nrgq42016primage1aa03.jpg            

Exhibit 99.1
                                    


NRG Energy, Inc. Reports Full Year 2017 Results,
Reaffirms 2018 Financial Guidance

Significant progress on Asset Sales:
Announcing sale of Boston Energy Trading and Marketing LLC (BETM)
Announced sale of NRG's interest in NRG Yield, Renewables platform, ROFO assets and South Central business for $2.8 billion1 on February 7, 2018
Exceeded Transformation Plan targets for cost reductions and working capital improvement in 2017
Reduced corporate debt by $604 million in 2017 and refinanced senior notes, resulting in approximately $55 million of recurring interest savings
Authorized $1 billion in share repurchases; first $500 million program to be launched immediately
Recorded $1.8 billion non-cash asset and goodwill impairment charge

PRINCETON, NJ - March 1, 2018 - NRG Energy, Inc. (NYSE: NRG) today reported a full year 2017 net loss of $1,548 million, or $6.79 per diluted common share. Adjusted EBITDA for the full year 2017 was $2.4 billion, cash from operations was $1.4 billion and FCFbG was $1.3 billion. The net loss and loss per share were driven by a $1.8 billion impairment of fixed assets, goodwill, and investments of which $1.2 billion was related to the South Texas Project (STP) nuclear generation facility, primarily due to the revised outlook of future commodity prices.
“Our business continued its strong performance in a year when we announced our Transformation Plan aimed at simplifying and enhancing the business to deliver increased shareholder value,” said Mauricio Gutierrez, NRG President and Chief Executive Officer. “With this announcement, we are demonstrating measurable success towards achieving the goals of cost excellence, portfolio optimization and capital structure enhancements. I’m also proud to report that we did this while realizing our second best safety year in company history.”

Consolidated Financial Results
 
 
Three Months Ended
 
Twelve Months Ended
($ in millions)

 
12/31/17
 
12/31/16
 
12/31/17
 
12/31/16
Income/(Loss) from Continuing Operations
 
$
(1,667
)

$
(891
)

$
(1,548
)

$
(983
)
Cash From Continuing Operations
 
$
581


$
533


$
1,425

 
$
2,207

Adjusted EBITDA
 
$
497


$
471


$
2,373


$
2,706

Free Cash Flow Before Growth Investments (FCFbG)
 
$
497


$
270


$
1,304


$
1,255











1 Excluding transaction costs, working capital, and other purchase price adjustments

1



Segment Results

Table 1: Income/(Loss) from Continuing Operations
($ in millions)
 
Three Months Ended
 
Twelve Months Ended
Segment
 
12/31/17
 
12/31/16
 
12/31/17
 
12/31/16
Generation
 
$
(1,700
)
 
$
(774
)
 
$
(1,498
)
 
$
(824
)
Retail
 
506

 
317

 
886

 
1,053

Renewables a.
 
(207
)
 
(223
)
 
(266
)
 
(330
)
NRG Yield a.
 
(98
)
 
(115
)
 
(23
)
 
2

Corporate
 
(168
)
 
(96
)
 
(647
)
 
(884
)
Income/(Loss) from Continuing Operations
 
$
(1,667
)
 
$
(891
)
 
$
(1,548
)
 
$
(983
)
a. In accordance with GAAP, 2016 and 2017 results have been restated to include full impact of the assets in the NRG Yield Drop Down transactions which closed on September 1, 2016, March 27, 2017, and August 1, 2017

The net loss from continuing operations for the 12 months of 2017 was driven by a $1.8 billion impairment of fixed assets, goodwill, and investments of which $1.2 billion was related to the South Texas Project (STP) nuclear generation facility, primarily due to the revised outlook of future commodity prices. The net loss from continuing operations for the 12 months of 2016 includes a $970 million impairment of fixed assets and goodwill.

Table 2: Adjusted EBITDA
($ in millions)

Three Months Ended

Twelve Months Ended
Segment

12/31/17

12/31/16

12/31/17

12/31/16
Generation

$
104


$
117


$
535


$
869

Retail

214


134


825


811

Renewables a.

14


19


153


151

NRG Yield a.

204


214


933


932

Corporate

(39
)

(13
)

(73
)

(57
)
Adjusted EBITDA b.

$
497


$
471


$
2,373


$
2,706

a. 2016 and 2017 results have been restated to include full impact of the assets in the NRG Yield Drop Down transactions, which closed on September 1, 2016, March 27, 2017, and August 1, 2017
b. See Appendices A-1 through A-4 for Operating Segment Reg G reconciliations

Generation: Full year 2017 Adjusted EBITDA was $535 million, $334 million lower than 2016 driven by:
Gulf Coast: $276 million decrease due to lower realized energy prices despite slightly higher generation, partially offset by lower operating expenses, net of outages due to flooding
East/West2: $58 million decrease due to lower dispatch, realized energy prices and capacity revenues, partially offset by lower operating costs, property tax and overhead expenses

Fourth quarter Adjusted EBITDA was $104 million, $13 million lower than the fourth quarter 2016 driven by:
Gulf Coast: $51 million decrease due to lower realized energy prices, partially offset by lower operating expenses
East/West2: $38 million increase due to higher capacity revenues, higher trading results at BETM and lower operating expenses

Retail: Full year 2017 Adjusted EBITDA was $825 million, $14 million higher than 2016 due to lower operating costs, partially offset by lower unit margins due to customer mix, milder weather and the impact of Hurricane Harvey.
Fourth quarter Adjusted EBITDA was $214 million, $80 million higher than the fourth quarter 2016 due to improved performance, customer growth and lower operating costs.
2 Includes International and BETM

2



Renewables: Full year 2017 Adjusted EBITDA was $153 million, $2 million higher than 2016 due to increased generation and insurance recovery at Ivanpah, partially offset by lost margin from the sale of assets, a transmission outage at Agua Caliente, and increased development expenditures.
Fourth quarter Adjusted EBITDA was $14 million, $5 million lower than the fourth quarter 2016 due to lost margin from certain asset sales and plant outages, partially offset by lower operating and overhead expenses.
NRG Yield: Full year 2017 Adjusted EBITDA was $933 million, $1 million higher than 2016 due to contribution from Utah Solar assets acquired by NRG in the fourth quarter of 2016 and growth in distributed generation partnerships, partially offset by lower renewable production in 2017 driven by lower wind resources.
Fourth quarter Adjusted EBITDA was $204 million, $10 million lower than the fourth quarter 2016 due to lower wind production driven by lower wind resources, partially offset by growth in distributed generation partnerships.
Corporate: Full year 2017 Adjusted EBITDA was $(73) million, $16 million lower than 2016 due to the reduction in shared services income from GenOn, higher advisory fees, partially offset by lower corporate marketing expenses and the elimination of operating losses at Residential Solar and eVgo following their wind down of operations.
Fourth quarter Adjusted EBITDA was $(39) million, $26 million lower than the fourth quarter 2016 due to the reduction in shared services income from GenOn, partially offset by lower corporate marketing expenses and the elimination of operating losses at Residential Solar following its wind down of operations.

Liquidity and Capital Resources
Table 3: Corporate Liquidity
($ in millions)
 
12/31/17
 
12/31/16
Cash at NRG-Level a.
 
$
769

 
$
570

Revolver
 
1,711

 
989

NRG-Level Liquidity
 
$
2,480

 
$
1,559

Restricted cash
 
508

 
446

Cash at Non-Guarantor Subsidiaries
 
222

 
368

Total Liquidity
 
$
3,210

 
$
2,373

a. December 31, 2017 balance includes unrestricted cash held at Midwest Generation (a non-guarantor subsidiary) which can be distributed to NRG without limitation

NRG-Level cash as of December 31, 2017, was $769 million, an increase of $199 million from the end of 2016, and $1.7 billion was available under the Company’s credit facilities at the end of 2017. Total liquidity was $3.2 billion, including restricted cash and cash at non-guarantor subsidiaries (primarily NRG Yield).
NRG Transformation Plan Update
Cost Reductions
As of the end of the fourth quarter of 2017, NRG realized $150 million, or 231%, of its 2017 cost savings target as part of the previously announced Transformation Plan.

Asset Sales Program
To date, NRG has announced or closed approximately $3 billion in asset sales towards its revised Transformation Plan target of $3.2 billion.

Sale of BETM
Announced today, a subsidiary of NRG has entered into a purchase and sale agreement with a subsidiary of Diamond Generating Corporation, a subsidiary of Mitsubishi Corporation, to sell Boston Energy Trading and Marketing LLC (BETM). The transaction is expected to close in the second half of 2018 and is subject to closing conditions, approvals and consents including Federal Energy Regulatory Commission (FERC) and the Committee on Foreign Investment in the United States (CFIUS).

Sale of NRG Yield and Renewables Platform
On February 6, 2018, NRG and Global Infrastructure Partners, or GIP, entered into a purchase and sale agreement to sell NRG's ownership in NRG Yield, Inc. and NRG's renewable energy development and operations platform for cash of $1.375 billion, subject to certain adjustments, and upon closing, removal of approximately $6.7 billion of

3



consolidated debt as of 12/31/2017. The transaction is expected to close in the second half of 2018 and is subject to various customary closing conditions, approvals and consents.

Sale of South Central Business
On February 7, 2018, NRG and Cleco Corporate Holdings LLC, or Cleco, entered into a purchase and sale agreement to sell NRG's South Central business for a total cash purchase price of $1.0 billion, subject to certain adjustments. The transaction is expected to close in the second half of 2018 and is subject to various customary closing conditions, approvals and consents. Also, as part of the transaction, NRG will enter into a sale leaseback agreement for the Cottonwood plant through May of 2025.

Accelerated Drop Down Agreements
On January 24, 2018, the Company entered into an agreement with NRG Yield, Inc. to sell 100% of its ownership interest in Buckthorn Solar for cash consideration of $42 million, subject to other adjustments.

On February 6, 2018, the Company entered into an agreement with NRG Yield, Inc. to sell 100% of the membership interests in Carlsbad Energy Holdings LLC, which indirectly owns the Carlsbad project, a 527 MW natural gas fired project in Carlsbad, CA, pursuant to the ROFO Agreement. The purchase price for the transaction is $365 million in cash consideration, subject to customary working capital and other adjustments.
  
2018 Guidance
NRG is reaffirming its guidance range for 2018 with respect to Consolidated Adjusted EBITDA, Cash From Operations and FCFbG as set forth below.

Table 4: 2018 Adjusted EBITDA and FCF before Growth Guidance
 
 
2018
($ in millions)
 
Guidance
Adjusted EBITDA a.
 
$2,800 - $3,000
Cash From Operations
 
$2,015 - $2,215
Free Cash Flow before Growth
 
$1,550 - $1,750
a. Non-GAAP financial measure; see Appendix Tables A-1 through A-5 for GAAP Reconciliation to Net Income that excludes fair value adjustments related to derivatives. The Company is unable to provide guidance for Net Income due to the impact of such fair value adjustments related to derivatives in a given year

Capital Allocation Update
In 2017, NRG reduced corporate debt by $604 million3 and refinanced and extended its 2023 senior notes realizing annual interest savings of approximately $55 million. Following the announced sale of NRG Yield and Renewables and the South Central businesses, NRG is also announcing corporate debt reduction of $640 million in 2018 and is temporarily reserving $1,200 million of additional cash to achieve it's 3.0x corporate net debt to Adjusted EBITDA ratio as part of the previously announced capital allocation guidance under the Transformation Plan.
The NRG Board of Directors has authorized $1 billion for share repurchases, with the first $500 million program to begin immediately. Following the completion of the initial program, and as NRG progress towards the closing of the announced asset sales, NRG expects to execute the remaining $500 million of the $1 billion share repurchase program.
On January 18, 2018, NRG declared a quarterly dividend on the Company's common stock of $0.03 per share, payable February 15, 2018, to stockholders of record as of February 1, 2018, representing $0.12 on an annualized basis.
The Company’s common stock dividend, corporate level debt reduction and share repurchases are subject to available capital, market conditions and compliance with associated laws and regulations.
Earnings Conference Call
On March 1, 2018, NRG will host a conference call at 8:00 a.m. Eastern to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation materials by logging on to NRG’s website at http://www.nrg.com and clicking on “Investors.” The webcast will be archived on the site for those unable to listen in real time.
3 Cash cost of $646 million, including $42 million of debt extinguishment fees

4



About NRG
NRG is a leading integrated power company built on the strength of a diverse competitive electric generation portfolio and leading retail electricity platform. NRG aims to create a sustainable energy future by producing, selling and delivering electricity and related products and services in major competitive power markets in the U.S. in a manner that delivers value to all of NRG's stakeholders. The Company owns and operates approximately 30,000 MW of generation; engages in the trading of wholesale energy, capacity and related products; transacts in and trades fuel and transportation services; and directly sells energy, services, and innovative, sustainable products and services to retail customers under the names “NRG”, "Reliant" and other retail brand names owned by NRG. More information is available at www.nrg.com. Connect with NRG Energy on Facebook and follow us on Twitter @nrgenergy.

Safe Harbor Disclosure
In addition to historical information, the information presented in this communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks and uncertainties and can typically be identified by terminology such as “may,” “should,” “could,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “expect,” “intend,” “seek,” “plan,” “think,” “anticipate,” “estimate,” “predict,” “target,” “potential” or “continue,” or the negative of these terms or other comparable terminology. Such forward-looking statements include, but are not limited to, statements about the Company’s future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.
 
Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated herein include, among others, general economic conditions, hazards customary in the power industry, weather conditions, competition in wholesale power markets, the volatility of energy and fuel prices, failure of customers to perform under contracts, changes in the wholesale power markets, changes in government regulations, the condition of capital markets generally, our ability to access capital markets, unanticipated outages at our generation facilities, adverse results in current and future litigation, failure to identify, execute or successfully implement acquisitions, repowerings or asset sales, our ability to implement value enhancing improvements to plant operations and companywide processes, our ability to implement and execute on our publicly announced transformation plan, including any cost savings, margin enhancement, asset sale, and net debt targets, our ability to proceed with projects under development or the inability to complete the construction of such projects on schedule or within budget, risks related to project siting, financing, construction, permitting, government approvals and the negotiation of project development agreements, our ability to progress development pipeline projects, the timing or completion of GenOn's emergence from bankruptcy, the inability to maintain or create successful partnering relationships, our ability to operate our businesses efficiently, our ability to retain retail customers, our ability to realize value through our commercial operations strategy, the ability to successfully integrate businesses of acquired companies, our ability to realize anticipated benefits of transactions (including expected cost savings and other synergies) or the risk that anticipated benefits may take longer to realize than expected, our ability to close the Drop Down transactions with NRG Yield, and our ability to execute our Capital Allocation Plan. Debt and share repurchases may be made from time to time subject to market conditions and other factors, including as permitted by United States securities laws. Furthermore, any common stock dividend is subject to available capital and market conditions.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The adjusted EBITDA and free cash flow guidance are estimates as of March 1, 2018. These estimates are based on assumptions the company believed to be reasonable as of that date. NRG disclaims any current intention to update such guidance, except as required by law. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this Earnings press release should be considered in connection with information regarding risks and uncertainties that may affect NRG’s future results included in NRG’s filings with the Securities and Exchange Commission at www.sec.gov.


 





5




Contacts:
 
Media:
 
Investors:
 
 
 
 
 
Marijke Shugrue
 
Kevin L. Cole, CFA
 
609.524.5262
 
609.524.4526
 
 
 
 
 
 
 
Lindsey Puchyr
 
 
 
609.524.4527
 

6




NRG ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
For the Year Ended December 31,
(In millions, except per share amounts)
2017
 
2016
 
2015
Operating Revenues

 
 
 
 
Total operating revenues
$
10,629

 
$
10,512

 
$
12,328

Operating Costs and Expenses

 
 
 
 
Cost of operations
7,536

 
7,301

 
9,000

Depreciation and amortization
1,056

 
1,172

 
1,351

Impairment losses
1,709

 
702

 
4,860

Selling, general and administrative
907

 
1,095

 
1,228

Reorganization costs
44

 

 

Development costs
67

 
89

 
154

Total operating costs and expenses
11,319

 
10,359

 
16,593

Other income - affiliate
87

 
193

 
193

Gain/(loss) on sale of assets
16

 
(80
)
 

Gain on postretirement benefits curtailment

 

 
21

Operating (Loss)/Income
(587
)
 
266

 
(4,051
)
Other Income/(Expense)

 
 
 
 
Equity in earnings of unconsolidated affiliates
31

 
27

 
36

Impairment losses on investments
(79
)
 
(268
)
 
(56
)
Other income, net
38

 
34

 
26

Loss on sale of equity method investment

 

 
(14
)
Net (loss)/gain on debt extinguishment
(53
)
 
(142
)
 
10

Interest expense
(890
)
 
(895
)
 
(937
)
Total other expense
(953
)
 
(1,244
)
 
(935
)
Loss from Continuing Operations Before Income Taxes
(1,540
)
 
(978
)
 
(4,986
)
Income tax expense
8

 
5

 
1,345

Net Loss from Continuing Operations
(1,548
)
 
(983
)
 
(6,331
)
(Loss)/income from discontinued operations, net of income tax
(789
)
 
92

 
(105
)
Net Loss
(2,337
)
 
(891
)
 
(6,436
)
Less: Net loss attributable to noncontrolling interests and redeemable noncontrolling interests
(184
)
 
(117
)
 
(54
)
Net Loss Attributable to NRG Energy, Inc.
(2,153
)
 
(774
)
 
(6,382
)
Dividends for preferred shares

 
5

 
20

Gain on redemption of preferred shares

 
(78
)
 

Loss Available for Common Stockholders
$
(2,153
)
 
$
(701
)
 
$
(6,402
)
Loss Per Share Attributable to NRG Energy, Inc. Common Stockholders
 
 
 
 
 
Weighted average number of common shares outstanding — basic and diluted
317

 
316

 
329

Loss from continuing operations per weighted average common share — basic and diluted
$
(4.30
)
 
$
(2.51
)
 
$
(19.14
)
(Loss)/Income from discontinued operations per weighted average common share — basic and diluted
$
(2.49
)
 
$
0.29

 
$
(0.32
)
Net Loss per Weighted Average Common Share — Basic and Diluted
$
(6.79
)
 
$
(2.22
)
 
$
(19.46
)
Dividends Per Common Share
$
0.12

 
$
0.24

 
$
0.58


 

7





NRG ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
 
(In millions)
Net Loss
$
(2,337
)

$
(891
)

$
(6,436
)
Other Comprehensive Income, net of tax

 
 
 
 
Unrealized gain/(loss) on derivatives, net of income tax expense of $1, $1, and $19
13

 
35

 
(15
)
Foreign currency translation adjustments, net of income tax benefit of $(2), $0, and $0
12

 
(1
)
 
(11
)
Available-for-sale securities, net of income tax expense/(benefit) of $10, $0, and $(3)
(8
)
 
1

 
17

Defined benefit plan, net of income tax (benefit)/expense of $(21), $0 and $69
46

 
3

 
10

Other comprehensive income
63

 
38

 
1

Comprehensive Loss
(2,274
)
 
(853
)
 
(6,435
)
Less: Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests
(179
)
 
(117
)
 
(73
)
Comprehensive Loss Attributable to NRG Energy, Inc.
(2,095
)
 
(736
)
 
(6,362
)
Dividends for preferred shares

 
5

 
20

Gain on redemption of preferred shares

 
(78
)
 

Comprehensive Loss Available for Common Stockholders
$
(2,095
)
 
$
(663
)
 
$
(6,382
)




8



NRG ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
As of December 31,
 
2017
 
2016
 
(In millions)
ASSETS
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
$
991

 
$
938

Funds deposited by counterparties
37

 
2

Restricted cash
508

 
446

Accounts receivable — trade
1,079

 
1,058

Inventory
532

 
721

Derivative instruments
626

 
1,067

Cash collateral posted in support of energy risk management activities
171

 
150

Accounts receivable — affiliate
95

 

Current assets held-for-sale
115

 
9

Prepayments and other current assets
261

 
404

Current assets - discontinued operations

 
1,919

Total current assets
4,415

 
6,714

Property, plant and equipment, net
13,908

 
15,369

Other Assets
 
 
 
Equity investments in affiliates
1,038

 
1,120

Notes receivable, less current portion
2

 
16

Goodwill
539

 
662

Intangible assets, net
1,746

 
1,973

Nuclear decommissioning trust fund
692

 
610

Derivative instruments
172

 
181

Deferred income taxes
134

 
225

Non-current assets held-for-sale
43

 
10

Other non-current assets
629

 
841

Non-current assets - discontinued operations

 
2,961

Total other assets
4,995

 
8,599

Total Assets
$
23,318

 
$
30,682




9



NRG ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Continued)
 
As of December 31,
 
2017
 
2016
 
(In millions, except share data)
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current Liabilities
 
 
 
Current portion of long-term debt and capital leases
$
688

 
$
516

Accounts payable 
881

 
782

Accounts payable - affiliate
33

 
31

Derivative instruments
555

 
1,092

Cash collateral received in support of energy risk management activities
37

 
81

Accrued interest expense
156

 
180

Current liabilities - held for sale
72

 

Other accrued expenses and other current liabilities
734

 
810

Other accrued expenses and other current liabilities - affiliate
161

 

Current liabilities - discontinued operations

 
1,210

Total current liabilities
3,317

 
4,702

Other Liabilities
 
 
 
Long-term debt and capital leases
15,716

 
15,957

Nuclear decommissioning reserve
269

 
287

Nuclear decommissioning trust liability
415

 
339

Postretirement and other benefit obligations
458

 
510

Deferred income taxes
21

 
20

Derivative instruments
197

 
284

Out-of-market contracts, net
207

 
230

Non-current liabilities held-for-sale
8

 
11

Other non-current liabilities
664

 
666

Non-current liabilities - discontinued operations

 
3,184

Total non-current liabilities
17,955

 
21,488

Total Liabilities
21,272

 
26,190

Redeemable noncontrolling interest in subsidiaries
78

 
46

Commitments and Contingencies
 
 
 
Stockholders' Equity
 
 
 
Common stock; $0.01 par value; 500,000,000 shares authorized; 418,323,134 and 417,583,825 shares issued; and 316,743,089 and 315,443,011 shares outstanding at December 31, 2017 and 2016
4

 
4

Additional paid-in capital
8,376

 
8,358

Accumulated deficit
(6,268
)
 
(3,787
)
Treasury stock, at cost; 101,580,045 and 102,140,814 shares at December 31, 2017 and 2016
(2,386
)
 
(2,399
)
Accumulated other comprehensive loss
(72
)
 
(135
)
Noncontrolling interest
2,314

 
2,405

Total Stockholders' Equity
1,968

 
4,446

Total Liabilities and Stockholders' Equity
$
23,318

 
$
30,682



10




NRG ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
 
(In millions)
Cash Flows from Operating Activities
 

 
 

 


Net loss
(2,337
)
 
(891
)
 
(6,436
)
(Loss)/income from discontinued operations, net of income tax
(789
)
 
92

 
(105
)
Loss from continuing operations
$
(1,548
)
 
$
(983
)
 
$
(6,331
)
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
 
 
 
 
 
Equity in earnings and distribution of unconsolidated affiliates
55

 
54

 
37

Depreciation and amortization
1,056

 
1,172

 
1,351

Provision for bad debts
68

 
48

 
64

Amortization of nuclear fuel
51

 
49

 
45

Amortization of financing costs and debt discount/premiums
60

 
55

 
47

Adjustment for debt extinguishment
53

 
142

 
(10
)
Amortization of intangibles and out-of-market contracts
108

 
167

 
151

Amortization of unearned equity compensation
35

 
10

 
39

Net (gain)/loss on sale of assets and equity method investments
(34
)
 
70

 
14

Gain on post retirement benefits curtailment

 

 
(21
)
Impairment losses
1,788

 
972

 
4,916

Changes in derivative instruments
(171
)
 
32

 
235

Changes in deferred income taxes and liability for uncertain tax benefits
91

 
(43
)
 
1,326

Changes in collateral deposits in support of risk management activities
(80
)
 
398

 
(334
)
Proceeds from sale of emission allowances
25

 
34

 
(24
)
Changes in nuclear decommissioning trust liability
11

 
41

 
(2
)
Cash provided/(used) by changes in other working capital, net of acquisition and disposition effects:
 
 
 
 
 
Accounts receivable - trade
(99
)
 
(7
)
 
113

Inventory
143

 
71

 
(59
)
Prepayments and other current assets
12

 
(44
)
 
(21
)
Accounts payable
77

 
(39
)
 
(180
)
Accrued expenses and other current liabilities
(60
)
 
(35
)
 
(29
)
Other assets and liabilities
(216
)
 
43

 
(40
)
Cash provided by continuing operations
1,425

 
2,207

 
1,287

Cash (used)/provided by discontinued operations
(38
)
 
(119
)
 
62

Net Cash Provided by Operating Activities
1,387

 
2,088

 
1,349

Cash Flows from Investing Activities

 
 
 
 
Acquisition of businesses, net of cash acquired
(41
)
 
(209
)
 
(31
)
Capital expenditures
(1,111
)
 
(976
)
 
(1,029
)
Net cash proceeds from notes receivable
17

 
17

 
18

Proceeds from renewable energy grants
8

 
36

 
82

Proceeds from/(purchases) of emission allowances, net of purchases
66

 
(1
)
 
41

Investments in nuclear decommissioning trust fund securities
(512
)
 
(551
)
 
(629
)
Proceeds from sales of nuclear decommissioning trust fund securities
501

 
510

 
631

Proceeds from sale of assets, net
87

 
73

 
27

Investments in unconsolidated affiliates
(40
)
 
(23
)
 
(395
)
Other
12

 
35

 
16

Cash used by continuing operations
(1,013
)
 
(1,089
)
 
(1,269
)
Cash (used)/provided by discontinued operations
(53
)
 
297

 
(259
)
Net Cash Used by Investing Activities
(1,066
)
 
(792
)
 
(1,528
)
Cash Flows from Financing Activities
 
 
 
 
 
Payments of dividends to preferred and common stockholders
(38
)
 
(76
)
 
(201
)
Net receipts from settlement of acquired derivatives that include financing elements
2

 
6

 
14

Payments for treasury stock

 

 
(437
)
Payments for preferred shares

 
(226
)
 

Payments for debt extinguishment costs
(42
)
 
(121
)
 

Distributions to, net of contributions from, noncontrolling interests in subsidiaries
95

 
(156
)
 
47

Proceeds from sale of noncontrolling interests in subsidiaries

 

 
600

(Payments)/Proceeds from issuance of common stock
(2
)
 
1

 
1

Proceeds from issuance of long-term debt
2,270

 
5,527

 
1,004

Payments of debt issuance and hedging costs
(63
)
 
(89
)
 
(21
)
Payments for short and long-term debt
(2,348
)
 
(5,908
)
 
(1,362
)
Receivable from affiliate
(125
)
 

 

Other
(10
)
 
(13
)
 
(22
)
Cash used by continuing operations
(261
)
 
(1,055
)
 
(377
)
Cash (used)/provided by discontinued operations
(224
)
 
140

 
(55
)
Net Cash Used by Financing Activities
(485
)
 
(915
)
 
(432
)
Effect of exchange rate changes on cash and cash equivalents
(1
)
 
1

 
10

Change in Cash from discontinued operations
(315
)
 
318

 
(252
)
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash
150

 
64

 
(349
)
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period
1,386

 
1,322

 
1,671

Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period
$
1,536

 
$
1,386

 
$
1,322


11




Appendix Table A-1: Fourth Quarter 2017 Adjusted EBITDA Reconciliation by Operating Segment
The following table summarizes the calculation of Adj. EBITDA and provides a reconciliation to income/(loss) from continuing operations:
($ in millions)
Gulf Coast
East/West 1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Income/(Loss) from Continuing Operations
(1,486
)
(214
)
(1,700
)
506

(207
)
(98
)
(168
)
(1,667
)
Plus:
















Interest expense, net

5

5

2

22

68

96

193

Income tax




(7
)
57

(47
)
3

Loss on debt extinguishment





1

49

50

Depreciation and amortization
63

27

90

31

51

88

7

267

ARO expense
11

13

24


1

1


26

Contract amortization
6

1

7



17

1

25

Lease amortization

(2
)
(2
)




(2
)
EBITDA
(1,406
)
(170
)
(1,576
)
539

(140
)
134

(62
)
(1,105
)
Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates
2

6

8

(7
)
2

27

2

32

Acquisition-related transaction & integration costs





1

1

2

Reorganization costs
6

1

7

6

1


12

26

Legal Settlement



(1
)



(1
)
Deactivation costs
3

6

9




2

11

Gain on sale of business

(13
)
(13
)

5


(8
)
(16
)
Other non recurring charges
4

(7
)
(3
)

(4
)
10

10

13

Impairments
1,267

196

1,463

8

130

32

(1
)
1,632

Impairment losses on investments
69

5

74


1


4

79

Mark to market (MtM) (gains)/losses on economic hedges
100

35

135

(331
)
19


1

(176
)
Adjusted EBITDA
45

59

104

214

14

204

(39
)
497

1 Includes International, BETM and generation eliminations

Fourth Quarter 2017 condensed financial information by Operating Segment:
($ in millions)
Gulf Coast
East/West 1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Operating revenues
506

333

839

1,508

90

248

(227
)
2,458

Cost of sales
289

139

428

1,099

4

17

(212
)
1,336

Economic gross margin
217

194

411

409

86

231

(15
)
1,122

Operations & maintenance and other cost of operations 2
143

115

258

77

36

57

21

449

Selling, marketing, general and administrative 3
27

22

49

114

13

5

30

211

Other expense/(income) 4
2

(2
)

4

23

(35
)
(27
)
(35
)
Adjusted EBITDA
45

59

104

214

14

204

(39
)
497

1 Includes International, BETM and generation eliminations
2 Excludes deactivation costs of $11 million
3 Excludes a legal settlement of $(1) million
4 Excludes impairments of $1,711 million, gain on sale of business of $16 million, acquisition-related transaction & integration costs of $2 million, reorganization costs of $26 million and loss on debt extinguishment of $50 million

12




The following table reconciles the condensed financial information to Adjusted EBITDA:
($ in millions)
Condensed financial information
Interest, tax, depr., amort.
MtM
Deactivation
Other adj.
Adjusted EBITDA
Operating revenues
2,497

15

(54
)


2,458

Cost of operations
1,224

(10
)
122



1,336

Gross margin
1,273

25

(176
)


1,122

Operations & maintenance and other cost of operations
460



(11
)

449

Selling, marketing, general & administrative 1
210




1

211

Other expense/(income) 2
2,270

(487
)


(1,818
)
(35
)
Income/(Loss) from Continuing Operations
(1,667
)
512

(176
)
11

1,817

497

1 Other adj. includes a legal settlement of $(1) million
2 Other adj, includes impairments of $1,711 million, gain on sale of business of $16 million, acquisition-related transaction & integration costs of $2 million, reorganization costs of $26 million and loss on debt extinguishment of $50 million


13



Appendix Table A-2: Fourth Quarter 2016 Adjusted EBITDA Reconciliation by Operating Segment
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to income/(loss) from continuing operations:
($ in millions)
Gulf Coast
East/West 1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Income/(Loss) from Continuing Operations
(671
)
(103
)
(774
)
317

(223
)
(115
)
(96
)
(891
)
Plus:
 
 
 
 
 
 
 
 
Interest expense, net

1

1


17

67

91

176

Income tax

1

1


(6
)
(26
)
(39
)
(70
)
Loss on debt extinguishment






23

23

Depreciation and amortization
155

29

184

28

45

75

14

346

ARO Expense
3

2

5


1

1

1

8

Contract amortization
4


4

1


17

2

24

Lease amortization

(2
)
(2
)




(2
)
EBITDA
(509
)
(72
)
(581
)
346

(166
)
19

(4
)
(386
)
Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates
(2
)
8

6


44

7

(43
)
14

Acquisition-related transaction & integration costs





1


1

Deactivation costs

2

2




1

3

    Gain on sale of business






1

1

Other non recurring charges


3

3

1

1

2

(2
)
5

Impairments
368

36

404

1

28

185

19

637

Impairment loss on investment




106


15

121

Mark to market (MtM) (gains)/losses on economic hedges
239

44

283

(214
)
6



75

Adjusted EBITDA
96

21

117

134

19

214

(13
)
471

1 Includes International, BETM and generation eliminations

Fourth Quarter 2016 condensed financial information by Operating Segment:
($ in millions)
Gulf Coast
East/West 1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Operating revenues
607

336

943

1,418

86

252

(218
)
2,481

Cost of sales
299

151

450

1,053

3

13

(218
)
1,301

Economic gross margin
308

185

493

365

83

239


1,180

Operations & maintenance and other cost of operations 2
174

132

306

91

31

52

4

484

Selling, marketing, general and administrative
36

34

70

136

17

6

65

294

Other expense/(income) 3
2

(2
)

4

16

(33
)
(56
)
(69
)
Adjusted EBITDA
96

21

117

134

19

214

(13
)
471

1 Includes International, BETM and generation eliminations
2 Excludes deactivation costs of $3 million
3 Excludes impairments of $758 million, acquisition-related transaction & integration costs of $1 million and loss on debt extinguishment of $23 million

14




The following table reconciles the condensed financial information to Adjusted EBITDA:
($ in millions)
Condensed financial information
Interest, tax, depr., amort.
MtM
Deactivation
Other adj.
Adjusted EBITDA
Operating revenues
2,184

15

282



2,481

Cost of operations
1,103

(9
)
207



1,301

Gross margin
1,081

24

75



1,180

Operations & maintenance and other cost of operations
487



(3
)

484

Selling, marketing, general & administrative
294





294

Other expense/(income) 1
1,191

(458
)


(802
)
(69
)
Income/(Loss) from Continuing Operations
(891
)
482

75

3

802

471

1 Other adj. includes impairments of $758 million, acquisition-related transaction & integration costs of $1 million and loss on debt extinguishment of $23 million


15



Appendix Table A-3: Full Year 2017 Adjusted EBITDA Reconciliation by Operating Segment
The following table summarizes the calculation of Adj. EBITDA and provides a reconciliation to income/(loss) from continuing operations:
($ in millions)
Gulf Coast
East/West 1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Income/(Loss) from Continuing Operations
(1,427
)
(71
)
(1,498
)
886

(266
)
(23
)
(647
)
(1,548
)
Plus:
















Interest expense, net
1

26

27

5

97

303

445

877

Income tax

2

2

(9
)
(20
)
72

(37
)
8

Loss on debt extinguishment




1

3

49

53

Depreciation and amortization
270

107

377

117

196

334

32

1,056

ARO expense
22

22

44

1

2

4

(1
)
50

Contract amortization
16

4

20

1


69


90

Lease amortization

(8
)
(8
)




(8
)
EBITDA
(1,118
)
82

(1,036
)
1,001

10

762

(159
)
578

Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates
17

25

42

(17
)
(12
)
106

6

125

Acquisition-related transaction & integration costs





3

1

4

Reorganization costs
9

1

10

11

1


22

44

Legal Settlement



(1
)



(1
)
Deactivation costs
4

8

12




9

21

Gain on sale of assets

(20
)
(20
)

5


(1
)
(16
)
Other non recurring charges
(21
)
(2
)
(23
)
1

(17
)
18

44

23

Impairments
1,309

195

1,504

7

154

44


1,709

Impairment losses on investments
69

5

74




5

79

Mark to market (MtM) (gains)/losses on economic hedges
(52
)
24

(28
)
(177
)
12



(193
)
Adjusted EBITDA
217

318

535

825

153

933

(73
)
2,373

1 Includes International, BETM and generation eliminations

Full Year 2017 condensed financial information by Operating Segment:
($ in millions)
Gulf Coast
East/West 1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Operating revenues
2,258

1,464

3,722

6,385

436

1,078

(1,175
)
10,446

Cost of sales
1,338

639

1,977

4,768

15

63

(1,125
)
5,698

Economic gross margin
920

825

1,745

1,617

421

1,015

(50
)
4,748

Operations & maintenance and other cost of operations 2
612

439

1,051

322

139

263

(38
)
1,737

Selling, marketing, general and administrative 3
123

84

207

453

56

22

170

908

Other expense/(income) 4
(32
)
(16
)
(48
)
17

73

(203
)
(109
)
(270
)
Adjusted EBITDA
217

318

535

825

153

933

(73
)
2,373

1 Includes International, BETM and generation eliminations
2 Excludes deactivation costs of $21 million
3 Excludes a legal settlement of $(1) million
4 Excludes impairments of $1,788 million, gain on sale of assets of $16 million, reorganization costs of $44 million, acquisition-related transaction & integration costs of $4 million, and loss on debt extinguishment of $53 million

16




The following table reconciles the condensed financial information to Adjusted EBITDA:
($ in millions)
Condensed financial information
Interest, tax, depr., amort.
MtM
Deactivation
Other adj.
Adjusted EBITDA
Operating revenues
10,629

56

(239
)


10,446

Cost of operations
5,778

(34
)
(46
)


5,698

Gross margin
4,851

90

(193
)


4,748

Operations & maintenance and other cost of operations
1,758



(21
)

1,737

Selling, marketing, general & administrative 1
907




1

908

Other expense/(income) 2
3,734

(1,983
)


(2,021
)
(270
)
Income/(Loss) from Continuing Operations
(1,548
)
2,073

(193
)
21

2,020

2,373

1 Other adj. includes a legal settlement of $(1) million
2 Other adj. includes impairments of $1,788 million, gain on sale of assets of $16 million, reorganization costs of $44 million, acquisition-related transaction & integration costs of $4 million, and loss on debt extinguishment of $53 million

17



Appendix Table A-4: Full Year 2016 Adjusted EBITDA Reconciliation by Operating Segment
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to income/(loss) from continuing operations:
($ in millions)
Gulf Coast
East/West 1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Income/(Loss) from Continuing Operations
(920
)
96

(824
)
1,053

(330
)
2

(884
)
(983
)
Plus:
















Interest expense, net
1

24

25


97

283

481

886

Income tax
(2
)
1

(1
)
1

(20
)
(1
)
26

5

Loss on debt extinguishment






142

142

Depreciation and amortization
406

110

516

111

185

303

57

1,172

ARO Expense
11

4

15


2

3

1

21

Contract amortization
14

5

19

7

1

75

(3
)
99

Lease amortization

(8
)
(8
)




(8
)
EBITDA
(490
)
232

(258
)
1,172

(65
)
665

(180
)
1,334

Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates
3

27

30


42

75

(41
)
106

Acquisition-related transaction & integration costs





1

7

8

Deactivation costs

15

15




2

17

Loss on sale of assets



1



79

80

Other non recurring charges
19

(2
)
17

2

9

6

23

57

Impairments
377

53

430

1

54

185

32

702

Impairment losses on investments
137

5

142


105


21

268

Mark to market (MtM) (gains)/losses on economic hedges
447

46

493

(365
)
6



134

Adjusted EBITDA
493

376

869

811

151

932

(57
)
2,706

1 Includes International, BETM and generation eliminations

Full Year 2016 condensed financial information by Operating Segment:
($ in millions)
Gulf Coast
East/West 1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Operating revenues
2,603

1,781

4,384

6,336

413

1,104

(1,027
)
11,210

Cost of sales
1,325

768

2,093

4,687

14

61

(1,028
)
5,827

Economic gross margin
1,278

1,013

2,291

1,649

399

1,043

1

5,383

Operations & maintenance and other cost of operations 2
672

539

1,211

338

142

241

(10
)
1,922

Selling, marketing, general and administrative
132

133

265

498

61

17

254

1,095

Other expense/(income) 3
(19
)
(35
)
(54
)
2

45

(147
)
(186
)
(340
)
Adjusted EBITDA
493

376

869

811

151

932

(57
)
2,706

1 Includes International, BETM and generation eliminations
2 Excludes deactivation costs of $17 million
3 Excludes impairments of $970 million, loss on sale of assets of $80 million, acquisition-related transaction & integration costs of $8 million, and loss on debt extinguishment of $142 million

18




The following table reconciles the condensed financial information to Adjusted EBITDA:
($ in millions)
Condensed financial information
Interest, tax, depr., amort.
MtM
Deactivation
Other adj.
Adjusted EBITDA
Operating revenues
10,512

56

642



11,210

Cost of operations
5,362

(43
)
508



5,827

Gross margin
5,150

99

134



5,383

Operations & maintenance and other cost of operations
1,939



(17
)

1,922

Selling, marketing, general & administrative
1,095





1,095

Other expense/(income) 1
3,099

(2,076
)