Segment and Related Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment and Related Information

Segment and Related Information

Effective June 1, 2015, in connection with the spinoff and acquisition transactions, Talen Energy is organized in two segments: East and West, primarily based on geographic location and energy market characteristics. Prior to the spinoff and acquisition, Talen Energy operated within a single segment.

The East segment consists primarily of competitive generation in PJM and wholesale, retail, marketing and trading activities in the eastern U.S. and the legacy Talen Energy Supply coal fired facility, Colstrip, in Montana. As such, the East segment includes all legacy Talen Energy Supply operations and from June 1, 2015, the Raven operations that were acquired from the Riverstone Holders. Although all of the legacy single segment's activity is still included in one segment (East), segment information for periods prior to the spinoff has been revised to reflect the current period presentation as the measurement of segment performance has changed. Previously, net income was used as the measure of segment performance. Beginning in June 2015, operating income and certain non-GAAP measures are used as measures of segment performance. As the Sapphire portfolio is classified as discontinued operations, its results are not included in the East segment's operating income, but the Sapphire portfolio assets are included with the East segment's assets.

The West segment consists of the competitive generation and wholesale activities related to the Jade operations that were acquired from the Riverstone Holders on June 1, 2015, which are located in ERCOT.

"Other" primarily includes wages, benefits, services, certain insurance, rent and financing costs incurred primarily at Talen Energy Supply, which have not been allocated or assigned to the segments, and is presented to reconcile segment information to consolidated results.

Financial data for the segments and reconciliation to consolidated results for the periods ended September 30 are:

	Three Months						Nine Months
	2015			2014			2015			2014
Income Statement Data
Revenues from external customers (a)
East	$	1,325		$	1,601		$	3,305		$	1,653
West	94			—			125			—
Total	$	1,419		$	1,601		$	3,430		$	1,653
Operating Income (Loss)
East	$	(230	)	$	242		$	132		$	307
West	24			—			18			—
Other	(40		)	(53		)	(184		)	(181		)
Total	$	(246	)	$	189		$	(34	)	$	126

Balance Sheet Data	September 30, 2015		December 31, 2014
Assets
East	$	11,128	$	10,468
West	1,066		—
Other (b)	60		292
Total Assets	$	12,254	$	10,760

(a) Includes unrealized gains and losses from derivatives. See Note 14 for additional information.

(b) Primarily consists of unallocated items, including cash and PP&E.