GENON ENERGY, INC. FORM DEFA14A - Barchart.com

GENON ENERGY, INC.

                                     FORM DEFA14A
                           (Additional Proxy Soliciting Materials (definitive))

                                             Filed 08/09/12

             Address             804 CARNEGIE CENTER
                                 -
                                 PRINCETON, NJ, 08540
        Telephone                609-524-4500
                CIK              0001126294
         SIC Code                4911 - Electric Services
           Industry              Electric Utilities
             Sector              Utilities
        Fiscal Year              12/31

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UNITED STATES
                        SECURITIES AND EXCHANGE COMMISSION
                                                           Washington, D.C. 20549

                                                          SCHEDULE 14A
                                         Proxy Statement Pursuant to Section 14(a) of the
                                                 Securities Exchange Act of 1934
                                                      (Amendment No. )

Filed by the Registrant                        Filed by a Party other than the Registrant 

Check the appropriate box:
    Preliminary Proxy Statement
    Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
    Definitive Proxy Statement
    Definitive Additional Materials
    Soliciting Material Pursuant to §240.14a-12

                                        GENON ENERGY, INC.
                                               (Name of Registrant as Specified In Its Charter)

                                           (Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

    No fee required.

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           which the filing fee is calculated and state how it was determined):

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    Fee paid previously with preliminary materials.

    Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee
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Second Quarter 2012 Earnings Aug ust 9 , 2012

Safe Harbor In addition to historical information , the in formation p resented in th is communication inclu des forward -looking statemen ts within the meaning of Sectio n 27A of the Securities Act of 1933 and Sectio n 21E of the Exchan ge Act. These statements in volve estimates, expectatio ns, projections, g oals, assu mptions, known and u nknown risks and uncertainties and can ty pically b e identified b y termino logy such as "m ay," "will," "should," "could, " "o bjective," "projectio n," "fo recast," "goal, " "g uidance," "outlo ok," "expect," "intend ," "seek," "p lan," "think," "anticip ate," "estimate," "predict," "target," "poten tial" or "continue" or the neg ative of these terms or other comparable termin ology . Su ch fo rward -looking statemen ts include, but are not limited to, statemen ts about the anticipated benefits of the pro posed transactio n between NRG and Gen On, our and the combin ed company's future revenu es, income, indebtedness, capital structu re, plan s, expectations , objectives , projected financial performance and/or business results and other future events , each party's views of econ omic and market con ditions, and the expected timing o f the co mpletion of the p ro posed transactio n. Forward-looking statemen ts are not a guarantee of fu ture performance an d actual even ts or
results may differ materially from any forward-looking st atemen t as result of various ris ks and u ncertainties, in cluding , but not limited to , thos e relating to: the ability to satisfy the conditio ns to the propos ed tran saction between NRG and GenOn, the ability to success fu lly complete the prop osed transaction (including any financing arrangements in connectio n therewith) in accordance with its terms and in accordan ce with expected schedule, th e ability to o btain s tockholder, antitrust, reg ulatory or other app rov als for the propo sed transaction, or an inability to obtain them on th e terms propos ed or on th e anticipated schedule, divers ion o f manag emen t attention on tran saction -related issues, impact of th e trans action on relationships with customers, su ppliers and employees, the ability to fin an ce th e combined bu siness post-closing an d the terms on which such financing may be avai lable, th e fin an cial performance of the comb ined company fo llowing comp letion of the propos ed tran saction, the ab ility to success fu lly integrate the bus inesses o f NRG and GenOn, the ability to realize anticipated benefits of the p ro posed t ransactio n (including expected cost s av ings and other syn ergies ) o r the risk that anticip ated ben efits may tak e longer to realize than expected , legis lative,
regulatory and/or market d evelo pments , the outco me of pendin g or threatened lawsuits, regulato ry or tax proceedings or i nvestigations , the effects o f competition or regulatory int ervention, financial and economic market condition s, access to cap ital, the timing and exten t of changes in law an d reg ulatio n (including environ mental), commodity prices, prevailing demand and market prices for electricity, cap acity, fuel and emissio ns allo wan ces, weather conditions , operational cons traints or outages, fuel s upply or transmission is sues, hedging in effectiveness. Ad ditional in formation concerning other risk factors is contained in GenOn's mos t recent Annual Rep ort on Form 10-K, subs equ en t Quarterly Repo rts on Form 10-Q, recent Current Reports on Form 8 -K, an d oth er Securities and Exchange Commiss ion ("SEC") filings. Many of th es e ris ks, u ncertainties and assu mptions are beyond GenOn 's ability to contro l or predict. Because of thes e risks, u ncertainties and assu mptions, you s hould not p lace und ue reliance on these fo rward-looking statemen ts. Furthermo re, forward -looking statemen ts s peak o nly as o f the date they are mad e, and Gen On undertakes no oblig ation to update pu blicly or revise an y forward -looking statemen ts to reflect events or circumstances that may
aris e after the date of this communicatio n. All subs equ en t written an d oral forward -looking statemen ts concerning GenOn , the propos ed tran saction, the co mbined co mpany or other matters and attributable to GenOn or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. 2

Safe Harbor Add itio nal Informatio n And Where To Find It T his communication do es not cons titute an offer to sell o r the solicitatio n of an offer to buy any s ecurities or a solicitatio n of any vote or app ro val, nor sh all th ere be an y sale of securities in any jurisdiction in which s uch offer, so licitation or s ale wo uld b e un lawfu l prior to reg istration or qualification un der the securities laws of any such ju risdiction. Th e p rop osed bus iness combination transactio n between NRG and GenO n will be submitted to the respectiv e s tockholders of NRG and Gen On for their consideration. NRG will file with th e SEC a regis tration statement o n Form S-4 that will include a joint proxy statement of NRG and Gen On that als o constitutes a p ro spectus of NRG. NRG and GenOn will mail th e joint proxy s tatement/p ro spectus to their respective stock holders. NRG and GenOn also plan to file other d ocuments with the SE C regard ing the pro posed transactio n. This communication is n ot a subs titute for an y prospectus , proxy s tatement or any o ther document which NRG or GenOn may file with the SE C in connection w ith the proposed trans action. INVESTORS AND SECURITY HOLD ERS OF GENON AND NRG ARE URGE D TO RE AD THE JOINT PROXY
STATEM ENT/PROSPECTUS AND ANY OTHER RE LEVANT DOCUMENTS THAT WILL BE FILED WITH THE SEC CAREFULL Y AND IN THEIR ENTIRETY WHEN THEY BE COM E AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and stockhold ers will b e able to obtain free copies o f the join t proxy statement/prospectus and other documents contain ing important information about NRG and Gen On, once such do cuments are filed with the SEC, through the website maintain ed by th e SEC at www.sec.gov. NRG and GenOn make availab le free of charge at www.n rg energy.com an d www.genon .com, respectively (in the "Inv es tor Relations" section ), cop ies of materials they file with, or furnis h to, the SE C. Participants In The Merger Solicitation NRG, GenOn, and certain of th eir respectiv e d irectors and ex ecutive officers may be deemed to be particip ants in the solicitation of proxies fro m th e s tockholders of Gen On and NRG in connection with the propo sed transaction. In fo rmation abo ut th e d irectors and ex ecutive officers o f NRG is set forth in its proxy statement for its 20 12 annual meeting of s tockholders, which was filed with the SE C on March 1 2, 201 2.
Information abou t the directors and ex ecutive officers of GenOn is set forth in its p rox y statement for its 2012 ann ual meeting of stockho lders, which was filed with the SEC on March 30, 2 012. Th ese do cuments can be obtained free of charge from the sources ind icated abo ve. Other information regardi ng th e p articipants in the prox y solicitatio n and a description of th eir d irect and indirect in terests, by security holding s or oth erwis e, will be con tained in the joint prox y statement/prosp ectus an d oth er relevan t materials to be filed with the SEC when they become av ailable. Non -GAAP Financial Information Th e followin g presentation includ es "non -GAAP fin an cial meas ures " as defined in Regulation G under the Securities Exchange Act of 193 4, as amended. Recon ciliatio ns of t hes e measu res to th e most directly comp arable GAAP measures are contained in the app end ix. Th is presentation is av ailable in the In vestor Relations section o f o ur web site at w ww.genon.com. Certain factors th at cou ld affect GAAP financial m easu res are not acces sible o n a fo rward -looking basis, but co uld be material to futu re reported earnings and cash flow. 3

Edward R. M uller Chairman and CEO Second Quarter 201 2 Earnings Augus t 9, 20 12

Merg er Highlig hts M erg er with NRG will deliv er $30 0 million in ann ual transaction b en efits by 2 014 $1 75 million in an nual cost s ynergies $25 millio n in annu al operational efficiency synergies $1 00 million in an nual balance sheet efficiencies Comb ined comp any will be larg es t competitiv e p ower generation company in the U.S. 47,0 00 MWs of generating cap acity Increased scale an d ad ditional geographic d ivers ity Gen On sto ckh olders will receiv e 20 .6% premiu m based on closing prices of both stocks as of July 20 0.1 216 s hares of NRG in exchange for each s hare of GEN 5

Merg er Progres s GenOn and NRG stockhold er approvals Sp ecial meetings - 4th q uarter Regu latory approvals New York State Pub lic Service Commission - filed Augu st 2 Public Utility Commissio n of Texas - filed Augu st 3 Federal Energy Regulatory Co mmission - to be filed this week Department of Justice Hart-Scott-Rodino review - in process Required notices Califo rnia Pub lic Utilities Co mmission - filed July 31 Nu clear Regulatory Commission - filed Augu st 1 6 Merger expected to close by first quarter of 2013

GenOn Highlights Plants to be deactivated on October 1 , 2012 hav e b een op eratin g frequently throughou t the heat wave in the east Elrama unit 4 Niles unit 1 Potomac River units 1 -5 Generatin g fleet co ntin ues to run well M arsh Land ing is on s ch ed ule an d on b udget 7

RPM Auction Locked in over $500 million of RPM capacity revenue for plannin g year 20 15/2 016 Res ults were within exp ected range MOPR did n ot function properly Subs idized generation disto rted the market Pursuin g "brig ht line" tests for MOPR 8

9 Hedge Lev els Aggregate1 Baseload Coal1 Shaded bo xes rep resent net additions s ince April 9 , 2012; empty boxes repres en t net decreases s ince A pril 9, 2012. 2 012 repres ents balance of year (Augu st - December). Po wer hedges include hedges with bo th po wer and natu ral gas . Based on ex pected g en eration as of July 9, 20 12 2012 2013 2014 2 015 201 6 2012 2013 2 014 20 15 201 6 Po wer3 Fuel 2 2 2

J. William Holden Executiv e Vice Pres ident and CFO Second Qu arter 201 2 Earn ings August 9, 201 2

Fin an cial Results 2Q 2Q 2Q YTD YT D YTD ($ millions) 201 2 2011 Variance 2012 2011 V ariance Energ y1 $ 62 $ 151 $ (89) $ 84 $ 320 $ (2 36) Co ntracted and capacity 188 220 (32) 366 4 55 (89) Realized valu e o f h edg es 112 65 47 27 6 145 1 31 Adjusted gros s margin 1 $ 362 $ 436 $ (74) $ 726 $ 920 $ (194) Adju sted op eratin g an d oth er expenses (290 ) (3 32) 42 (553) (611 ) 58 Adju sted EBITDA $ 72 $ 104 $ (3 2) $ 173 $ 309 $ (136) 11 Ex cludes (a) u nreali zed gain s and los ses, (b) lower of cost or market inventory adjus tments , net, (c) adv ance settlement of ou t-of-mark et co ntract obligation and (d ) cos ts to deactivate generatin g facilities (capacity penalties). Energy - reduced generation v olumes because of contractin g dark spreads in Western & Eastern PJM and lower energy marketing contribution, partiall y offset by improv ed spark spreads Co ntracted and capacity - lower PJ M capacity prices Adju sted op eratin g an d oth er expenses: 2Q - lower project, outag e and maintenance exp en ses YTD - lower project, outag e and maintenance exp en ses ; M iran t/RRI merger co st s ynerg ies

Debt and Liq uidity ($ millions) Ju ne 30, 201 2 Amo rtizing term loan due 20 17 $ 68 8 Senior unsecured notes d ue 2014 - 2020 2 ,525 GenOn A mericas Generation senior notes due 2021 an d 2031 850 GenOn M ars h Landin g project finance due 2017 and 2023 2 55 Cap ital leases du e 2 015 16 Total debt1 $ 4,3 34 Cas h and cas h equivalents2 $ 1 ,677 Revolver and letters of credit availab le3 504 Total available liquidity 2,3 $ 2 ,181 Funds on depos it: Cash collateral fo r energy tradin g and marketin g $ 153 Cash collateral fo r o ther operating activities4 62 Cash co llateral for surety bon ds 34 Marsh Landing developmen t project cash collateral 85 Environ mental compliance deposits 35 Other 27 Total funds o n deposit $ 39 6 12 Ex cludes unamo rtized debt discounts an d adjus tments to fair value of debt of $(57) millio n. Includes $ 355 million of collateral p osted to GenOn. Exclu des av ailability un der GenOn Marsh Landin g credit facility . Includes $32 millio n related to th e Potomac Riv er escrow.

Capital Expenditures ($ millio ns) 2012 E 2013E Maintenance $ 113 $ 133 Environmental M aryland Healthy Air Act 108 - Other1 45 11 9 Co nstruction M arsh Land ing 3 55 56 O ther 18 - Other 14 10 Total capital exp end itures2 $ 653 $ 318 Project financings fo r Mars h Landin g (355) (38) Funds on Deposit for MD Health y Air Act (108 ) - Capital ex pen ditu res to be paid from cash $ 190 $ 280 1 3 $28 million and $82 million related to MATS, HEDD and water regulatio ns in 2012 and 2013, respectiv ely. Includes capitalized interest related only to M ars h Landing . Expected normalized maintenance capital expenditures ~$11 5 millio n/year decreas ing to ~$ 110 million/y ear after deactivations

Summary 14 M erger with NRG will deliver immediate value for stock holders of bo th compan ies who will b enefit from: $3 00 mi llion in an nual transaction benefits Increased scale Addition al geograp hic div ersity Generating fleet continues to run well M ars h Landing is o n schedule and on budget

Second Quarter 2012 Earnings Aug ust 9 , 2012 Appendix

Fix ed Con tracted and Capacity 16 In cludes actual res ults throug h June 20 12. Includes cleared capacity auction results for PJ M and New Eng land th ro ugh M ay 2016. ($ millions ) As of July 9, 2 012 $85 3 $950

17 Generation Portfolio Total Generation Capacity 2 2,670 M Ws (as of Jun e 3 0, 2012 ) CAISO Sou theas t (SERC, FRCC) PJM ISO - NE NYISO M ISO Op eratin g Segment / M ark et Net Capacity (M W) N et Capacity (M W) Eastern PJM 6,341 6,341 Western PJM /M ISO Western PJM 6 ,742 6, 742 M ISO 34 4 Total Western PJM / M ISO 7,0 86 California 5,391 5,391 Other So utheast 1,3 17 1,3 17 NYISO 1,139 1 ,139 ISO - NE 1,396 Total Other 3 ,852 3, 852 Total 22,67 0 22,6 70

Generation Net MWh Generated Net MWh Generated Net MWh G enerated Net MWh Generated Net MWh Gen erated Net M Wh Gen erated Net M Wh Generated 2Q 2 Q 2Q YTD YTD YTD 2012 2011 2 012 20 11 Bas el oad 1 Wes tern PJ M/M ISO 3 ,199,21 7 4,756 ,825 7 ,035,05 7 9,765 ,696 East ern PJM 1,373 ,856 2, 612,13 0 2,605 ,972 6, 123,40 8 Califo rn ia - - - - Other 600,70 9 487, 080 941 ,290 8 64,402 Total Baseload 5,17 3,782 7 ,856,03 5 10,58 2,319 16,753 ,506 Intermediate1 Western PJM /MISO 7,96 9 (97) 8,39 1 (2,120) Eastern PJM 1,371 ,198 24 7,970 1 ,591,6 83 265, 994 California 154 ,283 93 ,048 1 72,030 126,26 8 Other 29,88 8 67,4 29 34,6 11 85,7 12 Total Intermediate 1,563 ,338 4 08,350 1,806,7 15 475 ,854 Peak ing1 Western PJM /MISO 25,5 46 27,3 57 18,3 04 26, 158 Eastern PJM 44,829 34,22 0 54,67 8 51,39 8 California 1,755 1,768 1,755 1 ,560 Other 1 32,870 88,547 164,26 8 99,87 6 Total Peaking 205,00 0 151,8 92 239 ,005 17 8,992 T otal GenOn 6, 942,12 0 8,416 ,277 12 ,628,0 39 17,4 08,352 18 Bas ed on desig n capability.

Expected Changes in Generation Fleet 19 Plant Location M Ws Planned Deactivation / Commercial Operation Date Driver Units to be deactivated Units to be deactivated Units to b e d eactiv ated U nits to be deactivated Units to be deactivated Elrama unit 41 PA 17 1 October 2012 MATS and market conditio ns Niles unit 11 OH 1 09 October 201 2 MATS and market cond itions Poto mac Riv er VA 48 2 October 2012 Agreement with the City o f Alex and ria, VA Co ntra Cos ta CA 6 74 May 2 013 Exp iration o f PPA Portland PA 401 January 2015 Cumulativ e effect o f vario us environ mental regulations A von Lake OH 732 April 2 015 M ATS N ew Castle PA 330 April 2 015 M ATS Shawville PA 597 Ap ril 201 5 Cu mulative effect of various env ironmental regulations Titu s PA 243 Ap ril 201 5 MATS Glen Gardner NJ 1 60 May 2 015 NJ High En ergy D eman d Day (HEDD) regulations Total fleet reductio ns Total fleet redu ctions 3,899 Fleet addition Fleet additio n Fleet add itio n Fleet ad dition Fleet addition M arsh Lan ding CA 71 9 Mid-2013 Un der cons truction - on schedule and o n budg et 19,490 MWs o f g enerating capacity after 2015 Operating until O ctober 1 , 2012 under RM R arrang emen ts filed with FERC.

Expected Environmental Investments 20 Expect in vestments of $60 3 - $742 million in majo r con trols to meet curren t and anticipated en vironmental rules Plant Lo cation Control Techn ology Expected Timing Driv er Investments ($ million s) Ken dall M A Backpressure steam turb ine + air-coo led condenser 2012 - 2014 Water regu lation s $32 - $35 Gilbert NJ SCR 20 12 - 2015 New J ersey HEDD regulations $129 - $151 Sayrev ille NJ SCR 2012 - 2015 New J ersey HEDD regulations $129 - $151 Werner N J SCR 2012 - 2015 New J ersey HEDD regulations $129 - $151 Conemaugh PA Scrubber upgrade + SCR 2 011 - 2015 M ATS $841 M andalay CA Variable s peed pumps 2018 - 2019 Water regu lation s $17 - $20 Ormo nd Beach CA Variable s peed pumps 2018 - 2019 Water regu lation s $17 - $20 Chalk Poin t - Unit 2 MD SCR 20 18 - 2021 M ore string ent PM 2.5 and Ozon e NA AQS $ 341 - $452 Dick erso n MD SCR 20 18 - 2021 M ore string ent PM 2.5 and Ozon e NA AQS $ 341 - $452 Based on GenOn leased p ercen tage.

21 Other PJM/MISO, So uthern California and South east SEC filers Operating entities Bo rrowers and gu arantors of Gen On Energy secured revolving credit facility & term loan Deb t Structure Gen On Energy, Inc.1 GenOn En ergy, In c.1 Unsecured n otes 7.6 25% due 201 4 $575 $788 revolver d ue 20152 - Unsecu red n otes 7.8 75% due 201 7 725 Amortizin g term loan due 20172 688 Un secured notes 9.5% d ue 2 018 67 5 Unsecured notes 9 .875% du e 2 020 550 New York, New England an d Northern California Generating Ass ets Exclud es $(57) millio n unamo rtized deb t discounts an d adjustments to fair value of debt. Gen On Americas (a d irect s ubsidiary of GenOn Energy) and GenOn E nergy are co -borro wers o f the credit facility deb t. The present valu es of leas e p ay ments for GenOn M id-Atlantic and REM A operating leases are $826 million and $469 million, resp ectively. As o f J une 30, 2 012 GenOn Americas Generation1 Gen On Americas Generation1 Senior Notes 8.5% du e 20 21 $45 0 Senior Notes 9 .125% du e 20 31 400 Gen On Marsh Landing (project fin ancin g) Gen On Marsh Landi ng (project financing ) $150 Senior secured facility d ue 2017 $ - $155 Senior s ecured amortizing term loan due 2017 79 $34 5 Senior secu red amo rtizing term loan due 20 23 176 Gen On
Mid -Atlantic $ 16 cap ital lease Operating leases3 ($ millio ns) RE MA Operating leas es3

22 Other PJM/MISO, So uthern California and South east (9 ,522 M Ws) Org an izational Structure GenOn Energy, Inc. (22,6 70 M Ws ) GenO n Mid-Atlantic (5,2 09 M Ws ) New Yo rk , New England and Northern Californ ia (4,520 M Ws) RE MA (3,419 MWs) Bloss burg Portland Conemaug h Sayreville Gilb ert Shawnee Glen Gard ner Shawville Hamilton Titus Hunterstow n CT Tolna Keystone Warren Mou ntain Werner Orrtanna GenOn M ars h Landing (719 M Ws )1 Chalk Po int Dick erso n Morgantown Potomac River Bo wline M arth a's Viney ard Canal Pitts burg Contra Co sta Kendall M ars h Landing Aurora Hunterstown CCGT Avon Lake M andalay Brun ot Island New Castle Cheswick N iles 1 Choctaw Ormo nd Beach Coolwater Osceola Ellw ood Sab ine Elrama 4 Seward E tiwanda Shelby Und er cons truction, ex pected to be complete mid -2013; therefore, not included in total MWs. Gen On Americas Generation As o f J une 30, 20 12

Reg G: A djusted Net Loss to Adjusted E BITDA and Ad justed Gro ss M argin ($ millions) 2Q 2Q YTD YTD 201 1 2012 2011 2 012 Net Lo ss $ (13 8) $ (228) $ (24 9) $ (260) Unrealized loss es 18 14 2 97 42 Mirant/RRI merger-related costs 14 2 37 4 L ower of cost or market in ven tory adju stments, net (4) 3 (12 ) 4 4 (Gain) los s on early extinguis hment o f deb t (1) - 23 - Major litigation cost s, net o f recoveries 7 2 7 4 Reversal of M ontgo mery Cou nty carbon levy as sessment (8) - (8 ) - Large scale remed iation an d settlement costs 30 (3) 30 (3 ) Costs to deactivate g en erating facilities - 3 - 38 Advance settlemen t of out-of-mark et co ntract obligation - - - (2 0) Reversal of Potomac River settlemen t obligatio n - (3 1) - (3 1) Gain on s ales of as sets - - - (6 ) Other, net - 3 - 5 Adju sted Net Los s $ (82) $ (1 07) $ (75) $ (183 ) Provision fo r income taxes - 4 3 4 Interest exp ens e, net 96 85 205 17 4 Depreciation and amortization 90 90 17 6 178 Ad justed EBITDA $ 104 $ 7 2 $ 30 9 $ 173 Adjus ted operating and other expenses 332 290 61 1 553 Adjusted Gross M argin $ 43 6 $ 362 $ 920 $ 726 U nrealized lo sses (18) (142 ) (97 ) (42 ) Lo wer of cost or market in ven tory adjus tments, net 4 (3 ) 1 2 (44) Co sts to deactivate generating facilities (capacity pen alties) - (2 ) - (2 ) Ad vance settlement o f o ut-of-
mark et co ntract obligation - - - 20 Gross Margin $ 422 $ 2 15 $ 83 5 $ 65 8 23

Reg G: O peratio ns and maintenance to adjus ted operating and other expenses ($ millions) 2Q 2Q YTD YTD 2 011 201 2 2011 2012 Operations and maintenance $ 372 $ 264 $ 6 77 $ 5 72 (Gain) los s on s ales of as sets, n et 2 - 1 (8) Other, net - - 22 (2) Operating and o ther ex pen ses $ 37 4 $ 264 $ 700 $ 562 M irant/RRI merger -related costs (14) (2) (37) (4) Cos ts to deactivate generating facilities (exclu ding capacity p enalties) - (1 ) - (3 6) (Gain ) loss on early ex ting uishment of debt 1 - (2 3) - Gain on s ales of as sets - - - 6 Reversal of Potomac River settlement ob ligation - 31 - 31 Majo r litigation co sts, net of recoveries (7) (2) (7) (4 ) Revers al of Mon tgomery Coun ty carbo n levy ass es sment 8 - 8 - Large scale remed iation an d settlement costs (30) 3 (30) 3 Other, net - (3 ) - (5 ) Ad justed operating and o ther exp en ses $ 332 $ 290 $ 611 $ 553 24