VISTRA ENERGY CORP., 10-Q filed on 8/2/2019
Quarterly Report
v3.19.2
Cover Page - shares
6 Months Ended
Jun. 30, 2019
Jul. 31, 2019
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2019  
Document Transition Report false  
Entity File Number 001-38086  
Entity Registrant Name Vistra Energy Corp.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 36-4833255  
Entity Address, Address Line One 6555 Sierra Drive  
Entity Address, City or Town Irving,  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 75039  
City Area Code (214)  
Local Phone Number 812-4600  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   491,679,984
Entity Central Index Key 0001692819  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Common stock, par value $0.01 per share    
Document Information [Line Items]    
Title of 12(b) Security Common stock, par value $0.01 per share  
Trading Symbol VST  
Security Exchange Name NYSE  
Warrants    
Document Information [Line Items]    
Title of 12(b) Security Warrants  
Trading Symbol VST.WS.A  
Security Exchange Name NYSE  
v3.19.2
Condensed Statements Of Consolidated Income (Loss) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Statement [Abstract]        
Operating revenues $ 2,832 $ 2,574 $ 5,755 $ 3,338
Fuel, purchased power costs and delivery fees (1,139) (1,216) (2,600) (1,866)
Operating costs (370) (386) (755) (580)
Depreciation and amortization (384) (389) (790) (542)
Selling, general and administrative expenses (210) (352) (392) (514)
Operating income (loss) 729 231 1,218 (164)
Other income 13 7 39 18
Other deductions (2) (1) (5) (3)
Interest expense and related charges (274) (146) (495) (137)
Impacts of Tax Receivable Agreement 33 (64) 36 (82)
Equity in earnings of unconsolidated investments 3 4 10 4
Income (loss) before income taxes 502 31 803 (364)
Income tax (expense) benefit (148) 74 (225) 163
Net income (loss) 354 105 578 (201)
Net loss attributable to noncontrolling interest 2 3 3 3
Net income (loss) attributable to Vistra Energy $ 356 $ 108 $ 581 $ (198)
Weighted average shares of common stock outstanding:        
Weighted average shares of common stock outstanding - basic 499,778,235 526,332,862 499,213,522 477,662,016
Weighted average shares of common stock outstanding - diluted 507,500,383 533,786,824 507,248,920 477,662,016
Net income (loss) per weighted average share of common stock outstanding:        
Net income (loss) per weighted average share of common stock outstanding - basic $ 0.71 $ 0.21 $ 1.16 $ (0.41)
Net income (loss) per weighted average share of common stock outstanding - diluted $ 0.70 $ 0.20 $ 1.15 $ (0.41)
v3.19.2
Condensed Statements Of Consolidated Comprehensive Income (Loss) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ 354 $ 105 $ 578 $ (201)
Other comprehensive income, net of tax effects:        
Effects related to pension and other retirement benefit obligations (net of tax benefit of $— in all periods) 0 0 1 1
Total other comprehensive income 0 0 1 1
Comprehensive income (loss) 354 105 579 (200)
Comprehensive loss attributable to noncontrolling interest 2 3 3 3
Comprehensive income (loss) attributable to Vistra Energy $ 356 $ 108 $ 582 $ (197)
v3.19.2
Condensed Statements Of Consolidated Comprehensive Income (Loss) (Parenthetical) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Statement of Comprehensive Income [Abstract]        
Effects related to pension and other retirement benefit obligations (net of tax benefit of $— in all periods) $ 0 $ 0 $ 0 $ 0
v3.19.2
Condensed Statements Of Consolidated Cash Flows - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash flows — operating activities:    
Net income (loss) $ 578 $ (201)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:    
Depreciation and amortization 886 619
Deferred income tax (benefit) expense, net 217 (159)
Unrealized net (gain) loss from mark-to-market valuations of commodities (703) 199
Unrealized net (gain) loss from mark-to-market valuations of interest rate swaps 199 (86)
Asset retirement obligation accretion expense 27 44
Impacts of Tax Receivable Agreement (36) 82
Stock-based compensation 24 59
Other, net 73 (6)
Changes in operating assets and liabilities:    
Margin deposits, net 112 (61)
Accrued interest 6 (74)
Accrued taxes (67) (112)
Accrued employee incentive (72) (31)
Other operating assets and liabilities (362) (302)
Cash provided by (used in) operating activities 882 (29)
Cash flows — financing activities:    
Issuances of long-term debt 4,600 0
Repayments/repurchases of debt (4,137) (1,338)
Net borrowings under accounts receivable securitization program 91 0
Stock repurchase (457) (63)
Dividends paid to stockholders (120) 0
Debt tender offer and other financing fees (146) (46)
Other, net (1) 4
Cash used in financing activities (170) (1,443)
Cash flows — investing activities:    
Capital expenditures, including LTSA prepayments (247) (153)
Nuclear fuel purchases (20) (28)
Development and growth expenditures (36) (21)
Cash acquired in the Merger 0 445
Proceeds from sales of nuclear decommissioning trust fund securities 292 93
Investments in nuclear decommissioning trust fund securities (302) (103)
Proceeds from sale of environmental allowances 31 0
Purchases of environmental allowances (138) (1)
Other, net 21 10
Cash (used in) provided by investing activities (399) 242
Net change in cash, cash equivalents and restricted cash 313 (1,230)
Cash, cash equivalents and restricted cash — beginning balance 693 2,046
Cash, cash equivalents and restricted cash — ending balance $ 1,006 $ 816
v3.19.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Current assets:    
Cash and cash equivalents $ 964 $ 636
Restricted cash 42 57
Trade accounts receivable — net 1,101 1,087
Inventories 476 412
Commodity and other derivative contractual assets 1,418 730
Margin deposits related to commodity contracts 253 361
Prepaid expense and other current assets 285 152
Total current assets 4,539 3,435
Investments 1,422 1,250
Investment in unconsolidated subsidiary 127 131
Property, plant and equipment — net 14,260 14,612
Operating lease right-of-use assets 34 0
Goodwill 2,082 2,068
Identifiable intangible assets — net 2,383 2,493
Commodity and other derivative contractual assets 124 109
Accumulated deferred income taxes 1,144 1,336
Other noncurrent assets 405 590
Total assets 26,520 26,024
Current liabilities:    
Accounts receivable securitization program 430 339
Long-term debt due currently 161 191
Trade accounts payable 782 945
Commodity and other derivative contractual liabilities 1,514 1,376
Margin deposits related to commodity contracts 8 4
Accrued income taxes 12 10
Accrued taxes other than income 115 182
Accrued interest 82 77
Asset retirement obligations 232 156
Operating lease liabilities 13 0
Other current liabilities 308 345
Total current liabilities 3,657 3,625
Long-term debt, less amounts due currently 11,193 10,874
Operating lease liabilities 40 0
Commodity and other derivative contractual liabilities 404 270
Accumulated deferred income taxes 10 10
Tax Receivable Agreement obligation 384 420
Asset retirement obligation 2,133 2,217
Identifiable intangible liabilities - net 331 401
Other noncurrent liabilities and deferred credits 464 340
Total liabilities 18,616 18,157
Commitments and Contingencies
Total equity:    
Common stock (par value — $0.01; number of shares authorized — 1,800,000,000) (shares outstanding: June 30, 2019 — 476,166,856; December 31, 2018 — 493,215,309) 5 5
Additional paid-in-capital 8,909 9,329
Retained deficit (989) (1,449)
Accumulated other comprehensive income (loss) (21) (22)
Stockholders' equity 7,904 7,863
Noncontrolling interest in subsidiary 0 4
Total equity 7,904 7,867
Total liabilities and equity $ 26,520 $ 26,024
v3.19.2
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2019
Dec. 31, 2018
Jun. 30, 2018
Apr. 09, 2018
Dec. 31, 2017
Statement of Changes in Financial Position [Abstract]          
Common stock, par or stated value per share $ 0.01        
Common stock, shares authorized 1,800,000,000   1,800,000,000    
Common stock, shares outstanding 476,166,856 493,215,309 521,214,879 522,932,453 428,398,802
v3.19.2
Business And Significant Accounting Policies
6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Business And Significant Accounting Policies
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

Description of Business

References in this report to "we," "our," "us" and "the Company" are to Vistra Energy and/or its subsidiaries, as apparent in the context. See Glossary for defined terms.

Vistra Energy is a holding company operating an integrated retail and generation business in markets throughout the U.S. Through our subsidiaries, we are engaged in competitive electricity market activities including power generation, wholesale energy sales and purchases, commodity risk management and retail sales of electricity to end users.

Vistra Energy has six reportable segments: (i) Retail, (ii) ERCOT, (iii) PJM, (iv) NY/NE (comprising NYISO and ISO-NE), (v) MISO and (vi) Asset Closure. See Note 18 for further information concerning reportable business segments.

Acquisition of Crius

On July 15, 2019, an indirect, wholly owned subsidiary of Vistra Energy completed the acquisition of the equity interests of two wholly owned subsidiaries of Crius that indirectly own the operating business of Crius (Crius Transaction). Because the Crius Transaction closed on July 15, 2019, Vistra Energy's condensed consolidated financial statements and the notes related thereto for the period ending June 30, 2019 do not include the financial condition or the operating results of Crius and its subsidiaries. See Note 2 for a summary of the Crius Transaction.

Dynegy Merger Transaction

On the Merger Date, Vistra Energy and Dynegy completed the transactions contemplated by the Merger Agreement. Pursuant to the Merger Agreement, Dynegy merged with and into Vistra Energy, with Vistra Energy continuing as the surviving corporation. Because the Merger closed on April 9, 2018, Vistra Energy's condensed consolidated financial statements and the notes related thereto do not include the financial condition or the operating results of Dynegy prior to April 9, 2018. See Note 2 for a summary of the Merger transaction and business combination accounting.

Basis of Presentation

The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and on the same basis as the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2018. Adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the results of operations and financial position have been included therein. All intercompany items and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC. Because the condensed consolidated interim financial statements do not include all of the information and footnotes required by U.S. GAAP, they should be read in conjunction with the audited financial statements and related notes contained in our annual report on Form 10-K for the year ended December 31, 2018. The results of operations for an interim period may not give a true indication of results for a full year. All dollar amounts in the financial statements and tables in the notes are stated in millions of U.S. dollars unless otherwise indicated.

Use of Estimates

Preparation of financial statements requires estimates and assumptions about future events that affect the reporting of assets and liabilities at the balance sheet dates and the reported amounts of revenue and expense, including fair value measurements, estimates of expected obligations, judgment related to the potential timing of events and other estimates. In the event estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information.

Leases

At the inception of a contract we determine if it is or contains a lease, which involves the contract conveying the right to control the use of explicitly or implicitly identified property, plant, or equipment for a period of time in exchange for consideration.

Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date of the underlying lease based on the present value of lease payments over the lease term. We use our secured incremental borrowing rate based on the information available at the lease commencement date to determine the present value of lease payments. Operating leases are included in operating lease ROU assets, operating lease liabilities (current) and operating lease liabilities (noncurrent) on our condensed consolidated balance sheet. Finance leases are included in property, plant and equipment, other current liabilities and other noncurrent liabilities and deferred credits on our condensed consolidated balance sheet. Lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise the option. We have elected the practical expedient which permits us to not reassess under the new standard our prior conclusion about lease classification and initial direct costs. We have also elected the practical expedient to not separate lease and non-lease components for a majority of the lease asset classes. We have also elected the hindsight practical expedient to determine the lease term.

Leases with an initial lease term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

We also present lessor sublease income on a net basis against the related lessee lease expense.

Adoption of New Accounting Standards

Leases — On January 1, 2019, we adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) and all related amendments (new lease standard) using the modified retrospective method with the cumulative-effect adjustment to the opening balance of retained earnings for all contracts outstanding at the time of adoption. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the new lease standard to be immaterial to our net income on an ongoing basis. The impact of adopting the new lease standard primarily relates to recognition of lease liabilities and ROU assets for all leases classified as operating leases. Under the new lease standard, each ROU asset will be amortized over the lease term and liability settled at the end of the lease term.

We recognized the effect of initially applying the new lease standard by recording ROU assets of $85 million and lease liabilities of $123 million in our condensed consolidated balance sheet.

As of January 1, 2019, the cumulative effect of the changes made to our condensed consolidated balance sheet for the adoption of the new lease standard was as follows:
 
December 31, 2018
 
Adoption of New Lease Standard
 
January 1,
2019
Impact on condensed consolidated balance sheet:
 
 
 
 
 
Assets
 
 
 
 
 
Property, plant and equipment — net
$
14,612

 
$
15

 
$
14,627

Operating lease right-of-use assets

 
70

 
70

Prepaid expense and other current assets
152

 
(2
)
 
150

Accumulated deferred income taxes
1,336

 
1

 
1,337

Liabilities
 
 
 
 
 
Other current liabilities
345

 
(1
)
 
344

Operating lease liabilities

 
109

 
109

Identifiable intangible liabilities
401

 
(36
)
 
365

Other noncurrent liabilities and deferred credits
340

 
14

 
354

Equity
 
 
 
 
 
Retained deficit
(1,449
)
 
(2
)
 
(1,451
)


See Note 12 for the disclosures required by the new lease standard.

Changes in Accounting Standards

In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement. The ASU will be effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The ASU removes disclosure requirements for (a) the reasons for transfers between Level 1 and Level 2, (b) the policy for timing of transfers between levels and (c) the valuation processes for Level 3. The ASU will require new disclosures around (a) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (b) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. We are currently evaluating the impact of this ASU on our disclosures.

In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU will be effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The ASU requires a customer in a cloud hosting arrangement that is a service contract to determine which implementation costs to capitalize and which costs to expense based on the project stage of the implementation. The ASU also requires the customer to expense the capitalized implementation costs over the term of the hosting arrangement. The customer is required to apply the existing impairment and abandonment guidance on the capitalized implementation costs. We are currently evaluating the impact of this ASU on our financial statements.
v3.19.2
Acquisition of Crius, Dynegy Merger Transaction and Business Combination Accounting (Notes)
6 Months Ended
Jun. 30, 2019
Business Combinations [Abstract]  
Merger Transaction [Text Block] ACQUISITION OF CRIUS, DYNEGY MERGER TRANSACTION AND BUSINESS COMBINATION ACCOUNTING

Acquisition of Crius

On July 15, 2019 (Acquisition Date), Vienna Acquisition B.C. Ltd., an indirect, wholly owned subsidiary of Vistra Energy, completed the acquisition of the equity interests of two wholly owned subsidiaries of Crius that indirectly own the operating business of Crius. Crius is an energy retailer selling both electricity and natural gas products to residential and small business customers in 19 states and the District of Columbia.

The Crius Transaction is expected to (i) reduce risk and expand into higher margin channels by improving Vistra Energy's match of its generation to load profile due to a high degree of overlap with Vistra Energy's generation fleet with Crius' approximately 11.6 TWh of annual load, (ii) establish a platform for future growth by leveraging Vistra Energy's existing retail marketing capabilities and Crius' experienced team and (iii) enhance the integrated value proposition through collateral and transaction efficiencies, particularly via Crius' retail portfolio.

The Crius Transaction is being accounted for in accordance with ASC 805, Business Combinations (ASC 805), with identifiable assets acquired and liabilities assumed recorded at their estimated fair values on the Acquisition Date. Due to the limited time between the Acquisition Date and this filing, our purchase price allocation for the assets acquired and the liabilities assumed in the Merger has not been completed. The results of operations of Crius will be reported in our consolidated financial statements beginning as of the Acquisition Date. Vistra Energy funded the purchase price of approximately $400 million (including $380 million for outstanding trust units) using cash on hand and assumption of Crius' net debt of approximately $111 million. Our initial accounting for the purchase price allocation for the assets acquired and the liabilities assumed in the Crius Transaction and the supplemental pro forma financial results is currently underway and will be presented no later than the third quarter of 2019.

Dynegy Merger Transaction

On the Merger Date, Vistra Energy and Dynegy completed the transactions contemplated by the Merger Agreement. Pursuant to the Merger Agreement, Dynegy merged with and into Vistra Energy, with Vistra Energy continuing as the surviving corporation. The Merger was intended to qualify as a tax-free reorganization under the Internal Revenue Code, as amended, so that none of Vistra Energy, Dynegy or any of the Dynegy stockholders would recognize any gain or loss in the transaction, except that Dynegy stockholders could recognize a gain or loss with respect to cash received in lieu of fractional shares of Vistra Energy's common stock. Vistra Energy is the acquirer for both federal tax and accounting purposes.

At the closing of the Merger, each issued and outstanding share of Dynegy common stock, par value $0.01 per share, other than shares owned by Vistra Energy or its subsidiaries, held in treasury by Dynegy or held by a subsidiary of Dynegy, was automatically converted into 0.652 shares of common stock, par value $0.01 per share, of Vistra Energy (the Exchange Ratio), except that cash was paid in lieu of fractional shares, which resulted in Vistra Energy issuing 94,409,573 shares of Vistra Energy common stock to the former Dynegy stockholders, as well as converting stock options, equity-based awards, tangible equity units and warrants. The total number of Vistra Energy shares outstanding at the close of the Merger was 522,932,453 shares. Dynegy stock options and equity-based awards outstanding immediately prior to the Merger Date were generally automatically converted upon completion of the Merger into stock options and equity-based awards, respectively, with respect to Vistra Energy's common stock, after giving effect to the Exchange Ratio.

Dynegy Business Combination Accounting

We believe the Merger has provided and continues to provide significant strategic benefits and opportunities to Vistra Energy, including increased scale and market diversification, rebalanced asset portfolio and improved earnings and cash flow. The Merger was accounted for in accordance with ASC 805, Business Combinations (ASC 805), with identifiable assets acquired and liabilities assumed recorded at their estimated fair values on the Merger Date. The combined results of operations are reported in our consolidated financial statements beginning as of the Merger Date. A summary of the techniques used to estimate the fair value of the identifiable assets and liabilities, as well as their classification within the fair value hierarchy (see Note 15), is listed below:

Working capital was valued using available market information (Level 2).
Acquired property, plant and equipment was valued using a combination of an income approach and a market approach. The income approach utilized a discounted cash flow analysis based upon a debt-free, free cash flow model (Level 3).
Acquired derivatives were valued using the methods described in Note 15 (Level 1, Level 2 or Level 3).
Contracts with terms that were not at current market prices were also valued using a discounted cash flow analysis (Level 3). The cash flows generated by the contracts were compared with their cash flows based on current market prices with the resulting difference discounted to present value and recorded as either an intangible asset or liability.
Long-term debt was valued using a market approach (Level 2).
AROs were recorded in accordance with ASC 410, Asset Retirement and Environmental Obligations (Level 3).

The following table summarizes the consideration paid and the final allocation of the purchase price to the fair value amounts recognized for the assets acquired and liabilities assumed related to the Merger as of the Merger Date. Based on the opening price of Vistra Energy common stock on the Merger Date, the purchase price was approximately $2.3 billion. During the three months ended March 31, 2019, the purchase price allocation was completed. During the period from April 9, 2018 through March 31, 2019, we updated the initial purchase price allocation with final valuations by increasing property, plant and equipment by $173 million, decreasing intangible assets by $36 million, increasing goodwill by $175 million, decreasing accounts receivable, inventory, prepaid expenses and other current assets by $10 million, increasing accumulated deferred tax asset by $127 million, decreasing other noncurrent assets by $113 million, increasing trade accounts payable and other current liabilities by $89 million, increasing other noncurrent liabilities by $177 million, increasing asset retirement obligations, including amounts due currently, by $56 million, as well as other minor adjustments. The valuation revisions were a result of updated inputs used in determining the fair value of the acquired assets and liabilities.
Dynegy shares outstanding as of April 9, 2018 (in millions)
144.8

Exchange Ratio
0.652

Vistra Energy shares issued for Dynegy shares outstanding (in millions)
94.4

Opening price of Vistra Energy common stock on April 9, 2018
$
19.87

Purchase price for common stock
$
1,876

Fair value of equity component of tangible equity units
$
369

Fair value of outstanding stock compensation awards attributable to pre-combination service
$
26

Fair value of outstanding warrants
$
2

Total purchase price
$
2,273


Final Purchase Price Allocation
Cash and cash equivalents
$
445

Trade accounts receivables, inventories, prepaid expenses and other current assets
853

Property, plant and equipment
10,535

Accumulated deferred income taxes
518

Identifiable intangible assets
351

Goodwill
175

Other noncurrent assets
419

Total assets acquired
13,296

Trade accounts payable and other current liabilities
733

Commodity and other derivative contractual assets and liabilities, net
422

Asset retirement obligations, including amounts due currently
475

Long-term debt, including amounts due currently
8,919

Other noncurrent liabilities
469

Total liabilities assumed
11,018

Identifiable net assets acquired
2,278

Noncontrolling interest in subsidiary
5

Total purchase price
$
2,273



Acquisition costs incurred in the Merger totaled less than $1 million and $50 million for the three months ended June 30, 2019 and 2018, respectively, and less than $1 million and $52 million for the six months ended June 30, 2019 and 2018, respectively.

Unaudited Pro Forma Financial Information — The following unaudited pro forma financial information for the six months ended June 30, 2018 assumes that the Merger occurred on January 1, 2018. The unaudited pro forma financial information is provided for information purposes only and is not necessarily indicative of the results of operations that would have occurred had the Merger been completed on January 1, 2018, nor is the unaudited pro forma financial information indicative of future results of operations, which may differ materially from the pro forma financial information presented here.
 
Six Months
Ended
June 30, 2018
Revenues
$
4,789

Net loss
$
(439
)
Net loss attributable to Vistra Energy
$
(435
)
Net loss attributable to Vistra Energy per weighted average share of common stock outstanding — basic
$
(0.83
)
Net loss attributable to Vistra Energy per weighted average share of common stock outstanding — diluted
$
(0.83
)


The unaudited pro forma financial information presented above includes adjustments for incremental depreciation and amortization as a result of the fair value determination of the net assets acquired, interest expense on debt assumed in the Merger, effects of the Merger on tax expense (benefit), changes in the expected impacts of the tax receivable agreement due to the Merger, and other related adjustments.
v3.19.2
Acquisition and Development of Generation Facilities (Notes)
6 Months Ended
Jun. 30, 2019
Acquisition And Development Of Generation Facilities [Abstract]  
Business Combination Disclosure [Text Block]
ACQUISITION AND DEVELOPMENT OF GENERATION FACILITIES

Battery Energy Storage Projects

We have completed the construction of our first battery energy storage system (ESS). In October 2018, we were awarded a $1 million grant from the TCEQ for our battery ESS at our Upton 2 solar facility. The grant is part of the Texas Emissions Reduction Plan. The 10 MW lithium-ion ESS captures excess solar energy produced during the day and releases the energy in late afternoon and early evening, when demand is highest. The Upton 2 battery ESS became operational in December 2018.

In June 2019, East Bay Community Energy signed a ten-year contract to receive resource adequacy capacity from the planned development of a 20 MW battery ESS at our Oakland Power Plant site in California. The contract is now pending utility review and signature and will then be sent to the California Public Utilities Commission (CPUC) for approval.

In June 2018, we announced that, subject to approval by the CPUC, we would enter into a 20-year resource adequacy contract with Pacific Gas and Electric Company (PG&E) to develop a 300 MW battery ESS at our Moss Landing Power Plant site in California. PG&E filed its application with the CPUC in June 2018 and the CPUC approved the resource adequacy contract in November 2018. At June 30, 2019, we had accumulated approximately $15 million in construction work-in-process for this ESS. We anticipate the Moss Landing battery ESS will commence commercial operations by the fourth quarter of 2020. PG&E filed for Chapter 11 bankruptcy protection in January 2019. If the terms of the resource adequacy contract are not honored by PG&E or the resource adequacy contract is rejected through the bankruptcy process, we could have future impairment losses.

Upton 2 Solar Development

In May 2017, we acquired the rights to develop, construct and operate a utility scale solar photovoltaic power generation facility in Upton County, Texas (Upton 2). As part of this project, we entered a turnkey engineering, procurement and construction agreement to construct the approximately 180 MW facility. During 2017 and 2018, we spent approximately $231 million related to this project primarily for progress payments under the engineering, procurement and construction agreement and the acquisition of the development rights. The facility began test operations in March 2018 and commercial operations began in June 2018.
v3.19.2
Retirement of Generation Facilities (Notes)
6 Months Ended
Jun. 30, 2019
Retirement of Generation Facilities [Abstract]  
Retirement of generation facilities
RETIREMENT OF GENERATION FACILITIES

In August 2018, we filed a notice of suspension of operation with PJM and other mandatory regulatory notifications related to the retirement of our 51 MW Northeastern Power Company waste coal facility in McAdoo, Pennsylvania (Northeastern Facility). We decided to retire the Northeastern Facility due to its uneconomic operations and financial outlook. Following the receipt of regulatory approvals, the Northeastern Facility was retired in October 2018. The decision to retire the Northeastern Facility did not result in a material impact to the financial statements, and the operational results of the Northeastern Facility are included in our Asset Closure segment.

Two of our non-operated, jointly held power plants acquired in the Merger, for which our proportional generation capacity was 883 MW, were retired in May 2018. These units were retired as previously scheduled. No gain or loss was recorded in conjunction with the retirement of these units, and the operational results of these facilities are included in our Asset Closure segment. The following table details the units retired.
Name
 
Location
 
Fuel Type
 
Net Generation Capacity (MW)
 
Ownership Interest
 
Date Units Taken Offline
Killen
 
Manchester, Ohio
 
Coal
 
204

 
33%
 
May 31, 2018
Stuart
 
Aberdeen, Ohio
 
Coal
 
679

 
39%
 
May 24, 2018
Total
 
 
 
 
 
883

 

 
 

In January and February 2018, we retired three power plants with a total installed nameplate generation capacity of 4,167 MW. We decided to retire these units because they were projected to be uneconomic based on then current market conditions and would have faced significant environmental costs associated with operating such units. In the case of the Sandow units, the decision also reflected the execution of a contract termination agreement pursuant to which the Company and Alcoa agreed to an early settlement of a long-standing power and mining agreement. Expected retirement expenses were accrued in the third and fourth quarter of 2017 and, as a result, no retirement expenses were recorded related to these facilities in the three and six months ended June 30, 2018. The operational results of these facilities are included in our Asset Closure segment, which is engaged in the decommissioning and reclamation of retired plants and mines. The following table details the units retired.
Name
 
Location (all in the state of Texas)
 
Fuel Type
 
Installed Nameplate Generation Capacity (MW)
 
Number of Units
 
Date Units Taken Offline
Monticello
 
Titus County
 
Lignite/Coal
 
1,880

 
3
 
January 4, 2018
Sandow
 
Milam County
 
Lignite
 
1,137

 
2
 
January 11, 2018
Big Brown
 
Freestone County
 
Lignite/Coal
 
1,150

 
2
 
February 12, 2018
Total
 
 
 
 
 
4,167

 
7
 
 

v3.19.2
Revenue (Notes)
6 Months Ended
Jun. 30, 2019
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue from Contract with Customer [Text Block]
REVENUE

The following tables disaggregate our revenue by major source:
 
Three Months Ended June 30, 2019
 
Retail
 
ERCOT
 
PJM
 
NY/NE
 
MISO
 
CAISO/Eliminations
 
Consolidated
Revenue from contracts with customers:
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail energy charge in ERCOT
$
1,091

 
$

 
$

 
$

 
$

 
$

 
$
1,091

Retail energy charge in Northeast/Midwest
315

 

 

 

 

 

 
315

Wholesale generation revenue from ISO/RTO

 
188

 
130

 
81

 
76

 
22

 
497

Capacity revenue

 

 
53

 
72

 
11

 

 
136

Revenue from other wholesale contracts

 
52

 
87

 
6

 
41

 
4

 
190

Total revenue from contracts with customers
1,406

 
240

 
270

 
159

 
128

 
26

 
2,229

Other revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible amortization
(10
)
 

 

 
(1
)
 
(4
)
 
1

 
(14
)
Hedging and other revenues (a)
25

 
404

 
81

 
61

 
26

 
20

 
617

Affiliate sales

 
1,027

 
335

 
35

 
96

 
(1,493
)
 

Total other revenues
15

 
1,431

 
416

 
95

 
118

 
(1,472
)
 
603

Total revenues
$
1,421

 
$
1,671

 
$
686

 
$
254

 
$
246

 
$
(1,446
)
 
$
2,832

____________
(a)
Includes $538 million of unrealized net gains from mark-to-market valuations of commodity positions. See Note 18 for unrealized net gains (losses) by segment.

 
Three Months Ended June 30, 2018
 
Retail
 
ERCOT
 
PJM
 
NY/NE
 
MISO
 
Asset
Closure
 
CAISO/Eliminations
 
Consolidated
Revenue from contracts with customers:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail energy charge in ERCOT
$
1,111

 
$

 
$

 
$

 
$

 
$

 
$

 
$
1,111

Retail energy charge in Northeast/Midwest
336

 

 

 

 

 

 

 
336

Wholesale generation revenue from ISO/RTO

 
208

 
367

 
118

 
180

 
15

 
13

 
901

Capacity revenue

 

 
119

 
82

 
29

 
10

 
11

 
251

Revenue from other wholesale contracts

 
50

 
8

 
6

 
12

 

 
2

 
78

Total revenue from contracts with customers
1,447

 
258

 
494

 
206

 
221

 
25

 
26

 
2,677

Other revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible amortization
(15
)
 

 

 
(2
)
 
(6
)
 

 

 
(23
)
Hedging and other revenues (a)
22

 
229

 
(161
)
 
(29
)
 
(121
)
 
(25
)
 
5

 
(80
)
Affiliate sales

 
840

 
152

 
12

 
163

 
21

 
(1,188
)
 

Total other revenues
7

 
1,069

 
(9
)
 
(19
)
 
36

 
(4
)
 
(1,183
)
 
(103
)
Total revenues
$
1,454

 
$
1,327

 
$
485

 
$
187

 
$
257

 
$
21

 
$
(1,157
)
 
$
2,574

____________
(a)
Includes $203 million of unrealized net gains from mark-to-market valuations of commodity positions. See Note 18 for unrealized net gains (losses) by segment.
 
Six Months Ended June 30, 2019
 
Retail
 
ERCOT
 
PJM
 
NY/NE
 
MISO
 
CAISO/Eliminations
 
Consolidated
Revenue from contracts with customers:
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail energy charge in ERCOT
$
2,116

 
$

 
$

 
$

 
$

 
$

 
$
2,116

Retail energy charge in Northeast/Midwest
663

 

 

 

 

 

 
663

Wholesale generation revenue from ISO/RTO

 
435

 
351

 
276

 
214

 
95

 
1,371

Capacity revenue

 

 
120

 
152

 
24

 

 
296

Revenue from other wholesale contracts

 
97

 
159

 
12

 
57

 
6

 
331

Total revenue from contracts with customers
2,779

 
532

 
630

 
440

 
295

 
101

 
4,777

Other revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible amortization
(19
)
 

 

 
(3
)
 
(9
)
 
2

 
(29
)
Hedging and other revenues (a)
46

 
562

 
171

 
113

 
54

 
61

 
1,007

Affiliate sales

 
1,531

 
590

 
49

 
160

 
(2,330
)
 

Total other revenues
27

 
2,093

 
761

 
159

 
205

 
(2,267
)
 
978

Total revenues
$
2,806

 
$
2,625

 
$
1,391

 
$
599

 
$
500

 
$
(2,166
)
 
$
5,755


____________
(a)
Includes $697 million of unrealized net gains from mark-to-market valuations of commodity positions. See Note 18 for unrealized net gains (losses) by segment.

 
Six Months Ended June 30, 2018
 
Retail
 
ERCOT
 
PJM
 
NY/NE
 
MISO
 
Asset
Closure
 
CAISO/Eliminations
 
Consolidated
Revenue from contracts with customers:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail energy charge in ERCOT
$
2,059

 
$

 
$

 
$

 
$

 
$

 
$

 
$
2,059

Retail energy charge in Northeast/Midwest
336

 

 

 

 

 

 

 
336

Wholesale generation revenue from ISO/RTO

 
383

 
367

 
118

 
180

 
51

 
13

 
1,112

Capacity revenue

 

 
119

 
82

 
29

 
10

 
11

 
251

Revenue from other wholesale contracts

 
102

 
8

 
6

 
12

 
1

 
2

 
131

Total revenue from contracts with customers
2,395

 
485

 
494

 
206

 
221

 
62

 
26

 
3,889

Other revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible amortization
(27
)
 
(1
)
 

 
(2
)
 
(6
)
 

 

 
(36
)
Hedging and other revenues (a)
58

 
(233
)
 
(161
)
 
(29
)
 
(121
)
 
(34
)
 
5

 
(515
)
Affiliate sales

 
543

 
152

 
12

 
163

 
21

 
(891
)
 

Total other revenues
31

 
309

 
(9
)
 
(19
)
 
36

 
(13
)
 
(886
)
 
(551
)
Total revenues
$
2,426

 
$
794

 
$
485

 
$
187

 
$
257

 
$
49

 
$
(860
)
 
$
3,338

____________
(a)
Includes $208 million of unrealized net losses from mark-to-market valuations of commodity positions. See Note 18 for unrealized net gains (losses) by segment.

Performance Obligations

As of June 30, 2019, we have future performance obligations that are unsatisfied, or partially unsatisfied, relating to capacity auction volumes awarded through capacity auctions held by the ISO or RTO or through bilateral sales. Therefore, an obligation exists as of the date of the results of the respective ISO or RTO capacity auction or the contract execution date for bilateral customers. The transaction price is also set by the results of the capacity auction and/or executed contract. These obligations total $440 million, $770 million, $720 million, $423 million and $96 million that will be recognized in the balance of the year ended December 31, 2019 and the years ending December 31, 2020, 2021, 2022 and 2023, respectively, and $65 million thereafter. Capacity revenues are recognized as capacity services are provided to the related ISOs or RTOs or bilateral counterparties.

Accounts Receivable

The following table presents trade accounts receivable (net of allowance for uncollectible accounts) relating to both contracts with customers and other activities:
 
June 30,
2019
 
December 31, 2018
Trade accounts receivable from contracts with customers — net
$
977

 
$
951

Other trade accounts receivable — net
124

 
136

Total trade accounts receivable — net
$
1,101

 
$
1,087


v3.19.2
Goodwill and Identifiable Intangible Assets and Liabilities (Notes)
6 Months Ended
Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill And Identifiable Intangible Assets
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS AND LIABILITIES

Goodwill

The carrying value of goodwill totaled $2.082 billion and $2.068 billion at June 30, 2019 and December 31, 2018, respectively. Of the total goodwill at June 30, 2019, $175 million arose in connection with the Merger, and $122 million is recorded in our ERCOT Generation and Wholesale reporting unit and $53 million is recorded in our ERCOT Retail reporting unit. The remaining $1.907 billion arose in connection with our application of fresh start reporting at Emergence and was allocated entirely to our ERCOT Retail reporting unit. Of the goodwill recorded at Emergence, $1.686 billion is deductible for tax purposes over 15 years on a straight-line basis.

Identifiable Intangible Assets and Liabilities

Identifiable intangible assets are comprised of the following:
 
 
June 30, 2019
 
December 31, 2018
Identifiable Intangible Asset
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Retail customer relationship
 
$
1,680

 
$
987

 
$
693

 
$
1,680

 
$
876

 
$
804

Software and other technology-related assets
 
321

 
124

 
197

 
270

 
105

 
165

Retail and wholesale contracts
 
315

 
172

 
143

 
316

 
138

 
178

Contractual service agreements (a)
 
60

 
2

 
58

 
70

 

 
70

Other identifiable intangible assets (b)
 
118

 
74

 
44

 
42

 
15

 
27

Total identifiable intangible assets subject to amortization
 
$
2,494

 
$
1,359

 
1,135

 
$
2,378

 
$
1,134

 
1,244

Retail trade names (not subject to amortization)
 
 
 
 
 
1,245

 
 
 
 
 
1,245

Mineral interests (not currently subject to amortization)
 
 
 
 
 
3

 
 
 
 
 
4

Total identifiable intangible assets
 
 
 
 
 
$
2,383

 
 
 
 
 
$
2,493


__________
(a)
At June 30, 2019, amounts related to contractual service agreements that have become liabilities due to amortization of the economic impacts of the intangibles have been removed from both the gross carrying amount and accumulated amortization.
(b)
Includes mining development costs and environmental allowances and credits.

Identifiable intangible liabilities are comprised of the following:
Identifiable Intangible Liability
June 30,
2019
 
December 31, 2018
Contractual service agreements
$
107

 
$
136

Purchase and sale contracts
183

 
195

Environmental allowances
41

 
70

Total identifiable intangible liabilities
$
331

 
$
401



Amortization expense related to finite-lived identifiable intangible assets and liabilities (including the classification in the condensed statements of consolidated income (loss)) consisted of:
Identifiable Intangible Assets and Liabilities
 
Condensed Statements of Consolidated Income (Loss) Line
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Retail customer relationship
 
Depreciation and amortization
$
55

 
$
77

 
$
111

 
$
150

Software and other technology-related assets
 
Depreciation and amortization
15

 
19

 
29

 
30

Retail and wholesale contracts/purchase and sale contracts
 
Operating revenues/fuel, purchased power costs and delivery fees
12

 
23

 
24

 
32

Other identifiable intangible assets
 
Operating revenues/fuel, purchased power costs and delivery fees/depreciation and amortization
15

 
2

 
39

 
3

Total amortization expense (a)
$
97

 
$
121

 
$
203

 
$
215


____________
(a)
Amounts recorded in depreciation and amortization totaled $72 million and $97 million for the three months ended June 30, 2019 and 2018, respectively, and $141 million and $182 million for the six months ended June 30, 2019 and 2018, respectively. Excludes contractual services agreements.

Estimated Amortization of Identifiable Intangible Assets and Liabilities

As of June 30, 2019, the estimated aggregate amortization expense of identifiable intangible assets and liabilities for each of the next five fiscal years is as shown below.
Year
 
Estimated Amortization Expense
2019
 
$
309

2020
 
$
211

2021
 
$
164

2022
 
$
101

2023
 
$
76


v3.19.2
Income Taxes (Notes)
6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES

Income Tax Expense

The calculation of our effective tax rate is as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Income (loss) before income taxes
$
502

 
$
31

 
$
803

 
$
(364
)
Income tax (expense) benefit
$
(148
)
 
$
74

 
$
(225
)
 
$
163

Effective tax rate
29.5
%
 
(238.7
)%
 
28.0
%
 
44.8
%


For the three months ended June 30, 2019, the effective tax rate of 29.5% related to our income tax expense was higher than the U.S. federal statutory rate of 21% due primarily to nondeductible impacts of the TRA and state income taxes, including the impact of a partial valuation allowance on the state of Illinois net operating loss. For the six months ended June 30, 2019, the effective tax rate of 28.0% related to our income tax expense was higher than the U.S. federal statutory rate of 21% due primarily to nondeductible impacts of the TRA and state income taxes, including the impact of a partial valuation allowance on the state of Illinois net operating loss.

For the three months ended June 30, 2018, the effective tax rate of (238.7)% related to our income tax benefit was lower than the U.S. federal statutory rate of 21% due primarily to Vistra Energy's expanded state tax footprint requiring a one-time remeasurement of historical Vistra Energy deferred tax balances, partially offset by an increase in state tax expense. For the six months ended June 30, 2018, the effective tax rate of 44.8% related to our income tax benefit was higher than the U.S. federal statutory rate of 21% due primarily to Vistra Energy's expanded state tax footprint requiring a one-time remeasurement of historical Vistra Energy deferred tax balances and an increase in state tax expense.

Liability for Uncertain Tax Positions

Vistra Energy and its subsidiaries file income tax returns in U.S. federal and state jurisdictions and are expected to be subject to examinations by the IRS and other taxing authorities. Vistra Energy is not currently under audit by the IRS for any period, although review of Dynegy tax years 2017 and 2018 continue to progress through the IRS's Compliance Assurance Process audit program. Uncertain tax positions totaling $39 million at both June 30, 2019 and December 31, 2018 arose in connection with the Merger.
v3.19.2
Tax Receivable Agreement Obligation (Notes)
6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Tax Receivables Agreement Obligation
TAX RECEIVABLE AGREEMENT OBLIGATION

On the Effective Date, Vistra Energy entered into a tax receivable agreement (the TRA) with a transfer agent on behalf of certain former first lien creditors of TCEH. The TRA generally provides for the payment by us to holders of TRA Rights of 85% of the amount of cash savings, if any, in U.S. federal and state income tax that we realize in periods after Emergence as a result of (a) certain transactions consummated pursuant to the Plan of Reorganization (including the step-up in tax basis in our assets resulting from the PrefCo Preferred Stock Sale), (b) the tax basis of all assets acquired in connection with the acquisition of two CCGT natural gas-fueled generation facilities in April 2016 and (c) tax benefits related to imputed interest deemed to be paid by us as a result of payments under the TRA, plus interest accruing from the due date of the applicable tax return.

Pursuant to the TRA, we issued the TRA Rights for the benefit of the first lien secured creditors of TCEH entitled to receive such TRA Rights under the Plan of Reorganization. Such TRA Rights are entitled to certain registration rights more fully described in the Registration Rights Agreement (see Note 17).

During the three months ended June 30, 2019, we recorded a decrease to the carrying value of the TRA obligation totaling approximately $48 million as a result of the decrease in forecasted taxable income over the projected life of the TRA. During the three months ended March 31, 2019, we recorded a decrease to the carrying value of the TRA obligation totaling approximately $19 million as a result of adjustments to forecasted taxable income and higher net operating losses acquired in the Merger. During the three months ended June 30, 2018, we recorded an increase to the carrying value of the TRA obligation totaling approximately $46 million related to changes in the timing of estimated payments and new multistate tax impacts resulting from the Merger.

The following table summarizes the changes to the TRA obligation, reported as other current liabilities and Tax Receivable Agreement obligation in our condensed consolidated balance sheets, for the six months ended June 30, 2019 and 2018:
 
Six Months Ended June 30,
 
2019
 
2018
TRA obligation at the beginning of the period
$
420

 
$
357

Accretion expense
31

 
36

Changes in tax assumptions impacting timing of payments
(67
)
 
46

Impacts of Tax Receivable Agreement
(36
)
 
82

TRA obligation at the end of the period
384

 
439

Less amounts due currently

 
(25
)
Noncurrent TRA obligation at the end of the period
$
384

 
$
414



As of June 30, 2019, the estimated carrying value of the TRA obligation totaled $384 million, which represents the discounted amount of projected payments under the TRA. The projected payments are based on certain assumptions, including but not limited to (a) the federal corporate income tax rate of 21%, (b) estimates of our taxable income in the current and future years and (c) additional states that Vistra Energy now operates in, including the relevant tax rate and apportionment factor for each state. Our taxable income takes into consideration the current federal tax code, various relevant state tax laws and reflects our current estimates of future results of the business. These assumptions are subject to change, and those changes could have a material impact on the carrying value of the TRA obligation. As of June 30, 2019, the aggregate amount of undiscounted federal and state payments under the TRA is estimated to be approximately $1.3 billion, with more than half of such amount expected to be attributable to the first 15 tax years following Emergence, and the final payment expected to be made approximately 40 years following Emergence (if the TRA is not terminated earlier pursuant to its terms).

The carrying value of the obligation is being accreted to the amount of the gross expected obligation using the effective interest method. Changes in the amount of this obligation resulting from changes to either the timing or amount of TRA payments are recognized in the period of change and measured using the discount rate inherent in the initial fair value of the obligation.
v3.19.2
Earnings Per Share (Notes)
6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share
EARNINGS PER SHARE

Basic earnings per share available to common shareholders are based on the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated using the treasury stock method and includes the effect of all potential issuances of common shares under stock-based incentive compensation arrangements.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Net income (loss) attributable to common stock — basic
$
356

 
$
108

 
$
581

 
$
(198
)
Weighted average shares of common stock outstanding — basic (a)
499,778,235

 
526,332,862

 
499,213,522

 
477,662,016

Net income (loss) per weighted average share of common stock outstanding — basic
$
0.71

 
$
0.21

 
$
1.16

 
$
(0.41
)
Dilutive securities: Stock-based incentive compensation plan and tangible equity units
7,722,148

 
7,453,962

 
8,035,398

 

Weighted average shares of common stock outstanding — diluted
507,500,383

 
533,786,824

 
507,248,920

 
477,662,016

Net income (loss) per weighted average share of common stock outstanding — diluted
$
0.70

 
$
0.20

 
$
1.15

 
$
(0.41
)

____________
(a)
The minimum settlement amount of tangible equity units, or 15,207,600 shares in both the three and six months ended June 30, 2019 and 15,056,260 shares in both the three and six months ended June 30, 2018, are considered to be outstanding and are included in the computation of basic net income per share (see Note 14).

Stock-based incentive compensation plan awards excluded from the calculation of diluted earnings per share because the effect would have been antidilutive totaled 2,910,226 and 8,064,657 shares for the three months ended June 30, 2019 and 2018, respectively, and 7,577,246 and 18,392,470 shares for the six months ended June 30, 2019 and 2018, respectively.
v3.19.2
Accounts Receivable Securitization Program (Notes)
6 Months Ended
Jun. 30, 2019
Accounts Receivable Securitization Program [Abstract]  
Accounts Receivable Securitization Program [Text Block]
ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM

TXU Energy Receivables Company LLC (RecCo), an indirect subsidiary of Vistra Energy, has an accounts receivable financing facility (Receivables Facility) provided by issuers of asset-backed commercial paper and commercial banks (Purchasers). At June 30, 2019, the Receivables Facility provided RecCo with the ability to borrow up to $450 million, pursuant to an amendment to the terms of the Receivables Facility in April 2019. The Receivables Facility was renewed in July 2019, extending its scheduled termination from August 2019 to July 2020, with the ability to borrow up to $600 million until the settlement date in November 2019, after which the amount available for RecCo to borrow will revert to $450 million.

Under the Receivables Facility, TXU Energy and Dynegy Energy Services are obligated to sell or contribute, on an ongoing basis and without recourse, their accounts receivable to TXU Energy's special purpose subsidiary, RecCo, a consolidated, wholly owned, bankruptcy-remote, direct subsidiary of TXU Energy. RecCo, in turn, is subject to certain conditions, and may, from time to time, sell an undivided interest in all the receivables acquired from TXU Energy and Dynegy Energy Services to the Purchasers, and its assets and credit are not available to satisfy the debts and obligations of any person, including affiliates of RecCo. Amounts funded by the Purchasers to RecCo are reflected as short-term borrowings on the condensed consolidated balance sheets. Proceeds and repayments under the Receivables Facility are reflected as cash flows from financing activities in our condensed statements of consolidated cash flows. Receivables transferred to the Purchasers remain on Vistra Energy's balance sheet and Vistra Energy reflects a liability equal to the amount advanced by the Purchasers. The Company records interest expense on amounts advanced. TXU Energy continues to service, administer and collect the trade receivables on behalf of RecCo and the Purchasers, as applicable.

As of June 30, 2019, outstanding borrowings under the receivables facility totaled $430 million and were supported by $662 million of RecCo gross receivables. As of December 31, 2018, outstanding borrowings under the receivables facility totaled $339 million.
v3.19.2
Long-Term Debt (Notes)
6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Long-Term Debt
LONG-TERM DEBT

Amounts in the table below represent the categories of long-term debt obligations incurred by the Company.
 
June 30,
2019
 
December 31,
2018
Vistra Operations Credit Facilities
$
3,798

 
$
5,813

Vistra Operations Senior Secured Notes:
 
 
 
3.550% Senior Secured Notes, due July 15, 2024
1,200

 

4.300% Senior Secured Notes, due July 15, 2029
800

 

Total Vistra Operations Senior Secured Notes
2,000

 

Vistra Operations Senior Unsecured Notes:
 
 
 
5.500% Senior Notes, due September 1, 2026
1,000

 
1,000

5.625% Senior Notes, due February 15, 2027
1,300

 

5.000% Senior Notes, due July 31, 2027
1,300