EX-12.1 2 ex121.htm EX 12.1 EX 12.1


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


 
For the Year Ended December 31,
 
2011(a)
 
2010
 
2009
 
2008
 
2007
 
(in millions except ratio)
Earnings:
 
 
 
 
 
 
 
 
 
(Loss)/Income from continuing operations before income tax
$
(646
)
 
$
753

 
$
1,669

 
$
1,766

 
$
933

Net loss attributable to noncontrolling interest
—

 
(1
)
 
(1
)
 
—

 
—

Less:
 
 
 
 
 
 
 
 
 
Distributions and equity in earnings of unconsolidated affiliates
9

 
(19
)
 
(41
)
 
(44
)
 
(33
)
Impairment charge on equity method investment
495

 
—

 
—

 
—

 
—

Capitalized interest
(80
)
 
(36
)
 
(37
)
 
(45
)
 
(11
)
Add:
 
 
 
 
 
 
 
 
 
Fixed charges
931

 
678

 
703

 
634

 
715

Amortization of capitalized interest
7

 
4

 
3

 
1

 
—

Total Earnings:
$
716

 
$
1,379

 
$
2,296

 
$
2,312

 
$
1,604

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
808

 
$
600

 
$
610

 
$
546

 
$
657

Interest capitalized
80

 
36

 
37

 
45

 
11

Amortization of debt issuance costs
26

 
25

 
31

 
22

 
26

Amortization of debt discount
6

 
7

 
13

 
15

 
19

Approximation of interest in rental expense
11

 
10

 
12

 
6

 
2

Total Fixed Charges:
$
931

 
$
678

 
$
703

 
$
634

 
$
715

Ratio of Earnings to Combined Fixed Charges
0.77

 
2.03

 
3.27

 
3.65

 
2.24


(a)
The ratio coverage for the year ended December 31, 2011 was less than 1:1. NRG would have needed to generate additional earnings of $215 million to achieve a ratio coverage of 1:1.