EX-12.2 3 exhibit1222016.htm EXHIBIT 12.2 Exhibit


EXHIBIT 12.2
NRG ENERGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS



 
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
)
Preference dividends - tax effected
(8
)
 
(32
)
 
(90
)
 
(14
)
 
(14
)
Add:
 
 
 
 
 
 
 
 
 
Fixed charges
1,129

 
1,205

 
1,345

 
1,051

 
878

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

Preference dividends - tax effected
8

 
32

 
90

 
14

 
14

Total Fixed Charges:
$
1,129


$
1,205

 
$
1,345

 
$
1,051

 
$
878

Ratio of Earnings to Combined Fixed Charges and
Preference Dividends
0.48

 
(3.18
)
 
1.06

 
0.45

 
0.83


(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 $583 million, $5,042 million, $581 million, and $151 million, respectively, to achieve a ratio coverage of 1:1.