TXU Parent Records Impairment of $700 Million of Goodwill Due To Lower Forecast Wholesale Prices
May 08,2015
In its 10-Q for the period ending March 31, 2015, Energy Future Holdings disclosed that during the three months ended March 31, 2015, it experienced an impairment indicator related to decreases in forward wholesale electricity prices when compared to those prices reflected in its December 1, 2014 goodwill impairment testing analysis.
The result was a noncash impairment of $700 million of goodwill at March 31, 2015, which was reported in the Competitive Electric segment results, reflecting the effect of lower wholesale electricity prices in ERCOT, driven by the sustained decline in natural gas prices.
Separately, continued decreases in forecasted wholesale electricity prices in ERCOT resulted in a $676 million noncash impairment charge related to EFH's Big Brown generation facility