Condensed Consolidating Financial Information | Condensed Consolidating Financial Information As of December 31, 2019, the Company had outstanding $4.4 billion of Senior Notes due 2026 to 2048 and outstanding $1.1 billion of Senior Secured First Lien Notes due from 2024 to 2029, as shown in Note 13, Debt and Finance Leases. These Senior Notes and Senior Secured First Lien Notes are guaranteed by certain of NRG's current and future 100% owned domestic subsidiaries, or guarantor subsidiaries. These guarantees are both joint and several. The non-guarantor subsidiaries include all of NRG's foreign subsidiaries and certain domestic subsidiaries. Unless otherwise noted below, each of the following guarantor subsidiaries fully and unconditionally guaranteed the Senior Notes and Senior Secured First Lien Notes as of December 31, 2019: Ace Energy, Inc. NRG Astoria Gas Turbine Operations Inc. NRG Oswego Harbor Power Operations Inc. Allied Home Warranty GP LLC NRG Business Services LLC NRG PacGen Inc. Allied Warranty LLC NRG Cabrillo Power Operations Inc. NRG Portable Power LLC Arthur Kill Power LLC NRG California Peaker Operations LLC NRG Power Marketing LLC Astoria Gas Turbine Power LLC NRG Cedar Bayou Development Company, LLC NRG Reliability Solutions LLC BidURenergy, Inc. NRG Connected Home LLC NRG Renter's Protection LLC Cabrillo Power I LLC NRG Connecticut Affiliate Services Inc. NRG Retail LLC Cabrillo Power II LLC NRG Construction LLC NRG Retail Northeast LLC Carbon Management Solutions LLC NRG Curtailment Solutions, Inc NRG Rockford Acquisition LLC Cirro Group, Inc. NRG Development Company Inc. NRG Saguaro Operations Inc. Cirro Energy Services, Inc. NRG Devon Operations Inc. NRG Security LLC Connecticut Jet Power LLC NRG Dispatch Services LLC NRG Services Corporation Devon Power LLC NRG Distributed Energy Resources Holdings LLC NRG SimplySmart Solutions LLC Dunkirk Power LLC NRG Distributed Generation PR LLC NRG South Central Affiliate Services Inc. Eastern Sierra Energy Company LLC NRG Dunkirk Operations Inc. NRG South Central Operations Inc. El Segundo Power, LLC NRG ECOKAP Holdings LLC NRG South Texas LP El Segundo Power II LLC NRG El Segundo Operations Inc. NRG Texas Gregory LLC Energy Alternatives Wholesale, LLC NRG Energy Labor Services LLC NRG Texas Holding Inc. Energy Choice Solutions LLC NRG Energy Services Group LLC NRG Texas LLC Energy Plus Holdings LLC NRG Energy Services International Inc. NRG Texas Power LLC Energy Plus Natural Gas LLC NRG Energy Services LLC NRG Warranty Services LLC Energy Protection Insurance Company NRG Generation Holdings, Inc. NRG West Coast LLC Everything Energy LLC NRG Greenco LLC NRG Western Affiliate Services Inc. Forward Home Security, LLC NRG Home & Business Solutions LLC O'Brien Cogeneration, Inc. II GCP Funding Company, LLC NRG Home Services LLC Oswego Harbor Power LLC Green Mountain Energy Company NRG Home Solutions LLC Reliant Energy Northeast LLC Gregory Partners, LLC NRG Home Solutions Product LLC Reliant Energy Power Supply, LLC Gregory Power Partners LLC NRG Homer City Services LLC Reliant Energy Retail Holdings, LLC Huntley Power LLC NRG HQ DG LLC Reliant Energy Retail Services, LLC Independence Energy Alliance LLC NRG Huntley Operations Inc. RERH Holdings, LLC Independence Energy Group LLC NRG Identity Protect LLC Saguaro Power LLC Independence Energy Natural Gas LLC NRG Ilion Limited Partnership Somerset Operations Inc. Indian River Operations Inc. NRG Ilion LP LLC Somerset Power LLC Indian River Power LLC NRG International LLC Texas Genco GP, LLC Meriden Gas Turbines LLC NRG Maintenance Services LLC Texas Genco Holdings, Inc. Middletown Power LLC NRG Mextrans Inc. Texas Genco LP, LLC Montville Power LLC NRG MidAtlantic Affiliate Services Inc. Texas Genco Services, LP NEO Corporation NRG Middletown Operations Inc. US Retailers LLC New Genco GP, LLC NRG Montville Operations Inc. Vienna Operations Inc. Norwalk Power LLC NRG North Central Operations Inc. Vienna Power LLC NRG Advisory Services LLC NRG Northeast Affiliate Services Inc. WCP (Generation) Holdings LLC NRG Affiliate Services Inc. NRG Norwalk Harbor Operations Inc. West Coast Power LLC NRG Arthur Kill Operations Inc. NRG Operating Services, Inc. NRG conducts much of its business through and derives much of its income from its subsidiaries. Therefore, the Company's ability to make required payments with respect to its indebtedness and other obligations depends on the financial results and condition of its subsidiaries and NRG's ability to receive funds from its subsidiaries. There are no restrictions on the ability of any of the guarantor subsidiaries to transfer funds to NRG. In addition, there may be restrictions for certain non-guarantor subsidiaries. The following condensed consolidating financial information presents the financial information of NRG Energy, Inc., the guarantor subsidiaries and the non-guarantor subsidiaries in accordance with Rule 3-10 under the SEC's Regulation S-X. The financial information may not necessarily be indicative of results of operations or financial position had the guarantor subsidiaries or non-guarantor subsidiaries operated as independent entities. In this presentation, NRG Energy, Inc. consists of parent company operations. Guarantor subsidiaries and non-guarantor subsidiaries of NRG are reported on an equity basis. For companies acquired, the fair values of the assets and liabilities acquired have been presented on a push-down accounting basis. In addition, the condensed parent company financial statements are provided in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of NRG Energy, Inc.'s subsidiaries exceed 25 percent of the consolidated net assets of NRG Energy, Inc. These statements should be read in conjunction with the consolidated statements and notes thereto of NRG Energy, Inc. For a discussion of NRG Energy, Inc.'s long-term debt, see Note 13, Debt and Finance Leases , to the consolidated financial statements. For a discussion of NRG Energy, Inc.'s contingencies, see Note 23, Commitments and Contingencies , to the consolidated financial statements. For a discussion of NRG Energy, Inc.'s guarantees, see Note 27, Guarantees , NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the Year Ended December 31, 2019 (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. (Note Issuer) Eliminations (a) Consolidated Balance Operating Revenues Total operating revenues $ 8,041 $ 1,791 $ — $ (11) $ 9,821 Operating Costs and Expenses Cost of operations 5,936 1,351 27 (11) 7,303 Depreciation and amortization 212 130 31 — 373 Impairment losses 1 4 — — 5 Selling, general and administrative 466 83 278 — 827 Reorganization costs — — 23 — 23 Development costs — — 7 — 7 Total operating costs and expenses 6,615 1,568 366 (11) 8,538 Gain on sale of assets 1 — 6 — 7 Operating Income/(Loss) 1,427 223 (360) — 1,290 Other Income/(Expense) Equity in earnings of consolidated subsidiaries 48 — 1,562 (1,610) — Equity in earnings of unconsolidated affiliates — 2 — — 2 Impairment losses on investments — (101) (7) — (108) Other income, net 23 12 31 — 66 Loss on debt extinguishment, net — (3) (48) — (51) Interest expense (14) (14) (385) — (413) Total other income/(expense) 57 (104) 1,153 (1,610) (504) Income from Continuing Operations Before Income Taxes 1,484 119 793 (1,610) 786 Income tax expense/(benefit) — 4 (3,338) — (3,334) Income from Continuing Operations 1,484 115 4,131 (1,610) 4,120 Income from discontinued operations, net of income tax 9 5 307 — 321 Net Income 1,493 120 4,438 (1,610) 4,441 Less: Net income attributable to redeemable noncontrolling interests — 3 — — 3 Net Income Attributable to NRG Energy, Inc. $ 1,493 $ 117 $ 4,438 $ (1,610) $ 4,438 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME For the Year Ended December 31, 2019 (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. (Note Issuer) Eliminations (a) Consolidated Balance Net Income $ 1,493 $ 120 $ 4,438 $ (1,610) $ 4,441 Other Comprehensive Loss, net of tax Foreign currency translation adjustments, net — (1) (1) 1 (1) Available-for-sale securities, net — — (19) — (19) Defined benefit plan, net (17) — (78) 17 (78) Other comprehensive loss (17) (1) (98) 18 (98) Comprehensive Income 1,476 119 4,340 (1,592) 4,343 Less: Comprehensive income attributable to redeemable noncontrolling interests — 3 — — 3 Comprehensive Income Attributable to NRG Energy, Inc. $ 1,476 $ 116 $ 4,340 $ (1,592) $ 4,340 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2019 (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Balance ASSETS Current Assets Cash and cash equivalents $ — $ 20 $ 325 $ — $ 345 Funds deposited by counterparties 32 — — — 32 Restricted cash 5 1 2 — 8 Accounts receivable, net 1,293 239 233 (740) 1,025 Inventory 272 111 — — 383 Derivative instruments 856 45 — (41) 860 Cash collateral posted in support of energy risk management activities 182 8 — — 190 Prepayments and other current assets 170 8 67 — 245 Total current assets 2,810 432 627 (781) 3,088 Property, plant and equipment, net 1,483 952 158 — 2,593 Other Assets Investment in subsidiaries 710 — 4,785 (5,495) — Equity investments in affiliates — 388 — — 388 Operating lease right-of-use assets, net 81 261 122 — 464 Goodwill 359 220 — — 579 Intangible assets, net 375 414 — — 789 Nuclear decommissioning trust fund 794 — — — 794 Derivative instruments 308 15 — (13) 310 Deferred income taxes 421 (19) 2,884 — 3,286 Other non-current assets 145 30 65 — 240 Total other assets 3,193 1,309 7,856 (5,508) 6,850 Total Assets $ 7,486 $ 2,693 $ 8,641 $ (6,289) $ 12,531 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Current portion of long-term debt $ — $ 5 $ 83 $ — $ 88 Current portion of operating lease liabilities 20 32 21 — 73 Accounts payable 918 141 403 (740) 722 Derivative instruments 797 25 — (41) 781 Cash collateral received in support of energy risk management activities 32 — — — 32 Accrued expenses and other current liabilities 280 44 339 — 663 Total current liabilities 2,047 247 846 (781) 2,359 Other Liabilities Long-term debt 302 28 5,473 — 5,803 Non-current operating lease liabilities 64 301 118 — 483 Nuclear decommissioning reserve 298 — — — 298 Nuclear decommissioning trust liability 487 — — — 487 Derivative instruments 334 1 — (13) 322 Deferred income taxes — 17 — — 17 Other non-current liabilities 399 153 532 — 1,084 Total other liabilities 1,884 500 6,123 (13) 8,494 Total Liabilities 3,931 747 6,969 (794) 10,853 Redeemable noncontrolling interest in subsidiaries — 20 — — 20 Stockholders' Equity 3,555 1,926 1,672 (5,495) 1,658 Total Liabilities and Stockholders' Equity $ 7,486 $ 2,693 $ 8,641 $ (6,289) $ 12,531 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2019 (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. (Note Issuer) Eliminations (a) Consolidated Balance Cash Flows from Operating Activities Net income $ 1,493 $ 120 $ 4,438 $ (1,610) $ 4,441 Income from discontinued operations 9 5 307 — 321 Net income from continuing operations 1,484 115 4,131 (1,610) 4,120 Adjustments to reconcile net income to net cash provided by operating activities: Distributions and equity in earnings of unconsolidated affiliates and consolidated subsidiaries (48) 14 (1,562) 1,610 14 Depreciation and amortization 212 130 31 — 373 Accretion of asset retirement obligations 43 8 — — 51 Provision for bad debts 78 17 — — 95 Amortization of nuclear fuel 52 — — — 52 Amortization of financing costs and debt discount/premiums — — 26 — 26 Adjustment for debt extinguishment — 3 48 — 51 Amortization of emission allowances 24 14 — — 38 Amortization of unearned equity compensation — — 20 — 20 Net gain on sale and disposal of assets (20) — (3) — (23) Impairment losses 1 105 7 — 113 Changes in derivative instruments 20 (24) 38 — 34 Changes in deferred income taxes and liability for uncertain tax benefits (525) (168) (2,660) — (3,353) Changes in collateral deposits in support of energy risk management activities 101 4 — — 105 Changes in nuclear decommissioning trust liability 37 — — — 37 Changes in other working capital (220) (118) (10) — (348) Cash provided by continuing operations 1,239 100 66 — 1,405 Cash provided/(used) by discontinued operations 17 (9) — — 8 Net Cash Provided by Operating Activities 1,256 91 66 — 1,413 Cash Flows from Investing Activities Intercompany dividends — — 2,513 (2,513) — Payments for acquisitions of businesses (355) — — — (355) Capital expenditures (164) (27) (37) — (228) Net proceeds from sale of emission allowances 11 — — — 11 Investments in nuclear decommissioning trust fund securities (416) — — — (416) Proceeds from sales of nuclear decommissioning trust fund securities 381 — — — 381 Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees 1 400 893 — 1,294 Changes in investments in unconsolidated affiliates — (91) — — (91) Net contributions to discontinued operations — (44) — — (44) Other — — 6 — 6 Cash (used)/provided by continuing operations (542) 238 3,375 (2,513) 558 Cash used by discontinued operations — (2) — — (2) Net Cash (Used)/Provided by Investing Activities (542) 236 3,375 (2,513) 556 Cash Flows from Financing Activities Intercompany dividends and transfers (751) (214) (1,548) 2,513 — Payments of dividends to common stockholders — — (32) — (32) Payments for share repurchase activity — — (1,440) — (1,440) Payments for debt extinguishment costs — — (26) — (26) Net distributions to redeemable noncontrolling interests from subsidiaries — (2) — — (2) Proceeds from issuance of common stock — — 3 — 3 Proceeds from issuance of long-term debt — — 1,916 — 1,916 Payments of debt issuance costs — — (35) — (35) Payments for short and long-term debt — (139) (2,432) — (2,571) Other (4) — — — (4) Cash used by continuing operations (755) (355) (3,594) 2,513 (2,191) Cash provided by discontinued operations — 43 — — 43 Net Cash Used by Financing Activities (755) (312) (3,594) 2,513 (2,148) Change in cash from discontinued operations 17 32 — — 49 Net Decrease in Cash and Cash Equivalents, Restricted Cash, and Funds Deposited by Counterparties (58) (17) (153) — (228) Cash and Cash Equivalents, Restricted Cash, and Funds Deposited by Counterparties at Beginning of Period 95 38 480 — 613 Cash and Cash Equivalents, Restricted Cash, and Funds Deposited by Counterparties at End of Period $ 37 $ 21 $ 327 $ — $ 385 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the Year Ended December 31, 2018 (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. (Note Issuer) Eliminations (a) Consolidated Balance Operating Revenues Total operating revenues $ 8,119 $ 1,385 $ — $ (26) $ 9,478 Operating Costs and Expenses Cost of operations 6,147 959 28 (26) 7,108 Depreciation and amortization 238 150 33 — 421 Impairment losses 6 93 — — 99 Selling, general and administrative 462 63 348 (74) 799 Reorganization costs 4 — 86 — 90 Development costs — 1 11 (1) 11 Total operating costs and expenses 6,857 1,266 506 (101) 8,528 Gain on sale of assets 4 28 — — 32 Operating Income/(Loss) 1,266 147 (506) 75 982 Other Income/(Expense) Equity in earnings of consolidated subsidiaries 23 — 1,291 (1,314) — Equity in earnings/(losses) of unconsolidated affiliates — 10 (1) — 9 Impairment losses on investments — (15) — — (15) Other income/(expense), net 32 (13) (1) — 18 Loss on debt extinguishment, net — — (44) — (44) Interest expense (14) (49) (420) — (483) Total other income/(expense) 41 (67) 825 (1,314) (515) Income from Continuing Operations Before Income Taxes 1,307 80 319 (1,239) 467 Income tax expense/(benefit) 372 19 (384) — 7 Income from Continuing Operations 935 61 703 (1,239) 460 Income/(loss) from discontinued operations, net of income tax 62 75 (329) — (192) Net Income 997 136 374 (1,239) 268 Less: Net (loss)/income attributable to noncontrolling interests and redeemable noncontrolling interests — (181) 106 75 — Net Income Attributable to NRG Energy, Inc. $ 997 $ 317 $ 268 $ (1,314) $ 268 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME For the Year Ended December 31, 2018 (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. (Note Issuer) Eliminations (a) Consolidated Balance Net Income $ 997 $ 136 $ 374 $ (1,239) $ 268 Other Comprehensive Income/(Loss), net of tax Unrealized gain on derivatives, net — 29 9 (15) 23 Foreign currency translation adjustments, net (10) (10) (13) 22 (11) Available-for-sale securities, net — — 1 — 1 Defined benefit plan, net (9) — (35) 9 (35) Other comprehensive (loss)/income (19) 19 (38) 16 (22) Comprehensive Income 978 155 336 (1,223) 246 Less: Comprehensive (loss)/income attributable to noncontrolling interests and redeemable noncontrolling interests — (166) 104 76 14 Comprehensive Income Attributable to NRG Energy, Inc. $ 978 $ 321 $ 232 $ (1,299) $ 232 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2018 (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Balance ASSETS Current Assets Cash and cash equivalents $ 55 $ 28 $ 480 $ — $ 563 Funds deposited by counterparties 33 — — — 33 Restricted cash 7 10 — — 17 Accounts receivable. net 1,354 115 309 (754) 1,024 Inventory 278 134 — — 412 Derivative instruments 779 50 16 (81) 764 Cash collateral posted in support of energy risk management activities 275 12 — — 287 Prepayments and other current assets 180 32 90 — 302 Current assets - held-for-sale — 1 — — 1 Current assets - discontinued operations 177 20 — — 197 Total current assets 3,138 402 895 (835) 3,600 Property, plant and equipment, net 1,938 957 153 — 3,048 Other Assets Investment in subsidiaries 446 — 4,707 (5,153) — Equity investments in affiliates — 412 — — 412 Goodwill 359 214 — — 573 Intangible assets, net 422 169 — — 591 Nuclear decommissioning trust fund 663 — — — 663 Derivative instruments 296 4 22 (5) 317 Deferred income taxes 6 (143) 183 — 46 Other non-current assets 133 71 97 (12) 289 Non-current assets - held-for-sale — 77 — — 77 Non-current assets - discontinued operations 405 607 — — 1,012 Total other assets 2,730 1,411 5,009 (5,170) 3,980 Total Assets $ 7,806 $ 2,770 $ 6,057 $ (6,005) $ 10,628 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Current portion of long-term debt and finance leases $ — $ 55 $ 17 $ — $ 72 Accounts payable 1,368 (185) 434 (754) 863 Derivative instruments 713 41 — (81) 673 Cash collateral received in support of energy risk management activities 33 — — — 33 Accrued expenses and other current liabilities 291 36 353 — 680 Current liabilities - held-for-sale — 5 — — 5 Current liabilities - discontinued operations 24 48 — — 72 Total current liabilities 2,429 — 804 (835) 2,398 Other Liabilities Long-term debt and finance leases 244 192 6,025 (12) 6,449 Nuclear decommissioning reserve 282 — — — 282 Nuclear decommissioning trust liability 371 — — — 371 Derivative instruments 306 3 — (5) 304 Deferred income taxes 112 61 (108) — 65 Other non-current liabilities 402 320 552 — 1,274 Non-current liabilities - held-for-sale — 65 — — 65 Non-current liabilities - discontinued operations 58 577 — — 635 Total other liabilities 1,775 1,218 6,469 (17) 9,445 Total Liabilities 4,204 1,218 7,273 (852) 11,843 Redeemable noncontrolling interest in subsidiaries — 19 — — 19 Stockholders' Equity 3,602 1,533 (1,216) (5,153) (1,234) Total Liabilities and Stockholders' Equity $ 7,806 $ 2,770 $ 6,057 $ (6,005) $ 10,628 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2018 (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. (Note Issuer) Eliminations (a) Consolidated Balance Cash Flows from Operating Activities Net income $ 997 $ 136 $ 374 $ (1,239) $ 268 Income/(loss) from discontinued operations 62 75 (329) — (192) Net income from continuing operations 935 61 703 (1,239) 460 Adjustments to reconcile net income to net cash provided by operating activities: Distributions and equity in earnings of unconsolidated affiliates and consolidated subsidiaries (23) 47 (1,231) 1,253 46 Depreciation and amortization 238 150 33 — 421 Accretion of asset retirement obligations 28 10 — — 38 Provision for bad debts 79 6 — — 85 Amortization of nuclear fuel 48 — — — 48 Amortization of financing costs and debt discount/premiums — 6 23 — 29 Adjustment for debt extinguishment — — 44 — 44 Amortization of emission allowances and out-of-market contracts 36 9 — — 45 Amortization of unearned equity compensation — — 25 — 25 Net (gain)/loss on sale and disposal of assets (30) (20) 1 — (49) Impairment losses 5 109 — — 114 Changes in derivative instruments 25 15 11 (14) 37 Changes in deferred income taxes and liability for uncertain tax benefits 372 5 (372) — 5 Changes in collateral deposits in support of energy risk management activities (94) (11) — — (105) Changes in nuclear decommissioning trust liability 60 — — — 60 GenOn settlement, net of insurance proceeds — — (63) — (63) Net loss on deconsolidation of Agua Caliente and Ivanpah projects — 13 — — 13 Changes in other working capital (100) (166) 16 — (250) Cash provided/(used) by continuing operations 1,579 234 (810) — 1,003 Cash provided by discontinued operations 89 285 — — 374 Net Cash Provided/(Used) by Operating Activities 1,668 519 (810) — 1,377 Cash Flows from Investing Activities Intercompany dividends — — 2,006 (2,006) — Payments for acquisitions of businesses (40) (203) — — (243) Capital expenditures (192) (151) (45) — (388) Net proceeds from sale of emission allowances 19 — — — 19 Investments in nuclear decommissioning trust fund securities (572) — — — (572) Proceeds from sales of nuclear decommissioning trust fund securities 513 — — — 513 Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees 14 8 1,542 — 1,564 Deconsolidation of Agua Caliente and Ivanpah projects — (268) — — (268) Changes in investments in unconsolidated affiliates — (39) — — (39) Net contributions to discontinued operations — (60) — — (60) Other — — (6) — (6) Cash (used)/provided by continuing operations (258) (713) 3,497 (2,006) 520 Cash used by discontinued operations — (725) — — (725) Net Cash (Used)/Provided by Investing Activities (258) (1,438) 3,497 (2,006) (205) Cash Flows from Financing Activities Intercompany dividends and transfers (1,267) 86 (825) 2,006 — Payments of dividends to common stockholders — — (37) — (37) Payments for treasury stock — — (1,250) — (1,250) Payments for debt extinguishment costs — — (32) — (32) Net distributions to noncontrolling interests from subsidiaries — (16) — — (16) Proceeds from issuance of common stock — — 21 — 21 Proceeds from issuance of long-term debt — 163 937 — 1,100 Payments of debt issuance costs — — (19) — (19) Payments for short and long-term debt — (138) (1,596) — (1,734) Receivable from affiliate — — (26) — (26) Other — (4) — — (4) Cash (used)/provided by continuing operations (1,267) 91 (2,827) 2,006 (1,997) Cash provided by discontinued operations — 471 — — 471 Net Cash (Used)/Provided by Financing Activities (1,267) 562 (2,827) 2,006 (1,526) Effect of exchange rate changes on cash and cash equivalents — 1 — — 1 Change in cash from discontinued operations 89 31 — — 120 Net Increase/(Decrease) in Cash and Cash Equivalents, Restricted Cash, and Funds Deposited by Counterparties 54 (387) (140) — (473) Cash and Cash Equivalents, Restricted Cash, and Funds Deposited by Counterparties at Beginning of Period 41 425 620 — 1,086 Cash and Cash Equivalents, Restricted Cash, and Funds Deposited by Counterparties at End of Period $ 95 $ 38 $ 480 $ — $ 613 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the Year Ended December 31, 2017 (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Balance Operating Revenues Total operating revenues $ 7,818 $ 1,304 $ — $ (48) $ 9,074 Operating Costs and Expenses Cost of operations 5,998 862 72 (46) 6,886 Depreciation and amortization 343 221 32 — 596 Impairment losses 1,346 188 — — 1,534 Selling, general and administrative 410 64 364 (2) 836 Reorganization costs 6 — 38 — 44 Development costs — 4 18 — 22 Total operating costs and expenses 8,103 1,339 524 (48) 9,918 Other income - affiliate — — 87 — 87 Gain on sale of assets 4 12 — — 16 Operating Loss (281) (23) (437) — (741) Other Income/(Expense) Equity in earnings of consolidated subsidiaries 18 — 28 (46) — Equity in losses of unconsolidated affiliates — (10) (4) — (14) Impairment losses on investments — (75) (4) — (79) Other income, net 9 14 28 — 51 Loss on debt extinguishment, net — — (49) — (49) Interest expense (14) (91) (452) — (557) Total other income/(expense) 13 (162) (453) (46) (648) Loss from Continuing Operations Before Income Taxes (268) (185) (890) (46) (1,389) Income tax (benefit)/expense (598) (62) 616 — (44) Income/(Loss) from Continuing Operations 330 (123) (1,506) (46) (1,345) Income/(loss) from discontinued operations, net of income tax 91 (420) (663) — (992) Net Income/(Loss) 421 (543) (2,169) (46) (2,337) Less: Net loss attributable to noncontrolling interests and redeemable noncontrolling interests — (168) (16) — (184) Net Income/(Loss) Attributable to NRG Energy, Inc. $ 421 $ (375) $ (2,153) $ (46) $ (2,153) (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) For the Year Ended December 31, 2017 (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. (Note Issuer) Eliminations (a) Consolidated Balance Net Income/(Loss) $ 421 $ (543) $ (2,169) $ (46) $ (2,337) Other Comprehensive Income/(Loss), net of tax Unrealized gain on derivatives, net 1 13 25 (26) 13 Foreign currency translation adjustments, net 6 7 — (1) 12 Available-for-sale securities, net — — (8) — (8) Defined benefit plan, net (13) 30 46 (17) 46 Other comprehensive (loss)/income (6) 50 63 (44) 63 Comprehensive Income/(Loss) 415 (493) (2,106) (90) (2,274) Less: Comprehensive loss attributable to noncontrolling interest and redeemable noncontrolling interests — (103) (16) (60) (179) Comprehensive Income/(Loss) Attributable to NRG Energy, Inc. $ 415 $ (390) $ (2,090) $ (30) $ (2,095) (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2017 (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. (Note Issuer) Eliminations (a) Consolidated Balance Cash Flows from Operating Activities Net income/(loss) $ 421 $ (543) $ (2,169) $ (46) $ (2,337) Income/(loss) from discontinued operations 91 (420) (663) — (992) Net income/(loss) from continuing operations 330 (123) (1,506) (46) (1,345) Adjustments to reconcile net income/(loss) to net cash provided by operating activities: Distributions and equity in earnings of unconsolidated affiliates and consolidated subsidiaries (18) 12 60 48 102 Depreciation and amortization 343 221 32 — 596 Accretion of asset retirement obligations 37 7 — — 44 Provision for bad debts 56 — 12 — 68 Amortization of nuclear fuel 51 — — — 51 Amortization of financing costs and debt discount/premiums — 13 16 — 29 Adjustment for debt extinguishment — — 49 — 49 Amortization of emission allowances and out-of-market contracts 42 12 — — 54 Amortization of unearned equity compensation — — 35 — 35 Net loss/(gain) on sale and disposal of assets 2 (11) — — (9) Impairment losses 1,346 264 4 — 1,614 Changes in derivative instruments (214) 50 (4) (2) (170) Changes in deferred income taxes and liability for uncertain tax benefits (300) (9) 322 — 13 Changes in collateral deposits in support of energy risk management activities (98) 18 — — (80) Changes in nuclear decommissioning trust liability 11 — — — 11 Changes in other working capital (15) (396) 205 — (206) Cash provided/(used) by continuing operations 1,573 58 (775) — 856 Cash provided by discontinued operations 116 638 — — 754 Net Cash Provided/(Used) by Operating Activities 1,689 696 (775) — 1,610 Cash Flows from Investing Activities Intercompany dividends — — 1,665 (1,665) — Payments for acquisitions of businesses (14) — — — (14) Capital expenditures (180) (43) (31) — (254) Net proceeds from sale of emission allowances 66 — — — 66 Investments in nuclear decommissioning trust fund securities (512) — — — (512) Proceeds from sales of nuclear decommissioning trust fund securities 501 — — — 501 Proceeds from sale of assets, net of cash disposed 33 54 343 — 430 Changes in investments in unconsolidated affiliates — (57) — — (57) Net distributions from discontinued operations — — 150 — 150 Other 18 12 — — 30 Cash (used)/provided by continuing operations (88) (34) 2,127 (1,665) 340 Cash used by discontinued operations (13) (966) — — (979) Net Cash (Used)/Provided by Investing Activities (101) (1,000) 2,127 (1,665) (639) Cash Flows from Financing Activities Intercompany dividends and transfers (1,447) (4) (214) 1,665 — Payment of dividends to common stockholders — — (38) — (38) Payments for debt extinguishment costs — — (42) — (42) Net distributions to noncontrolling interests from subsidiaries — (30) — — (30) Payments for issuance of common stock — — (2) — (2) Proceeds from issuance of long-term debt — 94 1,084 — 1,178 Payment of debt issuance costs — (2) (16) — (18) Payments for short and long-term debt — (183) (1,701) — (1,884) Receivable from affiliate — — (125) — (125) Other — (8) — — (8) Cash used by continuing operations (1,447) (133) (1,054) 1,665 (969) Cash used by discontinued operations (109) (60) — — (169) Net Cash Used by Financing Activities (1,556) (193) (1,054) 1,665 (1,138) Effect of exchange rate changes on cash and cash equivalents — (1) — — (1) Change in cash from discontinued operations (6) (388) — — (394) Net Increase/(Decrease) in Cash and Cash Equivalents, Restricted Cash, and Funds Deposited by Counterparties 38 (110) 298 — 226 Cash and Cash Equivalents, Restricted Cash, and Funds Deposited by Counterparties at Beginning of Period 3 535 322 — 860 Cash and Cash Equivalents, Restricted Cash, and Funds Deposited by Counterparties at End of Period $ 41 $ 425 $ 620 $ — $ 1,086 (a) All significant intercompany transactions have been eliminated in consolidation |