, restructuring and impairment charges | 31,271 | 2,461 | 435,400 | 2,563,060 | — | — | |||||||||||||||||||
Fresh start reporting adjustments | — | — | (4,118,636 | ) | — | — | — | ||||||||||||||||||
Legal settlement | — | — | 462,631 | — | — | — | |||||||||||||||||||
Total operating costs and expenses | 1,962,309 | 122,328 | (1,475,523 | ) | 4,321,385 | 1,703,531 | 1,308,589 | ||||||||||||||||||
Write downs and losses on equity method investments | (16,270 | ) | — | (147,124 | ) | (200,472 | ) | — | — | ||||||||||||||||
Income/(loss) from continuing operations | 162,145 | 11,405 | 2,949,078 | (2,788,452 | ) | 210,502 | 149,729 | ||||||||||||||||||
Income/(loss) from discontinued operations, net | 23,472 | (380 | ) | (182,633 | ) | (675,830 | ) | 54,702 | 33,206 | ||||||||||||||||
Net income/(loss) | 185,617 | 11,025 | 2,766,445 | (3,464,282 | ) | 265,204 | 182,935 | ||||||||||||||||||
Income/(loss) from continuing operations per weighted average share — basic and diluted | $ | 1.62 | $ | .11 | |||||||||||||||||||||
Total assets | 7,830,028 | 9,244,987 | N/A | 10,896,851 | 12,915,222 | 5,986,289 | |||||||||||||||||||
Long-term debt, including current maturities | $ | 3,766,118 | $ | 4,129,011 | N/A | $ | 7,782,648 | $ | 6,857,055 | $ | 3,194,340 |
Reorganized NRG | Predecessor Company | ||||||||||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended December 31, | ||||||||||||||||||||||
December 31, | December 31, | December 5, | |||||||||||||||||||||||
2004 | 2003 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Energy and energy-related | $ | 1,378,490 | $ | 78,018 | $ | 992,626 | $ | 1,183,514 | $ | 1,376,044 | $ | 1,091,115 | |||||||||||||
Capacity | 612,294 | 39,955 | 565,965 | 553,321 | 490,315 | 405,697 | |||||||||||||||||||
Alternative energy | 175,715 | 12,064 | 115,911 | 97,712 | 161,845 | 92,671 | |||||||||||||||||||
O & M fees | 20,852 | 1,135 | 12,942 | 14,413 | 15,789 | 10,073 | |||||||||||||||||||
Other | 174,073 | 7,318 | 110,943 | 89,333 | 41,357 | 65,424 | |||||||||||||||||||
Total revenues from majority-owned operations | $ | 2,361,424 | $ | 138,490 | $ | 1,798,387 | $ | 1,938,293 | $ | 2,085,350 | $ | 1,664,980 | |||||||||||||
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Item 7 — | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
51
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52
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Reorganized NRG | Predecessor Company | |||||||||||||||||||||||||||||||||
For the Year | For the Period | For the Period | For the Year | |||||||||||||||||||||||||||||||
Ended | Percent of | December 6- | Percent of | January 1- | Percent of | Ended | Percent of | |||||||||||||||||||||||||||
December 31, | Total | December 31, | Total | December 5, | Total | December 31, | Total | |||||||||||||||||||||||||||
Segments | 2004 | Revenue | 2003 | Revenue | 2003 | Revenue | 2002 | Revenue | ||||||||||||||||||||||||||
(In thousands) | (In thousands) | (In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
Wholesale Power Generation | ||||||||||||||||||||||||||||||||||
Northeast | $ | 1,251,153 | 53.0 | % | $ | 69,191 | 50.0 | % | $ | 861,452 | 47.9 | % | $ | 964,196 | 49.7 | % | ||||||||||||||||||
South Central | 418,145 | 17.6 | % | 26,609 | 19.2 | % | 356,534 | 19.8 | % | 388,023 | 20.0 | % | ||||||||||||||||||||||
West Coast | 2,469 | 0.1 | % | (268 | ) | (0.2 | )% | 23,956 | 1.3 | % | 30,796 | 1.6 | % | |||||||||||||||||||||
Other North America | 105,644 | 4.5 | % | 5,377 | 3.9 | % | 85,388 | 4.8 | % | 81,521 | 4.2 | % | ||||||||||||||||||||||
Australia | 181,065 | 7.7 | % | 11,947 | 8.6 | % | 151,494 | 8.4 | % | 170,761 | 8.8 | % | ||||||||||||||||||||||
All Other | ||||||||||||||||||||||||||||||||||
Other International | 157,220 | 6.7 | % | 13,082 | 9.4 | % | 137,384 | 7.6 | % | 108,379 | 5.6 | % | ||||||||||||||||||||||
Alternative Energy | 65,872 | 2.8 | % | 3,852 | 2.8 | % | 60,871 | 3.4 | % | 69,030 | 3.6 | % | ||||||||||||||||||||||
Non-Generation | 186,425 | 7.9 | % | 9,860 | 7.1 | % | 129,063 | 7.2 | % | 135,403 | 7.0 | % | ||||||||||||||||||||||
Other | (6,569 | ) | (0.3 | )% | (1,160 | ) | (0.8 | )% | (7,755 | ) | (0.4 | )% | (9,816 | ) | (0.5 | )% | ||||||||||||||||||
Total Revenue | $ | 2,361,424 | 100.0 | % | $ | 138,490 | 100.0 | % | $ | 1,798,387 | 100.0 | % | $ | 1,938,293 | 100.0 | % | ||||||||||||||||||
South | West | Other North | |||||||||||||||||||||||||||
Northeast | Central | Coast | America | Australia | All Other | Total | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Energy revenue | $ | 853,454 | $ | 219,112 | $ | 9,276 | $ | 27,816 | $ | 159,381 | $ | 109,451 | $ | 1,378,490 | |||||||||||||||
Capacity revenue | 264,624 | 183,483 | (3,709 | ) | 84,097 | — | 83,799 | 612,294 | |||||||||||||||||||||
Alternative revenue | 49 | — | — | 1,748 | — | 173,918 | 175,715 | ||||||||||||||||||||||
O & M fees | — | — | (2 | ) | 186 | — | 20,668 | 20,852 | |||||||||||||||||||||
Other revenue | 133,026 | 15,550 | (3,096 | ) | (8,203 | ) | 21,684 | 15,112 | 174,073 | ||||||||||||||||||||
Operating revenues | 1,251,153 | 418,145 | 2,469 | 105,644 | 181,065 | 402,948 | 2,361,424 | ||||||||||||||||||||||
Operating expenses | 859,769 | 294,215 | 10,842 | 57,686 | 161,960 | 321,104 | 1,705,576 | ||||||||||||||||||||||
Depreciation and amortization | 72,665 | 62,458 | 800 | 21,842 | 24,027 | 27,503 | 209,295 | ||||||||||||||||||||||
Corporate relocation charges | 11 | 1 | — | — | — | 16,155 | 16,167 | ||||||||||||||||||||||
Reorganization items | 180 | 976 | — | 142 | — | (14,688 | ) | (13,390 | ) | ||||||||||||||||||||
Restructuring and impairment charges | 247 | 2,909 | — | 26,505 | — | 15,000 | 44,661 | ||||||||||||||||||||||
Operating income/(loss) | $ | 318,281 | $ | 57,586 | $ | (9,173 | ) | $ | (531 | ) | $ | (4,922 | ) | $ | 37,874 | $ | 399,115 | ||||||||||||
For the Year Ended December 31, 2004 Compared to the Year Ended December 31, 2003 |
Net Income/(Loss) |
Reorganized NRG |
53
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Predecessor Company |
54
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Revenues from Majority-Owned Operations |
Reorganized NRG |
55
Table of Contents
Predecessor Company |
Cost of Majority-Owned Operations |
Reorganized NRG |
Cost of Energy |
Operating Expenses |
56
Table of Contents
Predecessor Company |
Depreciation and Amortization |
Reorganized NRG |
Predecessor Company |
General, Administrative and Development |
Reorganized NRG |
57
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Predecessor Company |
Other Charges (Credits) |
Reorganized NRG |
Predecessor Company |
Reorganized NRG | Predecessor Company | |||||||||||||
For the Period | For the Period | |||||||||||||
Year Ended | December 6 - | January 1 - | ||||||||||||
December 31, | December 31, | December 5, | ||||||||||||
2004 | 2003 | 2003 | ||||||||||||
(In thousands) | ||||||||||||||
Corporate relocation charges | $ | 16,167 | $ | — | $ | — | ||||||||
Reorganization items | (13,390 | ) | 2,461 | 197,825 | ||||||||||
Impairment charges | 44,661 | — | 228,896 | |||||||||||
Restructuring charges | — | — | 8,679 | |||||||||||
Fresh Start adjustments | — | — | (4,118,636 | ) | ||||||||||
Legal settlement | — | — | 462,631 | |||||||||||
Total | $ | 47,438 | $ | 2,461 | $ | (3,220,605 | ) | |||||||
Corporate Relocation Charges |
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Reorganization Items |
Predecessor | ||||||||||||||
Reorganized NRG | Company | |||||||||||||
For the period | For the period | |||||||||||||
Year Ended | December 6 - | January 1 - | ||||||||||||
December 31, | December 31, | December 5, | ||||||||||||
2004 | 2003 | 2003 | ||||||||||||
(In thousands) | ||||||||||||||
Reorganization items | ||||||||||||||
Professional fees | $ | 7,383 | $ | 2,461 | $ | 82,186 | ||||||||
Deferred financing costs | — | — | 55,374 | |||||||||||
Pre-payment settlement | — | — | 19,609 | |||||||||||
Interest earned on accumulated cash | — | — | (1,059 | ) | ||||||||||
Contingent equity obligation | — | — | 41,715 | |||||||||||
Settlement of obligations | (20,773 | ) | — | — | ||||||||||
Total reorganization items | $ | (13,390 | ) | $ | 2,461 | $ | 197,825 | |||||||
Impairment Charges |
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Predecessor | |||||||||||||
Reorganized | Company | ||||||||||||
NRG | |||||||||||||
For the Period | |||||||||||||
Year Ended | January 1 - | ||||||||||||
December 31, | December 5, | Basis of Impairment | |||||||||||
Project Name | Project Status | 2004 | 2003 | Charge | |||||||||
(In thousands) | |||||||||||||
Louisiana Generating LLC | Office building and land being marketed | $ | 493 | $ | — | Estimated market price | |||||||
New Roads Holding LLC (turbine) | Non-operating asset — abandoned | 2,416 | — | Projected cash flows | |||||||||
Devon Power LLC | Operating at a loss in 2003 | 247 | 64,198 | Projected cash flows | |||||||||
Middletown Power LLC | Operating at a loss | — | 157,323 | Projected cash flows | |||||||||
Arthur Kill Power, LLC | Terminated construction project | — | 9,049 | Projected cash flows | |||||||||
Langage (UK) | Terminated | — | (3,091 | ) | Estimated market price | ||||||||
Turbines | Sold | — | (21,910 | ) | Realized gain | ||||||||
Berrians Project | Terminated | — | 14,310 | Realized loss | |||||||||
TermoRio | Terminated | — | 6,400 | Realized loss | |||||||||
Meriden | Sold | 15,000 | — | Similar asset prices | |||||||||
Kendall and other expansion projects | Sold | 26,505 | — | Projected cash flows, sales contracts | |||||||||
Other | — | 2,617 | |||||||||||
Total impairment charges | $ | 44,661 | $ | 228,896 | |||||||||
Restructuring Charges |
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Table of Contents
Fresh Start Adjustments |
(In millions) | |||||
Discharge of corporate level debt | $ | 5,162 | |||
Discharge of other liabilities | 811 | ||||
Establishment of creditor pool | (1,040 | ) | |||
Receivable from Xcel | 640 | ||||
Revaluation of fixed assets | (1,392 | ) | |||
Revaluation of equity investments | (207 | ) | |||
Valuation of SO2emission credits | 374 | ||||
Valuation of out of market contracts, net | (400 | ) | |||
Fair market valuation of debt | 108 | ||||
Valuation of pension liabilities | (61 | ) | |||
Other valuation adjustments | (100 | ) | |||
Total Fresh Start adjustments | 3,895 | ||||
Less discontinued operations | (224 | ) | |||
Total Fresh Start adjustments — continuing operations | $ | 4,119 | |||
Legal Settlement Charges |
Other Income (Expense) |
Reorganized NRG |
61
Table of Contents
Predecessor Company |
Minority Interest in Earnings of Consolidated Subsidiaries |
Equity in Earnings of Unconsolidated Affiliates |
Reorganized NRG |
Predecessor Company |
62
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Reorganized NRG | Predecessor Company | |||||||||||||||||
Year Ended | December 6, 2003 | January 1, 2003 | Year Ended | |||||||||||||||
December 31, | Through | Through | December 31, | |||||||||||||||
2004 | December 31, 2003 | December 5, 2003 | 2002 | |||||||||||||||
(In thousands) | ||||||||||||||||||
West Coast Power | $ | 68,895 | $ | 9,362 | $ | 98,741 | $ | 19,044 | ||||||||||
MIBRAG | 20,938 | 102 | 21,818 | 28,750 | ||||||||||||||
Enfield | 28,505 | 481 | 5,975 | (6,017 | ) | |||||||||||||
Gladstone | 17,528 | 997 | 12,440 | 7,237 | ||||||||||||||
Rocky Road | 6,904 | 305 | 6,864 | 6,868 | ||||||||||||||
James River | 7,750 | 543 | (1,893 | ) | 9,713 | |||||||||||||
NRG Saguaro | 5,480 | 617 | 3,940 | 4,968 | ||||||||||||||
Scudder LA Trust | 1,521 | 150 | 2,653 | 1,043 | ||||||||||||||
NRG National | 846 | 190 | 2,010 | 1,695 | ||||||||||||||
MWPC — RDF | 200 | 8 | 123 | 259 | ||||||||||||||
NRG Cadillac | (421 | ) | (2 | ) | 280 | 195 | ||||||||||||
Central and Eastern European Energy Power Fund | (47 | ) | (22 | ) | (260 | ) | (331 | ) | ||||||||||
Loy Yang | — | — | 17,924 | 8,443 | ||||||||||||||
Other | 1,726 | 790 | 286 | (12,871 | ) | |||||||||||||
Total Equity in Earnings of Unconsolidated Affiliates | $ | 159,825 | $ | 13,521 | $ | 170,901 | $ | 68,996 | ||||||||||
Write Downs and Losses on Sales of Equity Method Investments |
63
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Reorganized | Predecessor | ||||||||
NRG | Company | ||||||||
For the Period | |||||||||
Year Ended | January 1 - | ||||||||
December 31, | December 5, | ||||||||
2004 | 2003 | ||||||||
(In thousands) | |||||||||
Commonwealth Atlantic Limited Partnership | $ | 4,614 | $ | — | |||||
James River Power LLC | 7,293 | — | |||||||
NEO Corporation | 3,830 | — | |||||||
Calpine Cogeneration | (735 | ) | — | ||||||
NLGI — Minnesota Methane | — | 12,257 | |||||||
NLGI — MM Biogas | — | 2,613 | |||||||
Kondapalli | — | (519 | ) | ||||||
ECKG | — | (2,871 | ) | ||||||
Loy Yang | 1,268 | 146,354 | |||||||
Mustang | — | (12,124 | ) | ||||||
Other | — | 1,414 | |||||||
Total write downs and losses of equity method investments | $ | 16,270 | $ | 147,124 | |||||
64
Table of Contents
Other Income, net |
Reorganized NRG |
Predecessor Company |
65
Table of Contents
Interest Expense |
Reorganized NRG |
Predecessor Company |
Refinancing Expense |
Income Tax Expense |
Reorganized NRG |
66
Table of Contents
Predecessor Company |
Income From Discontinued Operations, net of Income Taxes |
Reorganized NRG |
Predecessor Company |
67
Table of Contents
For the Year Ended December 31, 2003 Compared to the Year Ended December 31, 2002 |
Net Income |
Reorganized NRG |
Predecessor Company |
68
Table of Contents
Revenues from Majority-Owned Operations |
Reorganized NRG |
Predecessor Company |
Cost of Majority-Owned Operations |
Reorganized NRG |
Predecessor Company |
Depreciation and Amortization |
Reorganized NRG |
69
Table of Contents
Predecessor Company |
General, Administrative and Development |
Reorganized NRG |
Predecessor Company |
Other Charges (Credits) |
Reorganized NRG |
Predecessor Company |
70
Table of Contents
Predecessor Company | ||||||||||||
For the Period | ||||||||||||
January 1 - | Year Ended | |||||||||||
December 5, | December 31, | |||||||||||
Project Name | Project Status | 2003 | 2002 | Fair Value Basis | ||||||||
(In thousands) | ||||||||||||
Devon Power LLC | Operating at a loss | $ | 64,198 | $ | — | Projected cash flows | ||||||
Middletown Power LLC | Operating at a loss | 157,323 | — | Projected cash flows | ||||||||
Arthur Kill Power, LLC | Terminated construction project | 9,049 | — | Projected cash flows | ||||||||
Langage (UK) | Terminated | (3,091 | ) | 42,333 | Estimated market price/Realized gain | |||||||
Turbine | Sold | (21,910 | ) | — | Realized gain | |||||||
Berrians Project | Terminated | 14,310 | — | Realized loss | ||||||||
Termo Rio | Terminated | 6,400 | — | Realized loss | ||||||||
Nelson | Terminated | — | 467,523 | Similar asset prices | ||||||||
Pike | Terminated | — | 402,355 | Similar asset prices | ||||||||
Bourbonnais | Terminated | — | 264,640 | Similar asset prices | ||||||||
Meriden | Terminated | — | 144,431 | Similar asset prices | ||||||||
Brazos Valley | Foreclosure completed in January 2003 | — | 102,900 | Projected cash flows | ||||||||
Kendall and other expansion projects | Terminated | — | 55,300 | Projected cash flows | ||||||||
Turbines & other costs | Equipment being marketed | — | 701,573 | Similar asset prices | ||||||||
Audrain | Operating at a loss | — | 66,022 | Projected cash flows | ||||||||
Somerset | Operating at a loss | — | 49,289 | Projected cash flows | ||||||||
Bayou Cove | Operating at a loss | — | 126,528 | Projected cash flows | ||||||||
Other | 2,617 | 28,851 | ||||||||||
Total impairment charges (credits) | $ | 228,896 | $ | 2,451,745 | ||||||||
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Reorganization Items |
Reorganized | Predecessor | |||||||||
NRG | Company | |||||||||
For the Period | For the Period | |||||||||
December 6 - | January 1 - | |||||||||
December 31, | December 5, | |||||||||
2003 | 2003 | |||||||||
(In thousands) | ||||||||||
Reorganization items | ||||||||||
Professional fees | $ | 2,461 | $ | 82,186 | ||||||
Deferred financing costs | — | 55,374 | ||||||||
Pre-payment settlement | — | 19,609 | ||||||||
Interest earned on accumulated cash | — | (1,059 | ) | |||||||
Contingent equity obligation | — | 41,715 | ||||||||
Total reorganization items | $ | 2,461 | $ | 197,825 | ||||||
Restructuring Charges |
Legal Settlement Charges |
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Table of Contents
Fresh Start Adjustments |
(In millions) | |||||
Discharge of corporate level debt | $ | 5,162 | |||
Discharge of other liabilities | 811 | ||||
Establishment of creditor pool | (1,040 | ) | |||
Receivable from Xcel | 640 | ||||
Revaluation of fixed assets | (1,392 | ) | |||
Revaluation of equity investments | (207 | ) | |||
Valuation of SO2emission credits | 374 | ||||
Valuation of out of market contracts, net | (400 | ) | |||
Fair market valuation of debt | 108 | ||||
Valuation of pension liabilities | (61 | ) | |||
Other valuation adjustments | (100 | ) | |||
Total Fresh Start adjustments | 3,895 | ||||
Less discontinued operations | (224 | ) | |||
Total Fresh Start adjustments — continuing operations | $ | 4,119 | |||
Other Income (Expense) |
Reorganized NRG |
Predecessor Company |
Minority Interest in Earnings of Consolidated Subsidiaries |
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Equity in Earnings of Unconsolidated Affiliates |
Reorganized NRG |
Predecessor Company |
Write-Downs and Losses on Sales of Equity Method Investments |
Other income, net |
Interest expense |
Reorganized NRG |
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Predecessor Company |
Income Tax |
Reorganized NRG |
Predecessor Company |
Discontinued Operations |
Reorganized NRG |
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Predecessor Company |
Financial Reporting by Entities in Reorganization under the Bankruptcy Code and Fresh Start |
“Predecessor Company” | The Company, pre-emergence from bankruptcy The Company’s operations prior to December 6, 2003 | |
“Reorganized NRG” | The Company, post-emergence from bankruptcy The Company’s operations from December 6, 2003- December 31, 2004 |
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Reorganized Capital Structure |
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Outstanding at | Outstanding at | Outstanding at | ||||||||||||||||||||||||||||
Date of | Original | December 31, | December 31, | March 21, | ||||||||||||||||||||||||||
Transaction | Amount | 2003 | Activity | 2004 | Activity | 2005 | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||
Xcel Promissory Note | Dec. 6, 2003 | $ | 10,000 | $ | 10,000 | $ | 10,000 | $ | 10,000 | |||||||||||||||||||||
NRG 8% Senior Secured Notes | Dec. 23, 2003 | $ | 1,250,000 | $ | 1,250,000 | $ | 1,250,000 | |||||||||||||||||||||||
Tack-on offering | Jan. 28, 2004 | $ | 475,000 | $ | 475,000 | |||||||||||||||||||||||||
$ | 1,725,000 | $ | 1,725,000 | |||||||||||||||||||||||||||
Repurchase of Notes* | Jan. 21-27, 2005 | $ | (25,000 | ) | ||||||||||||||||||||||||||
Early Redemption | Feb. 4, 2005 | $ | (375,000 | ) | (375,000 | ) | ||||||||||||||||||||||||
Repurchase of Notes* | March 28, 2005 | $ | (15,838 | ) | ||||||||||||||||||||||||||
$ | 1,350,000 | |||||||||||||||||||||||||||||
NRG Credit Facility Term loan | Dec. 23, 2003 | $ | 950,000 | $ | 950,000 | |||||||||||||||||||||||||
Letter of Credit facility | Dec. 23, 2003 | 250,000 | $ | 250,000 | ||||||||||||||||||||||||||
Corporate Revolver | Dec. 23, 2003 | 250,000 | — | |||||||||||||||||||||||||||
NRG New Credit Facility | $ | 1,450,000 | $ | 1,200,000 | ||||||||||||||||||||||||||
Refinancing of the Credit Facility | ||||||||||||||||||||||||||||||
Amended Credit Facility | ||||||||||||||||||||||||||||||
Term loan | Dec. 24, 2004 | $ | 450,000 | $ | 450,000 | $ | 450,000 | |||||||||||||||||||||||
Letter of Credit facility | Dec. 24, 2004 | 350,000 | 350,000 | 350,000 | ||||||||||||||||||||||||||
Corporate Revolver | Dec. 24, 2004 | 150,000 | — | — | ||||||||||||||||||||||||||
NRG Amended Credit Facility | $ | 950,000 | $ | 800,000 | $ | 800,000 | ||||||||||||||||||||||||
Total Corporate Level Debt | $ | 2,460,000 | $ | 2,535,000 | $ | 2,160,000 | ||||||||||||||||||||||||
* | The notes were assumed by NRG Energy and remain outstanding. |
Historical Cash Flows |
Reorganized NRG |
Predecessor Company |
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Reorganized NRG | Predecessor Company | ||||||||||||||||
For the Period | For the Period | ||||||||||||||||
Year Ended | December 6- | January 1- | Year Ended | ||||||||||||||
December 31, | December 31, | December 5, | December 31, | ||||||||||||||
2004 | 2003 | 2003 | 2002 | ||||||||||||||
(In thousands) | |||||||||||||||||
Net cash provided (used) by operating activities | $ | 643,993 | $ | (588,875 | ) | $ | 238,509 | $ | 430,042 | ||||||||
Net cash (used) provided by investing activities | 184,685 | 363,372 | (185,679 | ) | (1,681,467 | ) | |||||||||||
Net cash provided (used) by financing activities | (283,734 | ) | 393,273 | (29,944 | ) | 1,449,330 |
Net Cash Provided (Used) By Operating Activities |
Reorganized NRG |
Predecessor Company |
Net Cash Provided (Used) By Investing Activities |
Reorganized NRG |
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Predecessor Company |
Net Cash Provided (Used) By Financing Activities |
Reorganized NRG |
Predecessor Company |
Sources of Funds |
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Uses of Funds |
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Subsidiary/Description | Total | 2005 | 2006 | 2007 | 2008 | 2009 | Thereafter | |||||||||||||||||||||||
Xcel Energy Note | $ | 10,000 | $ | — | $ | 10,000 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Credit Facility Due Dec. 2011 | 800,000 | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 | 760,000 | |||||||||||||||||||||||
8% Second Priority Notes due Dec. 2013 | 1,725,000 | 400,000 | — | — | — | — | 1,325,000 | |||||||||||||||||||||||
NRG Energy Center Minneapolis, due 2013 and 2017 | 118,950 | 7,877 | 8,465 | 9,097 | 9,776 | 10,507 | 73,228 | |||||||||||||||||||||||
NRG Peaker Finance Co LLC | 300,876 | 4,312 | 6,768 | 11,164 | 12,903 | 14,758 | 250,971 | |||||||||||||||||||||||
Flinders Power Finance Pty | 202,856 | 11,564 | 13,443 | 14,633 | 15,931 | 14,083 | 133,202 | |||||||||||||||||||||||
NRG Energy Center San Francisco | 129 | 32 | 31 | 37 | 29 | — | — | |||||||||||||||||||||||
Camas Pwr BLR LP Bank facility | 6,275 | 2,442 | 2,533 | 1,300 | — | — | — | |||||||||||||||||||||||
Camas Pwr BLR LP Bonds | 4,475 | 1,385 | 1,485 | 1,605 | — | — | — | |||||||||||||||||||||||
Itiquira Energetica S.A., due January 2012 | 20,078 | 2,845 | 2,845 | 2,845 | 2,845 | 2,845 | 5,853 | |||||||||||||||||||||||
Itiquira Energetica S.A., due April 2011 | 31,002 | — | 3,875 | 3,875 | 3,875 | 3,875 | 15,502 | |||||||||||||||||||||||
Northbrook New York | 16,900 | 500 | 600 | 700 | 800 | 850 | 13,450 | |||||||||||||||||||||||
Northbrook Carolina | 2,375 | 100 | 100 | 150 | 150 | 150 | 1,725 | |||||||||||||||||||||||
Northbrook STS HydroPower | 24,329 | 477 | 523 | 572 | 627 | 807 | 21,323 | |||||||||||||||||||||||
Subtotal Debt, Bonds and Notes | 3,263,245 | 439,534 | 58,668 | 53,978 | 54,936 | 55,875 | 2,600,254 | |||||||||||||||||||||||
Saale Energie GmbH, Schkopau (capital lease) | 303,803 | 69,904 | 51,785 | 38,612 | 31,693 | 23,786 | 88,023 | |||||||||||||||||||||||
Audrain Generating (capital lease) | 239,930 | — | — | — | — | — | 239,930 | |||||||||||||||||||||||
Conemaugh Fuels LLC (capital lease) | 218 | 16 | 18 | 19 | 20 | 22 | 123 | |||||||||||||||||||||||
Subtotal Capital Leases | 543,951 | 69,920 | 51,803 | 38,631 | 31,713 | 23,808 | 328,076 | |||||||||||||||||||||||
Total Debt | $ | 3,807,196 | $ | 509,454 | $ | 110,471 | $ | 92,609 | $ | 86,649 | $ | 79,683 | $ | 2,928,330 | ||||||||||||||||
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Liquidity Estimates |
Other Liquidity Matters |
Net Operating Loss Carryforwards |
85
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Payments Due by Period as of December 31, 2004 | ||||||||||||||||||||
After | ||||||||||||||||||||
Contractual Cash Obligations | Total | Short-term | 2-3 Years | 4-5 Years | 5 Years | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Long-term debt | $ | 4,783,626 | $ | 614,573 | $ | 461,833 | $ | 460,372 | $ | 3,246,848 | ||||||||||
Capital lease obligations (including estimated interest) | 1,263,658 | 115,558 | 177,436 | 136,940 | 833,724 | |||||||||||||||
Operating leases | 140,324 | 16,176 | 32,383 | 28,822 | 62,943 | |||||||||||||||
Coal purchase and transportation obligations | 351,182 | 118,679 | 135,176 | 75,628 | 21,699 | |||||||||||||||
Total contractual cash obligations | $ | 6,538,790 | $ | 864,986 | $ | 806,828 | $ | 701,762 | $ | 4,165,214 | ||||||||||
Amount of Commitment Expiration per Period as of December 31, | ||||||||||||||||||||
2004 | ||||||||||||||||||||
Total | ||||||||||||||||||||
Amounts | After | |||||||||||||||||||
Other Commercial Commitments | Committed | Short-term | 2-3 Years | 4-5 Years | 5 Years | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Funded standby letters of credit | $ | 157,144 | $ | 157,144 | $ | — | $ | — | $ | — | ||||||||||
Unfunded standby letters of credit | 16,103 | 16,103 | — | — | — | |||||||||||||||
Surety bonds | 4,467 | 4,467 | — | — | — | |||||||||||||||
Asset sales guarantee obligations | 73,515 | 1,000 | 250 | 12,500 | 59,765 | |||||||||||||||
Commodity sales guarantee obligations | 57,600 | 24,100 | — | — | 33,500 | |||||||||||||||
Other guarantees | 94,126 | — | 778 | — | 93,348 | |||||||||||||||
Total commercial commitments | $ | 402,955 | $ | 202,814 | $ | 1,028 | $ | 12,500 | $ | 186,613 | ||||||||||
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Derivative Activity Gains/(Losses) |
Reorganized | ||||
NRG | ||||
(In thousands) | ||||
Fair value of contracts at December 31, 2003 | $ | (93,253 | ) | |
Contracts realized or otherwise settled during the period | 17,298 | |||
Changes in fair value | 32,284 | |||
Fair value of contracts at December 31, 2004 | $ | (43,671 | ) | |
Sources of Fair Value Gains/(Losses) |
Reorganized NRG | ||||||||||||||||||||
Fair Value of Contracts at Period End as of December 31, 2004 | ||||||||||||||||||||
Maturity | Maturity | |||||||||||||||||||
Less than | Maturity | Maturity | in excess | Total Fair | ||||||||||||||||
1 Year | 1-3 Years | 4-5 Years | of 5 Years | Value | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Prices actively quoted | $ | 47,131 | $ | 1,296 | $ | — | $ | — | $ | 48,427 | ||||||||||
Prices based on models and other valuation methods | 1,371 | (19,451 | ) | (16,354 | ) | (37,913 | ) | (72,347 | ) | |||||||||||
Prices provided by other external sources | 13,245 | (1,643 | ) | (6,500 | ) | (24,853 | ) | (19,751 | ) | |||||||||||
Total | $ | 61,747 | $ | (19,798 | ) | $ | (22,854 | ) | $ | (62,766 | ) | $ | (43,671 | ) | ||||||
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Accounting Policy | Judgments/Uncertainties Affecting Application | |
Fresh Start Reporting | • The determination of the enterprise value and the allocation to the underlying assets and liabilities are based on a number of estimates and assumptions, which are inherently subject to significant uncertainties and contingencies | |
• Determination at Fresh Start date | ||
• Consolidation of entities remaining in bankruptcy | ||
• Valuation of emission credit allowances and power sales contracts | ||
• Valuation of debt instruments | ||
• Valuation of equity investments | ||
Capitalization Practices | • Determination of beginning and ending of capitalization periods | |
• Allocation of purchase prices to identified assets | ||
Asset Valuation and Impairment | • Recoverability of investment through future operations | |
• Regulatory and political environments and requirements | ||
• Estimated useful lives of assets | ||
• Environmental obligations and operational limitations | ||
• Estimates of future cash flows | ||
• Estimates of fair value (fresh start) | ||
• Judgment about triggering events | ||
Revenue Recognition | • Customer/counter-party dispute resolution practices |
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Accounting Policy | Judgments/Uncertainties Affecting Application | |
• Market maturity and economic conditions | ||
• Contract interpretation | ||
Uncollectible Receivables | • Economic conditions affecting customers, counter-parties, suppliers and market prices | |
• Regulatory environment and impact on customer financial condition | ||
• Outcome of litigation and bankruptcy proceedings | ||
Derivative Financial Instruments | • Market conditions in the energy industry, especially the effects of price volatility on contractual commitments | |
• Assumptions used in valuation models | ||
• Documentation requirements | ||
• Counter-party credit risk | ||
• Market conditions in foreign countries | ||
• Regulatory and political environments and requirements | ||
Litigation Claims and Assessments | • Impacts of court decisions | |
• Estimates of ultimate liabilities arising from legal claims | ||
Income Taxes and Valuation Allowance for Deferred Tax Assets | • Ability of tax authority decisions to withstand legal challenges or appeals | |
• Anticipated future decisions of tax authorities | ||
• Application of tax statutes and regulations to transactions. | ||
• Ability to utilize tax benefits through carrybacks to prior periods and carryforwards to future periods. | ||
Discontinued Operations | • Consistent application | |
• Determination of fair value (recoverability) | ||
• Recognition of expected gain or loss prior to disposition | ||
Pension | • Accuracy of management assumptions | |
• Accuracy of actuarial consultant assumptions | ||
Stock-Based Compensation | • Accuracy of management assumptions used to determine the fair value of the stock options |
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Capitalization Practices |
Reorganized NRG |
90
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Predecessor Company |
Impairment of Long Lived Assets |
Revenue Recognition and Uncollectible Receivables |
91
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Derivative Financial Instruments |
Discontinued Operations |
Pensions |
Stock-Based Compensation |
Recent Accounting Developments |
92
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Item 7A — | Quantitative and Qualitative Disclosures About Market Risk |
93
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• | Manage and hedge our fixed-price purchase and sales commitments; | |
• | Manage and hedge our exposure to variable rate debt obligations, | |
• | Reduce our exposure to the volatility of cash market prices; and | |
• | Hedge our fuel requirements for our generating facilities. |
• | Seasonal daily and hourly changes in demand, | |
• | Extreme peak demands due to weather conditions, | |
• | Available supply resources, | |
• | Transportation availability and reliability within and between regions, | |
• | Changes in the nature and extent of federal and state regulations. |
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(In millions) | |||||
Year end December 31, 2004 | $ | 26.7 | |||
Average | 40.3 | ||||
High | 53.4 | ||||
Low | 26.7 | ||||
Year end December 31, 2003 | 37.1 | ||||
Average | 45.7 | ||||
High | 53.0 | ||||
Low | 37.1 |
Interest Rate Risk |
Currency Exchange Risk |
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Credit Risk |
Item 8 — | Financial Statements and Supplementary Data |
Item 9 — | Changes in and Disagreements with Accountants on Accounting and Financial Disclosures |
Item 9A — | Controls and Procedures |
Item 9B — | Other Information |
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Item 10 — | Directors and Executive Officers of the Registrant |
Item 11 — | Executive Compensation |
Item 12 — | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13 — | Certain Relationships and Related Transactions |
Item 14 — | Principal Accountant Fees and Services |
Item 15 — | Exhibits and Financial Statement Schedules |
Consolidated Statement of Operations — Year ended December 31, 2004 (Reorganized NRG) | |
Consolidated Balance Sheet — December 31, 2004 (Reorganized NRG) |
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Consolidated Statement of Cash Flows — Year ended December 31, 2004 (Reorganized NRG) |
Consolidated Statement of Stockholders’ Equity/ (Deficit) and Comprehensive Income/ (Loss) — Year ended December 31, 2004 (Reorganized NRG) |
Notes to Consolidated Financial Statements |
Consolidated Statements of Operations — The period December 6, 2003 to December 31, 2003 (Reorganized NRG), the period January 1, 2003 to December 5, 2003 and the Year ended December 31, 2002 (Predecessor Company) | |
Consolidated Balance Sheet — December 31, 2003 (Reorganized NRG) | |
Consolidated Statements of Cash Flows — The period December 6, 2003 to December 31, 2003 (Reorganized NRG), the period January 1, 2003 to December 5, 2003 and the Year ended December 31, 2002 (Predecessor Company) | |
Consolidated Statements of Stockholders’ Equity/ (Deficit) and Comprehensive Income/ (Loss) — The period December 6, 2003 to December 31, 2003 (Reorganized NRG), the period January 1, 2003 to December 5, 2003 and the Year ended December 31, 2002 (Predecessor Company) | |
Notes to Consolidated Financial Statements |
Report of Independent Registered Public Accounting Firm on Financial Statement Schedule. | |
Schedule II — Valuation and Qualifying Accounts |
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/s/KPMG LLP | |
KPMG LLP |
99
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/s/KPMG LLP | |
KPMG LLP |
100
Table of Contents
/s/PricewaterhouseCoopers LLP | |
PricewaterhouseCoopers LLP |
101
Table of Contents
/s/PricewaterhouseCoopers LLP | |
PricewaterhouseCoopers LLP |
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Reorganized NRG | Predecessor Company | |||||||||||||||||||
December 6, | January 1, | |||||||||||||||||||
2003 | 2003 | |||||||||||||||||||
Year Ended | Through | Through | Year Ended | |||||||||||||||||
December 31, | December 31, | December 5, | December 31, | |||||||||||||||||
2004 | 2003 | 2003 | 2002 | |||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||
Revenues from majority-owned operations | $ | 2,361,424 | $ | 138,490 | $ | 1,798,387 | $ | 1,938,293 | ||||||||||||
Operating Costs and Expenses | ||||||||||||||||||||
Cost of majority-owned operations | 1,494,336 | 95,541 | 1,355,909 | 1,332,446 | ||||||||||||||||
Depreciation and amortization | 209,295 | 11,808 | 218,843 | 207,027 | ||||||||||||||||
General, administrative and development | 211,240 | 12,518 | 170,330 | 218,852 | ||||||||||||||||
Other charges (credits) | ||||||||||||||||||||
Corporate relocation charges | 16,167 | — | — | — | ||||||||||||||||
Reorganization items | (13,390 | ) | 2,461 | 197,825 | — | |||||||||||||||
Restructuring and impairment charges | 44,661 | — | 237,575 | 2,563,060 | ||||||||||||||||
Fresh start reporting adjustments | — | — | (4,118,636 | ) | — | |||||||||||||||
Legal settlement | — | — | 462,631 | — | ||||||||||||||||
Total operating costs and expenses | 1,962,309 | 122,328 | (1,475,523 | ) | 4,321,385 | |||||||||||||||
Operating Income/(Loss) | 399,115 | 16,162 | 3,273,910 | (2,383,092 | ) | |||||||||||||||
Other Income/(Expense) | ||||||||||||||||||||
Minority interest in earnings of consolidated subsidiaries | (1,045 | ) | (134 | ) | — | — | ||||||||||||||
Equity in earnings of unconsolidated affiliates | 159,825 | 13,521 | 170,901 | 68,996 | ||||||||||||||||
Write downs and losses on sales of equity method investments | (16,270 | ) | — | (147,124 | ) | (200,472 | ) | |||||||||||||
Other income, net | 26,565 | 97 | 19,209 | 11,431 | ||||||||||||||||
Refinancing expenses | (71,569 | ) | — | — | — | |||||||||||||||
Interest expense | (269,364 | ) | (18,902 | ) | (329,889 | ) | (452,182 | ) | ||||||||||||
Total other expense | (171,858 | ) | (5,418 | ) | (286,903 | ) | (572,227 | ) | ||||||||||||
Income/(Loss) From Continuing Operations Before Income Taxes | 227,257 | 10,744 | 2,987,007 | (2,955,319 | ) | |||||||||||||||
Income Tax Expense/(Benefit) | 65,112 | (661 | ) | 37,929 | (166,867 | ) | ||||||||||||||
Income/(Loss) From Continuing Operations | 162,145 | 11,405 | 2,949,078 | (2,788,452 | ) | |||||||||||||||
Income/(Loss) on Discontinued Operations, net of Income Taxes | 23,472 | (380 | ) | (182,633 | ) | (675,830 | ) | |||||||||||||
Net Income/(Loss) | $ | 185,617 | $ | 11,025 | $ | 2,766,445 | $ | (3,464,282 | ) | |||||||||||
Weighted Average Number of Common Shares Outstanding — Basic | 99,616 | 100,000 | ||||||||||||||||||
Income From Continuing Operations per Weighted Average Common Share — Basic | $ | 1.62 | $ | 0.11 | ||||||||||||||||
Income From Discontinued Operations per Weighted Average Common Share — Basic | 0.24 | — | ||||||||||||||||||
Net Income per Weighted Average Common Share — Basic | $ | 1.86 | $ | 0.11 | ||||||||||||||||
Weighted Average Number of Common Shares Outstanding — Diluted | 100,371 | 100,060 | ||||||||||||||||||
Income From Continuing Operations per Weighted Average Common Share — Diluted | $ | 1.62 | $ | 0.11 | ||||||||||||||||
Income From Discontinued Operations per Weighted Average Common Share — Diluted | 0.23 | — | ||||||||||||||||||
Net Income per Weighted Average Common Shares — Diluted | $ | 1.85 | $ | 0.11 |
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Reorganized NRG | |||||||||||
December 31, | December 31, | ||||||||||
2004 | 2003 | ||||||||||
(In thousands) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 1,110,045 | $ | 551,223 | |||||||
Restricted cash | 112,824 | 116,067 | |||||||||
Accounts receivable-trade, less allowance for doubtful accounts of $1,011 and $0 | 272,101 | 201,921 | |||||||||
Xcel Energy settlement receivable | — | 640,000 | |||||||||
Current portion of notes receivable and other investments — affiliates | — | 200 | |||||||||
Current portion of notes receivable and other investments | 85,447 | 65,141 | |||||||||
Income taxes receivable | 37,484 | — | |||||||||
Inventory | 248,010 | 194,926 | |||||||||
Derivative instruments valuation | 79,759 | 772 | |||||||||
Prepayments and other current assets | 169,608 | 222,138 | |||||||||
Deferred income taxes | — | 1,850 | |||||||||
Current assets — discontinued operations | 3,010 | 119,601 | |||||||||
Total current assets | 2,118,288 | 2,113,839 | |||||||||
Property, Plant and Equipment | |||||||||||
In service | 3,564,658 | 3,885,465 | |||||||||
Under construction | 17,429 | 139,171 | |||||||||
Total property, plant and equipment | 3,582,087 | 4,024,636 | |||||||||
Less accumulated depreciation | (207,536 | ) | (11,800 | ) | |||||||
Net property, plant and equipment | 3,374,551 | 4,012,836 | |||||||||
Other Assets | |||||||||||
Equity investments in affiliates | 734,950 | 737,998 | |||||||||
Notes receivable and other investments, less current portion — affiliates, less reserve for uncollectible notes receivable of $4,402 and $0 | 128,046 | 130,152 | |||||||||
Notes receivable and other investments, less current portion, less reserve for uncollectible notes receivable of $3,794 and $0 | 676,476 | 691,444 | |||||||||
Decommissioning fund investments | 4,954 | 4,809 | |||||||||
Intangible assets, net of accumulated amortization of $55,010 and $5,212 | 294,350 | 432,361 | |||||||||
Debt issuance costs, net of accumulated amortization of $3,635 and $454 | 48,485 | 74,337 | |||||||||
Derivative instruments valuation | 41,787 | 59,907 | |||||||||
Funded letter of credit | 350,000 | 250,000 | |||||||||
Other assets | 58,141 | 114,131 | |||||||||
Non-current assets — discontinued operations | — | 623,173 | |||||||||
Total other assets | 2,337,189 | 3,118,312 | |||||||||
Total Assets | $ | 7,830,028 | $ | 9,244,987 | |||||||
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Reorganized NRG | |||||||||||
December 31, | December 31, | ||||||||||
2004 | 2003 | ||||||||||
(In thousands) | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current Liabilities | |||||||||||
Current portion of long-term debt and capital leases | $ | 512,252 | $ | 801,229 | |||||||
Short-term debt | — | 19,019 | |||||||||
Accounts payable — trade | 166,131 | 158,646 | |||||||||
Accounts payable — affiliates | 5,591 | 3,092 | |||||||||
Accrued income taxes | — | 16,095 | |||||||||
Accrued property, sales and other taxes | 11,134 | 22,301 | |||||||||
Accrued salaries, benefits and related costs | 35,206 | 19,330 | |||||||||
Accrued interest | 11,057 | 8,982 | |||||||||
Derivative instruments valuation | 16,772 | 429 | |||||||||
Deferred income taxes | 334 | — | |||||||||
Creditor pool obligation | — | 540,000 | |||||||||
Other bankruptcy settlement | 175,576 | 220,000 | |||||||||
Other current liabilities | 152,526 | 102,861 | |||||||||
Current liabilities — discontinued operations | 1,362 | 114,197 | |||||||||
Total current liabilities | 1,087,941 | 2,026,181 | |||||||||
Other Liabilities | |||||||||||
Long-term debt and capital leases | 3,253,866 | 3,327,782 | |||||||||
Deferred income taxes | 134,325 | 149,493 | |||||||||
Postretirement and other benefit obligations | 116,383 | 105,946 | |||||||||
Derivative instruments valuation | 148,445 | 153,503 | |||||||||
Other long-term obligations | 389,719 | 480,938 | |||||||||
Non-current liabilities — discontinued operations | 1,081 | 558,884 | |||||||||
Total non-current liabilities | 4,043,819 | 4,776,546 | |||||||||
Total liabilities | 5,131,760 | 6,802,727 | |||||||||
Minority interest | 6,104 | 5,004 | |||||||||
Commitments and Contingencies | |||||||||||
Stockholders’ Equity | |||||||||||
4% Convertible perpetual preferred stock; $.01 par value; 10,000,000 shares authorized, 420,000 issued and outstanding at December 31, 2004 (shown at liquidation value net of issuance costs) | 406,359 | ||||||||||
Common stock; $.01 par value; 500,000,000 shares authorized; 100,041,935 and 100,000,000 shares issued at December 31, 2004 and 2003; 87,041,935 and 100,000,000 outstanding at December 31, 2004 and 2003 | 1,000 | 1,000 | |||||||||
Additional paid-in capital | 2,417,021 | 2,403,429 | |||||||||
Retained earnings | 196,642 | 11,025 | |||||||||
Less treasury stock, at cost — 13,000,000 shares | (405,312 | ) | — | ||||||||
Accumulated other comprehensive income | 76,454 | 21,802 | |||||||||
Total stockholders’ equity | 2,692,164 | 2,437,256 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 7,830,028 | $ | 9,244,987 | |||||||
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Reorganized NRG | Predecessor Company | ||||||||||||||||||
Year Ended | December 6, 2003 | January 1, 2003 | Year Ended | ||||||||||||||||
December 31, | Through | Through | December 31, | ||||||||||||||||
2004 | December 31, 2003 | December 5, 2003 | 2002 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||
Net income/(loss) | $ | 185,617 | $ | 11,025 | $ | 2,766,445 | $ | (3,464,282 | ) | ||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities Distributions in excess of (less than) equity earnings of unconsolidated affiliates | (1,062 | ) | 2,229 | (41,472 | ) | (22,252 | ) | ||||||||||||
Depreciation and amortization | 214,620 | 13,041 | 256,700 | 286,623 | |||||||||||||||
Reserve for note and interest receivable | 11,737 | — | — | — | |||||||||||||||
Amortization of financing costs and debt discount/(premium) | 27,659 | 2,242 | 17,640 | 28,367 | |||||||||||||||
Write-off of deferred financing costs due to refinancings | 42,137 | — | — | — | |||||||||||||||
Write downs and losses on sales of equity method investments | 16,270 | — | 146,938 | 196,192 | |||||||||||||||
Deferred income taxes and investment tax credits | 57,238 | (3,262 | ) | (1,893 | ) | (230,134 | ) | ||||||||||||
Unrealized (gains)/losses on derivatives | (73,792 | ) | 3,774 | (34,616 | ) | (2,743 | ) | ||||||||||||
Minority interest | 1,046 | 204 | 2,177 | (19,325 | ) | ||||||||||||||
Amortization of power contracts and emission credits | 51,652 | (13,431 | ) | — | (89,415 | ) | |||||||||||||
Amortization of unearned equity compensations | 13,592 | — | — | — | |||||||||||||||
Restructuring and impairment charges | 44,661 | — | 408,377 | 3,144,509 | |||||||||||||||
Fresh start reporting adjustments | — | — | (3,895,541 | ) | — | ||||||||||||||
Gain on sale of discontinued operations | (22,419 | ) | — | (186,331 | ) | (2,814 | ) | ||||||||||||
Cash provided by (used in) changes in certain working capital items, net of effects from acquisitions and dispositions | |||||||||||||||||||
Accounts receivable, net | (51,471 | ) | 18,030 | 28,261 | (13,216 | ) | |||||||||||||
Xcel Energy settlement receivable | 640,000 | — | — | — | |||||||||||||||
Inventory | (55,613 | ) | 11,054 | 14,128 | 42,596 | ||||||||||||||
Prepayments and other current assets | 48,772 | (9,504 | ) | (36,812 | ) | (58,368 | ) | ||||||||||||
Accounts payable | 6,905 | (40,095 | ) | 648,646 | 325,949 | ||||||||||||||
Accrued expenses | (21,163 | ) | (66,673 | ) | 217,356 | 249,940 | |||||||||||||
Creditor pool obligation payments | (540,000 | ) | — | — | — | ||||||||||||||
Other current liabilities | 7,242 | (510,867 | ) | (22,797 | ) | 47,692 | |||||||||||||
Other assets and liabilities | 40,365 | (6,642 | ) | (48,697 | ) | 10,723 | |||||||||||||
Net Cash Provided (Used) by Operating Activities | 643,993 | (588,875 | ) | 238,509 | 430,042 | ||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||
Proceeds from sale of discontinued operations | 252,676 | — | 18,612 | 160,791 | |||||||||||||||
Proceeds from sale of investments | 50,693 | — | 107,174 | 68,517 | |||||||||||||||
Proceeds from sale of turbines | — | — | 70,717 | — | |||||||||||||||
Decrease/(increase) in restricted cash and trust funds | (26,443 | ) | 375,272 | (266,466 | ) | (197,802 | ) | ||||||||||||
Decrease/(increase) in notes receivable | 25,109 | 1,182 | (1,653 | ) | (209,244 | ) | |||||||||||||
Capital expenditures | (114,360 | ) | (10,560 | ) | (113,502 | ) | (1,439,733 | ) | |||||||||||
Investments in projects | (2,990 | ) | (2,522 | ) | (561 | ) | (63,996 | ) | |||||||||||
Net Cash Provided (Used) by Investing Activities | 184,685 | 363,372 | (185,679 | ) | (1,681,467 | ) | |||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||
Proceeds from issuance of preferred stock | 406,359 | — | — | — | |||||||||||||||
Proceeds from issuance of stock | — | — | — | 4,065 | |||||||||||||||
Purchase of treasury stock | (405,312 | ) | — | — | — | ||||||||||||||
Capital contributions from parent | — | — | — | 500,000 | |||||||||||||||
Net borrowings under line of credit agreement | — | — | — | 790,000 | |||||||||||||||
Proceeds from issuance of long-term debt | 1,332,671 | 2,450,000 | 39,988 | 1,086,770 | |||||||||||||||
Deferred debt issuance costs | (25,506 | ) | (74,795 | ) | (18,540 | ) | — | ||||||||||||
Funded letter of credit | (100,000 | ) | (250,000 | ) | — | — | |||||||||||||
Principal payments on short and long-term debt | (1,491,946 | ) | (1,731,932 | ) | (51,392 | ) | (931,505 | ) | |||||||||||
Net Cash Provided (Used) by Financing Activities | (283,734 | ) | 393,273 | (29,944 | ) | 1,449,330 | |||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 3,007 | (13,562 | ) | (22,276 | ) | 24,950 | |||||||||||||
Change in Cash from Discontinued Operations | 10,871 | 1,033 | 34,512 | 51,267 | |||||||||||||||
Net Increase in Cash and Cash Equivalents | 558,822 | 155,241 | 35,122 | 274,122 | |||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 551,223 | 395,982 | 360,860 | 86,738 | |||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 1,110,045 | $ | 551,223 | $ | 395,982 | $ | 360,860 | |||||||||||
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Accumulated | Total | ||||||||||||||||||||||||||||||||||||
Class A Common | Common | Additional | Retained | Other | Stockholders’ | ||||||||||||||||||||||||||||||||
Paid-In | Earnings/ | Treasury | Comprehensive | Equity/ | |||||||||||||||||||||||||||||||||
Stock | Shares | Stock | Shares | Capital | (Deficit) | Stock | Income/(Loss) | (Deficit) | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||
Balances at December 31, 2001 (Predecessor Company) | $ | 1,476 | 147,605 | $ | 509 | 50,939 | $ | 1,713,984 | $ | 635,349 | $ | — | $ | (114,189 | ) | $ | 2,237,129 | ||||||||||||||||||||
Net loss | (3,464,282 | ) | (3,464,282 | ) | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustments and other | 64,054 | 64,054 | |||||||||||||||||||||||||||||||||||
Deferred unrealized loss on derivatives, net | (44,823 | ) | (44,823 | ) | |||||||||||||||||||||||||||||||||
Comprehensive loss for 2002 | (3,445,051 | ) | |||||||||||||||||||||||||||||||||||
Contribution from parent | 502,874 | 502,874 | |||||||||||||||||||||||||||||||||||
Issuance of common stock | 6 | 591 | 8,843 | 8,849 | |||||||||||||||||||||||||||||||||
Impact of exchange offer | (1,476 | ) | (147,605 | ) | (515 | ) | (51,530 | ) | 1,991 | — | |||||||||||||||||||||||||||
Balances at December 31, 2002 (Predecessor Company) | $ | — | — | $ | — | — | $ | 2,227,692 | $ | (2,828,933 | ) | $ | — | $ | (94,958 | ) | $ | (696,199 | ) | ||||||||||||||||||
Accumulated | Total | |||||||||||||||||||||||||||||||||||||
Serial Preferred | Common | Additional | Retained | Other | Stockholders’ | |||||||||||||||||||||||||||||||||
Paid-In | Earnings/ | Treasury | Comprehensive | Equity/ | ||||||||||||||||||||||||||||||||||
Stock | Shares | Stock | Shares | Capital | (Deficit) | Stock | Income/(Loss) | (Deficit) | ||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2002 (Predecessor Company) | $ | — | — | $ | — | — | $ | 2,227,692 | $ | (2,828,933 | ) | $ | — | $ | (94,958 | ) | $ | (696,199 | ) | |||||||||||||||||||
Net income | 2,766,445 | 2,766,445 | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments and other | 127,754 | 127,754 | ||||||||||||||||||||||||||||||||||||
Deferred unrealized loss on derivatives, net | (31,363 | ) | (31,363 | ) | ||||||||||||||||||||||||||||||||||
Comprehensive income for the period from January 1, 2003 through December 5, 2003 | 2,862,836 | |||||||||||||||||||||||||||||||||||||
Effects of reorganization | (2,227,692 | ) | 62,488 | (1,433 | ) | (2,166,637 | ) | |||||||||||||||||||||||||||||||
Issuance of common stock | 1,000 | 100,000 | 2,403,000 | 2,404,000 | ||||||||||||||||||||||||||||||||||
Balances at December 5, 2003 (Predecessor Company) | $ | — | — | $ | 1,000 | 100,000 | $ | 2,403,000 | $ | — | $ | — | $ | — | $ | 2,404,000 | ||||||||||||||||||||||
Net income | 11,025 | 11,025 | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments and other | 22,325 | 22,325 | ||||||||||||||||||||||||||||||||||||
Deferred unrealized loss on derivatives, net | (523 | ) | (523 | ) | ||||||||||||||||||||||||||||||||||
Comprehensive income for the period from December 6, 2003 through December 31, 2003 | 32,827 | |||||||||||||||||||||||||||||||||||||
Equity based compensation | 429 | 429 | ||||||||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2003 (Reorganized NRG) | $ | — | — | $ | 1,000 | 100,000 | $ | 2,403,429 | $ | 11,025 | $ | — | $ | 21,802 | $ | 2,437,256 | ||||||||||||||||||||||
Net income | 185,617 | 185,617 | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments and other | 46,660 | 46,660 | ||||||||||||||||||||||||||||||||||||
Deferred unrealized loss on derivatives, net | 7,992 | 7,992 | ||||||||||||||||||||||||||||||||||||
Comprehensive income for 2004 | 240,269 | |||||||||||||||||||||||||||||||||||||
Equity based compensation | 42 | 13,592 | 13,592 | |||||||||||||||||||||||||||||||||||
Issuance of preferred stock | 406,359 | 420,000 | 406,359 | |||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (13,000 | ) | (405,312 | ) | (405,312 | ) | ||||||||||||||||||||||||||||||||
Balances at December 31, 2004 (Reorganized NRG) | $ | 406,359 | 420,000 | $ | 1,000 | 87,042 | $ | 2,417,021 | $ | 196,642 | $ | (405,312 | ) | $ | 76,454 | $ | 2,692,164 | |||||||||||||||||||||
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108
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109
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Note 2 — | Summary of Significant Accounting Policies |
Principles of Consolidation and Basis of Presentation |
“Predecessor Company” | The Company, pre-emergence from bankruptcy The Company’s operations prior to December 6, 2003 | |
“Reorganized NRG” | The Company, post-emergence from bankruptcy The Company’s operations, December 6, 2003-December 31, 2004 |
Fresh Start Reporting |
110
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Nature of Operations |
111
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Cash and Cash Equivalents |
Restricted Cash |
Inventory |
Property, Plant and Equipment |
Facilities and equipment | 6-40 years | |||
Office furnishings and equipment | 3-10 years |
Asset Impairments |
Discontinued Operations |
112
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Capitalized Interest |
Capitalized Project Costs |
Debt Issuance Costs |
Intangible Assets |
Income Taxes |
113
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Revenue Recognition |
Derivative Financial Instruments |
114
Table of Contents
Foreign Currency Translation and Transaction Gains and Losses |
Concentrations of Credit Risk |
Fair Value of Financial Instruments |
Pensions |
Stock Based Compensation |
115
Table of Contents
Net Income Per Share |
Use of Estimates |
Reclassifications |
Recent Accounting Developments |
116
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Note 3 — | Emergence from Bankruptcy and Fresh Start Reporting |
117
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Note 4 — | Debtors’ Statements |
118
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For the Period | |||||
May 15, 2003 - | |||||
December 5, | |||||
2003 | |||||
(In thousands) | |||||
Operating revenue | $ | 731,413 | |||
Operating costs and expenses | (620,199 | ) | |||
Fresh start reporting adjustments — asset write-downs, net | (1,244,016 | ) | |||
Reorganization items | (27,158 | ) | |||
Restructuring and impairment charges | (23,359 | ) | |||
Operating loss | (1,183,319 | ) | |||
Other expense | (160,246 | ) | |||
Net loss | $ | (1,343,565 | ) | ||
For the Period | ||||
May 15, 2003 - | ||||
December 5, | ||||
2003 | ||||
(In thousands) | ||||
Net cash provided by operating activities | $ | 65,951 | ||
Net cash used by investing activities | (72,667 | ) | ||
Net cash used by financing activities | — | |||
Net increase in cash and cash equivalents | (6,716 | ) | ||
Cash and cash equivalents at beginning of period | 23,137 | |||
Cash and cash equivalents at end of period | $ | 16,421 | ||
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Note 5 — | Financial Instruments |
Reorganized NRG | ||||||||||||||||
December 31, 2004 | December 31, 2003 | |||||||||||||||
Carrying | Carrying | |||||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 1,110,045 | $ | 1,110,045 | $ | 551,223 | $ | 551,223 | ||||||||
Restricted cash | 112,824 | 112,824 | 116,067 | 116,067 | ||||||||||||
Accounts receivable — trade | 272,101 | 272,101 | 201,921 | 201,921 | ||||||||||||
Notes receivable, including current portion | 889,969 | 889,969 | 886,937 | 886,937 | ||||||||||||
Decommissioning fund investments | 4,954 | 4,954 | 4,809 | 4,809 | ||||||||||||
Accounts payable — trade | 166,131 | 166,131 | 158,646 | 158,646 | ||||||||||||
Accounts payable — affiliates | 5,591 | 5,591 | 3,092 | 3,092 | ||||||||||||
Long-term debt, including current portion | 3,766,118 | 3,906,623 | 4,129,011 | 4,186,136 |
Note 6 — | Discontinued Operations |
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Reorganized NRG | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2004 | December 31, 2003 | |||||||||||||||||||
Wholesale | Wholesale | |||||||||||||||||||
Power | Power | |||||||||||||||||||
Generation | Generation | All Other | ||||||||||||||||||
Wholesale | ||||||||||||||||||||
Power | ||||||||||||||||||||
Generation | ||||||||||||||||||||
Other | Other | |||||||||||||||||||
North | North | Other | Alternative | |||||||||||||||||
America | America | International | Energy | Total | ||||||||||||||||
Consists of | Consists of | Consists of Cobee | Consists of four | |||||||||||||||||
McClain | PERC, | and Hsin Yu | NEO projects | |||||||||||||||||
McClain and | ||||||||||||||||||||
LSP Energy | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,684 | $ | 4,292 | $ | 8,264 | $ | — | $ | 12,556 | ||||||||||
Restricted cash | 1,326 | 60,292 | — | — | 60,292 | |||||||||||||||
Receivables, net | — | 12,676 | 11,259 | — | 23,935 | |||||||||||||||
Inventory | — | 8,722 | 3,538 | — | 12,260 | |||||||||||||||
Other current assets | — | 3,731 | 6,787 | 40 | 10,558 | |||||||||||||||
Current assets — discontinued operations | $ | 3,010 | $ | 89,713 | $ | 29,848 | $ | 40 | $ | 119,601 | ||||||||||
Property, plant and equipment, net | $ | — | $ | 487,753 | $ | 75,250 | $ | — | $ | 563,003 | ||||||||||
Deferred income taxes | — | — | 31,469 | — | 31,469 | |||||||||||||||
Other non-current assets | — | 14,765 | 9,731 | 4,205 | 28,701 | |||||||||||||||
Non-current assets — discontinued operations | $ | — | $ | 502,518 | $ | 116,450 | $ | 4,205 | $ | 623,173 | ||||||||||
Current portion of long-term debt | $ | — | $ | 6,206 | $ | 49,744 | $ | — | $ | 55,950 | ||||||||||
Accounts payable — trade | 732 | 3,057 | 23,037 | 3,998 | 30,092 | |||||||||||||||
Accrued interest | 630 | 13,182 | 757 | — | 13,939 | |||||||||||||||
Other current liabilities | — | 8,248 | 5,946 | 22 | 14,216 | |||||||||||||||
Current liabilities — discontinued operations | $ | 1,362 | $ | 30,693 | $ | 79,484 | $ | 4,020 | $ | 114,197 | ||||||||||
Long-term debt | $ | — | $ | 313,738 | $ | 19,779 | $ | — | $ | 333,517 | ||||||||||
Minority interest | — | 31,879 | 406 | — | 32,285 | |||||||||||||||
Other non-current liabilities | 1,081 | 184,972 | 8,110 | — | 193,082 | |||||||||||||||
Non-current liabilities — discontinued operations | $ | 1,081 | $ | 530,589 | $ | 28,295 | $ | — | $ | 558,884 | ||||||||||
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Initial Discontinued | ||||||
Operations | ||||||
Project | Segment | Treatment Date | Disposal Date | |||
Bulo Bulo | Other International | Second Quarter 2002 | Fourth Quarter 2002 | |||
Crockett Cogeneration | Other North America | Third Quarter 2002 | Fourth Quarter 2002 | |||
Csepel and Entrade | Other International | Third Quarter 2002 | Fourth Quarter 2002 | |||
Killingholme | Other International | Fourth Quarter 2002 | First Quarter 2003 | |||
NLGI | Alternative Energy | Second Quarter 2003 | Second Quarter 2003 | |||
TERI | Non-Generation | Third Quarter 2003 | Third Quarter 2003 | |||
McClain | Other North America | Third Quarter 2003 | Third Quarter 2004 | |||
NEO Corporation (NEO Fort Smith LLC, NEO Woodville LLC, NEO Phoenix LLC) | Alternative Energy | Fourth Quarter 2003 | Fourth Quarter 2003 | |||
Cahua and Energia Pacasmayo | Other International | Fourth Quarter 2003 | Fourth Quarter 2003 | |||
PERC | Other North America | First Quarter 2004 | Second Quarter 2004 | |||
Cobee | Other International | First Quarter 2004 | Second Quarter 2004 | |||
Hsin Yu | Other International | Second Quarter 2004 | Second Quarter 2004 | |||
LSP Energy (Batesville) | Other North America | Second Quarter 2004 | Third Quarter 2004 | |||
NEO Corporation (NEO Nashville LLC, NEO Hackensack LLC, NEO Prima Deshecha LLC and NEO Tajiguas LLC) | Alternative Energy | Third Quarter 2004 | Third Quarter 2004 |
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Reorganized NRG | Predecessor Company | ||||||||||||||||
For the Period | For the Period | ||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended | ||||||||||||||
December 31, | December 31, | December 5, | December 31, | ||||||||||||||
Description | 2004 | 2003 | 2003 | 2002 | |||||||||||||
(In thousands) | |||||||||||||||||
Operating revenues | $ | 108,428 | $ | 19,195 | $ | 263,404 | $ | 982,263 | |||||||||
Operating costs and other expenses | 106,389 | 19,565 | 619,714 | 1,670,709 | |||||||||||||
Pre-tax income/(loss) from operations of discontinued components | 2,039 | (370 | ) | (356,310 | ) | (688,446 | ) | ||||||||||
Income tax expense/(benefit) | 986 | 10 | (21,868 | ) | (6,810 | ) | |||||||||||
Income/(loss) from operations of discontinued components | 1,053 | (380 | ) | (334,442 | ) | (681,636 | ) | ||||||||||
Disposal of discontinued components — pre-tax gain (net) | 30,273 | — | 151,809 | 2,814 | |||||||||||||
Income tax expense/(benefit) | 7,854 | — | — | (2,992 | ) | ||||||||||||
Disposal of discontinued components — gain (net) | 22,419 | — | 151,809 | 5,806 | |||||||||||||
Income/(loss) on discontinued operations, net of income taxes | $ | 23,472 | $ | (380 | ) | $ | (182,633 | ) | $ | (675,830 | ) | ||||||
Reorganized NRG | Predecessor Company | ||||||||||||||||||
For the Period | For the Period | ||||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended | ||||||||||||||||
December 31, | December 31, | December 5, | December 31, | ||||||||||||||||
Discontinued Operations: | 2004 | 2003 | 2003 | 2002 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Current | |||||||||||||||||||
U.S. | $ | — | $ | — | $ | (6 | ) | $ | 935 | ||||||||||
Foreign | 918 | 10 | (831 | ) | (5,126 | ) | |||||||||||||
918 | 10 | (837 | ) | (4,191 | ) | ||||||||||||||
Deferred | |||||||||||||||||||
U.S. | 20 | — | — | (1,947 | ) | ||||||||||||||
Foreign | 48 | — | (21,031 | ) | (672 | ) | |||||||||||||
68 | — | (21,031 | ) | (2,619 | ) | ||||||||||||||
Income tax expense/(benefit) on discontinued operations | 986 | 10 | (21,868 | ) | (6,810 | ) | |||||||||||||
U.S. tax expense/(benefit) on disposal of discontinued components — gain (net) | 7,854 | — | — | (2,992 | ) | ||||||||||||||
Total income tax expense/(benefit) | $ | 8,840 | $ | 10 | $ | (21,868 | ) | $ | (9,802 | ) | |||||||||
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Reorganized NRG | Predecessor Company | |||||||||||||||||||
For the Period | For the Period | |||||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended | |||||||||||||||||
December 31, | December 31, | December 5, | December 31, | |||||||||||||||||
Project | Segment | 2004 | 2003 | 2003 | 2002 | |||||||||||||||
(In millions) | ||||||||||||||||||||
McClain | Other North America | $ | (3.0 | ) | $ | — | $ | — | $ | — | ||||||||||
PERC | Other North America | 3.2 | — | — | — | |||||||||||||||
Cobee | Other International | 2.8 | — | — | — | |||||||||||||||
LSP Energy — Batesville | Other North America | 11.0 | — | — | — | |||||||||||||||
Hsin Yu | Other International | 10.3 | — | — | — | |||||||||||||||
NEO Nashville, Hackensack, Prima Deshecha, Tajiguas | Alternative Energy | 6.0 | — | — | — | |||||||||||||||
NEO Fort Smith, Woodville, Phoenix | Alternative Energy | — | — | — | — | |||||||||||||||
Killingholme | Other International | — | — | 191.2 | — | |||||||||||||||
TERI | Non-Generation | — | — | 1.0 | — | |||||||||||||||
Cahua and Energia Pacasmayo | Other International | — | — | (36.9 | ) | — | ||||||||||||||
Crockett Cogeneration | Other North America | — | — | — | (11.5 | ) | ||||||||||||||
Bulo Bulo | Other International | — | — | — | (10.6 | ) | ||||||||||||||
Csepel and Entrade | Other International | — | — | — | 24.0 | |||||||||||||||
Others | — | — | (3.5 | ) | 0.9 | |||||||||||||||
Total gain on disposal of discontinued components — pre-tax | $ | 30.3 | $ | — | $ | 151.8 | $ | 2.8 | ||||||||||||
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Note 7 — | Write Downs and Losses on Sales of Equity Method Investments |
Reorganized NRG | Predecessor Company | ||||||||||||||||||
For the Period | For the Period | ||||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended | ||||||||||||||||
December 31, | December 31, | December 5, | December 31, | ||||||||||||||||
Segment | 2004 | 2003 | 2003 | 2002 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Commonwealth Atlantic Limited Partnership | Other North America | $ | 4,614 | $ | — | $ | — | $ | — | ||||||||||
James River Power LLC | Other North America | 7,293 | — | — | — | ||||||||||||||
NEO Corporation | Alternative Energy | 3,830 | — | — | — | ||||||||||||||
Calpine Cogeneration | Other North America | (735 | ) | — | — | — | |||||||||||||
NLGI — Minnesota Methane | Alternative Energy | — | — | 12,257 | 12,292 | ||||||||||||||
NLGI — MM Biogas | Alternative Energy | — | — | 2,613 | 3,251 | ||||||||||||||
Kondapalli | Other International | — | — | (519 | ) | 12,751 | |||||||||||||
ECKG | Other International | — | — | (2,871 | ) | — | |||||||||||||
Loy Yang | Australia | 1,268 | — | 146,354 | 111,383 | ||||||||||||||
Mustang | Other North America | — | — | (12,124 | ) | — | |||||||||||||
Energy Development Limited (EDL) | Australia | — | — | — | 14,220 | ||||||||||||||
Sabine River Works | Other North America | — | — | — | 48,375 | ||||||||||||||
Kingston | Other International | — | — | — | (9,876 | ) | |||||||||||||
Mt. Poso | West Coast | — | — | — | 1,049 | ||||||||||||||
Powersmith | Other North America | — | — | — | 3,441 | ||||||||||||||
Collinsville Power Station | Australia | — | — | — | 3,586 | �� | |||||||||||||
Other | — | — | 1,414 | — | |||||||||||||||
Total write downs and losses on sales of equity method investments | $ | 16,270 | $ | — | $ | 147,124 | $ | 200,472 | |||||||||||
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Note 8 — | Other Charges (Credits) |
Reorganized NRG | Predecessor Company | |||||||||||||||||
For the Period | For the Period | |||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended | |||||||||||||||
December 31, | December 31, | December 5, | December 31, | |||||||||||||||
2004 | 2003 | 2003 | 2002 | |||||||||||||||
(In thousands) | ||||||||||||||||||
Corporate relocation charges | $ | 16,167 | $ | — | $ | — | $ | — | ||||||||||
Reorganization items | (13,390 | ) | 2,461 | 197,825 | — | |||||||||||||
Impairment charges | 44,661 | — | 228,896 | 2,451,745 | ||||||||||||||
Restructuring charges | — | — | 8,679 | 111,315 | ||||||||||||||
Fresh Start adjustments | — | — | (4,118,636 | ) | — | |||||||||||||
Legal settlement | — | — | 462,631 | — | ||||||||||||||
Total | $ | 47,438 | $ | 2,461 | $ | (3,220,605 | ) | $ | 2,563,060 | |||||||||
Corporate Relocation Charges |
Balance at | Relocation | Balance at | |||||||||||||||
December 31, | Related | Cash | December 31, | ||||||||||||||
2003 | Charges | Payments | 2004 | ||||||||||||||
(In thousands) | |||||||||||||||||
Employee related transition costs | $ | — | $ | 8,595 | $ | (10,020 | ) | $ | (1,425 | ) | |||||||
Severance and termination benefits | — | 6,505 | (2,316 | ) | 4,189 | ||||||||||||
Lease termination costs | — | 1,067 | (271 | ) | 796 | ||||||||||||
Total | $ | — | $ | 16,167 | $ | (12,607 | ) | $ | 3,560 | ||||||||
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Reorganization Items |
Predecessor | ||||||||||||||
Reorganized NRG | Company | |||||||||||||
For the period | For the period | |||||||||||||
Year Ended | December 6 - | January 1 - | ||||||||||||
December 31, | December 31, | December 5, | ||||||||||||
2004 | 2003 | 2003 | ||||||||||||
(In thousands) | ||||||||||||||
Reorganization items | ||||||||||||||
Professional fees | $ | 7,383 | $ | 2,461 | $ | 82,186 | ||||||||
Deferred financing costs | — | — | 55,374 | |||||||||||
Pre-payment settlement | — | — | 19,609 | |||||||||||
Interest earned on accumulated cash | — | — | (1,059 | ) | ||||||||||
Contingent equity obligation | — | — | 41,715 | |||||||||||
Settlement of obligations and other gains | (20,773 | ) | — | — | ||||||||||
Total reorganization items | $ | (13,390 | ) | $ | 2,461 | $ | 197,825 | |||||||
Impairment Charges |
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Reorganized | Predecessor Company | ||||||||||||||||
NRG | |||||||||||||||||
For the Period | |||||||||||||||||
Year Ended | January 1 - | Year Ended | |||||||||||||||
December 31, | December 5, | December 31, | |||||||||||||||
Project Name | Project Status | 2004 | 2003 | 2002 | Fair Value Basis | ||||||||||||
(In thousands) | |||||||||||||||||
Louisiana Generating LLC | Office building and land being marketed | $ | 493 | $ | — | $ | — | Estimated market price | |||||||||
New Roads Holding LLC (turbine) | Non-operating asset — abandoned | 2,416 | — | — | Projected cash flows | ||||||||||||
Devon Power LLC | Operating at a loss in 2003 | 247 | 64,198 | — | Projected cash flows | ||||||||||||
Middletown Power LLC | Operating at a loss | — | 157,323 | — | Projected cash flows | ||||||||||||
Arthur Kill Power, LLC | Terminated construction project | — | 9,049 | — | Projected cash flows | ||||||||||||
Langage (UK) | Terminated | — | (3,091 | ) | 42,333 | Estimated market price/Realized gain | |||||||||||
Turbines | Sold | — | (21,910 | ) | — | Realized gain | |||||||||||
Berrians Project | Terminated | — | 14,310 | — | Realized loss | ||||||||||||
TermoRio | Terminated | — | 6,400 | — | Realized loss | ||||||||||||
Nelson | Sold | — | — | 467,523 | Similar asset prices | ||||||||||||
Pike | Terminated | — | — | 402,355 | Similar asset prices | ||||||||||||
Bourbonnais | Terminated | — | — | 264,640 | Similar asset prices | ||||||||||||
Meriden (turbine only) | Pending sale | 15,000 | — | 144,431 | Similar asset prices | ||||||||||||
Brazos Valley | Foreclosure completed in 2003 | — | — | 102,900 | Projected cash flows | ||||||||||||
Kendall | Sold | 26,505 | — | 55,300 | Realized loss | ||||||||||||
Turbines & equipment | Equipment being marketed | — | — | 701,573 | Similar asset prices | ||||||||||||
Audrain | Operating at a loss | — | — | 66,022 | Projected cash flows | ||||||||||||
Somerset | Operating at a loss | — | — | 49,289 | Projected cash flows | ||||||||||||
Bayou Cove | Operating at a loss | — | — | 126,528 | Projected cash flows | ||||||||||||
Other | — | 2,617 | 28,851 | ||||||||||||||
Total impairment charges | $ | 44,661 | $ | 228,896 | $ | 2,451,745 | |||||||||||
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Restructuring Charges |
Fresh Start Adjustments |
(In millions) | |||||
Discharge of corporate level debt | $ | 5,162 | |||
Discharge of other liabilities | 811 | ||||
Establishment of creditor pool | (1,040 | ) | |||
Receivable from Xcel | 640 | ||||
Revaluation of fixed assets | (1,392 | ) | |||
Revaluation of equity investments | (207 | ) | |||
Valuation of SO2emission credits | 374 | ||||
Valuation of out of market contracts, net | (400 | ) | |||
Fair market valuation of debt | 108 | ||||
Valuation of pension liabilities | (61 | ) | |||
Other valuation adjustments | (100 | ) | |||
Total Fresh Start adjustments | 3,895 | ||||
Less discontinued operations | (224 | ) | |||
Total Fresh Start adjustments — continuing operations | $ | 4,119 | |||
Legal Settlement Charges |
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Note 9 — | Asset Retirement Obligation |
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Reorganized NRG | ||||||||||||||||||||||||
Accretion for | ||||||||||||||||||||||||
Beginning | Period | Ending | Additions for | Accretion for | Ending | |||||||||||||||||||
Balance | December 6 - | Balance | Year Ended | Year Ended | Balance | |||||||||||||||||||
December 6, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
2003 | 2003 | 2003 | 2004 | 2004 | 2004 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Northeast Region | $ | 11,691 | $ | 59 | $ | 11,750 | $ | 660 | $ | 810 | $ | 13,220 | ||||||||||||
South Central Region | 2,623 | 15 | 2,638 | — | 184 | 2,822 | ||||||||||||||||||
Australia | 9,116 | 322 | 9,438 | 2,854 | 1,683 | 13,975 | ||||||||||||||||||
Alternative Energy | 830 | 5 | 835 | — | 58 | 893 | ||||||||||||||||||
Non-generation | 1,326 | 7 | 1,333 | — | 93 | 1,426 | ||||||||||||||||||
Total asset retirement obligation | $ | 25,586 | $ | 408 | $ | 25,994 | $ | 3,514 | $ | 2,828 | $ | 32,336 | ||||||||||||
Predecessor Company | ||||||||||||||||||||
Beginning | Accretion for | Ending | ||||||||||||||||||
Balance | Period Ended | Adjustment for | Balance | |||||||||||||||||
January 1, | Revisions | December 5, | Fresh Start | December 5, | ||||||||||||||||
Description | 2003 | to Estimate | 2003 | Reporting | 2003 | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Northeast Region | $ | 2,045 | $ | 4,034 | $ | 634 | $ | 4,978 | $ | 11,691 | ||||||||||
South Central Region | 396 | — | 57 | 2,170 | 2,623 | |||||||||||||||
Australia | 5,834 | — | 3,282 | — | 9,116 | |||||||||||||||
Alternative Energy | 629 | — | 73 | 128 | 830 | |||||||||||||||
Non-generation | 1,171 | 9 | 93 | 53 | 1,326 | |||||||||||||||
Total asset retirement obligation | $ | 10,075 | $ | 4,043 | $ | 4,139 | $ | 7,329 | $ | 25,586 | ||||||||||
Predecessor Company | ||||||||
For the Period | ||||||||
January 1- | Year Ended | |||||||
December 5, | December 31, | |||||||
2003 | 2002 | |||||||
(In thousands) | ||||||||
Income (loss) from continuing operations as reported | $ | 2,949,078 | $ | (2,788,452 | ) | |||
Pro-forma adjustment to reflect retroactive adoption of SFAS No. 143 | 2,154 | (677 | ) | |||||
Pro-forma income (loss) from continuing operations | $ | 2,951,232 | $ | (2,789,129 | ) | |||
Net income (loss) as reported | $ | 2,766,445 | $ | (3,464,282 | ) | |||
Pro-forma adjustment to reflect retroactive adoption of SFAS No. 143 | 2,154 | (677 | ) | |||||
Pro-forma net income (loss) | $ | 2,768,599 | $ | (3,464,959 | ) | |||
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Note 10 — | Inventory |
Reorganized NRG | |||||||||
December 31, | December 31, | ||||||||
2004 | 2003 | ||||||||
(In thousands) | |||||||||
Fuel oil | $ | 114,092 | $ | 75,272 | |||||
Coal | 74,646 | 59,555 | |||||||
Natural gas | 392 | 856 | |||||||
Other fuels | 106 | 75 | |||||||
Spare parts | 54,113 | 54,522 | |||||||
Emission credits | 4,218 | 4,478 | |||||||
Other | 443 | 168 | |||||||
Total inventory | $ | 248,010 | $ | 194,926 | |||||
Note 11 — | Notes Receivable and Other Investments |
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Reorganized NRG | ||||||||||
December 31, | December 31, | |||||||||
2004 | 2003 | |||||||||
(In thousands) | ||||||||||
Investment in Bonds | ||||||||||
Audrain County, due December 2023, 10%(1) | $ | 239,930 | $ | 239,930 | ||||||
Notes Receivable | ||||||||||
O’Brien Cogen II, due 2008, non-interest bearing | — | 692 | ||||||||
Omega Energy, LLC, due 2004, 12.5% | 3,744 | 3,708 | ||||||||
Omega Energy II, LLC, due 2009, 11% | 1,583 | 1,583 | ||||||||
Bullock Development Corporation, due November 2005, 8.5% | 73 | 84 | ||||||||
Elk River — GRE, due December 31, 2008, non-interest bearing | 1,278 | 1,564 | ||||||||
Dakota Wood Grinding | 24 | 134 | ||||||||
Audrain Generating LLC | — | 118 | ||||||||
Termo Rio (via NRGenerating Luxembourg (No. 2) S.a.r.l), 8.0% | 57,323 | 57,323 | ||||||||
Other | ||||||||||
Saale Energie GmbH, due August 31, 2021, 13.88% (direct financing lease)(2) | 461,762 | 451,449 | ||||||||
Notes receivable and bonds — non-affiliates | 765,717 | 756,585 | ||||||||
Reserve for uncollectible notes receivable | (3,794 | ) | — | |||||||
Notes receivable, net | 761,923 | 756,585 | ||||||||
NEO notes to various affiliates due primarily 2012, prime +2% | 4,000 | 9,419 | ||||||||
NRG (LSP Nelson) | — | 200 | ||||||||
Saale Energie GmbH, indefinite maturity date, 4.75%-7.79%(3) | 119,644 | 111,892 | ||||||||
Northbrook Texas LLC, due February 2024, 9.25% | 8,804 | 8,841 | ||||||||
Notes receivable — affiliates | 132,448 | 130,352 | ||||||||
Reserve for uncollectible notes receivable | (4,402 | ) | — | |||||||
Notes receivable — affiliates, net | 128,046 | 130,352 | ||||||||
Subtotal | 889,969 | 886,937 | ||||||||
Less current maturities | 85,447 | 65,341 | ||||||||
Total | $ | 804,522 | $ | 821,596 | ||||||
(1) | Investment in bonds is comprised of marketable debt securities. These securities consist of municipal bonds of Audrain County, Missouri which mature in 2023. These investments in bonds are classified as held to maturity and are recorded at amortized cost. The carrying value of these bonds approximates fair value. The Audrain County bonds are pledged as collateral for the related debt owed to Audrain County. As further described in Note 18, this transaction has an offsetting obligation. |
(2) | Saale Energie GmbH has sold 100% of its share of energy from the Schkopau power plant under a 25-year contract, which is more than 83% of the useful life of the plant. The direct financing lease receivable amount was calculated based on the present value of the income to be received over the life of the contract. |
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(3) | Saale Energie GmbH entered into a note receivable with Kraftwerke Schkopau GBR, a partnership between Saale Energie GmbH and E.On Kraftwerke GmbH. The note was used to fund Saale’s initial capital contribution to the partnership and to cover project liquidity shortfalls during construction of a power plant. The note is subject to repayment upon the disposition of the Schkopau plant. |
Reorganized NRG | Average | ||||||||||||||||
Remaining | |||||||||||||||||
Depreciable | December 31, | December 31, | Useful | ||||||||||||||
Lives | 2004 | 2003 | Life | ||||||||||||||
(In thousands) | |||||||||||||||||
Facilities and equipment | 1-42 Years | $ | 3,414,189 | $ | 3,732,391 | 15 | |||||||||||
Land and improvements | 129,716 | 134,888 | |||||||||||||||
Office furnishings and equipment | 2-10 Years | 20,753 | 18,186 | 3 | |||||||||||||
Construction in progress | 17,429 | 139,171 | |||||||||||||||
Total property, plant and equipment | 3,582,087 | 4,024,636 | |||||||||||||||
Accumulated depreciation | (207,536 | ) | (11,800 | ) | |||||||||||||
Net property, plant and equipment | $ | 3,374,551 | $ | 4,012,836 | |||||||||||||
Note 13 — | Investments Accounted for by the Equity Method |
Economic | ||||||||
Name | Geographic Area | Interest | ||||||
West Coast Power | USA | 50% | ||||||
James River | USA | 50% | ||||||
NRG Saguaro LLC | USA | 50% | ||||||
Rocky Road Power | USA | 50% | ||||||
Gladstone Power Station | Australia | 37.5% | ||||||
MIBRAG GmbH | Germany | 50% | ||||||
Enfield | UK | 25% | ||||||
Central and Eastern European Energy Power Fund | Various | 22.2% | ||||||
Scudder LA Power Fund I | Latin America | 25% |
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For the Period | For the Period | ||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended | ||||||||||||||
December 31, | December 31, | December 5, | December 31, | ||||||||||||||
2004 | 2003 | 2003 | 2002 | ||||||||||||||
(In thousands) | |||||||||||||||||
Operating revenues | $ | 2,427,760 | $ | 268,348 | $ | 2,212,280 | $ | 2,394,256 | |||||||||
Costs and expenses | 1,965,915 | 202,725 | 2,035,812 | 2,284,582 | |||||||||||||
Net income | $ | 461,845 | $ | 65,623 | $ | 176,468 | $ | 109,674 | |||||||||
Current assets | $ | 844,821 | $ | 829,525 | $ | 783,669 | $ | 1,069,239 | |||||||||
Noncurrent assets | 2,902,798 | 6,541,003 | 6,452,014 | 6,853,250 | |||||||||||||
Total assets | $ | 3,747,619 | $ | 7,370,528 | $ | 7,235,683 | $ | 7,922,489 | |||||||||
Current liabilities | $ | 205,459 | $ | 1,275,724 | $ | 1,215,827 | $ | 1,075,785 | |||||||||
Noncurrent liabilities | 1,739,968 | 3,592,342 | 3,528,600 | 3,861,285 | |||||||||||||
Equity | 1,802,192 | 2,502,462 | 2,491,256 | 2,985,419 | |||||||||||||
Total liabilities and equity | $ | 3,747,619 | $ | 7,370,528 | $ | 7,235,683 | $ | 7,922,489 | |||||||||
NRG’s share of equity | $ | 808,883 | $ | 1,051,959 | $ | 1,079,336 | $ | 1,171,726 | |||||||||
NRG’s share of net income | $ | 159,825 | $ | 13,521 | $ | 170,901 | $ | 68,996 |
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West Coast Power LLC Summarized Financial Information |
For the Period | For the Period | |||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended | |||||||||||||
December 31, | December 31, | December 5, | December 31, | |||||||||||||
2004 | 2003 | 2003 | 2002 | |||||||||||||
(In thousands) | ||||||||||||||||
Operating revenues | $ | 1,334 | $ | 53 | $ | 643 | $ | 585 | ||||||||
Operating income | 304 | 31 | 201 | 48 | ||||||||||||
Net income (pre-tax) | 306 | 31 | 202 | 34 |
December 31, | December 31, | ||||||||
2004 | 2003 | ||||||||
(In thousands) | |||||||||
Current assets | $ | 430 | $ | 257 | |||||
Other assets | 394 | 454 | |||||||
Total assets | $ | 824 | $ | 711 | |||||
Current liabilities | $ | 83 | $ | 55 | |||||
Other liabilities | 5 | 8 | |||||||
Equity | 736 | 648 | |||||||
Total liabilities and equity | $ | 824 | $ | 711 | |||||
Enfield Energy Centre Limited |
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Note 14 — | Decommissioning Funds |
Note 15 | — Intangible Assets |
Reorganized NRG |
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Power Sale | Emission | |||||||||||
Agreements | Allowances | Total | ||||||||||
(In thousands) | ||||||||||||
Original balance as of December 6, 2003 | $ | 64,055 | $ | 373,518 | $ | 437,573 | ||||||
Amortization | (5,212 | ) | — | (5,212 | ) | |||||||
Balance as of December 31, 2003 | 58,843 | 373,518 | 432,361 | |||||||||
Tax valuation adjustments | (5,308 | ) | (50,180 | ) | (55,488 | ) | ||||||
Other valuation adjustments | (1,521 | ) | (31,204 | ) | (32,725 | ) | ||||||
Amortization | (31,969 | ) | (17,829 | ) | (49,798 | ) | ||||||
Balance as of December 31, 2004 | $ | 20,045 | $ | 274,305 | $ | 294,350 | ||||||
Predecessor Company |
Note 16 — | Accounting for Derivative Instruments and Hedging Activities |
Derivative Financial Instruments |
Energy Related Commodities |
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• | Forward contracts, which commit us to purchase or sell energy commodities in the future. | |
• | Futures contracts, which are exchange-traded standardized commitments to purchase or sell a commodity or financial instrument. | |
• | Swap agreements, which require payments to or from counter-parties based upon the differential between two prices for a predetermined contractual (notional) quantity. | |
• | Option contracts, which convey the right to buy or sell a commodity, financial instrument, or index at a predetermined price. |
• | Fixing the price for a portion of anticipated future electricity sales at a level that provides an acceptable return on our electric generation operations. | |
• | Fixing the price of a portion of anticipated fuel purchases for the operation of our power plants. | |
• | Fixing the price of a portion of anticipated energy purchases to supply our load-serving customers. |
• | Electric forward and futures contracts sales of electricity economically hedging our generation assets forecasted output through 2006. | |
• | Natural gas forward and futures contracts purchases of natural gas relating to the forecasted usage of our generation assets into 2005. |
• | Coal purchase contracts extending through 2007 (designated as normal purchases and disclosed as part of our contractual cash obligations. See Note 27 Commitments and Contingencies). | |
• | Natural gas transportation and storage agreements (these contracts are not derivatives and are disclosed as part of our contractual cash obligations. See Note 27 Commitments and Contingencies). | |
• | Load-following forward electric sales contracts extending through 2025 (these contracts are not considered derivatives). |
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Interest Rates |
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Foreign Currency Exchange Rates |
Accumulated Other Comprehensive Income |
Reorganized NRG | ||||||||||||||||||
Energy | Interest | Foreign | ||||||||||||||||
Commodities | Rate | Currency | Total | |||||||||||||||
(Gains/(Losses) in thousands) | ||||||||||||||||||
Accum. OCI balance at December 31, 2003 | $ | (1,953 | ) | $ | 1,600 | $ | (170 | ) | $ | (523 | ) | |||||||
Unwound from OCI during period: | ||||||||||||||||||
— due to unwinding of previously deferred amounts | 3,241 | 5,030 | 170 | 8,441 | ||||||||||||||
Mark to market of hedge contracts (net of tax of $4,273) | 4,194 | (4,643 | ) | — | (449 | ) | ||||||||||||
Accum. OCI balance at December 31, 2004 | $ | 5,482 | $ | 1,987 | $ | — | $ | 7,469 | ||||||||||
Gains/(Losses) expected to unwind from OCI during next 12 months | $ | 3,902 | $ | — | $ | — | $ | 3,902 |
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Reorganized NRG | ||||||||||||||||||
Energy | Interest | Foreign | ||||||||||||||||
Commodities | Rate | Currency | Total | |||||||||||||||
(Gains/(Losses) in thousands) | ||||||||||||||||||
Accum. OCI balance at December 6, 2003 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Unwound from OCI during period: | ||||||||||||||||||
— due to unwinding of previously deferred amounts | — | — | — | — | ||||||||||||||
Mark to market of hedge contracts | (1,953 | ) | 1,600 | (170 | ) | (523 | ) | |||||||||||
Accum. OCI balance at December 31, 2003 | $ | (1,953 | ) | $ | 1,600 | $ | (170 | ) | $ | (523 | ) | |||||||
Predecessor Company | ||||||||||||||||||
Energy | Interest | Foreign | ||||||||||||||||
Commodities | Rate | Currency | Total | |||||||||||||||
(Gains/(Losses) in thousands) | ||||||||||||||||||
Accum. OCI balance at December 31, 2002 | $ | 129,496 | $ | (102,957 | ) | $ | (261 | ) | $ | 26,278 | ||||||||
Unwound from OCI during period: | ||||||||||||||||||
— due to forecasted transactions probable of no longer occurring | — | 32,025 | — | 32,025 | ||||||||||||||
— due to unwinding of previously deferred amounts | (112,501 | ) | (2,280 | ) | — | (114,781 | ) | |||||||||||
Mark to market of hedge contracts | 43,979 | 7,358 | 56 | 51,393 | ||||||||||||||
Accum. OCI balance at December 5, 2003 | 60,974 | (65,854 | ) | (205 | ) | (5,085 | ) | |||||||||||
— due to Fresh Start reporting write-off | (60,974 | ) | 65,854 | 205 | 5,085 | |||||||||||||
Accum. OCI balance at December 6, 2003 | $ | — | $ | — | $ | — | $ | — | ||||||||||
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Predecessor Company | ||||||||||||||||||
Energy | Interest | Foreign | ||||||||||||||||
Commodities | Rate | Currency | Total | |||||||||||||||
(Gains/(Losses) in thousands) | ||||||||||||||||||
Accum. OCI balance at December 31, 2001 | $ | 142,919 | $ | (69,455 | ) | $ | (2,363 | ) | $ | 71,101 | ||||||||
Unwound from OCI during period: | ||||||||||||||||||
— due to forecasted transactions probable of no longer occurring | — | (23,263 | ) | — | (23,263 | ) | ||||||||||||
— due to termination of hedged items by counter-party | (6,130 | ) | — | — | (6,130 | ) | ||||||||||||
— due to unwinding of previously deferred amounts | (77,576 | ) | 22,337 | 2,075 | (53,164 | ) | ||||||||||||
Mark to market of hedge contracts | 70,283 | (32,576 | ) | 27 | 37,734 | |||||||||||||
Accum. OCI balance at December 31, 2002 | $ | 129,496 | $ | (102,957 | ) | $ | (261 | ) | $ | 26,278 | ||||||||
Reorganized NRG | ||||||||||||||||
Energy | Interest | Foreign | ||||||||||||||
Commodities | Rate | Currency | Total | |||||||||||||
(Gains/(Losses) in thousands) | ||||||||||||||||
Revenue from majority-owned subsidiaries | $ | 57,313 | $ | — | $ | — | $ | 57,313 | ||||||||
Cost of operations | (255 | ) | — | — | (255 | ) | ||||||||||
Other income | — | — | — | — | ||||||||||||
Equity in earnings of unconsolidated subsidiaries | 23,735 | — | — | 23,735 | ||||||||||||
Interest expense | — | 411 | — | 411 | ||||||||||||
Total Statement of Operations impact before tax | $ | 80,793 | $ | 411 | $ | — | $ | 81,204 | ||||||||
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Reorganized NRG | |||||||||||||||||
Energy | Interest | Foreign | |||||||||||||||
Commodities | Rate | Currency | Total | ||||||||||||||
(Gains/(Losses) in thousands) | |||||||||||||||||
Revenue from majority-owned subsidiaries | $ | (627 | ) | $ | — | $ | — | $ | (627 | ) | |||||||
Cost of operations | 508 | — | — | 508 | |||||||||||||
Other income | — | — | — | — | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | (630 | ) | — | — | (630 | ) | |||||||||||
Interest expense | — | 1,983 | — | 1,983 | |||||||||||||
Total Statement of Operations impact before tax | $ | (749 | ) | $ | 1,983 | $ | — | $ | 1,234 | ||||||||
Predecessor Company | |||||||||||||||||
Energy | Interest | Foreign | |||||||||||||||
Commodities | Rate | Currency | Total | ||||||||||||||
(Gains/(Losses) in thousands) | |||||||||||||||||
Revenue from majority-owned subsidiaries | $ | 30,027 | $ | — | $ | — | $ | 30,027 | |||||||||
Cost of operations | 4,607 | — | — | 4,607 | |||||||||||||
Other income | — | — | 92 | 92 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | 19,022 | — | — | 19,022 | |||||||||||||
Interest expense | — | (15,104 | ) | — | (15,104 | ) | |||||||||||
Total Statement of Operations impact before tax | $ | 53,656 | $ | (15,104 | ) | $ | 92 | $ | 38,644 | ||||||||
Predecessor Company | |||||||||||||||||
Energy | Interest | Foreign | |||||||||||||||
Commodities | Rate | Currency | Total | ||||||||||||||
(Gains/(Losses) in thousands) | |||||||||||||||||
Revenue from majority-owned subsidiaries | $ | 9,085 | $ | — | $ | — | $ | 9,085 | |||||||||
Cost of operations | 9,530 | — | — | 9,530 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | 1,426 | 970 | — | 2,396 | |||||||||||||
Other income | — | — | 344 | 344 | |||||||||||||
Interest expense | — | (32,953 | ) | — | (32,953 | ) | |||||||||||
Total Statement of Operations impact before tax | $ | 20,041 | $ | (31,983 | ) | $ | 344 | $ | (11,598 | ) | |||||||
Note 17 — | Creditor Pool and Other Settlements |
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Fair Value | Fair Value | |||||||||||||||||||||||
Principal | Adjustment | Principal | Adjustment | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
Stated | Effective | |||||||||||||||||||||||
Rate | Rate | 2004 | 2004 | 2003 | 2003 | |||||||||||||||||||
(Percent) | (In thousands) | |||||||||||||||||||||||
NRG Recourse Debt: | ||||||||||||||||||||||||
NRG Energy 2nd priority senior notes, due December 15, 2013(4)(5) | 8.00 | % | — | % | $ | 1,725,000 | $ | 9,790 | $ | 1,250,000 | $ | — | ||||||||||||
NRG New Credit Facility, due June 23, 2010 | (1) | — | — | — | 1,200,000 | — | ||||||||||||||||||
NRG Amended Credit Facility, due December 24, 2011 | (1) | — | 800,000 | — | — | — | ||||||||||||||||||
NRG Promissory Note, Xcel Energy, due June 5, 2006 | 3.00 | 9.00 | 10,000 | (758 | ) | 10,000 | (1,310 | ) | ||||||||||||||||
NRG Project-Level, Non-Recourse Debt: | ||||||||||||||||||||||||
NRG Peaker Finance Co. LLC, due June 2019 | (1) | L+3.5 | (2) | 300,876 | (64,446 | ) | 311,373 | (72,105 | ) | |||||||||||||||
Flinders Power Finance Pty, due September 2012 | (1) | 6.00 | 202,856 | 9,984 | 187,668 | 10,632 | ||||||||||||||||||
NRG Energy Center Minneapolis LLC, Senior secured notes, due 2013 and 2017, 7.12%-7.31% | (1) | L+2 | (2) | 118,950 | 5,896 | 126,279 | 7,030 | |||||||||||||||||
NRG Energy Center San Francisco LLC, Senior secured notes, due November 2004 | 10.61 | L+2 | (2) | — | — | 860 | 41 | |||||||||||||||||
NRG Energy Center San Francisco LLC, Senior secured notes, due September 2008 | 7.63 | L+2 | (2) | 129 | 6 | — | — | |||||||||||||||||
NRG Energy Center Pittsburgh LLC, senior secured notes, due November 2004 | 10.61 | L+2 | (2) | — | — | 1,550 | 66 | |||||||||||||||||
Northbrook STS HydroPower, due March 2023 | 9.13 | 9.70 | 24,329 | (893 | ) | 24,506 | (930 | ) | ||||||||||||||||
Northbrook Carolina Hydro, due December 2016 | (1) | L+4 | (2) | 2,375 | (150 | ) | 2,475 | (177 | ) | |||||||||||||||
Northbrook New York, due September 2018 | (1) | L+3 | (2) | 16,900 | (297 | ) | 17,199 | (315 | ) |
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Fair Value | Fair Value | |||||||||||||||||||||||||
Principal | Adjustment | Principal | Adjustment | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
Stated | Effective | |||||||||||||||||||||||||
Rate | Rate | 2004 | 2004 | 2003 | 2003 | |||||||||||||||||||||
(Percent) | (In thousands) | |||||||||||||||||||||||||
Camas Power Boiler LP, unsecured term loan, due June 2007 | (1) | L+2 | (2) | 6,275 | (168 | ) | 8,628 | (277 | ) | |||||||||||||||||
Camas Power Boiler LP, revenue bonds, due August 2007 | 3.38 | L+2 | (2) | 4,475 | (42 | ) | 5,765 | (108 | ) | |||||||||||||||||
Itiquira Energetica S.A., due December 2013 | 12.00 | 31,002 | — | — | — | |||||||||||||||||||||
Itiquira Energetica S.A., due January 2012 | (1) | 20,078 | — | — | — | |||||||||||||||||||||
Meriden promissory note, due May 2003 | 10.00 | — | — | — | 500 | — | ||||||||||||||||||||
LSP Kendall Energy LLC, due November 2006 | (1) | L+3.5 | (2) | — | — | 487,013 | (30,370 | ) | ||||||||||||||||||
Cobee term loans, due July 2007(3) | (1) | 15.00 | — | — | 31,800 | (2,815 | ) | |||||||||||||||||||
Hsin Yu, due various(3) | (1) | — | — | — | 85,300 | (44,480 | ) | |||||||||||||||||||
LSP Energy LLC (Batesville), due | 8.23- | |||||||||||||||||||||||||
2014 and 2025, 7.16%-8.16%(3) | (1) | 9.00 | — | — | 307,175 | (12,292 | ) | |||||||||||||||||||
PERC notes, due 2017 and 2018(3) | 6.75 | L+2 | (2) | — | — | 26,265 | (1,203 | ) | ||||||||||||||||||
Capital leases: | ||||||||||||||||||||||||||
Saale Energie GmbH, Schkopau capital lease, due 2021 | (1) | — | 303,803 | — | 342,469 | — | ||||||||||||||||||||
Audrain County, MO, capital lease, due December 2023 | 10.00 | — | 239,930 | — | 239,930 | — | ||||||||||||||||||||
Conemaugh Fuels LLC, capital lease, due August 2014 | 7.00 | — | 218 | — | — | — | ||||||||||||||||||||
NRG Processing Solutions, capital lease, due November 2004 | 9.00 | L+2 | (2) | — | — | 326 | 10 | |||||||||||||||||||
Subtotal | 3,807,196 | (41,078 | ) | 4,667,081 | (148,603 | ) | ||||||||||||||||||||
Less discontinued operations | — | — | 450,540 | (61,073 | ) | |||||||||||||||||||||
Less current maturities | 2,798 | 901,242 | (100,013 | ) | ||||||||||||||||||||||
Total | $ | 3,297,742 | $ | (43,876 | ) | $ | 3,315,299 | $ | 12,483 | |||||||||||||||||
(1) | Distinguishes debt with various interest rates. |
(2) | L+ equals LIBOR plus x% |
(3) | Discontinued operations. |
(4) | Fair value adjustment as of December 31, 2004 reflects $16.1 million reduction for an interest rate swap. |
(5) | $415.8 million in bonds have been paid in 2005, of which $375.0 million were redeemed and $40.8 million were assumed by NRG Energy and therefore remain outstanding. |
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Short-Term Debt |
Senior Securities |
152
Table of Contents
153
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Peakers |
Flinders |
154
Table of Contents
NRG Thermal |
STS Hydropower |
Northbrook Carolina Hydro and Northbrook New York |
155
Table of Contents
Camas |
Itiquira Energetica S.A. |
LSP Kendall |
Capital Leases |
Schkopau |
156
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Audrain |
Total | |||||
(In thousands) | |||||
2005 | $ | 509,454 | |||
2006 | 110,471 | ||||
2007 | 92,609 | ||||
2008 | 86,649 | ||||
2009 | 79,683 | ||||
Thereafter | 2,928,330 | ||||
Total | $ | 3,807,196 | |||
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(In thousands) | |||||
2005 | $ | 115,558 | |||
2006 | 96,039 | ||||
2007 | 81,397 | ||||
2008 | 73,418 | ||||
2009 | 63,522 | ||||
Thereafter | 833,724 | ||||
Total minimum obligations | 1,263,658 | ||||
Interest | 719,707 | ||||
Present value of minimum obligations | 543,951 | ||||
Current portion | 69,920 | ||||
Long-term obligations | $ | 474,031 | |||
Reorganized Capital Structure |
Repurchase of Common Stock |
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Note 21 — | Stock-Based Compensation |
Incentive Compensation Plans |
2004 | 2003 | |||||||
(In thousands) | ||||||||
Stock options | $ | 6,353 | $ | 429 | ||||
Restricted stock | 5,184 | — | ||||||
Deferred stock units | 2,055 | — | ||||||
Total | $ | 13,592 | $ | 429 | ||||
Long-Term Incentive Plan |
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• | in cash; | |
• | by delivery of shares of common stock with a fair market value equal to the exercise price; | |
• | by means of any cashless exercise procedure approved by the Compensation Committee; or | |
• | by any combination of the foregoing. |
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162
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163
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Weighted- | ||||||||||||
Average | ||||||||||||
Exercise Price Range | Exercise | |||||||||||
Shares | Per Share | Price | ||||||||||
Outstanding at January 1, 2003 | — | $ | — | $ | — | |||||||
Granted | 632,751 | 24.03 | 24.03 | |||||||||
Exercised | — | — | — | |||||||||
Canceled or expired | — | — | — | |||||||||
Outstanding at December 6, 2003 | 632,751 | $ | 24.03 | $ | 24.03 | |||||||
Granted | — | — | — | |||||||||
Exercised | — | — | — | |||||||||
Canceled or expired | — | — | — | |||||||||
Outstanding at December 31, 2003 | 632,751 | $ | 24.03 | $ | 24.03 | |||||||
Granted | 330,000 | $ | 19.90-$31.48 | $ | 21.46 | |||||||
Exercised | — | — | — | |||||||||
Canceled or expired | — | — | — | |||||||||
Outstanding at December 31, 2004 | 962,751 | $ | 19.90-$31.48 | $ | 23.15 | |||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Weighted- | ||||||||||||||||||||
Average | Weighted- | Weighted- | ||||||||||||||||||
Remaining | Average | Average | ||||||||||||||||||
Total | Life (In | Exercise | Total | Exercise | ||||||||||||||||
Range of exercise prices | Outstanding | Years) | Price | Exercisable | Price | |||||||||||||||
$19.90-$22.24 | 307,000 | 4.2 | $ | 20.92 | — | NA | ||||||||||||||
$24.03-$31.48 | 655,751 | 8.9 | $ | 24.20 | 210,917 | $ | 24.03 |
2004 | 2003 | |||||||
Dividends per year | — | — | ||||||
Expected volatility | 40.96 | % | 35.70 | % | ||||
Risk-free interest rate | 3.84 | % | 4.24 | % | ||||
Expected life (years) | 8.3 | 10 |
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Reorganized NRG | ||||||||
For the Period | ||||||||
Year Ended | December 6 - | |||||||
December 31, 2004 | December 31, 2003 | |||||||
(In thousands, except per share data) | ||||||||
Basic earnings per share | ||||||||
Numerator: | ||||||||
Income from continuing operations | $ | 162,145 | $ | 11,405 | ||||
Preferred stock dividends | (549 | ) | — | |||||
Net income available to common stockholders from continuing operations | 161,596 | 11,405 | ||||||
Discontinued operations, net of tax | 23,472 | (380 | ) | |||||
Net income available to common stockholders | $ | 185,068 | $ | 11,025 | ||||
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Reorganized NRG | ||||||||
For the Period | ||||||||
Year Ended | December 6 - | |||||||
December 31, 2004 | December 31, 2003 | |||||||
(In thousands, except per share data) | ||||||||
Denominator: | ||||||||
Weighted average number of common shares outstanding | 99,616 | 100,000 | ||||||
Basis earnings per share: | ||||||||
Income from continuing operations | $ | 1.62 | $ | 0.11 | ||||
Discontinued operations, net of tax | 0.24 | — | ||||||
Net income | $ | 1.86 | $ | 0.11 | ||||
Diluted earnings per share | ||||||||
Numerator | ||||||||
Net income available to common stockholders from continuing operations | $ | 161,596 | $ | 11,405 | ||||
Preferred stock dividends | 549 | — | ||||||
Income from continuing operations | 162,145 | 11,405 | ||||||
Discontinued operations, net of tax | 23,472 | (380 | ) | |||||
Net income available to common stockholders | $ | 185,617 | $ | 11,025 | ||||
Denominator: | ||||||||
Weighted average number of common shares outstanding | 99,616 | 100,000 | ||||||
Incremental shares attributable to the issuance of nonvested restricted stock units (treasury stock method) | 345 | 60 | ||||||
Incremental shares attributable to the assumed conversion of deferred stock units (if converted method) | 67 | — | ||||||
Incremental shares attributable to the assumed conversion of preferred stock (if-converted method) | 343 | — | ||||||
Total dilutive shares | 100,371 | 100,060 | ||||||
Diluted earnings per share: | ||||||||
Income from continuing operations | $ | 1.62 | $ | 0.11 | ||||
Discontinued operations, net of tax | 0.23 | — | ||||||
Net income | $ | 1.85 | $ | 0.11 | ||||
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NRG ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) | ||||||||||||||||||||||||||||||||||||||||
Reorganized NRG | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2004 | ||||||||||||||||||||||||||||||||||||||||
Wholesale Power Generation | ||||||||||||||||||||||||||||||||||||||||
All Other | ||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||
South | West | North | Other | Alternative | Non- | |||||||||||||||||||||||||||||||||||
Northeast | Central | Coast | America | Australia | International | Energy | Generation | Other | Total | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||||||||||||||
Operating revenues | $ | 1,251,153 | $ | 418,145 | $ | 2,469 | $ | 105,644 | $ | 181,065 | $ | 157,220 | $ | 65,872 | $ | 186,425 | $ | (6,569 | ) | $ | 2,361,424 | |||||||||||||||||||
Operating expenses | 859,769 | 294,215 | 10,842 | 57,686 | 161,960 | 121,895 | 60,725 | 101,051 | 37,433 | 1,705,576 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 72,665 | 62,458 | 800 | 21,842 | 24,027 | 2,834 | 5,293 | 11,318 | 8,058 | 209,295 | ||||||||||||||||||||||||||||||
Corporate relocation charges | 11 | 1 | — | — | — | — | — | — | 16,155 | 16,167 | ||||||||||||||||||||||||||||||
Reorganization items | 180 | 976 | — | 142 | — | — | — | 513 | (15,201 | ) | (13,390 | ) | ||||||||||||||||||||||||||||
Restructuring and impairment charges | 247 | 2,909 | — | 26,505 | — | — | — | — | 15,000 | 44,661 | ||||||||||||||||||||||||||||||
Operating income/(loss) | 318,281 | 57,586 | (9,173 | ) | (531 | ) | (4,922 | ) | 32,491 | (146 | ) | 73,543 | (68,014 | ) | 399,115 | |||||||||||||||||||||||||
Minority interest in earnings of consolidated subsidiaries | — | — | — | (1,029 | ) | — | (16 | ) | — | — | — | (1,045 | ) | |||||||||||||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | — | — | 74,375 | 17,455 | 17,524 | 50,921 | (450 | ) | — | — | 159,825 | |||||||||||||||||||||||||||||
Write downs and losses on sales of equity method investments | — | — | — | (11,172 | ) | (1,268 | ) | — | (3,830 | ) | — | — | (16,270 | ) | ||||||||||||||||||||||||||
Other income (expense), net | 4,324 | 474 | 434 | 1,831 | 4,845 | 5,966 | 1,893 | 1,811 | 4,987 | 26,565 | ||||||||||||||||||||||||||||||
Refinancing expenses | — | — | — | — | — | — | — | — | (71,569 | ) | (71,569 | ) | ||||||||||||||||||||||||||||
Interest expense | (791 | ) | (8,710 | ) | (3 | ) | (47,970 | ) | (11,189 | ) | (10,769 | ) | (445 | ) | (8,419 | ) | (181,068 | ) | (269,364 | ) | ||||||||||||||||||||
Income/(loss) from continuing operations before income taxes | 321,814 | 49,350 | 65,633 | (41,416 | ) | 4,990 | 78,593 | (2,978 | ) | 66,935 | (315,664 | ) | 227,257 | |||||||||||||||||||||||||||
Income tax expense/(benefit) | — | — | 175 | (9,961 | ) | (4,610 | ) | 12,872 | (1,224 | ) | 5,033 | 62,827 | 65,112 | |||||||||||||||||||||||||||
Income/(loss) from continuing operations | 321,814 | 49,350 | 65,458 | (31,455 | ) | 9,600 | 65,721 | (1,754 | ) | 61,902 | (378,491 | ) | 162,145 | |||||||||||||||||||||||||||
Income/(loss) on discontinued operations, net of income taxes | — | — | — | 13,183 | — | 12,358 | 2,457 | — | (4,526 | ) | 23,472 | |||||||||||||||||||||||||||||
Net income/(loss) | $ | 321,814 | $ | 49,350 | $ | 65,458 | $ | (18,272 | ) | $ | 9,600 | $ | 78,079 | $ | 703 | $ | 61,902 | $ | (383,017 | ) | $ | 185,617 | ||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||||||||||||||
Equity investments in affiliates | 1,281 | — | 255,582 | 75,889 | 156,118 | 245,609 | 471 | — | — | 734,950 | ||||||||||||||||||||||||||||||
Total assets | $ | 1,939,222 | $ | 1,076,578 | $ | 278,277 | $ | 781,658 | $ | 1,008,085 | $ | 905,034 | $ | 51,257 | $ | 504,926 | $ | 1,284,991 | $ | 7,830,028 |
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NRG ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) | ||||||||||||||||||||||||||||||||||||||||
Reorganized NRG | ||||||||||||||||||||||||||||||||||||||||
December 6, 2003 through December 31, 2003 | ||||||||||||||||||||||||||||||||||||||||
Wholesale Power Generation | ||||||||||||||||||||||||||||||||||||||||
All Other | ||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||
South | West | North | Other | Alternative | Non- | |||||||||||||||||||||||||||||||||||
Northeast | Central | Coast | America | Australia | International | Energy | Generation | Other | Total | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||||||||||||||
Operating revenues | $ | 69,191 | $ | 26,609 | $ | (268 | ) | $ | 5,377 | $ | 11,947 | $ | 13,082 | $ | 3,852 | $ | 10,013 | $ | (1,313 | ) | $ | 138,490 | ||||||||||||||||||
Operating expenses | 53,016 | 19,491 | 119 | 2,790 | 10,385 | 10,798 | 3,424 | 8,053 | (17 | ) | 108,059 | |||||||||||||||||||||||||||||
Depreciation and amortization | 4,604 | 2,561 | 58 | 1,639 | 1,475 | 212 | 324 | 497 | 438 | 11,808 | ||||||||||||||||||||||||||||||
Reorganization items | 241 | 27 | — | — | — | 1 | — | — | 2,192 | 2,461 | ||||||||||||||||||||||||||||||
Operating income/(loss) | 11,330 | 4,530 | (445 | ) | 948 | 87 | 2,071 | 104 | 1,463 | (3,926 | ) | 16,162 | ||||||||||||||||||||||||||||
Minority interest in earnings of consolidated subsidiaries | — | — | — | (134 | ) | — | — | — | — | — | (134 | ) | ||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | — | — | 9,979 | 1,836 | 997 | 709 | — | — | — | 13,521 | ||||||||||||||||||||||||||||||
Other income (expense), net | (267 | ) | 99 | — | 163 | 274 | 905 | 151 | 77 | (1,305 | ) | 97 | ||||||||||||||||||||||||||||
Interest expense | (2,976 | ) | (4,133 | ) | — | (3,643 | ) | (707 | ) | (420 | ) | (1 | ) | (619 | ) | (6,403 | ) | (18,902 | ) | |||||||||||||||||||||
Income/(loss) from continuing operations before income taxes | 8,087 | 496 | 9,534 | (830 | ) | 651 | 3,265 | 254 | 921 | (11,634 | ) | 10,744 | ||||||||||||||||||||||||||||
Income tax expense/(benefit) | — | — | — | 357 | (298 | ) | 1,045 | — | 45 | (1,810 | ) | (661 | ) | |||||||||||||||||||||||||||
Income/(loss) from continuing operations | 8,087 | 496 | 9,534 | (1,187 | ) | 949 | 2,220 | 254 | 876 | (9,824 | ) | 11,405 | ||||||||||||||||||||||||||||
Income/(loss) on discontinued operations, net of income taxes | — | — | — | (248 | ) | — | (64 | ) | (68 | ) | — | — | (380 | ) | ||||||||||||||||||||||||||
Net income/(loss) | $ | 8,087 | $ | 496 | $ | 9,534 | $ | (1,435 | ) | $ | 949 | $ | 2,156 | $ | 186 | $ | 876 | $ | (9,824 | ) | $ | 11,025 | ||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||||||||||||||
Equity investments in affiliates | 1,281 | — | 304,267 | 96,249 | 136,129 | 196,488 | 458 | — | 3,126 | 737,998 | ||||||||||||||||||||||||||||||
Total assets | $ | 2,178,681 | $ | 1,128,404 | $ | 355,184 | $ | 2,052,100 | $ | 945,096 | $ | 1,058,072 | $ | 71,886 | $ | 334,658 | $ | 1,120,906 | $ | 9,244,987 |
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Predecessor Company | ||||||||||||||||||||||||||||||||||||||||
January 1, 2003 through December 5, 2003 | ||||||||||||||||||||||||||||||||||||||||
Wholesale Power Generation | ||||||||||||||||||||||||||||||||||||||||
All Other | ||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||
South | West | North | Other | Alternative | Non- | |||||||||||||||||||||||||||||||||||
Northeast | Central | Coast | America | Australia | International | Energy | Generation | Other | Total | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||||||||||||||
Operating revenues | $ | 861,452 | $ | 356,534 | $ | 23,956 | $ | 85,388 | $ | 151,494 | $ | 137,384 | $ | 60,871 | $ | 129,063 | $ | (7,755 | ) | $ | 1,798,387 | |||||||||||||||||||
Operating expenses | 800,141 | 246,908 | 8,049 | 45,655 | 124,812 | 111,032 | 52,360 | 86,487 | 50,795 | 1,526,239 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 90,132 | 33,987 | 10,750 | 38,046 | 17,114 | 3,550 | 4,602 | 11,870 | 8,792 | 218,843 | ||||||||||||||||||||||||||||||
Reorganization items | 1,813 | 28,769 | — | 41,717 | — | — | — | — | 125,526 | 197,825 | ||||||||||||||||||||||||||||||
Restructuring and impairment charges | 232,170 | 1,574 | — | 17,994 | 5 | 133 | 1,067 | 26 | (15,394 | ) | 237,575 | |||||||||||||||||||||||||||||
Fresh start reporting adjustments | 1,067,783 | 428,823 | 106,523 | 515,166 | 77,593 | (10,676 | ) | 50,290 | 181,459 | (6,535,597 | ) | (4,118,636 | ) | |||||||||||||||||||||||||||
Legal settlement | — | — | — | 4,000 | — | — | (9,369 | ) | — | 468,000 | 462,631 | |||||||||||||||||||||||||||||
Operating income/(loss) | (1,330,587 | ) | (383,527 | ) | (101,366 | ) | (577,190 | ) | (68,030 | ) | 33,345 | (38,079 | ) | (150,779 | ) | 5,890,123 | 3,273,910 | |||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | — | — | 102,681 | 7,260 | 30,364 | 31,536 | (940 | ) | — | — | 170,901 | |||||||||||||||||||||||||||||
Write downs and losses on sales of equity method investments | — | — | — | 12,125 | (146,354 | ) | 3,389 | (16,284 | ) | — | — | (147,124 | ) | |||||||||||||||||||||||||||
Other income (expense), net | 2,308 | 699 | 8 | 2,832 | (934 | ) | 12,647 | 2,521 | 75 | (947 | ) | 19,209 | ||||||||||||||||||||||||||||
Interest expense | (69,663 | ) | (73,968 | ) | — | (92,031 | ) | (4,176 | ) | (7,896 | ) | (153 | ) | (9,805 | ) | (72,197 | ) | (329,889 | ) | |||||||||||||||||||||
Income/(loss) from continuing operations before income taxes | (1,397,942 | ) | (456,796 | ) | 1,323 | (647,004 | ) | (189,130 | ) | 73,021 | (52,935 | ) | (160,509 | ) | 5,816,979 | 2,987,007 | ||||||||||||||||||||||||
Income tax expense/(benefit) | — | — | 35,746 | 5,440 | 15,155 | 16,843 | 1,597 | 395 | (37,247 | ) | 37,929 | |||||||||||||||||||||||||||||
Income/(loss) from continuing operations | (1,397,942 | ) | (456,796 | ) | (34,423 | ) | (652,444 | ) | (204,285 | ) | 56,178 | (54,532 | ) | (160,904 | ) | 5,854,226 | 2,949,078 | |||||||||||||||||||||||
Income/(loss) on discontinued operations, net of income taxes | — | — | — | (279,639 | ) | — | 137,819 | (25,123 | ) | — | (15,690 | ) | (182,633 | ) | ||||||||||||||||||||||||||
Net income/(loss) | $ | (1,397,942 | ) | $ | (456,796 | ) | $ | (34,423 | ) | $ | (932,083 | ) | $ | (204,285 | ) | $ | 193,997 | $ | (79,655 | ) | $ | (160,904 | ) | $ | 5,838,536 | $ | 2,766,445 | |||||||||||||
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NRG ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) | ||||||||||||||||||||||||||||||||||||||||
Predecessor Company | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2002 | ||||||||||||||||||||||||||||||||||||||||
Wholesale Power Generation | ||||||||||||||||||||||||||||||||||||||||
All Other | ||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||
South | West | North | Other | Alternative | Non- | |||||||||||||||||||||||||||||||||||
Northeast | Central | Coast | America | Australia | International | Energy | Generation | Other | Total | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||||||||||||||
Operating revenues | $ | 964,196 | $ | 388,023 | $ | 30,796 | $ | 81,521 | $ | 170,761 | $ | 108,379 | $ | 69,030 | $ | 135,403 | $ | (9,816 | ) | $ | 1,938,293 | |||||||||||||||||||
Operating expenses | 713,120 | 258,965 | 2,758 | 63,659 | 157,794 | 96,565 | 68,454 | 80,957 | 109,026 | 1,551,298 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 83,757 | 35,965 | 11,243 | 34,338 | 14,849 | 1,242 | 5,442 | 12,584 | 7,607 | 207,027 | ||||||||||||||||||||||||||||||
Restructuring and impairment charges | 51,130 | 139,929 | — | 1,840,652 | (16,265 | ) | 71,108 | 27,893 | 31 | 448,582 | 2,563,060 | |||||||||||||||||||||||||||||
Operating income/(loss) | 116,189 | (46,836 | ) | 16,795 | (1,857,128 | ) | 14,383 | (60,536 | ) | (32,759 | ) | 41,831 | (575,031 | ) | (2,383,092 | ) | ||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | — | (3,146 | ) | 24,012 | 23,287 | 15,680 | 33,617 | (24,454 | ) | — | — | 68,996 | ||||||||||||||||||||||||||||
Write downs and losses on sales of equity method investments | — | (48,375 | ) | — | 5,386 | (129,190 | ) | (12,751 | ) | (15,542 | ) | — | — | (200,472 | ) | |||||||||||||||||||||||||
Other income (expense), net | 5,822 | 922 | — | 1,359 | (1,423 | ) | 10,680 | 1,503 | (142 | ) | (7,290 | ) | 11,431 | |||||||||||||||||||||||||||
Interest expense | (67,820 | ) | (74,940 | ) | (160 | ) | (88,192 | ) | (4,212 | ) | (3,030 | ) | (3,666 | ) | (8,946 | ) | (201,216 | ) | (452,182 | ) | ||||||||||||||||||||
Income/(loss) from continuing operations before income taxes | 54,191 | (172,375 | ) | 40,647 | (1,915,288 | ) | (104,762 | ) | (32,020 | ) | (74,918 | ) | 32,743 | (783,537 | ) | (2,955,319 | ) | |||||||||||||||||||||||
Income tax expense/(benefit) | — | — | 5,843 | 8,848 | (3,033 | ) | 14,982 | (16,943 | ) | 11,654 | (188,218 | ) | (166,867 | ) | ||||||||||||||||||||||||||
Income/(loss) from continuing operations | 54,191 | (172,375 | ) | 34,804 | (1,924,136 | ) | (101,729 | ) | (47,002 | ) | (57,975 | ) | 21,089 | (595,319 | ) | (2,788,452 | ) | |||||||||||||||||||||||
Income/(loss) on discontinued operations, net of income taxes | — | — | — | (93,755 | ) | — | (550,876 | ) | (31,199 | ) | — | — | (675,830 | ) | ||||||||||||||||||||||||||
Net income/(loss) | $ | 54,191 | $ | (172,375 | ) | $ | 34,804 | $ | (2,017,891 | ) | $ | (101,729 | ) | $ | (597,878 | ) | $ | (89,174 | ) | $ | 21,089 | $ | (595,319 | ) | $ | (3,464,282 | ) | |||||||||||||
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Table of Contents
Reorganized NRG | Predecessor Company | ||||||||||||||||||
For the Period | For the Period | ||||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended | ||||||||||||||||
December 31, | December 31, | December 5, | December 31, | ||||||||||||||||
2004 | 2003 | 2003 | 2002 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Current | |||||||||||||||||||
U.S. | $ | (229 | ) | $ | (1,513 | ) | $ | 2,231 | $ | 10,409 | |||||||||
Foreign | 17,118 | 1,184 | 15,630 | 17,160 | |||||||||||||||
16,889 | (329 | ) | 17,861 | 27,569 | |||||||||||||||
Deferred | |||||||||||||||||||
U.S. | 56,747 | 59 | 3,292 | (191,447 | ) | ||||||||||||||
Foreign | (8,524 | ) | (391 | ) | 16,776 | (2,989 | ) | ||||||||||||
48,223 | (332 | ) | 20,068 | (194,436 | ) | ||||||||||||||
Total income tax (benefit) | $ | 65,112 | $ | (661 | ) | $ | 37,929 | $ | (166,867 | ) | |||||||||
Effective tax rate | 28.7 | % | (6.2 | )% | 1.3 | % | 5.6 | % |
Reorganized NRG | Predecessor Company | ||||||||||||||||
For the Period | For the Period | ||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended | ||||||||||||||
December 31, | December 31, | December 5, | December 31, | ||||||||||||||
2004 | 2003 | 2003 | 2002 | ||||||||||||||
(In thousands) | |||||||||||||||||
U.S. | $ | 139,007 | $ | 6,828 | $ | 3,103,117 | $ | (2,818,537 | ) | ||||||||
Foreign | 88,250 | 3,916 | (116,110 | ) | (136,782 | ) | |||||||||||
$ | 227,257 | $ | 10,744 | $ | 2,987,007 | $ | (2,955,319 | ) | |||||||||
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Reorganized NRG | Predecessor Company | ||||||||||||||||||||||||||||||||
For the Period | For the Period | ||||||||||||||||||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended | ||||||||||||||||||||||||||||||
December 31, | December 31, | December 5, | December 31, | ||||||||||||||||||||||||||||||
2004 | 2003 | 2003 | 2002 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
Income/(Loss) From Continuing Operations Before Income Taxes | $ | 227,257 | $ | 10,744 | $ | 2,987,007 | $ | (2,955,319 | ) | ||||||||||||||||||||||||
Tax at 35% | 79,540 | 35.0 | % | 3,760 | 35.0 | % | 1,045,452 | 35.0 | % | (1,034,362 | ) | 35.0 | % | ||||||||||||||||||||
State taxes, (net of federal benefit) | 6,455 | 2.9 | % | (1,834 | ) | (17.1 | )% | 254,112 | 8.5 | % | (167,405 | ) | 5.7 | % | |||||||||||||||||||
Foreign operations | (22,294 | ) | (9.8 | )% | (1,265 | ) | (11.8 | )% | 15,001 | 0.5 | % | (18,522 | ) | 0.6 | % | ||||||||||||||||||
Fresh Start accounting adjustments | — | — | (1,383,334 | ) | (46.3 | )% | — | ||||||||||||||||||||||||||
Tax credits | — | — | |||||||||||||||||||||||||||||||
Valuation allowance | — | — | (515 | ) | (4.8 | )% | 71,315 | 2.4 | % | 1,006,540 | (34.1 | )% | |||||||||||||||||||||
Change in tax rate | — | — | 36,018 | 1.2 | % | — | |||||||||||||||||||||||||||
Permanent differences, reserves, other | 1,411 | 0.6 | % | (807 | ) | (7.5 | )% | (635 | ) | — | 46,882 | (1.6 | )% | ||||||||||||||||||||
Income Tax Expense/(Benefit) | $ | 65,112 | 28.7 | % | $ | (661 | ) | (6.2 | )% | $ | 37,929 | 1.3 | % | $ | (166,867 | ) | 5.6 | % | |||||||||||||||
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Table of Contents
Reorganized NRG | ||||||||||
December 31, | December 31, | |||||||||
2004 | 2003 | |||||||||
(In thousands) | ||||||||||
Deferred tax liabilities: | ||||||||||
Discount/premium on notes | $ | 20,191 | $ | 34,136 | ||||||
Emissions credits | 115,150 | 147,811 | ||||||||
Difference between book and tax basis of property | 245,977 | — | ||||||||
Other | — | 988 | ||||||||
Total deferred tax liabilities | 381,318 | $ | 182,935 | |||||||
Deferred tax assets: | ||||||||||
Deferred compensation, accrued vacation and other reserves | 54,240 | 46,684 | ||||||||
Development costs | 2,741 | 2,999 | ||||||||
Net unrealized gains on mark to market transactions | 9,914 | 20,634 | ||||||||
Foreign net operating loss carryforwards | 63,674 | 342,017 | ||||||||
Differences between book and tax basis of contracts | 161,792 | 175,224 | ||||||||
Difference between book and tax basis of property | — | 79,070 | ||||||||
Nondepreciable Property | 182,578 | 402,940 | ||||||||
Intangibles amortization (other than goodwill) | 13,358 | 13,053 | ||||||||
Restructuring costs | 60,159 | 20,468 | ||||||||
U.S. net operating loss carry forwards | 40,404 | — | ||||||||
U.S. capital loss carryforwards | 280,054 | — | ||||||||
Investments in projects | 82,691 | 159,370 | ||||||||
Other | 2,925 | 13,934 | ||||||||
Total deferred tax assets (before valuation allowance) | 954,530 | 1,276,393 | ||||||||
Valuation allowance | (707,871 | ) | (1,241,101 | ) | ||||||
Net deferred tax assets | 246,659 | 35,292 | ||||||||
Net deferred tax liability | $ | 134,659 | $ | 147,643 | ||||||
Reorganized NRG | ||||||||
December 31, | December 31, | |||||||
2004 | 2003 | |||||||
(In thousands) | ||||||||
Current deferred tax liability (asset) | $ | 334 | $ | (1,850 | ) | |||
Non-current deferred tax liability | 134,325 | 149,493 | ||||||
Net deferred tax liability | $ | 134,659 | $ | 147,643 | ||||
174
Table of Contents
Stock Purchase Agreement |
Operating Agreements |
175
Table of Contents
Administrative Services and Other Costs |
Natural Gas Marketing and Trading Agreement |
Reorganized NRG |
NRG Flinders Retirement Plan |
176
Table of Contents
NRG Pension and Postretirement Medical Plans |
Components of Net Periodic Benefit Cost |
Pension Benefits | ||||||||||||||||||
Reorganized NRG | Predecessor Company | |||||||||||||||||
For the Period | For the Period | |||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended | |||||||||||||||
December 31, | December 31, | December 5, | December 31, | |||||||||||||||
2004 | 2003 | 2003 | 2002 | |||||||||||||||
(In thousands) | ||||||||||||||||||
Service cost benefits earned | $ | 11,053 | $ | 800 | $ | — | $ | — | ||||||||||
Interest cost on benefit obligation | 2,857 | 205 | — | — | ||||||||||||||
Expected return on plan assets | (44 | ) | — | — | — | |||||||||||||
Curtailment gain | (750 | ) | — | — | — | |||||||||||||
Net periodic benefit cost | $ | 13,116 | $ | 1,005 | $ | — | $ | — | ||||||||||
Other Benefits | ||||||||||||||||||
Reorganized NRG | Predecessor Company | |||||||||||||||||
For the Period | For the Period | |||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended | |||||||||||||||
December 31, | December 31, | December 5, | December 31, | |||||||||||||||
2004 | 2003 | 2003 | 2002 | |||||||||||||||
(In thousands) | ||||||||||||||||||
Service cost benefits earned | $ | 1,673 | $ | 130 | $ | 1,220 | $ | 1,206 | ||||||||||
Interest cost on benefit obligation | 2,601 | 180 | 1,900 | 1,831 | ||||||||||||||
Amortization of prior service cost | — | — | (22 | ) | (24 | ) | ||||||||||||
Recognized actuarial (gain)/loss | — | — | 178 | 5 | ||||||||||||||
Net periodic benefit cost | $ | 4,274 | $ | 310 | $ | 3,276 | $ | 3,018 | ||||||||||
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Table of Contents
Reconciliation of Funded Status |
Pension Benefits | Other Benefits | ||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||
Reorganized NRG | 2004 | 2003 | 2004 | 2003 | |||||||||||||
(In thousands) | |||||||||||||||||
Benefit obligation at January 1 | $ | 48,955 | $ | — | $ | 42,170 | $ | 31,584 | |||||||||
Service cost | 11,053 | 800 | 1,673 | 1,350 | |||||||||||||
Interest cost | 2,857 | 205 | 2,601 | 2,080 | |||||||||||||
Plan initiation | — | 47,950 | — | — | |||||||||||||
Plan amendments | — | — | — | 2,100 | |||||||||||||
Plan curtailment | (750 | ) | — | — | — | ||||||||||||
Actuarial (gain)/loss | 2,073 | — | 6,004 | 5,396 | |||||||||||||
Benefit payments | (254 | ) | — | (993 | ) | (340 | ) | ||||||||||
Benefit obligation at December 31 | $ | 63,934 | $ | 48,955 | $ | 51,455 | $ | 42,170 | |||||||||
Fair value of plan assets at January 1 | $ | — | $ | — | $ | — | $ | — | |||||||||
Actual return on plan assets | (30 | ) | — | — | — | ||||||||||||
Employer contributions | 1,000 | — | 993 | 340 | |||||||||||||
Benefit payments | (254 | ) | — | (993 | ) | (340 | ) | ||||||||||
Fair value of plan assets at December 31 | $ | 716 | $ | — | $ | — | $ | — | |||||||||
Funded status at December 31 — excess of obligation over assets | $ | (63,218 | ) | $ | (48,955 | ) | $ | (51,455 | ) | $ | (42,170 | ) | |||||
Unrecognized net (gain) loss | 2,147 | — | 5,997 | — | |||||||||||||
Accrued benefit liability recognized on the consolidated balance sheet at December 31 | $ | (61,071 | ) | $ | (48,955 | ) | $ | (45,458 | ) | $ | (42,170 | ) | |||||
Pension Benefits | Other Benefits | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
(In thousands) | ||||||||||||||||
Accrued benefit cost | $ | (61,071 | ) | $ | (48,955 | ) | $ | (45,458 | ) | $ | (42,170 | ) | ||||
Unfunded accrued benefit obligation | — | — | — | — | ||||||||||||
Intangible assets | — | — | — | — | ||||||||||||
Accumulated other comprehensive income | — | — | — | — | ||||||||||||
Net amount recognized | $ | (61,071 | ) | $ | (48,955 | ) | $ | (45,458 | ) | $ | (42,170 | ) | ||||
178
Table of Contents
Pension Benefits | ||||||||
December 31, | December 31, | |||||||
2004 | 2003 | |||||||
Projected benefit obligation | $ | 63,934 | $ | 48,955 | ||||
Accumulated benefit obligation | 16,375 | 1,000 | ||||||
Fair value of plan assets | 716 | — |
Pension Benefits | Other Benefits | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31 | ||||||||||||||||
Discount rate | 5.75 | % | 6.00 | % | 5.75% | 6.00% | ||||||||||
Rate of compensation increase | 4.00 - 4.50 | % | 4.00 - 4.50 | % | — | — | ||||||||||
Health care trend rate | — | — | 9% grading to | 10% grading to | ||||||||||||
5.5% in 2009 | 5.5% in 2009 |
Pension Benefits | Other Benefits | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31 | ||||||||||||||||
Discount rate | 6.00 | % | 6.00 | % | 6.00% | 6.75% | ||||||||||
Expected return on plan assets | 8.00 | % | * | — | — | |||||||||||
Rate of compensation increase | 4.00 - 4.50 | % | 4.00 - 4.50 | % | — | — | ||||||||||
Health care trend rate | — | — | 10% grading to | 11% grading to | ||||||||||||
5.5% in 2009 | 5.5% in 2009 |
* | We did not determine an expected return on plan assets for the NRG pension plan, as there were no plan assets at December 31, 2003. |
Post Retirement Medical Plans | ||||||||||||
Pension Benefits | ||||||||||||
Medicare Prescription | ||||||||||||
Benefit Payments | Benefit Payments | Drug Reimbursements | ||||||||||
(In thousands) | ||||||||||||
2005 | $ | 882 | $ | 1,328 | $ | — | ||||||
2006 | 1,776 | 1,583 | 10 | |||||||||
2007 | 2,486 | 1,861 | 25 | |||||||||
2008 | 3,399 | 2,216 | 45 | |||||||||
2009 | 4,817 | 2,552 | 75 | |||||||||
2010-2014 | 42,491 | 17,438 | 815 |
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Table of Contents
1-Percentage- | 1-Percentage- | |||||||
Point Increase | Point Decrease | |||||||
Effect on total service and interest cost components | $ | 558 | $ | (506 | ) | |||
Effect on postretirement benefit obligation | 5,616 | (5,410 | ) |
Defined Contribution Plans |
Predecessor Company |
Participation in Xcel Energy, Inc. Pension Plan and Postretirement Medical Plan |
2003 Medicare Legislation |
180
Table of Contents
Operating Lease Commitments |
Total | |||||
(In thousands) | |||||
2005 | $ | 16,176 | |||
2006 | 17,589 | ||||
2007 | 14,794 | ||||
2008 | 14,485 | ||||
2009 | 14,337 | ||||
Thereafter | 62,943 | ||||
Total | $ | 140,324 | |||
181
Table of Contents
Coal Purchase and Transportation Commitments |
Total | |||||
(In thousands) | |||||
2005 | $ | 118,679 | |||
2006 | 85,682 | ||||
2007 | 49,494 | ||||
2008 | 37,189 | ||||
2009 | 38,439 | ||||
Thereafter | 21,699 | ||||
Total | $ | 351,182 | |||
Capital Commitments |
International |
NRG FinCo Settlement |
182
Table of Contents
Environmental Regulatory Matters |
Northeast Region |
183
Table of Contents
South Central Region |
West Coast Region |
184
Table of Contents
NYISO Claims |
Legal Issues |
California Wholesale Electricity Litigation and Related Investigations |
185
Table of Contents
FERC Proceedings |
California Attorney General |
NRG Bankruptcy Cap on California Claims |
186
Table of Contents
New York Operating Reserve Markets |
Connecticut Congestion Charges |
New York Environmental Settlement |
Station Service Disputes |
187
Table of Contents
U.S. Environmental Protection Agency |
TermoRio Litigation |
Itiquira Energetica, S.A. |
188
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CFTC Trading Litigation |
Additional Litigation |
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Reorganized NRG | Predecessor Company | |||||||||||||||||
For the Period | For the Period | |||||||||||||||||
Year Ended | December 6 - | January 1 - | Year Ended | |||||||||||||||
December 31, | December 31, | December 5, | December 31, | |||||||||||||||
2004 | 2003 | 2003 | 2002 | |||||||||||||||
(In thousands) | ||||||||||||||||||
Interest paid (net of amount capitalized) | $ | 294,697 | $ | 86,874 | $ | 182,355 | $ | 331,679 | ||||||||||
Income taxes paid/(refunds) | 34,352 | 1,726 | 27,064 | (17,406 | ) | |||||||||||||
Non-cash investing and financing activities: | ||||||||||||||||||
Capitalized lease obligation incurred | 223 | — | — | — | ||||||||||||||
Investment in WCP by contributing fixed assets | 1,590 | — | — | — | ||||||||||||||
Reduction to fixed assets due to liquidated damages | 14,543 | — | — | — |
• | Standby letters of credit and surety bonds — At December 31, 2004, we and our consolidated subsidiaries were contingently obligated for approximately $173.2 million under standby letters of credit. Most of these letters of credit are issued in support of our obligations to perform under commodity agreements, financing or other arrangements. These letters of credit expire within one year of issuance, and it is typical for us to renew many of them on similar terms. |
As of December 31, 2004, standby letters of credit in amounts totaling approximately $157.1 million were issued under our $350.0 million corporate funded letter of credit facility, which is reflected in our |
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financial statements. This amount includes a $33.3 million letter of credit issued to the benefit of Xcel to cover potential obligations from which Xcel was not released when we ceased to be an affiliate of theirs, though our maximum exposure under this arrangement is indeterminate. In addition, $2.4 million was issued to support performance obligations of an unconsolidated affiliate of ours. | |
Approximately $16.1 million in letters of credit were issued separately and are not supported by collateral. Of the uncollateralized letters of credit, approximately $4.8 million was issued to support the obligations of an unconsolidated affiliate of ours. We were also contingently obligated for $4.5 million under surety bonds to support our prepayment, completion, license, tax or performance bonding requirements. Most of the bonds are supported by collateral, which is reflected in our financial statements. All of the bonds expire within one year; however, we expect to renew many of these bonds on a rolling twelve-month basis. |
• | Asset purchases and divestitures — In the normal course of business, we may be asked to provide certain assurances to the counter-parties of our asset sale and purchase agreements. Such assurances may take the form of a guarantee issued by us on behalf of a directly or indirectly held majority-owned subsidiary. Due to the inter-company nature of such arrangements (NRG Energy is essentially guaranteeing its own performance) and the nature of the guarantee being provided (usually the typical representations and warrantees that are provided in any asset sales agreement), it is not our policy to recognize the value of such an obligation in our consolidated financial statements. Most of these guarantees provide an explicit cap on our maximum liability, as well as an expiration period, exclusive of breach of representations and warranties. At December 31, 2004, our maximum known exposure under asset sales guarantees was $73.5 million. On February 18, 2005 we executed a guarantee to the benefit of our counter-party under the railcar lease described in Items 7 — Contractual Obligations and Commercial Commitments. This guarantee covers NRG PMI payment and performance obligations under the relevant lease documents, and is of indeterminate exposure. | |
• | Commercial sales arrangements — In connection with the purchase and sale of fuel, emission credits and power generation products to and from third parties with respect to the operation of some of our generation facilities in the U.S., we may be required to guarantee a portion of the obligations of certain of our subsidiaries. These obligations may include liquidated damages payments or other unscheduled payments. As of December 31, 2004, we estimate the maximum liability for this category of guarantee was $57.6 million. We have subsequently issued additional guarantees of the performance of NRG PMI, with a maximum liability of $0.3 million. These guarantees terminate on May 31, 2005 and December 31, 2005. | |
• | Other types of guarantees — We have issued guarantees of obligations our subsidiaries may incur in provision of environmental site remediation, funding reserve accounts, payment of debt obligations, and performance under operating and maintenance agreements. Maximum quantifiable liability under the environmental guarantees is approximately $65.9 million, most of which is a guarantee for plant removal and site remediation obligations at our Flinders facilities. The maximum quantifiable exposure under the operational guarantees is $25.8 million, primarily related to our role as operator at the Gladstone power plant. In addition, we have a maximum liability exposure of $0.6 million under a tax indemnity guarantee to a third party, reserve funding guarantee exposure of $1.0 million and third-party debt guarantee exposure of $0.8 million. |
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Amount of Guarantee Liabilities Expiration per Period as of December 31, | ||||||||||||||||||||
2004 (in thousands) | ||||||||||||||||||||
Total Amounts | After 5 Years or | |||||||||||||||||||
Guarantee Type | Committed | Short-term | 1-3 Years | 4-5 Years | Indeterminate | |||||||||||||||
Funded standby letters of credit | $ | 157,144 | $ | 157,144 | $ | — | $ | — | $ | — | ||||||||||
Unfunded standby letters of credit | 16,103 | 16,103 | — | — | — | |||||||||||||||
Surety bonds | 4,467 | 4,467 | — | — | — | |||||||||||||||
Asset sales guarantee obligations | 73,515 | 1,000 | 250 | 12,500 | 59,765 | |||||||||||||||
Commodity sales guarantee obligations | 57,600 | 24,100 | — | — | 33,500 | |||||||||||||||
Other guarantees | 94,126 | — | 778 | — | 93,348 | |||||||||||||||
Total guarantees | $ | 402,955 | $ | 202,814 | $ | 1,028 | $ | 12,500 | $ | 186,613 | ||||||||||
• | Asset purchases and divestitures —The purchase and sale agreements which govern our asset or share investments and divestitures customarily contain 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 quantify at the time of the transaction. In several cases, the contract limits the liability of the indemnitor. For those indemnities in which liability is capped, the exposure ranges from $1.0 million up to $50.0 million. We have no reason to believe that we currently have any material liability relating to such routine indemnification obligations. | |
• | Other indemnities — Other indemnifications we have provided cover operational, tax, litigation and breaches of representations, warranties and covenants. We have also indemnified, on a routine basis in the ordinary course of business, consultants or other vendors who have provided services to us. Our maximum potential exposure under these indemnifications can range from a specified dollar amount to an unlimited amount, depending on the nature of the transaction. Total maximum potential exposure under these indemnifications is not estimable due to uncertainty as to whether claims will be made or how they will be resolved. We do not have any reason to believe that we will be required to make any material payments under these indemnity provisions. |
Reorganized NRG |
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Predecessor Company |
Big Cajun II Unit 3 |
Reorganized NRG |
Keystone and Conemaugh |
Reorganized NRG |
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Reorganized NRG | ||||||||||||||||||||||||
Period Ended | ||||||||||||||||||||||||
Quarter Ended 2004 | December 6 - | |||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Total Year | 2003 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Operating Revenues | $ | 600,265 | $ | 573,623 | $ | 606,663 | $ | 580,873 | $ | 2,361,424 | $ | 138,490 | ||||||||||||
Operating Income | 119,748 | 116,791 | 78,998 | 83,578 | 399,115 | 16,162 | ||||||||||||||||||
Income From Continuing Operations | 31,446 | 69,400 | 43,330 | 17,969 | 162,145 | 11,405 | ||||||||||||||||||
Income/(Loss) on Discontinued Operations net of Income Taxes | (1,211 | ) | 13,624 | 10,891 | 168 | 23,472 | (380 | ) | ||||||||||||||||
Net Income | $ | 30,235 | $ | 83,024 | $ | 54,221 | $ | 18,137 | $ | 185,617 | $ | 11,025 | ||||||||||||
Weighted Average Number of Common Shares Outstanding — Basic | 100,018 | 100,080 | 100,101 | 98,456 | 99,616 | 100,000 | ||||||||||||||||||
Income From Continuing Operations per Weighted Average Common Share — Basic | $ | 0.31 | $ | 0.69 | $ | 0.43 | $ | 0.18 | $ | 1.62 | $ | 0.11 | ||||||||||||
Income/(Loss) From Discontinued Operations per Weighted Average Common Share — Basic | (0.01 | ) | 0.14 | 0.11 | 0.00 | 0.24 | — | |||||||||||||||||
Net Income per Weighted Average Common Share — Basic | $ | 0.30 | $ | 0.83 | $ | 0.54 | $ | 0.18 | $ | 1.86 | $ | 0.11 | ||||||||||||
Weighted Average Number of Common Shares Outstanding — Diluted | 100,018 | 100,478 | 100,616 | 98,978 | 100,371 | 100,060 | ||||||||||||||||||
Income From Continuing Operations per Weighted Average Common Share — Diluted | $ | 0.31 | $ | 0.69 | $ | 0.43 | $ | 0.18 | $ | 1.62 | $ | 0.11 | ||||||||||||
Income From Discontinued Operations per Weighted Average Common Share — Diluted | (0.01 | ) | 0.14 | 0.11 | — | 0.23 | — | |||||||||||||||||
Net Income per Weighted Average Common Share — Diluted | $ | 0.30 | $ | 0.83 | $ | 0.54 | $ | 0.18 | $ | 1.85 | $ | 0.11 |
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Predecessor Company | ||||||||||||||||||||
Period Ended | ||||||||||||||||||||
Quarter Ended 2003 | October 1 - | Total through | ||||||||||||||||||
December 5, | December 5, | |||||||||||||||||||
March 31 | June 30 | September 30 | 2003 | 2003 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Operating Revenues | $ | 494,947 | $ | 441,538 | $ | 570,701 | $ | 291,201 | $ | 1,798,387 | ||||||||||
Operating Income/(Loss) | (11,958 | ) | (318,595 | ) | (327,565 | ) | 3,932,028 | 3,273,910 | ||||||||||||
Income/(Loss) From Continuing Operations | (173,136 | ) | (508,518 | ) | (284,544 | ) | 3,915,276 | 2,949,078 | ||||||||||||
Income/(Loss) on Discontinued Operations net of Income Taxes | 160,504 | (99,883 | ) | (250 | ) | (243,004 | ) | (182,633 | ) | |||||||||||
Net Income/(Loss) | (12,632 | ) | (608,401 | ) | (284,794 | ) | 3,672,272 | 2,766,445 |
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Arthur Kill Power LLC Astoria Gas Turbine Power LLC Berrians I Gas Turbine Power LLC Big Cajun II Unit 4 LLC Capistrano Cogeneration Company Chickahominy River Energy Corp. Commonwealth Atlantic Power LLC Conemaugh Power LLC Connecticut Jet Power LLC Devon Power LLC Dunkirk Power LLC Eastern Sierra Energy Company El Segundo Power II LLC Hanover Energy Company Huntley Power LLC Indian River Operations Inc. Indian River Power LLC James River Power LLC Kaufman Cogen LP Keystone Power LLC Louisiana Generating LLC Middletown Power LLC Montville Power LLC NEO California Power LLC NEO Chester-Gen LLC NEO Corporation NEO Freehold-Gen LLC NEO Landfill Gas Holdings Inc. NEO Power Services Inc. Norwalk Power LLC NRG Affiliate Services Inc. NRG Arthur Kill Operations Inc. NRG Asia-Pacific, Ltd. NRG Astoria Gas Turbine Operations, Inc. NRG Bayou Cove LLC NRG Cabrillo Power Operations Inc. | NRG Cadillac Operations Inc. NRG California Peaker Operations LLC NRG Connecticut Affiliate Services Inc. NRG Devon Operations Inc. NRG Dunkirk Operations Inc. NRG El Segundo Operations Inc. NRG Huntley Operations Inc. NRG International LLC NRG Kaufman LLC NRG Mesquite LLC NRG MidAtlantic Affiliate Services Inc. NRG MidAtlantic Generating LLC NRG Middletown Operations Inc. NRG Montville Operations Inc. NRG New Jersey Energy Sales LLC NRG New Roads Holdings LLC NRG North Central Operations Inc. NRG Northeast Affiliate Services Inc. NRG Northeast Generating LLC NRG Norwalk Harbor Operations Inc. NRG Operating Services, Inc. NRG Oswego Harbor Power Operations Inc. NRG Power Marketing Inc. NRG Rocky Road LLC NRG Saguaro Operations Inc. NRG South Central Affiliate Services Inc. NRG South Central Generating LLC NRG South Central Operations Inc. NRG West Coast LLC NRG Western Affiliate Services Inc. Oswego Harbor Power LLC Saguaro Power LLC Somerset Operations Inc. Somerset Power LLC Vienna Operations Inc. Vienna Power LLC |
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Guarantor | Non-Guarantor | NRG Energy, Inc. | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | (Note Issuer) | Eliminations(1) | Balance | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||
Revenues from majority-owned operations | $ | 1,721,575 | $ | 595,708 | $ | 50,713 | $ | (6,572 | ) | $ | 2,361,424 | |||||||||||
Operating Costs and Expenses | ||||||||||||||||||||||
Cost of majority-owned operations | 1,060,115 | 409,551 | 31,242 | (6,572 | ) | 1,494,336 | ||||||||||||||||
Depreciation and amortization | 133,123 | 62,989 | 13,183 | — | 209,295 | |||||||||||||||||
General, administrative and development | 117,462 | 32,156 | 61,600 | 22 | 211,240 | |||||||||||||||||
Other charges (credits) | ||||||||||||||||||||||
Corporate relocation charges | 2 | (1 | ) | 16,166 | — | 16,167 | ||||||||||||||||
Reorganization items | 1,838 | (25 | ) | (15,203 | ) | — | (13,390 | ) | ||||||||||||||
Restructuring and impairment charges | 3,156 | 26,505 | 15,000 | — | 44,661 | |||||||||||||||||
Total operating costs and expenses | 1,315,696 | 531,175 | 121,988 | (6,550 | ) | 1,962,309 | ||||||||||||||||
Operating Income/(Loss) | 405,879 | 64,533 | (71,275 | ) | (22 | ) | 399,115 | |||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||
Minority interest in earnings of consolidated subsidiaries | — | (1,045 | ) | — | — | (1,045 | ) | |||||||||||||||
Equity in earnings of consolidated subsidiaries | 88,671 | 1 | 293,364 | (382,036 | ) | — | ||||||||||||||||
Equity in earnings of unconsolidated affiliates | 91,602 | 68,869 | (646 | ) | — | 159,825 | ||||||||||||||||
Write downs and losses on sales of equity method investments | (15,737 | ) | (1,271 | ) | 738 | — | (16,270 | ) | ||||||||||||||
Other income, net | 7,380 | 34,574 | 5,028 | (20,417 | ) | 26,565 | ||||||||||||||||
Refinancing expenses | — | — | (71,569 | ) | — | (71,569 | ) | |||||||||||||||
Interest expense | 51 | (107,516 | ) | (182,525 | ) | 20,626 | (269,364 | ) | ||||||||||||||
Total other income/(expense) | 171,967 | (6,388 | ) | 44,390 | (381,827 | ) | (171,858 | ) | ||||||||||||||
Income/(Loss) From Continuing Operations Before Income Taxes | 577,846 | 58,145 | (26,885 | ) | (381,849 | ) | 227,257 | |||||||||||||||
Income Tax Expense/(Benefit) | 238,042 | 44,107 | (217,028 | ) | (9 | ) | 65,112 | |||||||||||||||
Income/(Loss) From Continuing Operations | 339,804 | 14,038 | 190,143 | (381,840 | ) | 162,145 | ||||||||||||||||
Income/(Loss) on Discontinued Operations, net of Income Taxes | 3,013 | 24,985 | (4,526 | ) | — | 23,472 | ||||||||||||||||
Net income | $ | 342,817 | $ | 39,023 | $ | 185,617 | $ | (381,840 | ) | $ | 185,617 | |||||||||||
(1) | All significant intercompany transactions have been eliminated in consolidation. |
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Guarantor | Non-Guarantor | NRG Energy, Inc. | Consolidated | ||||||||||||||||||
Subsidiaries | Subsidiaries | (Note Issuer) | Eliminations(1) | Balance | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Current Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 155,795 | $ | 242,523 | $ | 711,727 | $ | — | $ | 1,110,045 | |||||||||||
Restricted cash | 3,720 | 109,104 | — | — | 112,824 | ||||||||||||||||
Accounts receivable-trade, net | 182,340 | 82,757 | 7,004 | — | 272,101 | ||||||||||||||||
Current portion of notes receivable and other investments — affiliates | — | (2,986 | ) | 5,482 | (2,496 | ) | — | ||||||||||||||
Current portion of notes receivable and other investments | — | 85,147 | 300 | — | 85,447 | ||||||||||||||||
Taxes receivable | 1 | (5,498 | ) | 42,981 | — | 37,484 | |||||||||||||||
Inventory | 216,932 | 29,617 | 1,461 | — | 248,010 | ||||||||||||||||
Derivative instruments valuation | 79,759 | — | — | — | 79,759 | ||||||||||||||||
Prepayments and other current assets | 103,891 | 25,740 | 42,893 | (2,916 | ) | 169,608 | |||||||||||||||
Current deferred income tax | — | — | — | — | — | ||||||||||||||||
Current assets — discontinued operations | (88 | ) | 3,098 | — | — | 3,010 | |||||||||||||||
Total current assets | 742,350 | 569,502 | 811,848 | (5,412 | ) | 2,118,288 | |||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||
In service | 2,359,090 | 1,163,986 | 41,582 | — | 3,564,658 | ||||||||||||||||
Under construction | 24,481 | (10,044 | ) | 2,796 | 196 | 17,429 | |||||||||||||||
Total property, plant and equipment | 2,383,571 | 1,153,942 | 44,378 | 196 | 3,582,087 | ||||||||||||||||
Less accumulated depreciation | (140,013 | ) | (53,925 | ) | (13,598 | ) | — | (207,536 | ) | ||||||||||||
Net property, plant and equipment | 2,243,558 | 1,100,017 | 30,780 | 196 | 3,374,551 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Investment in subsidiaries | 776,922 | — | 3,916,352 | (4,693,274 | ) | — | |||||||||||||||
Equity investments in affiliates | 327,425 | 407,054 | 471 | — | 734,950 | ||||||||||||||||
Notes receivable and other investments, less current portion — affiliates | 407,165 | 363,462 | — | (642,581 | ) | 128,046 | |||||||||||||||
Notes receivable and other investments, less current portion | 1,533 | 673,966 | 977 | — | 676,476 | ||||||||||||||||
Decommissioning fund investments | 4,954 | — | — | — | 4,954 | ||||||||||||||||
Deferred income taxes | — | — | — | — | — | ||||||||||||||||
Intangible assets, net | 256,392 | 37,958 | — | — | 294,350 | ||||||||||||||||
Debt issuance costs, net | — | 247 | 48,238 | — | 48,485 | ||||||||||||||||
Derivative instruments valuation | 1,468 | 34,926 | 5,393 | — | 41,787 | ||||||||||||||||
Funded letter of credit | — | — | 350,000 | — | 350,000 | ||||||||||||||||
Other assets | 31,452 | 21,596 | 5,093 | — | 58,141 | ||||||||||||||||
Total other assets | 1,807,311 | 1,539,209 | 4,326,524 | (5,335,855 | ) | 2,337,189 | |||||||||||||||
Total Assets | $ | 4,793,219 | $ | 3,208,728 | $ | 5,169,152 | $ | (5,341,071 | ) | $ | 7,830,028 | ||||||||||
(1) | All significant intercompany transactions have been eliminated in consolidation. |
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Guarantor | Non-Guarantor | NRG Energy, Inc. | Consolidated | ||||||||||||||||||
Subsidiaries | Subsidiaries | (Note Issuer) | Eliminations(1) | Balance | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
LIABILITIES AND STOCK HOLDERS’ EQUITY | |||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||
Current portion of long-term debt | $ | 16 | $ | 98,877 | $ | 415,855 | $ | (2,496 | ) | $ | 512,252 | ||||||||||
Accounts payable — trade | 69,919 | 91,119 | 5,093 | — | 166,131 | ||||||||||||||||
Accounts payable — affiliate | 333,514 | (129,041 | ) | (199,799 | ) | 917 | 5,591 | ||||||||||||||
Accrued taxes | — | — | — | — | — | ||||||||||||||||
Accrued property, sales and other taxes | 1,841 | 8,188 | 1,105 | — | 11,134 | ||||||||||||||||
Accrued salaries, benefits and related costs | 15,723 | 6,493 | 12,990 | — | 35,206 | ||||||||||||||||
Accrued interest | 435 | 6,000 | 7,538 | (2,916 | ) | 11,057 | |||||||||||||||
Derivative instruments valuation | 16,772 | — | — | — | 16,772 | ||||||||||||||||
Current deferred income taxes | 260 | 92 | (18 | ) | — | 334 | |||||||||||||||
Other bankruptcy settlement | — | 175,576 | — | — | 175,576 | ||||||||||||||||
Other current liabilities | 106,863 | 17,245 | 28,418 | — | 152,526 | ||||||||||||||||
Current liabilities — discontinued operations | — | 1,362 | — | — | 1,362 | ||||||||||||||||
Total current liabilities | 545,343 | 275,911 | 271,182 | (4,495 | ) | 1,087,941 | |||||||||||||||
Other Liabilities | |||||||||||||||||||||
Long-term debt | 202 | 1,768,068 | 2,128,177 | (642,581 | ) | 3,253,866 | |||||||||||||||
Deferred income taxes | (32,379 | ) | 130,972 | 35,732 | — | 134,325 | |||||||||||||||
Postretirement and other benefit obligations | 98,439 | 8,987 | 8,957 | — | 116,383 | ||||||||||||||||
Derivative instruments valuation | 172 | 132,209 | 16,064 | — | 148,445 | ||||||||||||||||
Other long-term obligations | 341,960 | 30,883 | 16,876 | — | 389,719 | ||||||||||||||||
Non-current liabilities — discontinued operations | — | 1,081 | — | — | 1,081 | ||||||||||||||||
Total non-current liabilities | 408,394 | 2,072,200 | 2,205,806 | (642,581 | ) | 4,043,819 | |||||||||||||||
Total liabilities | 953,737 | 2,348,111 | 2,476,988 | (647,076 | ) | 5,131,760 | |||||||||||||||
Minority interest | — | 6,104 | — | — | 6,104 | ||||||||||||||||
Commitments and Contingencies | |||||||||||||||||||||
Stockholders’ Equity | 3,839,482 | 854,513 | 2,692,164 | (4,693,995 | ) | 2,692,164 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 4,793,219 | $ | 3,208,728 | $ | 5,169,152 | $ | (5,341,071 | ) | $ | 7,830,028 | ||||||||||
(1) | All significant intercompany transactions have been eliminated in consolidation. |
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Non- | NRG Energy, | ||||||||||||||||||||||
Guarantor | Guarantor | Inc. | Consolidated | ||||||||||||||||||||
Subsidiaries | Subsidiaries | (Note Issuer) | Eliminations(1) | Balance | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||||||
Net income/(loss) | $ | 342,817 | $ | 39,023 | $ | 185,617 | $ | (381,840 | ) | $ | 185,617 | ||||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities | |||||||||||||||||||||||
Distributions in excess of (less than) equity earnings of unconsolidated affiliates | (52,620 | ) | (37,953 | ) | (523 | ) | 90,034 | (1,062 | ) | ||||||||||||||
Depreciation and amortization | 133,123 | 68,314 | 13,183 | — | 214,620 | ||||||||||||||||||
Reserve for note and interest receivable | 7,165 | 4,572 | — | — | 11,737 | ||||||||||||||||||
Amortization of deferred financing costs and debt discount/(premium) | — | 20,532 | 7,127 | — | 27,659 | ||||||||||||||||||
Write-off of deferred financing costs due to refinancings | — | — | 42,137 | — | 42,137 | ||||||||||||||||||
Write downs and losses on sales of equity method investments | 15,737 | 1,271 | (738 | ) | — | 16,270 | |||||||||||||||||
Deferred income taxes and investment tax credits | 25,958 | (8,138 | ) | 118,258 | (78,840 | ) | 57,238 | ||||||||||||||||
Unrealized (gains)/losses on derivatives | (70,301 | ) | (9,254 | ) | 5,763 | — | (73,792 | ) | |||||||||||||||
Minority interest | — | 1,046 | — | — | 1,046 | ||||||||||||||||||
Amortization of power contracts and emission credits | 14,210 | 37,442 | — | — | 51,652 | ||||||||||||||||||
Amortization of unearned equity compensation | 2,173 | 328 | 11,091 | — | 13,592 | ||||||||||||||||||
Restructuring and impairment charges | 3,156 | 26,505 | 15,000 | — | 44,661 | ||||||||||||||||||
(Gain)/loss on sale of discontinued operations | (1,922 | ) | (25,119 | ) | 4,622 | — | (22,419 | ) | |||||||||||||||
Cash provided by (used in) changes in certain working capital items, net of effects from acquisitions and dispositions | |||||||||||||||||||||||
Accounts receivable | (61,929 | ) | 4,103 | 6,355 | — | (51,471 | ) | ||||||||||||||||
Xcel Energy settlement receivable | — | — | 640,000 | — | 640,000 | ||||||||||||||||||
Inventory | (52,079 | ) | (3,307 | ) | (227 | ) | — | (55,613 | ) | ||||||||||||||
Prepayments and other current assets | (22,938 | ) | 34,180 | 35,570 | 1,960 | 48,772 | |||||||||||||||||
Accounts payable | 8,273 | 19,430 | (31,809 | ) | 11,011 | 6,905 | |||||||||||||||||
Accrued expenses | 27,037 | 1,569 | (31,640 | ) | (18,129 | ) | (21,163 | ) | |||||||||||||||
Creditor pool obligation payments | — | — | (540,000 | ) | — | (540,000 | ) | ||||||||||||||||
Other current liabilities | 36,082 | (43,286 | ) | 14,446 | — | 7,242 | |||||||||||||||||
Other assets and liabilities | 16,650 | (9,184 | ) | 32,899 | — | 40,365 | |||||||||||||||||
Net Cash Provided (Used) by Operating Activities | 370,592 | 122,074 | 527,131 | (375,804 | ) | 643,993 | |||||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||||||
Proceeds from sale of discontinued operations | 1,941 | 250,735 | — | — | 252,676 | ||||||||||||||||||
Proceeds from sale of investments | 21,000 | 26,693 | 3,000 | — | 50,693 | ||||||||||||||||||
Decrease/(increase) in restricted cash | 717 | (27,160 | ) | — | — | (26,443 | ) | ||||||||||||||||
Decrease/(increase) in notes receivable | (22,976 | ) | 14,937 | 25,775 | 7,373 | 25,109 | |||||||||||||||||
Capital expenditures | (77,026 | ) | (27,691 | ) | (9,447 | ) | (196 | ) | (114,360 | ) | |||||||||||||
Investments in projects | 4,313 | (15,840 | ) | 8,537 | — | (2,990 | ) | ||||||||||||||||
Distributions/(investments) in subsidiaries | — | — | 82,163 | (82,163 | ) | — | |||||||||||||||||
Net Cash Provided (Used) by Investing Activities | (72,031 | ) | 221,674 | 110,028 | (74,986 | ) | 184,685 | ||||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||||||
Net borrowings under line of credit agreement | |||||||||||||||||||||||
Proceeds from issuance of preferred shares | — | — | 406,359 | — | 406,359 | ||||||||||||||||||
Payment for treasury stock | — | — | (405,312 | ) | — | (405,312 | ) | ||||||||||||||||
Capital contributions from parent | 9,850 | 32,987 | — | (42,837 | ) | — | |||||||||||||||||
Dividends and return of investment to NRG Energy, Inc. | (407,000 | ) | (10,000 | ) | — | 417,000 | — | ||||||||||||||||
Proceeds from issuance of long-term debt | — | (6,336 | ) | 1,303,500 | 35,507 | 1,332,671 | |||||||||||||||||
Deferred debt issuance costs | — | (247 | ) | (25,259 | ) | — | (25,506 | ) | |||||||||||||||
Funded letter of credit | — | — | (100,000 | ) | — | (100,000 | ) | ||||||||||||||||
Principal payments on long-term debt | (41,125 | ) | (291,941 | ) | (1,200,000 | ) | 41,120 | (1,491,946 | ) | ||||||||||||||
Net Cash Provided (Used) by Financing Activities | (438,275 | ) | (275,537 | ) | (20,712 | ) | 450,790 | (283,734 | ) | ||||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | 3,007 | — | — | 3,007 | ||||||||||||||||||
Change in Cash from Discontinued Operations | — | 10,871 | — | — | 10,871 | ||||||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (139,714 | ) | 82,089 | 616,447 | — | 558,822 | |||||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 295,509 | 160,434 | 95,280 | — | 551,223 | ||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 155,795 | $ | 242,523 | $ | 711,727 | $ | — | $ | 1,110,045 | |||||||||||||
(1) | All significant intercompany transactions have been eliminated in consolidation. |
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Guarantor | Non-Guarantor | NRG Energy, Inc. | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | (Note Issuer) | Eliminations(1) | Balance | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||
Revenues from majority-owned operations | $ | 94,455 | $ | 40,741 | $ | 3,353 | $ | (59 | ) | $ | 138,490 | |||||||||||
Operating Costs and Expenses | ||||||||||||||||||||||
Cost of majority-owned operations | 64,519 | 28,734 | 2,347 | (59 | ) | 95,541 | ||||||||||||||||
Depreciation and amortization | 7,118 | 3,931 | 759 | — | 11,808 | |||||||||||||||||
General, administrative and development | 7,165 | 2,803 | 2,550 | — | 12,518 | |||||||||||||||||
Other charges (credits) | ||||||||||||||||||||||
Reorganization items | 269 | — | 2,192 | — | 2,461 | |||||||||||||||||
Total operating costs and expenses | 79,071 | 35,468 | 7,848 | (59 | ) | 122,328 | ||||||||||||||||
Operating Income/(Loss) | 15,384 | 5,273 | (4,495 | ) | — | 16,162 | ||||||||||||||||
Other Income/(Expense) | ||||||||||||||||||||||
Minority interest in earnings of consolidated subsidiaries | — | (134 | ) | — | — | (134 | ) | |||||||||||||||
Equity in earnings of consolidated subsidiaries | 3,266 | 143 | 16,482 | (19,891 | ) | — | ||||||||||||||||
Equity in earnings of unconsolidated affiliates | 11,007 | 1,463 | 1,051 | — | 13,521 | |||||||||||||||||
Other income, net | 43 | (23 | ) | 114 | (37 | ) | 97 | |||||||||||||||
Interest expense | (6,417 | ) | (4,719 | ) | (7,803 | ) | 37 | (18,902 | ) | |||||||||||||
Total other income/(expense) | 7,899 | (3,270 | ) | 9,844 | (19,891 | ) | (5,418 | ) | ||||||||||||||
Income/(Loss) From Continuing Operations Before Income Taxes | 23,283 | 2,003 | 5,349 | (19,891 | ) | 10,744 | ||||||||||||||||
Income Tax Expense/(Benefit) | 3,653 | 1,362 | (5,676 | ) | — | (661 | ) | |||||||||||||||
Income/(Loss) From Continuing Operations | 19,630 | 641 | 11,025 | (19,891 | ) | 11,405 | ||||||||||||||||
Income/(Loss) on Discontinued Operations, net of Income Taxes | (4 | ) | (376 | ) | — | — | (380 | ) | ||||||||||||||
Net Income | $ | 19,626 | $ | 265 | $ | 11,025 | $ | (19,891 | ) | $ | 11,025 | |||||||||||
(1) | All significant intercompany transactions have been eliminated in consolidation. |
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Guarantor | Non-Guarantor | NRG Energy, Inc. | Consolidated | ||||||||||||||||||
Subsidiaries | Subsidiaries | (Note Issuer) | Eliminations(1) | Balance | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Current Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 295,509 | $ | 160,434 | $ | 95,280 | $ | — | $ | 551,223 | |||||||||||
Restricted cash | 4,298 | 111,769 | — | — | 116,067 | ||||||||||||||||
Accounts receivable-trade, net | 120,411 | 68,151 | 13,359 | — | 201,921 | ||||||||||||||||
Xcel Energy settlement receivable | — | — | 640,000 | — | 640,000 | ||||||||||||||||
Current portion of notes receivable and other investments — affiliates | — | — | 31,170 | (30,970 | ) | 200 | |||||||||||||||
Current portion of notes receivable and other investments | — | 64,854 | 287 | — | 65,141 | ||||||||||||||||
Inventory | 164,853 | 28,839 | 1,234 | — | 194,926 | ||||||||||||||||
Derivative instruments valuation | 772 | — | — | — | 772 | ||||||||||||||||
Prepayments and other current assets | 86,656 | 58,175 | 78,263 | (956 | ) | 222,138 | |||||||||||||||
Current deferred income tax | — | 2,998 | — | (1,148 | ) | 1,850 | |||||||||||||||
Current assets — discontinued operations | 15 | 119,586 | — | — | 119,601 | ||||||||||||||||
Total current assets | 672,514 | 614,806 | 859,593 | (33,074 | ) | 2,113,839 | |||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||
In service | 2,288,280 | 1,562,048 | 35,137 | — | 3,885,465 | ||||||||||||||||
Under construction | 20,600 | 118,433 | 138 | — | 139,171 | ||||||||||||||||
Total property, plant and equipment | 2,308,880 | 1,680,481 | 35,275 | — | 4,024,636 | ||||||||||||||||
Less accumulated depreciation | (7,118 | ) | (3,923 | ) | (759 | ) | — | (11,800 | ) | ||||||||||||
Net property, plant and equipment | 2,301,762 | 1,676,558 | 34,516 | — | 4,012,836 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Investment in subsidiaries | 626,979 | — | 4,090,996 | (4,717,975 | ) | — | |||||||||||||||
Equity investments in affiliates | 403,606 | 322,279 | 12,113 | — | 737,998 | ||||||||||||||||
Notes receivable and other investments, less current portion — affiliates | 389,257 | 120,733 | — | (379,838 | ) | 130,152 | |||||||||||||||
Notes receivable and other investments, less current portion | 5,678 | 684,489 | 1,277 | — | 691,444 | ||||||||||||||||
Decommissioning fund investments | 4,809 | — | — | — | 4,809 | ||||||||||||||||
Intangible assets, net | 411,540 | 20,821 | — | — | 432,361 | ||||||||||||||||
Debt issuance costs, net | — | — | 74,337 | — | 74,337 | ||||||||||||||||
Derivative instruments valuation | — | 59,907 | — | — | 59,907 | ||||||||||||||||
Non current deferred income tax | 58,586 | — | — | (58,586 | ) | — | |||||||||||||||
Funded letter of credit | — | — | 250,000 | — | 250,000 | ||||||||||||||||
Other assets | 31,220 | 26,407 | 56,504 | — | 114,131 | ||||||||||||||||
Non-current assets — discontinued operations | — | 623,173 | — | — | 623,173 | ||||||||||||||||
Total other assets | 1,931,675 | 1,857,809 | 4,485,227 | (5,156,399 | ) | 3,118,312 | |||||||||||||||
Total Assets | $ | 4,905,951 | $ | 4,149,173 | $ | 5,379,336 | $ | (5,189,473 | ) | $ | 9,244,987 | ||||||||||
(1) | All significant intercompany transactions have been eliminated in consolidation. |
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Guarantor | Non-Guarantor | NRG Energy, Inc. | Consolidated | ||||||||||||||||||
Subsidiaries | Subsidiaries | (Note Issuer) | Eliminations(1) | Balance | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||
Current portion of long-term debt | $ | 30,121 | $ | 790,078 | $ | 12,000 | $ | (30,970 | ) | $ | 801,229 | ||||||||||
Short-term debt | — | 19,019 | — | — | 19,019 | ||||||||||||||||
Accounts payable — trade | 39,369 | 104,888 | 14,389 | — | 158,646 | ||||||||||||||||
Accounts payable — affiliate | 333,722 | (221,168 | ) | (102,094 | ) | (7,368 | ) | 3,092 | |||||||||||||
Accrued taxes | — | — | (74 | ) | 16,169 | 16,095 | |||||||||||||||
Accrued property, sales and other taxes | 7,211 | 13,156 | 1,934 | — | 22,301 | ||||||||||||||||
Accrued salaries, benefits and related costs | 9,294 | 8,949 | 1,087 | — | 19,330 | ||||||||||||||||
Accrued interest | 2,557 | 2,880 | 4,501 | (956 | ) | 8,982 | |||||||||||||||
Derivative instruments valuation | 429 | — | — | — | 429 | ||||||||||||||||
Creditor pool obligation | — | — | 540,000 | — | 540,000 | ||||||||||||||||
Other bankruptcy settlement | — | 220,000 | — | — | 220,000 | ||||||||||||||||
Current deferred income taxes | 509 | — | — | (509 | ) | — | |||||||||||||||
Other current liabilities | 70,251 | 13,639 | 18,971 | — | 102,861 | ||||||||||||||||
Current liabilities — discontinued operations | 31 | 114,166 | — | — | 114,197 | ||||||||||||||||
Total current liabilities | 493,494 | 1,065,607 | 490,714 | (23,634 | ) | 2,026,181 | |||||||||||||||
Other Liabilities | |||||||||||||||||||||
Long-term debt | 10,999 | 1,333,931 | 2,446,690 | (463,838 | ) | 3,327,782 | |||||||||||||||
Deferred income taxes | — | 152,392 | (22,514 | ) | 19,615 | 149,493 | |||||||||||||||
Postretirement and other benefit obligations | 80,720 | 13,425 | 11,801 | — | 105,946 | ||||||||||||||||
Derivative instruments valuation | — | 153,503 | — | — | 153,503 | ||||||||||||||||
Other long-term obligations | 399,353 | 66,196 | 15,389 | — | 480,938 | ||||||||||||||||
Non-current liabilities — discontinued operations | — | 558,884 | — | — | 558,884 | ||||||||||||||||
Total non-current liabilities | 491,072 | 2,278,331 | 2,451,366 | (444,223 | ) | 4,776,546 | |||||||||||||||
Total liabilities | 984,566 | 3,343,938 | 2,942,080 | (467,857 | ) | 6,802,727 | |||||||||||||||
Minority interest | — | 5,004 | — | — | 5,004 | ||||||||||||||||
Commitments and Contingencies | |||||||||||||||||||||
Stockholders’ Equity | 3,921,385 | 800,231 | 2,437,256 | (4,721,616 | ) | 2,437,256 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 4,905,951 | $ | 4,149,173 | $ | 5,379,336 | $ | (5,189,473 | ) | $ | 9,244,987 | ||||||||||
(1) | All significant intercompany transactions have been eliminated in consolidation. |
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Guarantor | Non-Guarantor | NRG Energy, Inc. | Consolidated | ||||||||||||||||||||
Subsidiaries | Subsidiaries | (Note Issuer) | Eliminations(1) | Balance | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||||||
Net income/(loss) | $ | 19,626 | $ | 265 | $ | 11,025 | $ | (19,891 | ) | $ | 11,025 | ||||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities | |||||||||||||||||||||||
Distributions in excess of (less than) equity earnings of unconsolidated affiliates | 1,764 | (1,894 | ) | (17,532 | ) | 19,891 | 2,229 | ||||||||||||||||
Depreciation and amortization | 8,255 | 4,027 | 759 | — | 13,041 | ||||||||||||||||||
Amortization of deferred financing costs | — | 64 | 453 | — | 517 | ||||||||||||||||||
Amortization of debt discount/(premium) | 182 | 1,504 | 39 | — | 1,725 | ||||||||||||||||||
Deferred income taxes and investment tax credits | (487 | ) | (212 | ) | (4,117 | ) | 1,554 | (3,262 | ) | ||||||||||||||
Current tax expense — non cash contribution from members | 4,125 | (2,901 | ) | — | (1,224 | ) | — | ||||||||||||||||
Unrealized (gains)/losses on derivatives | (126 | ) | 4,960 | (1,060 | ) | — | 3,774 | ||||||||||||||||
Minority interest | 134 | 70 | — | — | 204 | ||||||||||||||||||
Amortization of power contracts and emission credits | (16,401 | ) | 2,970 | — | — | (13,431 | ) | ||||||||||||||||
Cash provided by (used in) changes in certain working capital items, net of effects from acquisitions and dispositions | |||||||||||||||||||||||
Accounts receivable, net | 12,769 | 5,040 | 221 | — | 18,030 | ||||||||||||||||||
Inventory | 3,073 | 8,041 | (60 | ) | — | 11,054 | |||||||||||||||||
Prepayments and other current assets | 1,783 | 1,755 | (13,079 | ) | 37 | (9,504 | ) | ||||||||||||||||
Accounts payable | (31,810 | ) | 8,672 | (17,789 | ) | — | (40,927 | ) | |||||||||||||||
Accounts payable-affiliates | (1,697 | ) | (165 | ) | 2,694 | — | 832 | ||||||||||||||||
Accrued income taxes | — | — | (877 | ) | (330 | ) | (1,207 | ) | |||||||||||||||
Accrued property and sales taxes | (5,258 | ) | 622 | 46 | — | (4,590 | ) | ||||||||||||||||
Accrued salaries, benefits, and related costs | 2,135 | 3,511 | (2,496 | ) | — | 3,150 | |||||||||||||||||
Accrued interest | (42,350 | ) | (26,140 | ) | 4,501 | (37 | ) | (64,026 | ) | ||||||||||||||
Other current liabilities | (10,814 | ) | 5,635 | (505,688 | ) | — | (510,867 | ) | |||||||||||||||
Other assets and liabilities | (162 | ) | (6,911 | ) | 431 | — | (6,642 | ) | |||||||||||||||
Net Cash Provided (Used) by Operating Activities | (55,259 | ) | 8,913 | (542,529 | ) | — | (588,875 | ) | |||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||||||
Investments in subsidiaries | — | — | (1,530,536 | ) | 1,530,536 | — | |||||||||||||||||
Decrease/(increase) in restricted cash | 343,725 | 31,547 | — | — | 375,272 | ||||||||||||||||||
Decrease/(increase) in notes receivable | 1,501 | (11,118 | ) | (1,170 | ) | 11,969 | 1,182 | ||||||||||||||||
Capital expenditures | (2,977 | ) | (7,583 | ) | — | — | (10,560 | ) | |||||||||||||||
Investments in projects | (2,522 | ) | — | — | — | (2,522 | ) | ||||||||||||||||
Net Cash Provided (Used) by Investing Activities | 339,727 | 12,846 | (1,531,706 | ) | 1,542,505 | 363,372 | |||||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||||||
Capital contributions from parent | 1,530,536 | — | — | (1,530,536 | ) | — | |||||||||||||||||
Proceeds from issuance of long-term debt | — | — | 2,450,000 | — | 2,450,000 | ||||||||||||||||||
Deferred debt issuance costs | — | (5 | ) | (74,790 | ) | — | (74,795 | ) | |||||||||||||||
Funded letter of credit | — | — | (250,000 | ) | — | (250,000 | ) | ||||||||||||||||
Principal payments on long-term debt | (1,713,871 | ) | (6,092 | ) | — | (11,969 | ) | (1,731,932 | ) | ||||||||||||||
Net Cash Provided (Used) by Financing Activities | (183,335 | ) | (6,097 | ) | 2,125,210 | (1,542,505 | ) | 393,273 | |||||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | (13,562 | ) | — | — | (13,562 | ) | ||||||||||||||||
Change in Cash from Discontinued Operations | — | 1,033 | — | — | 1,033 | ||||||||||||||||||
Net Increase in Cash and Cash Equivalents | 101,133 | 3,133 | 50,975 | — | 155,241 | ||||||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 194,376 | 157,301 | 44,305 | — | 395,982 | ||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 295,509 | $ | 160,434 | $ | 95,280 | $ | — | $ | 551,223 | |||||||||||||
(1) | All significant intercompany transactions have been eliminated in consolidation. |
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Guarantor | Non-Guarantor | NRG Energy, Inc. | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | (Note Issuer) | Eliminations(1) | Balance | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||
Revenues from majority-owned operations | $ | 1,230,291 | $ | 522,467 | $ | 47,054 | $ | (1,425 | ) | $ | 1,798,387 | |||||||||||
Operating Costs and Expenses | ||||||||||||||||||||||
Cost of majority-owned operations | 991,237 | 332,858 | 33,239 | (1,425 | ) | 1,355,909 | ||||||||||||||||
Depreciation and amortization | 130,491 | 74,845 | 13,507 | — | 218,843 | |||||||||||||||||
General, administrative and development | 65,751 | 28,815 | 75,764 | — | 170,330 | |||||||||||||||||
Other charges (credits) | ||||||||||||||||||||||
Reorganization items | 30,582 | 16,644 | 150,599 | — | 197,825 | |||||||||||||||||
Restructuring and impairment charges | 247,560 | (121,604 | ) | 111,619 | — | 237,575 | ||||||||||||||||
Fresh start reporting adjustments | — | — | (6,570,912 | ) | 2,452,276 | (4,118,636 | ) | |||||||||||||||
Fresh start reporting adjustments — subsidiaries | — | — | 2,452,276 | (2,452,276 | ) | — | ||||||||||||||||
Legal settlement | (9,369 | ) | 4,000 | 468,000 | — | 462,631 | ||||||||||||||||
Total operating costs and expenses | 1,456,252 | 335,558 | (3,265,908 | ) | (1,425 | ) | (1,475,523 | ) | ||||||||||||||
Operating Income/(Loss) | (225,961 | ) | 186,909 | 3,312,962 | — | 3,273,910 | ||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||
Equity in earnings of consolidated subsidiaries | 104,905 | — | (18,356 | ) | (86,549 | ) | — | |||||||||||||||
Equity in earnings of unconsolidated affiliates | 107,254 | 64,850 | (1,203 | ) | — | 170,901 | ||||||||||||||||
Write downs and losses on sales of equity method investments | (16,285 | ) | (125,945 | ) | (4,894 | ) | — | (147,124 | ) | |||||||||||||
Other income, net | 5,087 | 30,470 | (15,429 | ) | (919 | ) | 19,209 | |||||||||||||||
Interest expense | (135,837 | ) | (83,135 | ) | (111,836 | ) | 919 | (329,889 | ) | |||||||||||||
Total other income/(expense) | 65,124 | (113,760 | ) | (151,718 | ) | (86,549 | ) | (286,903 | ) | |||||||||||||
Income/(Loss) From Continuing Operations Before Income Taxes | (160,837 | ) | 73,149 | 3,161,244 | (86,549 | ) | 2,987,007 | |||||||||||||||
Income Tax Expense/(Benefit) | (107,292 | ) | (10,791 | ) | 156,012 | — | 37,929 | |||||||||||||||
Income/(Loss) From Continuing Operations | (53,545 | ) | 83,940 | 3,005,232 | (86,549 | ) | 2,949,078 | |||||||||||||||
Income/(Loss) on Discontinued Operations, net of Income Taxes | (25,920 | ) | 82,074 | (238,787 | ) | — | (182,633 | ) | ||||||||||||||
Net Income/(Loss) | $ | (79,465 | ) | $ | 166,014 | $ | 2,766,445 | $ | (86,549 | ) | $ | 2,766,445 | ||||||||||
(1) | All significant intercompany transactions have been eliminated in consolidation. |
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NRG Energy, | |||||||||||||||||||||||
Guarantor | Non-Guarantor | Inc. | Consolidated | ||||||||||||||||||||
Subsidiaries | Subsidiaries | (Note Issuer) | Eliminations(1) | Balance | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||||||
Net income/(loss) | $ | (79,465 | ) | $ | 166,014 | $ | 2,766,445 | $ | (86,549 | ) | $ | 2,766,445 | |||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities | |||||||||||||||||||||||
Distributions in excess of (less than) equity earnings of unconsolidated affiliates | (95,360 | ) | (53,400 | ) | 20,739 | 86,549 | (41,472 | ) | |||||||||||||||
Depreciation and amortization | 131,399 | 111,794 | 13,507 | — | 256,700 | ||||||||||||||||||
Amortization of deferred financing costs | 6,676 | 7,016 | 3,948 | — | 17,640 | ||||||||||||||||||
Write downs and losses on sales of equity method investments | 16,284 | 130,654 | — | — | 146,938 | ||||||||||||||||||
Deferred income taxes and investment tax credits | (123,237 | ) | (36,015 | ) | 181,544 | (24,185 | ) | (1,893 | ) | ||||||||||||||
Current tax expense — non cash contribution from members | (17,149 | ) | (54,148 | ) | — | 71,297 | — | ||||||||||||||||
Unrealized (gains)/losses on derivatives | (12,246 | ) | (75,310 | ) | 29,540 | 23,400 | (34,616 | ) | |||||||||||||||
Minority interest | — | 2,177 | — | — | 2,177 | ||||||||||||||||||
Restructuring and impairment charges | 273,138 | 93,516 | 41,723 | — | 408,377 | ||||||||||||||||||
Fresh start reporting adjustments | — | — | (3,895,541 | ) | — | (3,895,541 | ) | ||||||||||||||||
Gain on sale of discontinued operations | 3,180 | (198,666 | ) | 9,155 | — | (186,331 | ) | ||||||||||||||||
Cash provided by (used in) changes in certain working capital items, net of effects from acquisitions and dispositions | 59,168 | (5,552 | ) | (25,355 | ) | — | 28,261 | ||||||||||||||||
Accounts receivable, net | |||||||||||||||||||||||
Inventory | 25,713 | (14,512 | ) | 2,927 | — | 14,128 | |||||||||||||||||
Prepayments and other current assets | (30,388 | ) | 8,599 | (15,942 | ) | 919 | (36,812 | ) | |||||||||||||||
Accounts payable | 116,452 | (57,004 | ) | 634,215 | — | 693,663 | |||||||||||||||||
Accounts payable-affiliates | 189,204 | (52,324 | ) | (20,346 | ) | (161,551 | ) | (45,017 | ) | ||||||||||||||
Accrued income taxes | — | — | 68,356 | (47,112 | ) | 21,244 | |||||||||||||||||
Accrued property and sales taxes | (2,015 | ) | (625 | ) | (519 | ) | — | (3,159 | ) | ||||||||||||||
Accrued salaries, benefits, and related costs | (41,037 | ) | 92,331 | (10,604 | ) | — | 40,690 | ||||||||||||||||
Accrued interest | (14,865 | ) | 54,773 | 119,592 | (919 | ) | 158,581 | ||||||||||||||||
Other current liabilities | 29,631 | 46,438 | (98,866 | ) | — | (22,797 | ) | ||||||||||||||||
Other assets and liabilities | 15,940 | (68,051 | ) | 3,414 | — | (48,697 | ) | ||||||||||||||||
Net Cash Provided (Used) by Operating Activities | 451,023 | 97,705 | (172,068 | ) | (138,151 | ) | 238,509 | ||||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||||||
Investment in subsidiaries | — | — | 129,351 | (129,351 | ) | — | |||||||||||||||||
Proceeds from sale of discontinued operations | — | 18,612 | — | — | 18,612 | ||||||||||||||||||
Proceeds from sale of investments | — | 107,174 | — | — | 107,174 | ||||||||||||||||||
Proceeds from sale of turbines | — | — | 70,717 | — | 70,717 | ||||||||||||||||||
(Increase) in trust funds | (13,971 | ) | — | — | — | (13,971 | ) | ||||||||||||||||
Decrease/(increase) in restricted cash | (197,692 | ) | (54,803 | ) | — | — | (252,495 | ) | |||||||||||||||
Decrease/(increase) in notes receivable | 98,064 | 42,493 | 285 | (142,495 | ) | (1,653 | ) | ||||||||||||||||
Capital expenditures | (55,833 | ) | (6,450 | ) | (51,219 | ) | — | (113,502 | ) | ||||||||||||||
Investments in projects | (3,672 | ) | (5,259 | ) | 8,370 | — | (561 | ) | |||||||||||||||
Net Cash Provided (Used) by Investing Activities | (173,104 | ) | 101,767 | 157,504 | (271,846 | ) | (185,679 | ) | |||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||||||
Capital contributions from parent | (135,251 | ) | (132,251 | ) | — | 267,502 | — | ||||||||||||||||
Proceeds from issuance of long-term debt | — | 39,988 | — | — | 39,988 | ||||||||||||||||||
Deferred debt issuance costs | (7,640 | ) | (447 | ) | (10,453 | ) | — | (18,540 | ) | ||||||||||||||
Principal payments on long-term debt | (4,055 | ) | (189,832 | ) | — | 142,495 | (51,392 | ) | |||||||||||||||
Net Cash Provided (Used) by Financing Activities | (146,946 | ) | (282,542 | ) | (10,453 | ) | 409,997 | (29,944 | ) | ||||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | (22,276 | ) | — | — | (22,276 | ) | ||||||||||||||||
Change in Cash from Discontinued Operations | — | 34,512 | — | — | 34,512 | ||||||||||||||||||
Net Increase in Cash and Cash Equivalents | 130,973 | (70,834 | ) | (25,017 | ) | — | 35,122 | ||||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 63,403 | 228,135 | 69,322 | — | 360,860 | ||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 194,376 | $ | 157,301 | $ | 44,305 | $ | — | $ | 395,982 | |||||||||||||
(1) | All significant intercompany transactions have been eliminated in consolidation. |
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Guarantor | Non-Guarantor | NRG Energy, Inc. | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | (Note Issuer) | Eliminations(1) | Balance | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||
Revenues from majority-owned operations | $ | 1,376,586 | $ | 510,434 | $ | 55,492 | $ | (4,219 | ) | $ | 1,938,293 | |||||||||||
Operating Costs and Expenses | ||||||||||||||||||||||
Cost of majority-owned operations | 918,941 | 345,133 | 72,750 | (4,378 | ) | 1,332,446 | ||||||||||||||||
Depreciation and amortization | 126,258 | 69,512 | 11,257 | — | 207,027 | |||||||||||||||||
General, administrative and development | 49,759 | 53,252 | 115,682 | 159 | 218,852 | |||||||||||||||||
Other charges (credits) | ||||||||||||||||||||||
Restructuring and impairment charges | 108,236 | 2,091,845 | 362,979 | — | 2,563,060 | |||||||||||||||||
Total operating costs and expenses | 1,203,194 | 2,559,742 | 562,668 | (4,219 | ) | 4,321,385 | ||||||||||||||||
Operating Income/(Loss) | 173,392 | (2,049,308 | ) | (507,176 | ) | — | (2,383,092 | ) | ||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||
Equity in earnings of consolidated subsidiaries | (690,627 | ) | (454 | ) | (2,944,968 | ) | 3,636,049 | — | ||||||||||||||
Equity in earnings of unconsolidated affiliates | 17,786 | 50,398 | 812 | — | 68,996 | |||||||||||||||||
Write downs and losses on sales of equity method investments | (16,255 | ) | (182,035 | ) | (2,182 | ) | — | (200,472 | ) | |||||||||||||
Other income, net | 9,648 | 9,221 | (4,127 | ) | (3,311 | ) | 11,431 | |||||||||||||||
Interest expense | (142,775 | ) | (115,741 | ) | (196,977 | ) | 3,311 | (452,182 | ) | |||||||||||||
Total other expense | (822,223 | ) | (238,611 | ) | (3,147,442 | ) | 3,636,049 | (572,227 | ) | |||||||||||||
Income/(Loss) From Continuing Operations Before Income Taxes | (648,831 | ) | (2,287,919 | ) | (3,654,618 | ) | 3,636,049 | (2,955,319 | ) | |||||||||||||
Income Tax Expense/(Benefit) | (1,905 | ) | 25,374 | (190,336 | ) | — | (166,867 | ) | ||||||||||||||
Income/(Loss) From Continuing Operations | (646,926 | ) | (2,313,293 | ) | (3,464,282 | ) | 3,636,049 | (2,788,452 | ) | |||||||||||||
Income/(Loss) on Discontinued Operations, net of Income Taxes | (25,328 | ) | (650,502 | ) | — | — | (675,830 | ) | ||||||||||||||
Net Income/(Loss) | $ | (672,254 | ) | $ | (2,963,795 | ) | $ | (3,464,282 | ) | $ | 3,636,049 | $ | (3,464,282 | ) | ||||||||
(1) | All significant intercompany transactions have been eliminated in consolidation. |
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Guarantor | Non-Guarantor | NRG Energy, Inc. | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | (Note Issuer) | Eliminations(1) | Balance | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Cash Flows from Operating Activities | ||||||||||||||||||||||
Net income/(loss) | $ | (672,254 | ) | $ | (2,963,795 | ) | $ | (3,464,282 | ) | $ | 3,636,049 | $ | (3,464,282 | ) | ||||||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities | ||||||||||||||||||||||
Distributions in excess of (less than) equity earnings of unconsolidated affiliates | 689,451 | (19,810 | ) | 2,944,156 | (3,636,049 | ) | (22,252 | ) | ||||||||||||||
Depreciation and amortization | 131,876 | 143,491 | 11,256 | — | 286,623 | |||||||||||||||||
Amortization of deferred financing costs | 3,450 | 13,046 | 11,871 | — | 28,367 | |||||||||||||||||
Write downs and losses on sales of equity method investments | 11,975 | 182,035 | 2,182 | — | 196,192 | |||||||||||||||||
Deferred income taxes and investment tax credits | (44,442 | ) | (9,847 | ) | (130,273 | ) | (45,572 | ) | (230,134 | ) | ||||||||||||
Current tax expense — non cash contribution from members | 3,874 | (27,477 | ) | — | 23,603 | — | ||||||||||||||||
Unrealized (gains)/losses on derivatives | (18,439 | ) | 47,422 | (31,726 | ) | — | (2,743 | ) | ||||||||||||||
Minority interest | — | (19,325 | ) | — | — | (19,325 | ) | |||||||||||||||
Amortization of out of market power contracts | (89,415 | ) | — | — | — | (89,415 | ) | |||||||||||||||
Restructuring and impairment charges | 109,207 | 2,760,390 | 274,912 | — | 3,144,509 | |||||||||||||||||
Gain on sale of discontinued operations | — | (2,814 | ) | — | — | (2,814 | ) | |||||||||||||||
Cash provided by (used in) changes in certain working capital items, net of effects from acquisitions and dispositions | ||||||||||||||||||||||
Accounts receivable, net | (72,106 | ) | 29,883 | 26,736 | — | (15,487 | ) | |||||||||||||||
Accounts receivable-affiliates | 1,100 | 1,171 | — | — | 2,271 | |||||||||||||||||
Inventory | 49,795 | (7,185 | ) | (14 | ) | — | 42,596 | |||||||||||||||
Prepayments and other current assets | (44,999 | ) | 13,412 | (26,781 | ) | — | (58,368 | ) | ||||||||||||||
Accounts payable | (38,789 | ) | 180,682 | 137,007 | — | 278,900 | ||||||||||||||||
Accounts payable-affiliates | 358,032 | 417,072 | (728,193 | ) | 138 | 47,049 | ||||||||||||||||
Accrued income taxes | — | — | 22,168 | 21,969 | 44,137 | |||||||||||||||||
Accrued property and sales taxes | (7,678 | ) | 34,634 | 525 | — | 27,481 | ||||||||||||||||
Accrued salaries, benefits, and related costs | (8,253 | ) | 2,708 | (19,367 | ) | — | (24,912 | ) | ||||||||||||||
Accrued interest | 33,985 | 40,488 | 128,761 | — | 203,234 | |||||||||||||||||
Other current liabilities | 7,516 | (8,560 | ) | 48,736 | — | 47,692 | ||||||||||||||||
Other assets and liabilities | (4,428 | ) | 10,818 | 4,333 | — | 10,723 | ||||||||||||||||
Net Cash Provided (Used) by Operating Activities | 399,458 | 818,439 | (787,993 | ) | 138 | 430,042 | ||||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||||
Proceeds from sale of discontinued operations | — | 160,791 | — | — | 160,791 | |||||||||||||||||
Proceeds from sale of investments | — | 68,517 | — | — | 68,517 | |||||||||||||||||
Decrease/(increase) in restricted cash | (138,798 | ) | (109,004 | ) | 50,000 | — | (197,802 | ) | ||||||||||||||
Decrease/(increase) in notes receivable | (28,247 | ) | (230,733 | ) | (29,728 | ) | 79,464 | (209,244 | ) | |||||||||||||
Capital expenditures | (92,003 | ) | (1,349,163 | ) | 1,433 | — | (1,439,733 | ) | ||||||||||||||
Investments in projects | (36,047 | ) | (25,896 | ) | (2,053 | ) | — | (63,996 | ) | |||||||||||||
Investment in subsidiaries | (27,967 | ) | — | (145,732 | ) | 173,699 | — | |||||||||||||||
Distributions from subsidiaries | — | — | 216,751 | (216,751 | ) | — | ||||||||||||||||
Net Cash Provided (Used) by Investing Activities | (323,062 | ) | (1,485,488 | ) | 90,671 | 36,412 | (1,681,467 | ) | ||||||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||||
Proceeds from issuance of stock | — | — | 4,065 | — | 4,065 | |||||||||||||||||
Capital contributions from parent | 81,427 | 92,487 | 500,000 | (173,914 | ) | 500,000 | ||||||||||||||||
Distributions to parent | — | (216,751 | ) | — | 216,751 | — | ||||||||||||||||
Net borrowings under line of credit agreement | (40,000 | ) | — | 830,000 | — | 790,000 | ||||||||||||||||
Proceeds from issuance of long-term debt | 37,869 | 963,000 | 165,288 | (79,387 | ) | 1,086,770 | ||||||||||||||||
Principal payments on long-term debt | (99,331 | ) | (92,174 | ) | (740,000 | ) | — | (931,505 | ) | |||||||||||||
Net Cash Provided (Used) by Financing Activities | (20,035 | ) | 746,562 | 759,353 | (36,550 | ) | 1,449,330 | |||||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (1,092 | ) | 20,426 | 5,616 | — | 24,950 | ||||||||||||||||
Change in Cash from Discontinued Operations | — | 51,267 | — | — | 51,267 | |||||||||||||||||
Net Increase in Cash and Cash Equivalents | 55,269 | 151,206 | 67,647 | — | 274,122 | |||||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 8,134 | 76,929 | 1,675 | — | 86,738 | |||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 63,403 | $ | 228,135 | $ | 69,322 | $ | — | $ | 360,860 | ||||||||||||
(1) | All significant intercompany transactions have been eliminated in consolidation. |
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/s/PricewaterhouseCoopers LLP | |
PricewaterhouseCoopers LLP |
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/s/PricewaterhouseCoopers LLP | |
PricewaterhouseCoopers LLP |
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Column A | Column B | Column C | Column D | Column E | ||||||||||||||||
Additions | ||||||||||||||||||||
Balance at | Charged to | Charged to | ||||||||||||||||||
Beginning of | Costs and | Other | Balance at | |||||||||||||||||
Description | Period | Expenses | Accounts | Deductions | End of Period | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Allowance for doubtful accounts, deducted from accounts receivable in the balance sheet: | ||||||||||||||||||||
Reorganized NRG | ||||||||||||||||||||
Year ended December 31, 2004 | $ | — | $ | 856 | $ | 458 | $ | (303 | ) | $ | 1,011 | |||||||||
December 6 - December 31, 2003 | $ | — | $ | — — | $ | — | $ | — | $ | — | ||||||||||
Predecessor Company | ||||||||||||||||||||
January 1 - December 5, 2003 | $ | 18,163 | $ | 15,576 | $ | — | $ | (33,739 | ) | $ | — | * | ||||||||
Year ended December 31, 2002 | $ | 13,634 | $ | 4,529 | $ | — | $ | — | $ | 18,163 | ||||||||||
Income tax valuation allowance, deducted from deferred tax assets in the balance sheet: | ||||||||||||||||||||
Reorganized NRG | ||||||||||||||||||||
Year ended December 31, 2004 | $ | 1,241,101 | $ | — | $ | (276,969 | ) | $ | (256,261 | ) | $ | 707,871 | ||||||||
December 6 - December 31, 2003 | $ | 1,241,616 | $ | (515 | ) | $ | — | $ | — | $ | 1,241,101 | |||||||||
Predecessor Company | ||||||||||||||||||||
January 1 - December 5, 2003 | $ | 1,170,301 | $ | 71,315 | $ | — | $ | — | $ | 1,241,616 | * | |||||||||
Year ended December 31, 2002 | $ | 71,446 | $ | 1,006,540 | $ | 92,315 | $ | — | $ | 1,170,301 |
* | December 6, 2003 — Fresh Start Balance |
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NRG Energy, Inc. | |
(Registrant) | |
/s/David W. Crane | |
David W. Crane, | |
Chief Executive Officer | |
(Principal Executive Officer) | |
/s/Robert C. Flexon | |
Robert C. Flexon, | |
Chief Financial Officer | |
(Principal Financial Officer) | |
/s/James J. Ingoldsby | |
James J. Ingoldsby, | |
Controller | |
(Principal Accounting Officer) |
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Signature | Title | Date | ||||
/s/David W. Crane | President and Chief Executive Officer | March 29, 2005 | ||||
/s/Howard Cosgrove | Chairman of the Board | March 29, 2005 | ||||
/s/John F. Chlebowski | Director | March 29, 2005 | ||||
/s/Lawrence Coben | Director | March 29, 2005 | ||||
/s/Stephen Cropper | Director | March 29, 2005 | ||||
/s/Herbert Tate | Director | March 29, 2005 | ||||
/s/Thomas Weidemeyer | Director | March 29, 2005 | ||||
/s/Walter Young | Director | March 29, 2005 |
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(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/David W. Crane | |
David W. Crane | |
Chief Executive Officer | |
(Principal Executive Officer) |
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Table of Contents
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/Robert C. Flexon | |
Robert C. Flexon | |
Chief Financial Officer | |
(Principal Financial Officer) |
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Table of Contents
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/James J. Ingoldsby | |
James J. Ingoldsby | |
Controller | |
(Principal Accounting Officer) |
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Table of Contents
(1) The Form 10-K fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |
(2) The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Form 10-K. |
/s/David W. Crane | |
David W. Crane, | |
Chief Executive Officer | |
(Principal Executive Officer) | |
/s/Robert C. Flexon | |
Robert C. Flexon | |
Chief Financial Officer | |
(Principal Financial Officer) | |
/s/James J. Ingoldsby | |
James J. Ingoldsby | |
Controller | |
(Principal Accounting Officer) |
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Table of Contents
2 | .1 | Third Amended Joint Plan of Reorganization of NRG Energy, Inc., NRG Power Marketing, Inc., NRG Capital LLC, NRG Finance Company I LLC, and NRGenerating Holdings (No. 23) B.V.(7) | ||
2 | .2 | First Amended Joint Plan of Reorganization of NRG Northeast Generating LLC (and certain of its subsidiaries), NRG South Central Generating (and certain of its subsidiaries) and Berrians I Gas Turbine Power LLC.(7) | ||
3 | .1 | Amended and Restated Certificate of Incorporation.(2) | ||
3 | .2 | Amended and Restated By-Laws.(8) | ||
3 | .3 | Certificate of Designation of 4.0% Convertible Perpetual Preferred Stock, as filed with the Secretary of State of the State of Delaware on December 20, 2004.(10) | ||
4 | .1 | Indenture dated as of December 23, 2003 by and among NRG Energy, Inc., certain subsidiaries of NRG Energy, Inc. and Law Debenture Trust Company of New York, as Trustee, re: NRG Energy, Inc.’s 8% Second Priority Senior Secured Notes due 2013.(2) | ||
4 | .2 | Purchase Agreement dated as of December 17, 2003 by and among NRG Energy, Inc., as Issuer, certain subsidiaries of NRG Energy, Inc., as guarantors, and Lehman Brothers, Inc., Credit Suisse First Boston LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities, Inc., as Initial Purchasers, re: $1,250,000,000 8% Second Priority Senior Secured Notes due 2013.(2) | ||
4 | .3 | Registration Rights Agreement dated as of December 23, 2003 by and among NRG Energy, Inc., as Issuer, certain subsidiaries of NRG Energy, Inc., as Guarantors, and Lehman Brothers Inc., Credit Suisse First Boston LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities, Inc., as Initial Purchasers.(2) | ||
4 | .4 | Purchase Agreement dated as of January 21, 20032004 by and among NRG Energy, as Issuer, certain subsidiaries of NRG Energy, Inc., as Guarantors, and Credit Suisse First Boston LLC and Lehman Brothers, Inc., as Initial Purchasers, re: $475,000,000 8% Second Priority Senior Secured Notes due 2013.(2) | ||
4 | .5 | Registration Rights Agreement dated as of January 28, 2004 by and among NRG Energy, Inc., as Issuer, certain subsidiaries of NRG Energy, Inc., as Guarantors, and Credit Suisse First Boston LLC and Lehman Brothers, Inc., as Initial Purchasers.(2) | ||
4 | .6 | Amended and Restated Common Agreement among XL Capital Assurance Inc., Goldman Sachs Mitsui Marine Derivative Products, L.P., Law Debenture Trust Company of New York, as Trustee, The Bank of New York, as Collateral Agent, NRG Peaker Finance Company LLC and each Project Company Party thereto dated as of January 6, 2004, together with Annex A to the Common Agreement.(2) | ||
4 | .7 | Amended and Restated Security Deposit Agreement among NRG Peaker Finance Company, LLC and each Project Company party thereto, and the Bank of New York, as Collateral Agent and Depositary Agent, dated as of January 6, 2004.(2) | ||
4 | .8 | NRG Parent Agreement by NRG Energy, Inc. in favor of the Bank of New York, as Collateral Agent, dated as of January 6, 2004.(2) | ||
4 | .9 | Indenture dated June 18, 2002, between NRG Peaker Finance Company LLC, as Issuer, Bayou Cove Peaking Power LLC, Big Cajun I Peaking Power LLC, NRG Rockford LLC, NRG Rockford II LLC and Sterlington Power LLC, as Guarantors, XL Capital Assurance Inc., as Insurer, and Law Debenture Trust Company, as Successor Trustee to the Bank of New York.(4) | ||
4 | .10 | Registration Rights Agreement, dated December 21, 2004, by and among NRG Energy, Inc., Citigroup Global Markets Inc. and Deutsche Bank Securities Inc.(9) | ||
4 | .11 | Registration Rights Agreement, dated December 5, 2003, among NRG Energy, Inc. and the holders of NRG Energy, Inc. common stock named therein.(3) | ||
10 | .1* | Employment Agreement dated November 10, 2003 between NRG Energy, Inc. and David Crane.(2) | ||
10 | .2 | Note Agreement, dated August 20, 1993, between NRG Energy, Inc., Energy Center, Inc. and each of the purchasers named therein.(5) | ||
10 | .3 | Master Shelf and Revolving Credit Agreement, dated August 20, 1993, between NRG Energy, Inc., Energy Center, Inc., The Prudential Insurance Registrants of America and each Prudential Affiliate, which becomes party thereto.(5) |
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10 | .4 | Asset Sales Agreement, dated December 23, 1998, between NRG Energy, Inc., and Niagara Mohawk Power Corporation.(6) | ||
10 | .5 | Generating Plant and Gas Turbine Asset Purchase and Sale Agreement for the Arthur Kill generating plants and Astoria gas turbines, dated January 27, 1999, between NRG Energy and Consolidated Edison Company of New York, Inc.(6) | ||
10 | .6 | Amendment to the Asset Sales Agreement, dated June 11, 1999, between NRG Energy, Inc., and Niagara Mohawk Power Corporation.(6) | ||
10 | .7* | Key Executive Retention, Restructuring Bonus and Severance Agreement between NRG Energy, Inc. and Scott J. Davido dated July 1, 2003.(2) | ||
10 | .8* | Severance Agreement between NRG Energy, Inc. and Ershel Redd Jr. dated January 30, 2003.(4) | ||
10 | .9* | Severance Agreement between NRG Energy, Inc. and William Pieper dated March 1, 2003.(2) | ||
10 | .10* | Severance Agreement between NRG Energy, Inc. and George Schaefer dated December 18, 2002.(4) | ||
10 | .11* | Severance Agreement between NRG Energy, Inc. and John P. Brewster dated July 23, 2003.(2) | ||
10 | .12 | Stock Purchase Agreement dated December 13, 2004, by and among NRG Energy, Inc. and MatlinPatterson Global Advisers LLC, MatlinPatterson Global Opportunities Partners, L.P. and MatlinPatterson Global Opportunities Partners (Bermuda) L.P.(11) | ||
10 | .13* | NEO 2004 AIP Payout and 2005 Base Salary Table.(8) | ||
10 | .14* | Form of NRG Energy Inc. Long-Term Incentive Plan Deferred Stock Unit Agreement for Officers and Key Management.(1) | ||
10 | .15* | Form of NRG Energy Inc. Long-Term Incentive Plan Deferred Stock Unit Agreement for Directors.(1) | ||
10 | .16* | NRG Energy, Inc. Long-Term Incentive Plan.(15) | ||
10 | .17* | Form of NRG Energy, Inc. Long-Term Incentive Plan Non-Qualified Stock Option Agreement.(12) | ||
10 | .18* | Form of NRG Energy, Inc. Long-Term Incentive Plan Restricted Stock Unit Agreement.(12) | ||
10 | .19* | Annual Incentive Plan for Designated Corporate Officers.(13) | ||
10 | .20* | Letter Agreement dated March 5, 2004 between NRG Energy and Scott J. Davido.(14) | ||
10 | .21* | Letter Agreement dated March 5, 2004 between NRG Energy and Ershel C. Redd Jr.(14) | ||
10 | .22* | Letter Agreement dated March 5, 2004 between NRG Energy and John P. Brewster.(14) | ||
10 | .23* | Letter Agreement dated March 5, 2004 between NRG Energy and Timothy W. O’Brien.(14) | ||
10 | .24* | Letter Agreement dated February 19, 2004 between NRG Energy and Robert C. Flexon.(14) | ||
10 | .25 | Credit Agreement dated as of December 23, 2003, as amended and restated as of December 24, 2004, among NRG Energy, Inc., NRG Power Marketing, Inc., the Lenders party hereto, Credit Suisse First Boston, as Administrative Agent, Credit Suisse First Boston and Goldman Sachs Credit Partners L.P., as Joint Lead Book Runners, Joint Lead Arrangers and Co-Documentation Agents, and Goldman Sachs Credit Partners L.P., as Syndication Agent.(1) | ||
10 | .26 | Guarantee and Collateral Agreement dated as of December 23, 2003, as amended and restated as of December 24, 2004, made by NRG Energy, Inc., NRG Power Marketing, Inc. and certain of the subsidiaries of NRG Energy, Inc. in favor of Deutsche Bank Trust Company Americas, as Priority Collateral Trustee, Parity Collateral Trustee and Account Collateral Trustee, Credit Suisse First Boston, as Administrative Agent, and Law Debenture Trust Company of New York, as Trustee.(1) | ||
10 | .27 | Collateral Trust Agreement dated as of December 23, 2003, as amended and restated as of December 24, 2004, among NRG Energy, Inc., NRG Power Marketing, Inc., the Guarantors from time to time party hereto, Credit Suisse First Boston, as Administrative Agent, Law Debenture Trust Company of New York, as Trustee, and Deutsche Bank Trust Company Americas, as Priority Collateral Trustee, Parity Collateral Trustee and Account Collateral Trustee.(1) | ||
10 | .28 | Railroad Car Full Service Master Leasing Agreement, dated as of February 18, 2005, between General Electric Railcar Services Corporation and NRG Power Marketing Inc.(1) | ||
10 | .29 | Commitment Letter, dated February 18, 2005, between General Electric Railcar Services Corporation and NRG Power Marketing Inc.(1) | ||
10 | .30 | Summary of Director Compensation.(1) | ||
21 | Subsidiaries of NRG Energy. Inc.(1) | |||
23 | .1 | Consent of KPMG LLP.(1) |
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23 | .2 | Consent of PricewaterhouseCoopers LLP.(1) | ||
23 | .3 | Consent of PricewaterhouseCoopers LLP. (with respect to West Coast Power LLC)(1) | ||
31 | .1 | Rule 13a-14(a)/15d-14(a) certification of David W. Crane.(1) | ||
31 | .2 | Rule 13a-14(a)/15d-14(a) certification of Robert C. Flexon.(1) | ||
31 | .3 | Rule 13a-14(a)/15d-14(a) certification of James J. Ingoldsby.(1) | ||
32 | Section 1350 Certification.(1) | |||
99 | .1 | Financial Statements of West Coast Power LLC.(1) |
* | Exhibit relates to compensation arrangements. |
(1) | Filed herewith. | |
(2) | Incorporated herein by reference to NRG Energy, Inc.’s annual report on Form 10-K filed on March 16, 2004. | |
(3) | Incorporated herein by reference to NRG Energy Inc.’s Amendment No. 2 to its annual report on Form 10-K filed on November 3, 2004. | |
(4) | Incorporated herein by reference to NRG Energy, Inc.’s annual report on Form 10-K filed on March 31, 2003. | |
(5) | Incorporated herein by reference to NRG Energy’s Registration Statement on Form S-1, as amended, Registration No. 333-33397. | |
(6) | Incorporated herein by reference to NRG Energy, Inc.’s quarterly report on Form 10-Q for the quarter ended June 30, 1999. | |
(7) | Incorporated herein by reference to NRG Energy, Inc.’s current report on Form 8-K filed on November 19, 2003. | |
(8) | Incorporated herein by reference to NRG Energy, Inc.’s current report on Form 8-K filed on March 3, 2005. | |
(9) | Incorporated herein by reference to NRG Energy, Inc.’s current report on Form 8-K filed on December 27, 2004. |
(10) | Incorporated herein by reference to NRG Energy, Inc.’s current report on Form 8-K filed on December 27, 2004. |
(11) | Incorporated herein by reference to NRG Energy, Inc.’s current report on Form 8-K/ A filed on December 14, 2004. |
(12) | Incorporated herein by reference to NRG Energy, Inc.’s quarterly report on Form 10-Q for the quarter ended September 30, 2004. |
(13) | Incorporated herein by reference to NRG Energy, Inc.’s 2004 proxy statement on Schedule 14A filed on July 12, 2004. |
(14) | Incorporated herein by reference to NRG Energy, Inc.’s quarterly report on Form 10-Q for the quarter ended March 31, 2004. |
(15) | Incorporated herein by reference to NRG Energy Inc.’s Registration Statement on Form S-8, Registration No. 333-114007.Exhibit 23.2 |