Goodwill and Other Intangibles (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The table below presents the changes of goodwill for the years ended December 31, 2022 and 2021 based on the Company's reportable segments.

(in millions)	Texas		East		West/Services/Other		Total
Balance as of January 1, 2021	$	289	$	240	$	50	$	579
Goodwill resulted from the acquisition of Direct Energy	427		648		175		1,250
Impairment losses	—		(35)		—		(35)
Foreign currency translation	—		—		1		1
Balance as of December 31, 2021	$	716	$	853	$	226	$	1,795
Impairment losses	—		(130)		—		(130)
Asset sales	(6)		—		—		(6)
Foreign currency translation	—		—		(9)		(9)
Balance as of December 31, 2022	$	710	$	723	$	217	$	1,650

Summary of the Components of Intangible Assets Subject to Amortization

The following tables summarize the components of NRG's intangible assets:

(In millions)
Year Ended December 31, 2022	Emission Allowances		Customer and Supply Contracts		Customer Relationships		Marketing Partnerships		Trade Names		Other(b)		Total
January 1, 2022	$	634	$	638	$	1,679	$	284	$	683	$	229	$	4,147
Purchases	26		—		—		—		—		404		430
Acquisition of businesses (a)	—		—		55		—		—		—		55
Usage/Sales/Retirements	(33)		—		—		—		—		(341)		(374)
Write-off of fully amortized balances	(14)		—		—		—		—		—		(14)
Other	11		(3)		(4)		—		(4)		—		—
December 31, 2022	624		635		1,730		284		679		292		4,244
Less accumulated amortization	(528)		(235)		(787)		(146)		(341)		(75)		(2,112)
Net carrying amount	$	96	$	400	$	943	$	138	$	338	$	217	$	2,132

(a)The weighted average life of acquired amortizable intangibles was six years for customer relationships

(b)RECs are not subject to amortization and had a carrying value of $186 million

(In millions)
Year Ended December 31, 2021	Emission Allowances		Customer and Supply Contracts		Customer Relationships		Marketing Partnerships		Trade Names		Other(b)		Total
January 1, 2021	$	672	$	28	$	527	$	285	$	373	$	140	$	2,025
Purchases	10		—		—		—		—		338		348
Acquisition of businesses (a)	—		610		1,308		—		310		124		2,352
Usage/Retirements	(1)		—		—		—		—		(364)		(365)
Write-off of fully amortized balances	(51)		—		(158)		—		—		(7)		(216)
Other	4		—		2		(1)		—		(2)		3
December 31, 2021	634		638		1,679		284		683		229		4,147
Less accumulated amortization	(536)		(94)		(518)		(123)		(294)		(71)		(1,636)
Net carrying amount	$	98	$	544	$	1,161	$	161	$	389	$	158	$	2,511

(a)The weighted average life of total acquired amortizable intangibles from the Direct Energy acquisition was 12 years

(b)RECs are not subject to amortization and had a carrying value of $123 million

Schedule of Amortization and Retirements of Intangible Expense

The following table presents NRG's amortization of intangible assets for each of the past three years:

	Years Ended December 31,
(In millions)	2022		2021		2020
Emission allowances	$	6	$	24	$	28
Customer and supply contracts	141		66		12
Customer relationships	269		327		74
Marketing partnerships	23		24		24
Trade names	47		47		27
Other(a)	4		7		3
Total amortization	$	490	$	495	$	168

(a)For the years ended December 31, 2022, 2021 and 2020, other intangibles were amortized to depreciation and amortization expense for $4 million, $3 million and $3 million, respectively

Schedule of Estimated Amortization of Intangible Assets for Next Five Years

The following table presents estimated amortization of NRG's intangible assets as of December 31, 2022 for each of the next five years:

(In millions)
Year Ended December 31,	Emission Allowances		Customer and Supply Contracts		Customer Relationships		Marketing Partnerships		Trade Names		Other		Total
2023	$	18	$	119	$	226	$	23	$	46	$	4	$	436
2024	19		73		159		23		38		3		315
2025	18		50		118		22		31		4		243
2026	10		52		103		22		23		3		213
2027	10		30		74		22		23		3		162