EX-12.01 39 a2230485zex-12_01.htm EX-12.01

Exhibit 12.01

 

NRG ENERGY, INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

For the Nine Months
Ended September 30,

 

For the Year Ended December 31,

 

 

 

2016

 

2015

 

2014

 

2013(a)

 

2012(a)

 

2011(a)

 

 

 

(in millions except ratio)

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income/(loss) from continuing operations before income tax

 

$

259

 

$

(5,094

)

$

135

 

$

(634

)

$

(12

)

$

(646

)

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions and equity in earnings of unconsolidated affiliates

 

44

 

37

 

49

 

84

 

2

 

9

 

Impairment charge on equity method investment

 

147

 

56

 

—

 

99

 

2

 

495

 

Capitalized interest

 

(32

)

(30

)

(29

)

(130

)

(140

)

(80

)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

886

 

1,173

 

1,255

 

1,037

 

864

 

931

 

Amortization of capitalized interest

 

17

 

21

 

20

 

14

 

11

 

7

 

Total Earnings:

 

$

1,321

 

$

(3,837

)

$

1,430

 

$

470

 

$

727

 

$

716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

838

 

$

1,139

 

$

1,228

 

$

932

 

$

671

 

$

808

 

Interest capitalized

 

32

 

30

 

29

 

130

 

140

 

80

 

Amortization of debt issuance costs

 

29

 

37

 

35

 

33

 

32

 

26

 

Amortization of debt discount

 

(26

)

(48

)

(50

)

(67

)

9

 

6

 

Approximation of interest in rental expense

 

13

 

15

 

13

 

9

 

12

 

11

 

Total Fixed Charges:

 

$

886

 

$

(1,173

)

$

1,255

 

$

1,037

 

$

864

 

$

931

 

Ratio of Earnings to Combined Fixed Charges

 

1.49

 

(3.27

)

1.14

 

0.45

 

0.84

 

0.77

 

 

(a)         The ratio coverage for the years ended December 31, 2015, 2013, 2012 and 2011 was less than 1:1.  NRG Energy, Inc. would have needed to generate additional earnings of $5,010 million, $567 million, $137 million and $215 million, respectively, to achieve a ratio coverage of 1:1 for those periods.