Vistra Corp
For the period ended Jun 30, 2024. Filed Aug 9, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 9, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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. Goodwill and Identifiable Intangible Assets and Liabilities
- GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS AND LIABILITIES
Goodwill
As of June 30, 2024 and December 31, 2023, the carrying value of goodwill totaled $2.922 billion and $2.583 billion, respectively.
| Retail Segment · Texas Segment | ||||
|---|---|---|---|---|
| Retail Reporting Unit (a) · Texas Generation Reporting Unit · Total Goodwill | ||||
| (in millions) | ||||
| Balance at December 31, 2023 | $2,461 | $122 | $2,583 | |
| Goodwill recorded in connection with the Energy Harbor Merger (b) | 339 | |||
| Balance at June 30, 2024 | $2,461 | $122 | $2,922 | |
(a)Goodwill of $1.944 billion is deductible for tax purposes over 15 years on a straight line basis.
(b)Allocation of goodwill attributable to the Energy Harbor acquisition to reporting units is pending completion of purchase accounting measurement period.
Identifiable Intangible Assets and Liabilities
Identifiable intangible assets are comprised of the following:
| June 30, 2024 · December 31, 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Identifiable Intangible Asset · GrossCarryingAmount · AccumulatedAmortization · Net · GrossCarryingAmount · AccumulatedAmortization · Net | ||||||||
| (in millions) | ||||||||
| Retail customer relationships | $2,170 | $1,918 | $252 | $2,088 | $1,866 | $222 | ||
| Software and other technology-related assets | 565 | 264 | 301 | 536 | 315 | 221 | ||
| Retail and wholesale contracts | 503 | 272 | 231 | 233 | 217 | 16 | ||
| LTSA | 18 | 5 | 13 | 18 | 5 | 13 | ||
| Other identifiable intangible assets (a) | 137 | 12 | 125 | 62 | 11 | 51 | ||
| Total identifiable intangible assets subject to amortization | $3,393 | $2,471 | 922 | $2,937 | $2,414 | 523 | ||
| Retail trade names (not subject to amortization) | 1,341 | 1,341 | ||||||
| Total identifiable intangible assets | $2,263 | $1,864 | ||||||
(a)Includes environmental allowances (emissions allowances and renewable energy certificates) and mining development costs.
Identifiable intangible liabilities are comprised of the following:
| Identifiable Intangible Liability | June 30,2024 | December 31,2023 |
|---|---|---|
| (in millions) | ||
| LTSA | $111 | $122 |
| Power and fuel purchase contracts | 57 | 9 |
| Total identifiable intangible liabilities | $168 | $131 |
Expense related to finite-lived identifiable intangible assets and liabilities (including the classification in the condensed consolidated statements of operations) are comprised of:
| Identifiable Intangible Assets/Liabilities · Condensed Consolidated Statements of Operations · Three Months Ended June 30, · Six Months Ended June 30, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2024 · 2023 · 2024 · 2023 | |||||||||
| (in millions) | |||||||||
| Retail customer relationships | Depreciation and amortization | $31 | $21 | $53 | $49 | ||||
| Software and other technology-related assets | Depreciation and amortization | 15 | 15 | 28 | 29 | ||||
| Retail and wholesale contracts | Operating revenues/fuel, purchased power costs and delivery fees | (3) | 2 | (4) | 4 | ||||
| Other identifiable intangible assets | Fuel, purchased power costs and delivery fees | 92 | 76 | 196 | 162 | ||||
| Total identifiable intangible assets expense, net (a) | $135 | $114 | $273 | $244 | |||||
(a)Amounts exclude LTSA. Amounts include all expenses associated with environmental allowances including expenses accrued to comply with emissions allowance programs and renewable portfolio standards which are presented in fuel, purchased power costs and delivery fees on the condensed consolidated statements of operations. Emissions allowance obligations are accrued as associated electricity is generated and renewable energy certificate obligations are accrued as retail electricity delivery occurs.
Estimated Amortization of Identifiable Intangible Assets
As of June 30, 2024, the estimated aggregate amortization expense of identifiable intangible assets for each of the next five fiscal years is as shown below.
| Year | Estimated Amortization Expense |
|---|---|
| (in millions) | |
| 2024 | $306 |
| 2025 | $222 |
| 2026 | $158 |
| 2027 | $62 |
| 2028 | $42 |
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