View:
United States securities and exchange commission logo
September 3, 2021
Mauricio Gutierrez
President and Chief Executive Officer
NRG ENERGY, INC.
910 Louisiana St.
Houston, TX 77002
Re: NRG ENERGY, INC.
Form 10-K for the
Fiscal Year ended December 31, 2020
Filed March 1, 2021
File No. 001-15891
Dear Mr. Gutierrez:
We have reviewed your filing and have the following comments. In
some of our
comments, we may ask you to provide us with information so we may better
understand your
disclosure.
Please respond to these comments within ten business days by
providing the requested
information or advise us as soon as possible when you will respond. If
you do not believe our
comments apply to your facts and circumstances, please tell us why in
your response.
After reviewing your
response to these comments, we may have additional comments.
Form 10-K for the Fiscal Year ended December 31, 2020
Management's Discussion and Analysis of Financial Condition and Results
of Operations
Consolidated Results of Operations for the years ended December 31, 2020
and 2019
Economic Gross Margin, page 53
1. We note that you
identify economic gross margin as a non-GAAP measure, and provide
a reconciliation to
gross margin on page 53 as the most directly comparable GAAP
measure. You include a
compilation of gross margin, which reflects various deductions
from operating revenues
to yield the measure for each period.
However, the deductions
for 2020 amount to $5,139 which is not consistent with the cost
of sales that you
report on page 52 of $4,920, nor the cost of operations that you report on
page 92 of $6,540, and
it appears that you have excluded depreciation and amortization
from all three
measures; the corresponding 2019 amounts reflect similar discrepancies.
Mauricio Gutierrez
NRG ENERGY, INC.
September 3, 2021
Page 2
Please revise your compilation of gross margin and the related
disclosures on pages 55
and 56 as necessary to reflect all costs of sales that would be
attributable to operating
revenues in accordance with GAAP, consistent with the reporting
requirements in Rule 5-
03.2 of Regulation S-X and the definition of gross margin in the FASB
Master Glossary.
If the cost of sales measure reported on page 52 does not reflect all
costs and expenses that
would be attributable to revenues in accordance with GAAP, the measure
should be
revised for completeness or relabeled to more clearly reflect its
composition.
2. We note that you disaggregate your Cost of Operations measure in MD&A
to identify the
components Cost of sales, Mark-to-market for economic hedging
activities, Contract and
emissions credit amortization, Operations and maintenance, and Other
cost of operations.
Given your presentation in the Statements of Operations on page 92,
tell us how Cost of
Operations may be similar to Cost of Sales, and how you considered the
guidance in SAB
Topic 11:B, as may be applied to your measure. Please expand your
disclosures
in financial statement Note 2 to include a description of the costs
reported within Cost of
Operations, including each of the subcategories identified in MD&A.
Please also conform the labeling of the line caption on page 52 with
that which appears on
page 92, and provide some description of the measure as a subcategory
of and in relation
to Total operating costs and expenses.
We remind you that the company and its management are responsible for
the accuracy
and adequacy of their disclosures, notwithstanding any review, comments, action
or absence of
action by the staff.
You may contact Mark Wojciechowski, Staff Accountant, at (202) 551-3759
or Lily
Dang, Staff Accountant, at (202) 551-3867 with any questions.
FirstName LastNameMauricio Gutierrez Sincerely,
Comapany NameNRG ENERGY, INC.
Division of
Corporation Finance
September 3, 2021 Page 2 Office of Energy
& Transportation
FirstName LastName