Acquisitions, Development and Divestitures (Tables)

9 Months Ended

Sep. 30, 2015

Acquisitions Development And Divestitures [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary allocation of the purchase price to the fair values of the major classes of assets and liabilities of RJS, all of which represent non-cash activity excluded from the Statement of Cash Flows for the nine months ended September 30, 2015.

Current assets (a)	$	164
Assets of discontinued operations (b)	375
PP&E	1,777
Other intangibles (c)	46
Current liabilities	(259		)
Liabilities of discontinued operations	(5		)
Long-term debt	(1,244		)
Deferred income taxes	(266		)
Other noncurrent liabilities (d)	(80		)
Net identifiable assets acquired	508
Goodwill (e)	394
Net assets acquired	$	902

(a) Includes gross contractual amount of the accounts receivable acquired of $41 million, which approximates fair value.

(b) See Note 13 for information on impairment charges recorded during the third quarter of 2015 related to the Sapphire portfolio.

(c) Includes $28 millionfor a pipeline lease that will be amortized over a14year period, and$17 millionfor an ash site permit that has an amortization period of10 years.

(d) Includes$33 million for "out-of-the-money" coal contracts that will be amortized over the contract term as the coal is consumed.

(e) The preliminary allocation above is as of the acquisition date of June 1, 2015. As further discussed in Note 15, goodwill was fully impaired at September 30, 2015, which included the goodwill recognized in the acquisition of RJS Power.

Pro Forma Information

Actual operating revenues and net income of RJS, since the June 1 acquisition, included in Talen Energy's results for the periods ended September 30, 2015 were:

	Three Months				Nine Months
	Operating Revenues		Net Income (Loss) (a)		Operating Revenues		Net Income (Loss)(a)
RJS actual for 2015	$	237	$	34	$	339	$	48

(a) Includes the operating results of the Sapphire portfolio, which is classified as discontinued operations. Excludes the impact of goodwill and long-lived asset impairments recorded during the three and nine months ended September 30, 2015. See Notes 13 and 15 for information on the impairments recorded.

Pro forma information for Talen Energy for the periods ended September 30, as if the acquisition had occurred January 1, 2014, is as follows:

	Three Months				Nine Months
	Operating Revenues		Income (Loss) from Continuing Operations After Tax		Operating Revenues		Income (Loss) from Continuing Operations After Tax
2015:
Pro forma	$	1,420	$	110	$	3,723	$	235
Basic and diluted earnings per share (for Talen Energy Corporation)			0.86				1.83
2014:
Pro forma	1,758		79		2,361		47
Basic and diluted earnings per share (for Talen Energy Corporation)			0.61				0.37

Sapphire

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Components of Discontinued Operations

Following are the components of discontinued operations, since the June 1 acquisition, on the Statement of Income for the periods ended September 30, 2015.   

	Three Months			Nine Months
Operating revenues	$	36		$	44
Operating expenses	27			34
Impairment (a)	109			109
Income (loss) before income taxes	(100		)	(99		)
Income tax expense	38			38
Income (Loss) from Discontinued Operations (net of income taxes)	$	(62	)	$	(61	)

(a) See Notes 13 and 15 for additional information on this non-cash charge.

Talen Montana Hydro Sale

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Components of Discontinued Operations

Following are the components of discontinued operations on the Statement of Income for the periods ended September 30, 2014.    

	Three Months		Nine Months
Operating revenues	$	33	$	103
Interest expense (a)	2		6
Income (loss) before income taxes (b)	11		20
Income (Loss) from Discontinued Operations (net of income taxes) (b)	7		10

(a) Represents allocated interest expense based upon the discontinued operations share of the net assets of Talen Energy.  

(b) Includes an impairment charge related to the Kerr Dam Project. See Note 13 for additional information on this non-cash charge.