EX-12.1 2 exhibit1212016.htm EXHIBIT 12.1 Exhibit


EXHIBIT 12.1
NRG ENERGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES


 
For the Year Ended December 31,
 
2016
 
2015
 
2014
 
2013(a)
 
2012(a)
 
(in millions except ratio)
Earnings:
 
 
 
 
 
 
 
 
 
(Loss)/income from continuing operations before income tax
$
(875
)
 
$
(5,094
)
 
$
135

 
$
(634
)
 
$
(12
)
Less:
 
 
 
 
 
 
 
 
 
Distributions and equity in earnings of unconsolidated affiliates
54

 
37

 
49

 
84

 
2

Impairment charge on equity method investment
268

 
56

 
—

 
99

 
2

Capitalized interest
(43
)
 
(30
)
 
(29
)
 
(130
)
 
(140
)
Add:
 
 
 
 
 
 
 
 
 
Fixed charges
1,121

 
1,173

 
1,255

 
1,037

 
864

Amortization of capitalized interest
21

 
21

 
20

 
14

 
11

Total Earnings:
$
546


$
(3,837
)
 
$
1,430

 
$
470

 
$
727

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
1,057

 
$
1,139

 
$
1,228

 
$
932

 
$
671

Interest capitalized
43

 
30

 
29

 
130

 
140

Amortization of debt issuance costs
38

 
37

 
35

 
33

 
32

Amortization of debt (premium)/discount
(34
)
 
(48
)
 
(50
)
 
(67
)
 
9

Approximation of interest in rental expense
17

 
15

 
13

 
9

 
12

Total Fixed Charges:
$
1,121


$
1,173

 
$
1,255

 
$
1,037

 
$
864

Ratio of Earnings to Combined Fixed Charges
0.49


(3.27
)
 
1.14

 
0.45

 
0.84


(a)
The ratio coverage for the year ended December 31, 2016, 2015, 2013, and 2012 was less than 1:1. NRG would have needed to generate additional earnings of $575 million, $5,010 million, $567 million, and $137 million, respectively, to achieve a ratio coverage of 1:1 for those years.