EX-12.1 4 exhibit1212013.htm NRG ENERGY, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12.1 2013


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


 
For the Year Ended December 31,
 
2013
 
2012
 
2011(a)
 
2010
 
2009
 
(in millions except ratio)
Earnings:
 
 
 
 
 
 
 
 
 
Income/(loss) from continuing operations before income tax
$
(634
)
 
$
(12
)
 
$
(646
)
 
$
753

 
$
1,669

Net income/(loss) attributable to noncontrolling interest
34

 
20

 
—

 
(1
)
 
(1
)
Less:
 
 
 
 
 
 
 
 
 
Distributions and equity in earnings of unconsolidated affiliates
84

 
2

 
9

 
(19
)
 
(41
)
Impairment charge on equity method investment
(99
)
 
2

 
495

 
—

 
—

Capitalized interest
(130
)
 
(140
)
 
(80
)
 
(36
)
 
(37
)
Add:
 
 
 
 
 
 
 
 
 
Fixed charges
1,037

 
864

 
931

 
678

 
703

Amortization of capitalized interest
14

 
11

 
7

 
4

 
3

Total Earnings:
$
306

 
$
747

 
$
716

 
$
1,379

 
$
2,296

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
815

 
$
671

 
$
808

 
$
600

 
$
610

Interest capitalized
130

 
140

 
80

 
36

 
37

Amortization of debt issuance costs
33

 
32

 
26

 
25

 
31

Amortization of debt discount
50

 
9

 
6

 
7

 
13

Approximation of interest in rental expense
9

 
12

 
11

 
10

 
12

Total Fixed Charges:
$
1,037

 
$
864

 
$
931

 
$
678

 
$
703

Ratio of Earnings to Combined Fixed Charges
0.30

 
0.86

 
0.77

 
2.03

 
3.27


(a)
The ratio coverage for the year ended December 31, 2013 and 2011 was less than 1:1. NRG would have needed to generate additional earnings of $678 million and $215 million, respectively, to achieve a ratio coverage of 1:1 for those years.